Academic Questions in Economics
The following statements are true concerning explicit opportunity cost except _____.
A. They are recorded in the accounts book
B. It is a type of cost
C. They may also be referred to as 'out of pocket' cost
D. They are utilized as factors of production
E. Money spent on wages, salaries and raw materials are examples of explicit opportunity cost
F. Explicit opportunity cost are always utilized for investment
|
Needs / Wants |
Cost (Naira) |
|
Phone |
50,000 |
|
Console Game |
120,000 |
|
Laptop |
80,000 |
|
Ipad |
100,000 |
|
Smart watch |
85,000 |
|
Ipod |
40,000 |
Which of the following statement is incorrect concerning the table?
A. Ipod is the least important need of the individual
B. If the individual has 200,000 Naira at hand, then the laptop, iPad, smart watch and iPod will all be considered as opportunity cost
C. If the individual has 480,000 Naira, he or she will purchase all the items in the table
D. Console game is the most important need of the individual
E. The table shows a scale of preference
F. The individual needs an ipod
Which of the following statement is false concerning scale of preference?
A. It is brought about by the insatiability of human wants
B. It is brought about by the limitation of cash at hand
C. It is a list of a person's needs or wants written in an order of importance
D. Scale of preference cost is the value of the best alternative a person could have achieved but did not achieve it after the best choice had been made
E. Opportunity cost is a term associated with scale of preference
F. None of the above
Eonomies of scale in economics means _____.
A. The prices of goods will remain the same because producers manufacture similar goods
B. The prices of goods will fall because producers manufacture more goods
C. The prices of goods will rise because producers manufacture less goods
D. The prices of goods will rise and producers will manufacture more goods
E. The prices of goods will fall and producers will manufacture less goods
F. Equilibrium is achieved in the economy
Budget deficit refers to the amount by which _____.
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NOTABLE POINTS IN Economics
The law of supply states that:
The quantity of the supplied services or goods will increase as the price increases and they will decrease as the price decreases provided all other factors remain constant.
These constant factors are very important when stating the supply law. They include:
The price of Input resources
The kind of technology used during production
The number of suppliers
The number of buyers; and so on.
A graph that shows the relationship between the price of a product or service, and its quantity supplied is the supply curve.
Supply curve can be defined as a graphical representation of the direct relationship between the prices of goods and services and the quantity supplied (of such goods and services) within a particular period of time provided all other factors remain constant.
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