1. Economics is regarded as a science because?
- A. its issues can be easily verified by reference to facts
- B. it adopts scientific methods in making its analysis
- C. its issues are relevant for national development
- D. its subject matter studies human behaviour
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2. The opportunity cost of a worker going to the university is
- A. tuition, fees and books
- B. boarding and lodging
- C. the wages given up to attend the university
- D. transportation and entertainment
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3. Which of the following items is not an example of circulating capital
- A. raw material
- B. money
- C. fuel
- D. machinery
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4. In a market economy, the problem of what goods to produced is solved primarily by
- A. directives of the government
- B. the pattern of consumers spending
- C. producers of consumer goods
- D. people producing what they want
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5. If the weight of five puppies in kilograms are 3.5, 3.0, 4.2, 5.0 and 4.3, then mean weight of the puppies is?
- A. 3.5 kg
- B. 4.0 kg
- C. 4.2 kg
- D. 5.0 kg
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6. If the coefficient of cross elasticity of demand for goods Y and Z is positive, the two goods are?
- A. complements
- B. substitutes
- C. luxurious
- D. inferior
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7. The difference between demand and wants is in the
- A. desire for the commodity
- B. significance of the commodity
- C. ability to pay for the commodity
- D. economic value of the commodity
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8. A demand curve parallel to the Y-axis indicates
- A. fairly elastic demand
- B. perfectly elastic demand
- C. perfectly inelastic
- D. fairly inelastic demand
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9. Which of the following is an example of derived demand
- A. textbook
- B. labour
- C. staple food
- D. mobile phone
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10. A rightward shift in the supply curve of a commodity is brought about by an increase in?
- A. the level of technology
- B. the price of the commodity
- C. cost of production
- D. taxation
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