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Academic Questions in Economics

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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 _____.

  1. total expenditure exceeds revenue
  2. capital expenditure exceeds revenue
  3. recurrent expenditure exceeds revenue
  4. recurrent expenditure exceeds capital expenditure
  5. capital expenditure exceeds recurrent expenditure
  6. total expenditure exceeds capital and recurrent expenditure


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.

Len Academy - Supply CurvePlease read more on the law of supply and supply curve here