1. Economics problem arise in all society because?
- A. resources are mismanaged by leaders
- B. there is no proper planning
- C. resources are not in adequate supply
- D. the services of economist are not employed
2. Which of the following is not emphasized in a production possibility curve
- A. scarcity of resources
- B. economic development
- C. inefficiency in the use of resources
- D. unemployment of labour
3. The organisation of productive factors is the reponsibility of the?
- A. management
- B. entrepreneur
- C. production manager
- D. labour union
4. Producers operating in a free market economy are more efficient as a resulf of?
- A. the existence of competition
- B. the very few number of participants
- C. the commitment of the shareholders
- D. government regulation of their activities
5. A downward sloping demand curve means that?
- A. total revenue declines as price is lowered
- B. demand falls as output rises
- C. demand falls as output falls
- D. price must be lowered to sell more
6. If the price of commodity X rises and consumers shift to commodity Y, then commodity X and Y are?
- A. substitutes
- B. complements
- C. inferior goods
- D. bought goods
7. Goods whose demand vary directly with money income are called?
- A. inferior goods
- B. complementary goods
- C. substitutes
- D. normal goods
8. An exceptional demand curve can result from?
- A. increase in prices of raw materials
- B. increase in the size of the population
- C. expectation of future price increase
- D. change in taste of the consumer
9. Palm oil and palm kernel are in?
- A. joint supply
- B. competitive demand
- C. competitive supply
- D. complementary demand
10. Which of the following is true about supply of land?
- A. its higher in the urban than rural areas
- B. varies with time
- C. rises with demand
- D. is fixed
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