41. Effective demand for a commodity is desire for that commodity backed by_______
- A. a wish for the lowest possible price
- B. ability and willingness to pay
- C. cash in one’s pocket
- D. a promise to make payment
42. A commodity is defined as normal when its demand changes in the same direction as______
- A. income
- B. price
- C. taste
- D. preferences
43. Which of the following matters may account for changes in demand?
I – changes in consumer preferences
II – changes in real income
III – changes in distribution of incomes
IV – changes in levels of taxation
- A. I, II
- B. II, III
- C. I, III, IV
- D. I, II, III, IV
44. An example of a market which approaches fairly near to perfection is____________
- A. the retail market
- B. the house market
- C. the labour market
- D. the foreign exchange market
45. Whether a monopolist is able to increase his revenue by restricting his output depends on the shape of the_________
- A. marginal product
- B. marginal cost curve
- C. demand curve
- D. average cost curve
46. An example of a vertical combination is the merger of_________
- A. a spinning firm and a wearing firm
- B. two meat retailing firms
- C. two very large wholesale textile distributors
- D. three secretarial employment agencies in one town
47. When of the following matters may account for changes in supply?
I – technological advances in an industry
II – changes in labour costs
III – changes in source of supply
IV – changes in levels of taxation
- A. I, II
- B. I, III
- C. II, III, IV
- D. I, II, III, IV
48. A supply curve slopes upwards from the left to the right indicating__________
- A. a negative slope
- B. a positive slope
- C. a backward sloping supply curve
- D. short-run supply curve
49.
Use the following information given to answer this question
Total of all expenditure incurred during the year ₤ 80,000m
Indirect taxes on goods and services ₤ 8,000m
Capital consumption ₤ 6,000m
National income is__________
- A. ₤ 74,000m
- B. ₤ 66,000m
- C. ₤ 60,000m
- D. ₤ 14,000m
50. Gross national expenditure at factor cost is_________
- A. ₤ 88,000m
- B. ₤ 82,000m
- C. ₤ 74,000m
- D. ₤ 72,000m
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