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ECO231 EXAM PRACTICE QUESTIONS AND ANSWERS

ECO231 EXAM PRACTICE QUESTIONS


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_ do not cross (intersect)

a.Economics approval

b.Economics Curve

c.Indifference curves

d.Economics Gr

 



What is the demand curve facing a monopoly firm?

a.no demand curve

b.Perfect market demand curve

c.market demand curve

d.Monopoly Demand Curve

 



The interaction of market demand and market supply determine_?

a.Total revenue

b.Marginal Price

c.Total price

d.equilibrium price

 



_is maximized when marginal revenue equals marginal cost (i.e. marginal revenue = marginal cost) and marginal cost is rising?

a.demand

b.demand Structure

c.Profit

d.cost

 



_ is the measure of the additional utility that is derived when an additional unit of the good is consumed

a.Total Cost

b.Total utility

c.Marginal Cost

d.Marginal utility

 



satisfaction obtained from all units of a particular commodity consumed over some time is _____

a.Marginal unit

b.Gross Earning

c.Total utility

d.marginal utility

 



two types of utility theories are?

a.Demand and supply utility theories

b.ordinal and cardinal utility theory

c.ordinary and extraordinary utility theories

d.General and private utility theories

 



_can be used to explain the negative slope of a consumer\’s demand curve?

a.Total equilibrium

b.Ordinal equilibrium

c.consumer equilibrium

d.Marginal equilibrium

 

 


Difference between total utility derived from one level of consumption and total utility derived from another level of consumption.

a.Marginal Cost

b.Total Cost

c.Marginal utility

d.Total utility

 



An additional or incremental utility is called?

a.Total utility

b.Marginal utility

c.Utility

d.None of the above



ECO231 EXAM KEYNOTE IS NOW AVAILABLE, CLICK HERE TO GET IT NOW! 



One of the basic assumptions of indifference curves is that the consumer buys

a.no combinations of different commodities

b.combinations of different commodities they do not need

c.total Cost

d.combinations of different commodities

 



_ is a graph of all combinations of goods

a.MarginaluCurve

b.Utility Curve

c.indifference curve

d.Economics Curve

 



_Who wrote The Wealth of Nations?

a.None of the above

b.keynes Maynard

c.Adam Smith

d.Riccardo

 



_ Is the price of one good in terms of another?

a. relative price

b.utility price

c.Marginal price

d.Difference curve

 



_the maximum amount of good Y the consumer would be willing to give up obtaining an additional unit of X?

a.Economics

b.marginal rate of substitution (MRS)

c.Curve

d.Rate of Substitution ()

 



The total benefit received from the purchase of a commodity is expected to exceed the opportunity cost. This provides a net gain from trade, referred to as?

a.consumer surplus

b.supply gain

c.Demand Surplus

d.Producer gain

 



MUx/Px=

a.MUy/Py

b.None of the above

c.MxUy/Pxfy

d.PUy/My

 



which theory makes the assumption that the consumer has a budget constraint and that the consumer is consistent?

a.revealed preference theory

b.Adam Smith Theory

c.utility theory

d.consumption theory

 



_is a pricing strategy that enables monopolists to charge customers different prices for the same service?

a.monopoly price

b.none of the above

c.Price discrimination

d.oligopoly -Monopoly

 

 

 

A monopolistic competitive market has characteristics of both _and monopoly

a.Oligopoly

b.perfect competition

c.expenditure

d.marginal competition

 



_ is a single producer of a product, which does not have a close substitute?

a.monopoly

b.Perfect market

c.Oligopoly

d.Duopoly

 



In a Perfect Competitive Business,_ = (P x Q)/Q = Price?

a.Q/TR

b.None of the above

c.TR/Q

d.P/Q

 



TRn – TR n-1=

a.TR

b.MR

c.TRn

d.TRQ

 



_ is equal to the change in TR, divided by the change in quantity?

a.Total revenue

b.monopoly

c.marginal revenue

d.marginal expenditure

 



_ is equal to the change in TR, divided by the change in quantity?

a.Total revenue

b.monopoly

c.marginal revenue

d.marginal expenditure

 



_Can be portrayed as the slope of the indifference curve?

a.y

b.MRS

c.RS

d.X

 



One of the basic assumptions of indifference curves is that the consumer buys

a.total Cost

b.no combinations of different commodities

c.combinations of different commodities

d.combinations of different commodities they do not need

 



_Who wrote The Wealth of Nations?

a.Adam Smith

b.keynes Maynard

c.None of the above

d.Riccardo

 



which theory assumes that the consumer has a budget constraint and that the consumer is consistent?

a.revealed preference theory

b.consumption theory

c.utility theory

d.Adam Smith Theory

 



The difference between the maximum amount a person is willing to pay for a good and its current market price is referred to as?

a.consumer surplus

b.relative surplus

c.Equilibrium Supply

d.supply gain

 



ECO231 EXAM KEYNOTE IS NOW AVAILABLE, CLICK HERE TO GET IT NOW! 



_map or graphically represent consumer preferences.

a.suplly curve

b.None of the above

c.Indifference curve

d.Demand Curve

 



The total benefit received from the purchase of a commodity is expected to exceed the opportunity cost. This provides a net gain from trade, referred to as?

a.Producer gain

b.supply gain

c.consumer surplus

d.Demand Surplus

 

According to budget constraint, income is equal to the sum of?

a.Supply utility

b.consumer expenditure

c.Demand Utility

d.Price

 



If a consumer equally prefers two product bundles, then the consumer is _ between the two bundles.

a.looking for money

b.indifferent

c.curve

d.supply

 



_ is equal to price and is constant.

a.average revenue

b.Total Revenue

c.Income

d.expenditure

 



In a Perfect Competitive Business,_ = (P x Q)/Q = Price?

a.TR/Q

b.Q/TR

c.P/Q

d.None of the above

 



By selling 30 units, firm JKB makes N300. After selling the 31st unit ,firm\’s revenue increased to 318. What is the marginal revenue in this situation?

a.18

b.31

c.618

d.318

 



TR/Q=

a.MR

b.QR

c.AR

d.TRQ

 



_is a pricing strategy that enables monopolists to charge customers different prices for the same service?

a.monopoly price

b.Price discrimination

c.none of the above

d.oligopoly -Monopoly

 



_ is a single producer of a product, which does not have a close substitute?

a.Perfect market

b.Oligopoly

c.monopoly

d.Duopoly

 



Calculate the total revenue for a firm that is selling 10 television sets at N21,000 each

a.N2,000

b.N210000

c.N2,10,0

d.N210

 



A monopolistic competitive market has characteristics of both _and monopoly

a.perfect competition

b.expenditure

c.Oligopoly

d.marginal competition

 



two types of utility theories are?

b.ordinal and cardinal utility theory


 

ECO231 EXAM KEYNOTE IS NOW AVAILABLE, CLICK HERE TO GET IT NOW! 



what is defined as the level of happiness or satisfaction connected with choices?

b.utility

 

cardinal utility theory uses _ as a measure of Utility.

a.utile

 

Difference between total utility derived from one level of consumption and total utility derived from another level of consumption.

c.Marginal utility

 

The satisfying power goods have?

c.Utility

 

MU means?

a.Marginal Utility

 

_ is the measure of the additional utility that is derived when an additional unit of the good is consumed

c.Marginal utility

 

Satisfaction obtained from all units of a particular commodity consumed over some time

c.Total utility

 

The total benefit received from the purchase of a commodity is expected to exceed the opportunity cost. This provides a net gain from trade, referred to as?

c.consumer surplus

 

According to budget constraint, income is equal to the sum of?

b.consumer expenditure

 

I = Px*X +

d.Py*Y

 

_Can be portrayed as the slope of the indifference curve?

d.MRS

 

which theory makes the assumption that the consumer has a budget constraint and that the consumer is consistent?

d.revealed preference theory

 

_map or graphically represent consumer preferences.

d.Indifference curves

 

_ Is the price of one good in terms of another?

d.relative price

 

If a consumer equally prefers two product bundles, then the consumer is _ between the two bundles.

c.indifferent

 

_ is best defined as the structural/organisational and other characteristics of a market

c.Market structure

 

Which of the following is not part of a presentation planner speech

c.Directory

 

 

An academic field that deals with the processes of communication, commonly defined as the sharing of symbols over distances in space and time is known as?

d.Communication Studies

 

ECO231 EXAM KEYNOTE IS NOW AVAILABLE, CLICK HERE TO GET IT NOW! 

In Parts of Speech, Coordinating, Subordinating, and Correlative are types of …….

a. Conjunction

 

Which of these is not among the recommended 4Ps methods for succeeding in an interview?

b.Publicity

 

Which of the following is not a speaking style

d.Engagement style

 

The following are relevant organization structures in the presentation except

d.Description

 

 

In Communication Processes, which of the following is not a type of non-verbal communication?

b.Singing

 

One of these is essential to balance both theoretical and practical skills required for good communication.

d.Communications Training

 

ECO231 EXAM KEYNOTE IS NOW AVAILABLE, CLICK HERE TO GET IT NOW! 

 

Effective crisis communications strategies will achieve all of the following except

c.Maintain supervision

 

What is an example of investment according to economists?

c.Depositing money in a bank account

 

 

Sources of finance can be divided into internal and ……..

a.external

 

What are the risks of losses as the result of unforeseen intervention by the government?

a.political risks

 

According to Beattie (2017), what is an investment?

d.Something acquired with money for generating income or profit

 

How do economists generally view investment?

b. As deferred consumption

 

Which type of investment is known for lower risk compared to ownership investments?

d.Bonds and debentures

 

 

What type of return do debentures typically offer?

c.interest

 

 

What type of financial instrument are preference shares considered?

d.Debt instruments

 

What are derivatives used for in investment?

a.Insuring against price movements and speculation

 

What is the Exchange that serves as an intermediary between fundraisers and suppliers of capital in Nigeria?

b.NSE

 

 

The stages involved in the venture creation process include the following 

b. Reactivation stage

what is an investment that is undertaken to reduce the risk of adverse price?

a.hedge

 

What is the expected variability of the income flow?

Ans. risk

 

Which of the following is the apex regulatory body in the Nigerian banking sector?

a.CBN

 

 

ECO231 EXAM KEYNOTE IS NOW AVAILABLE, CLICK HERE TO GET IT NOW! 

A value investor buys undervalued securities and ———–

c.sells overvalued securities

 

The strategic roles of the entrepreneur in creating a new venture revolve around the following?

d.Analysis

 

 

 

which utility theory uses the indifference curve to ascertain utility?

c.ordinal utility

 

Which utility theory assigns consumer satisfaction numerical values?

c.cardinal utility

 

_can be used to explain the negative slope of a consumer\’s demand curve?

c.consumer equilibrium

 

two types of utility theories are?

b.ordinal and cardinal utility theory

 

The satisfying power goods have?

d.Utility

 

When good X becomes relatively more expensive, the quantity of goods X demanded falls as a result.

c.substitution effect

 

_ occurs when the price of a good changes?

b.income effect

 

_ states that consumption of any item yields the consumer declining utility holding taste constant?

b.law of diminishing marginal utility

 

The indifference curve is connected to ……

Ans. consumer behavior

 

ECO231 EXAM KEYNOTE IS NOW AVAILABLE, CLICK HERE TO GET IT NOW! 

 

A monopolistic business maximizes its earnings when

Ans. MR = MC

 

The theory of ….. is an attempt to explain how income is shared among the factors of production

Ans. distribution

 

In trying to spend his money to derive the maximum amount of satisfaction, a consumer is said to be …………

Ans. Rational

 

The demand of goods and services is a ………… demand

Ans. direct

 

When oligopoly firms get tired of competing with each other, they are inclined to formally cooperate. This is called ………….

Ans. merger

 

A product ………. Is a collection of goods with the same features.

Ans. group

 

 

The consumer preferences include all except…….

Ans. concavity

 

A firm is said to face………….. a sloping demand curve in a monopolistic competitive market

Ans. downward

 

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The slope of indifference curve is also known as ………….

Ans. marginal rate of substitution

 

 

Market power also means that a monopolistic competitive firm faces a downward-sloping ……. Curve

Ans. demand

 

 

The total utility of goods x can be symbolized as ………….

Ans. Tux = ?Mux

The price takers are buyers and sellers of ………….

Ans. factors

 

 

The additional cost of employing/purchasing one unit of a factor is referred to as ………

Ans. Marginal Factor Cost

 

 

ECO231 EXAM KEYNOTE IS NOW AVAILABLE, CLICK HERE TO GET IT NOW!

 

 

A market where there are a few sellers with similar or identical products is referred to as ……… market

Ans. oligopoly

 

 

Fundamentally, …………. In the market is what drives demand.

Ans. consumer behavior

 

 

The ……….. equilibrium in monopolistic competition is the same as that of a monopolist

Ans. short run

 

 

The satisfying power goods have is referred to as …………..

Ans. utility

 

 

A monopolistic business maximizes its earnings when

Ans. MR = MC

 

Kindly note that the ECO231 exam practice questions and answers will be updated from time to time.

ECO231 EXAM PRACTICE QUESTIONS

 

_ do not cross (intersect)

a.Economics approval

b.Economics Curve

c.Indifference curves

d.Economics Gr

 

What is the demand curve facing a monopoly firm?

a.no demand curve

b.Perfect market demand curve

c.market demand curve

d.Monopoly Demand Curve

 

The interaction of market demand and market supply determine_?

a.Total revenue

b.Marginal Price

c.Total price

d.equilibrium price

 

 

_is maximized when marginal revenue equals marginal cost (i.e. marginal revenue = marginal cost) and marginal cost is rising?

a.demand

b.demand Structure

c.Profit

d.cost

 

 

 

_ is the measure of the additional utility that is derived when an additional unit of the good is consumed

a.Total Cost

b.Total utility

c.Marginal Cost

d.Marginal utility

 

 

satisfaction obtained from all units of a particular commodity consumed over some time is _____

a.Marginal unit

b.Gross Earning

c.Total utility

d.marginal utility

 

 

two types of utility theories are?

a.Demand and supply utility theories

b.ordinal and cardinal utility theory

c.ordinary and extraordinary utility theories

d.General and private utility theories

 

 

_can be used to explain the negative slope of a consumer\’s demand curve?

a.Total equilibrium

b.Ordinal equilibrium

c.consumer equilibrium

d.Marginal equilibrium

 

 

 

Difference between total utility derived from one level of consumption and total utility derived from another level of consumption.

a.Marginal Cost

b.Total Cost

c.Marginal utility

d.Total utility

 

An additional or incremental utility is called?

a.Total utility

b.Marginal utility

c.Utility

d.None of the above

 

ECO231 EXAM KEYNOTE IS NOW AVAILABLE, CLICK HERE TO GET IT NOW! 

 

One of the basic assumptions of indifference curves is that the consumer buys

a.no combinations of different commodities

b.combinations of different commodities they do not need

c.total Cost

d.combinations of different commodities

 

 

_ is a graph of all combinations of goods

a.MarginaluCurve

b.Utility Curve

c.indifference curve

d.Economics Curve

 

 

_Who wrote The Wealth of Nations?

a.None of the above

b.keynes Maynard

c.Adam Smith

d.Riccardo

 

 

_ Is the price of one good in terms of another?

a. relative price

b.utility price

c.Marginal price

d.Difference curve

 

 

_the maximum amount of good Y the consumer would be willing to give up obtaining an additional unit of X?

a.Economics

b.marginal rate of substitution (MRS)

c.Curve

d.Rate of Substitution ()

 

 

The total benefit received from the purchase of a commodity is expected to exceed the opportunity cost. This provides a net gain from trade, referred to as?

a.consumer surplus

b.supply gain

c.Demand Surplus

d.Producer gain

 

 

MUx/Px=

a.MUy/Py

b.None of the above

c.MxUy/Pxfy

d.PUy/My

 

 

which theory makes the assumption that the consumer has a budget constraint and that the consumer is consistent?

a.revealed preference theory

b.Adam Smith Theory

c.utility theory

d.consumption theory

 

 

_is a pricing strategy that enables monopolists to charge customers different prices for the same service?

a.monopoly price

b.none of the above

c.Price discrimination

d.oligopoly -Monopoly

 

 

 

A monopolistic competitive market has characteristics of both _and monopoly

a.Oligopoly

b.perfect competition

c.expenditure

d.marginal competition

 

 

_ is a single producer of a product, which does not have a close substitute?

a.monopoly

b.Perfect market

c.Oligopoly

d.Duopoly

 

In a Perfect Competitive Business,_ = (P x Q)/Q = Price?

a.Q/TR

b.None of the above

c.TR/Q

d.P/Q

 

 

TRn – TR n-1=

a.TR

b.MR

c.TRn

d.TRQ

 

 

_ is equal to the change in TR, divided by the change in quantity?

a.Total revenue

b.monopoly

c.marginal revenue

d.marginal expenditure

 

 

_ is equal to the change in TR, divided by the change in quantity?

a.Total revenue

b.monopoly

c.marginal revenue

d.marginal expenditure

 

ECO231 EXAM KEYNOTE IS NOW AVAILABLE, CLICK HERE TO GET IT NOW! 

 

 

_Can be portrayed as the slope of the indifference curve?

a.y

b.MRS

c.RS

d.X

 

 

One of the basic assumptions of indifference curves is that the consumer buys

a.total Cost

b.no combinations of different commodities

c.combinations of different commodities

d.combinations of different commodities they do not need

 

 

_Who wrote The Wealth of Nations?

a.Adam Smith

b.keynes Maynard

c.None of the above

d.Riccardo

 

 

which theory assumes that the consumer has a budget constraint and that the consumer is consistent?

a.revealed preference theory

b.consumption theory

c.utility theory

d.Adam Smith Theory

 

 

The difference between the maximum amount a person is willing to pay for a good and its current market price is referred to as?

a.consumer surplus

b.relative surplus

c.Equilibrium Supply

d.supply gain

 

 

ECO231 EXAM KEYNOTE IS NOW AVAILABLE, CLICK HERE TO GET IT NOW! 

 

 

_map or graphically represent consumer preferences.

a.suplly curve

b.None of the above

c.Indifference curve

d.Demand Curve

 

 

The total benefit received from the purchase of a commodity is expected to exceed the opportunity cost. This provides a net gain from trade, referred to as?

a.Producer gain

b.supply gain

c.consumer surplus

d.Demand Surplus

 

 

According to budget constraint, income is equal to the sum of?

a.Supply utility

b.consumer expenditure

c.Demand Utility

d.Price

 

 

If a consumer equally prefers two product bundles, then the consumer is _ between the two bundles.

a.looking for money

b.indifferent

c.curve

d.supply

 

 

_ is equal to price and is constant.

a.average revenue

b.Total Revenue

c.Income

d.expenditure

 

 

In a Perfect Competitive Business,_ = (P x Q)/Q = Price?

a.TR/Q

b.Q/TR

c.P/Q

d.None of the above

 

 

By selling 30 units, firm JKB makes N300. After selling the 31st unit ,firm\’s revenue increased to 318. What is the marginal revenue in this situation?

a.18

b.31

c.618

d.318

 

 

TR/Q=

a.MR

b.QR

c.AR

d.TRQ

 

 

_is a pricing strategy that enables monopolists to charge customers different prices for the same service?

a.monopoly price

b.Price discrimination

c.none of the above

d.oligopoly -Monopoly

 

ECO231 EXAM KEYNOTE IS NOW AVAILABLE, CLICK HERE TO GET IT NOW! 

 

 

_ is a single producer of a product, which does not have a close substitute?

a.Perfect market

b.Oligopoly

c.monopoly

d.Duopoly

 

 

 

 

Calculate the total revenue for a firm that is selling 10 television sets at N21,000 each

a.N2,000

b.N210000

c.N2,10,0

d.N210

 

 

 

 

A monopolistic competitive market has characteristics of both _and monopoly

a.perfect competition

b.expenditure

c.Oligopoly

d.marginal competition

 

 

 

 

two types of utility theories are?

b.ordinal and cardinal utility theory

 

 

ECO231 EXAM KEYNOTE IS NOW AVAILABLE, CLICK HERE TO GET IT NOW! 

 

 

 

what is defined as the level of happiness or satisfaction connected with choices?

b.utility

 

 

 

 

cardinal utility theory uses _ as a measure of Utility.

a.utile

 

 

 

 

Difference between total utility derived from one level of consumption and total utility derived from another level of consumption.

c.Marginal utility

 

 

 

 

The satisfying power goods have?

c.Utility

 

 

 

MU means?

a.Marginal Utility

 

 

 

 

_ is the measure of the additional utility that is derived when an additional unit of the good is consumed

c.Marginal utility

 

 

 

Satisfaction obtained from all units of a particular commodity consumed over some time

c.Total utility

 

 

 

The total benefit received from the purchase of a commodity is expected to exceed the opportunity cost. This provides a net gain from trade, referred to as?

c.consumer surplus

 

 

 

 

According to budget constraint, income is equal to the sum of?

b.consumer expenditure

 

 

 

I = Px*X +

d.Py*Y

 

 

 

_Can be portrayed as the slope of the indifference curve?

d.MRS

 

 

ECO231 EXAM KEYNOTE IS NOW AVAILABLE, CLICK HERE TO GET IT NOW! 

 

 

which theory makes the assumption that the consumer has a budget constraint and that the consumer is consistent?

d.revealed preference theory

 

 

 

_map or graphically represent consumer preferences.

d.Indifference curves

 

 

 

_ Is the price of one good in terms of another?

d.relative price

 

 

If a consumer equally prefers two product bundles, then the consumer is _ between the two bundles.

c.indifferent

 

 

 

_ is best defined as the structural/organisational and other characteristics of a market

c.Market structure

 

 

 

Which of the following is not part of a presentation planner speech

c.Directory

 

 

An academic field that deals with the processes of communication, commonly defined as the sharing of symbols over distances in space and time is known as?

d.Communication Studies

 

 

ECO231 EXAM KEYNOTE IS NOW AVAILABLE, CLICK HERE TO GET IT NOW! 

 

 

 

In Parts of Speech, Coordinating, Subordinating, and Correlative are types of …….

a. Conjunction

 

 

 

Which of these is not among the recommended 4Ps methods for succeeding in an interview?

b.Publicity

 

 

 

Which of the following is not a speaking style

d.Engagement style

 

 

 

The following are relevant organization structures in the presentation except

d.Description

 

 

 

In Communication Processes, which of the following is not a type of non-verbal communication?

b.Singing

 

 

 

One of these is essential to balance both theoretical and practical skills required for good communication.

d.Communications Training

 

 

ECO231 EXAM KEYNOTE IS NOW AVAILABLE, CLICK HERE TO GET IT NOW! 

 

 

Effective crisis communications strategies will achieve all of the following except

c.Maintain supervision

 

 

 

What is an example of investment according to economists?

c.Depositing money in a bank account

 

 

Sources of finance can be divided into internal and ……..

a.external

 

 

 

What are the risks of losses as the result of unforeseen intervention by the government?

a.political risks

 

ECO231 EXAM KEYNOTE IS NOW AVAILABLE, CLICK HERE TO GET IT NOW! 

 

 

According to Beattie (2017), what is an investment?

d.Something acquired with money for generating income or profit

 

 

 

How do economists generally view investment?

b. As deferred consumption

 

 

 

Which type of investment is known for lower risk compared to ownership investments?

d.Bonds and debentures

 

 

 

 

What type of return do debentures typically offer?

c.interest

 

 

 

What type of financial instrument are preference shares considered?

d.Debt instruments

 

 

 

What are derivatives used for in investment?

a.Insuring against price movements and speculation

 

 

 

What is the Exchange that serves as an intermediary between fundraisers and suppliers of capital in Nigeria?

b.NSE

 

 

 

The stages involved in the venture creation process include the following 

b. Reactivation stage

 

 

 

what is an investment that is undertaken to reduce the risk of adverse price?

a.hedge

 

 

 

What is the expected variability of the income flow?

Ans. risk

 

 

 

 

Which of the following is the apex regulatory body in the Nigerian banking sector?

a.CBN

 

 

ECO231 EXAM KEYNOTE IS NOW AVAILABLE, CLICK HERE TO GET IT NOW! 

 

 

 

A value investor buys undervalued securities and ———–

c.sells overvalued securities

 

 

 

The strategic roles of the entrepreneur in creating a new venture revolve around the following?

d.Analysis

 

ECO231 EXAM KEYNOTE IS NOW AVAILABLE, CLICK HERE TO GET IT NOW! 

 

which utility theory uses the indifference curve to ascertain utility?

c.ordinal utility

 

 

 

Which utility theory assigns consumer satisfaction numerical values?

c.cardinal utility

 

 

 

_can be used to explain the negative slope of a consumer\’s demand curve?

c.consumer equilibrium

 

 

 

two types of utility theories are?

b.ordinal and cardinal utility theory

 

 

 

The satisfying power goods have?

d.Utility

 

 

 

When good X becomes relatively more expensive, the quantity of goods X demanded falls as a result.

c.substitution effect

 

 

 

_ occurs when the price of a good changes?

b.income effect

 

 

 

_ states that consumption of any item yields the consumer declining utility holding taste constant?

b.law of diminishing marginal utility

 

 

 

The indifference curve is connected to ……

Ans. consumer behavior

 

 

ECO231 EXAM KEYNOTE IS NOW AVAILABLE, CLICK HERE TO GET IT NOW! 

 

 

 

A monopolistic business maximizes its earnings when

Ans. MR = MC

 

 

 

The theory of ….. is an attempt to explain how income is shared among the factors of production

Ans. distribution

 

 

 

In trying to spend his money to derive the maximum amount of satisfaction, a consumer is said to be …………

Ans. Rational

 

 

 

The demand of goods and services is a ………… demand

Ans. direct

 

 

 

When oligopoly firms get tired of competing with each other, they are inclined to formally cooperate. This is called ………….

Ans. merger

 

 

 

A product ………. Is a collection of goods with the same features.

Ans. group

 

 

The consumer preferences include all except…….

Ans. concavity

 

 

 

A firm is said to face………….. a sloping demand curve in a monopolistic competitive market

Ans. downward

 

 

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The slope of indifference curve is also known as ………….

Ans. marginal rate of substitution

 

 

Market power also means that a monopolistic competitive firm faces a downward-sloping ……. Curve

Ans. demand

 

 

The total utility of goods x can be symbolized as ………….

Ans. Tux = ?Mux

 

 

The price takers are buyers and sellers of ………….

Ans. factors

 

 

The additional cost of employing/purchasing one unit of a factor is referred to as ………

Ans. Marginal Factor Cost

 

 

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A market where there are a few sellers with similar or identical products is referred to as ……… market

Ans. oligopoly

 

 

Fundamentally, …………. In the market is what drives demand.

Ans. consumer behavior

 

 

The ……….. equilibrium in monopolistic competition is the same as that of a monopolist

Ans. short run

 

 

The satisfying power goods have is referred to as …………..

Ans. utility

 

 

A monopolistic business maximizes its earnings when

Ans. MR = MC

 

Kindly note that the ECO231 exam practice questions and answers will be updated from time to time.

ECO231 EXAM PRACTICE QUESTIONS

 

_ do not cross (intersect)

a.Economics approval

b.Economics Curve

c.Indifference curves

d.Economics Gr

 

What is the demand curve facing a monopoly firm?

a.no demand curve

b.Perfect market demand curve

c.market demand curve

d.Monopoly Demand Curve

 

The interaction of market demand and market supply determine_?

a.Total revenue

b.Marginal Price

c.Total price

d.equilibrium price

 

_is maximized when marginal revenue equals marginal cost (i.e. marginal revenue = marginal cost) and marginal cost is rising?

a.demand

b.demand Structure

c.Profit

d.cost

 

_ is the measure of the additional utility that is derived when an additional unit of the good is consumed

a.Total Cost

b.Total utility

c.Marginal Cost

d.Marginal utility

 

satisfaction obtained from all units of a particular commodity consumed over some time is _____

a.Marginal unit

b.Gross Earning

c.Total utility

d.marginal utility

 

two types of utility theories are?

a.Demand and supply utility theories

b.ordinal and cardinal utility theory

c.ordinary and extraordinary utility theories

d.General and private utility theories

 

_can be used to explain the negative slope of a consumer\’s demand curve?

a.Total equilibrium

b.Ordinal equilibrium

c.consumer equilibrium

d.Marginal equilibrium

 

 

Difference between total utility derived from one level of consumption and total utility derived from another level of consumption.

a.Marginal Cost

b.Total Cost

c.Marginal utility

d.Total utility

 

An additional or incremental utility is called?

a.Total utility

b.Marginal utility

c.Utility

d.None of the above

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One of the basic assumptions of indifference curves is that the consumer buys

a.no combinations of different commodities

b.combinations of different commodities they do not need

c.total Cost

d.combinations of different commodities

 

_ is a graph of all combinations of goods

a.MarginaluCurve

b.Utility Curve

c.indifference curve

d.Economics Curve

 

_Who wrote The Wealth of Nations?

a.None of the above

b.keynes Maynard

c.Adam Smith

d.Riccardo

 

_ Is the price of one good in terms of another?

a. relative price

b.utility price

c.Marginal price

d.Difference curve

 

_the maximum amount of good Y the consumer would be willing to give up obtaining an additional unit of X?

a.Economics

b.marginal rate of substitution (MRS)

c.Curve

d.Rate of Substitution ()

 

The total benefit received from the purchase of a commodity is expected to exceed the opportunity cost. This provides a net gain from trade, referred to as?

a.consumer surplus

b.supply gain

c.Demand Surplus

d.Producer gain

 

MUx/Px=

a.MUy/Py

b.None of the above

c.MxUy/Pxfy

d.PUy/My

 

which theory makes the assumption that the consumer has a budget constraint and that the consumer is consistent?

a.revealed preference theory

b.Adam Smith Theory

c.utility theory

d.consumption theory

 

_is a pricing strategy that enables monopolists to charge customers different prices for the same service?

a.monopoly price

b.none of the above

c.Price discrimination

d.oligopoly -Monopoly

 

 

 

A monopolistic competitive market has characteristics of both _and monopoly

a.Oligopoly

b.perfect competition

c.expenditure

d.marginal competition

 

_ is a single producer of a product, which does not have a close substitute?

a.monopoly

b.Perfect market

c.Oligopoly

d.Duopoly

 

In a Perfect Competitive Business,_ = (P x Q)/Q = Price?

a.Q/TR

b.None of the above

c.TR/Q

d.P/Q

 

TRn – TR n-1=

a.TR

b.MR

c.TRn

d.TRQ

 

_ is equal to the change in TR, divided by the change in quantity?

a.Total revenue

b.monopoly

c.marginal revenue

d.marginal expenditure

 

_ is equal to the change in TR, divided by the change in quantity?

a.Total revenue

b.monopoly

c.marginal revenue

d.marginal expenditure

 

_Can be portrayed as the slope of the indifference curve?

a.y

b.MRS

c.RS

d.X

 

One of the basic assumptions of indifference curves is that the consumer buys

a.total Cost

b.no combinations of different commodities

c.combinations of different commodities

d.combinations of different commodities they do not need

 

_Who wrote The Wealth of Nations?

a.Adam Smith

b.keynes Maynard

c.None of the above

d.Riccardo

 

which theory assumes that the consumer has a budget constraint and that the consumer is consistent?

a.revealed preference theory

b.consumption theory

c.utility theory

d.Adam Smith Theory

 

The difference between the maximum amount a person is willing to pay for a good and its current market price is referred to as?

a.consumer surplus

b.relative surplus

c.Equilibrium Supply

d.supply gain


ECO231 EXAM KEYNOTE IS NOW AVAILABLE, CLICK HERE TO GET IT NOW! 


_map or graphically represent consumer preferences.

a.suplly curve

b.None of the above

c.Indifference curve

d.Demand Curve

 

The total benefit received from the purchase of a commodity is expected to exceed the opportunity cost. This provides a net gain from trade, referred to as?

a.Producer gain

b.supply gain

c.consumer surplus

d.Demand Surplus

 

According to budget constraint, income is equal to the sum of?

a.Supply utility

b.consumer expenditure

c.Demand Utility

d.Price

 

If a consumer equally prefers two product bundles, then the consumer is _ between the two bundles.

a.looking for money

b.indifferent

c.curve

d.supply

 

_ is equal to price and is constant.

a.average revenue

b.Total Revenue

c.Income

d.expenditure

 

In a Perfect Competitive Business,_ = (P x Q)/Q = Price?

a.TR/Q

b.Q/TR

c.P/Q

d.None of the above

 

By selling 30 units, firm JKB makes N300. After selling the 31st unit ,firm\’s revenue increased to 318. What is the marginal revenue in this situation?

a.18

b.31

c.618

d.318

 

TR/Q=

a.MR

b.QR

c.AR

d.TRQ

 

_is a pricing strategy that enables monopolists to charge customers different prices for the same service?

a.monopoly price

b.Price discrimination

c.none of the above

d.oligopoly -Monopoly

 

_ is a single producer of a product, which does not have a close substitute?

a.Perfect market

b.Oligopoly

c.monopoly

d.Duopoly

 

Calculate the total revenue for a firm that is selling 10 television sets at N21,000 each

a.N2,000

b.N210000

c.N2,10,0

d.N210

 

A monopolistic competitive market has characteristics of both _and monopoly

a.perfect competition

b.expenditure

c.Oligopoly

d.marginal competition

 

two types of utility theories are?

b.ordinal and cardinal utility theory

 

ECO231 EXAM KEYNOTE IS NOW AVAILABLE, CLICK HERE TO GET IT NOW! 

what is defined as the level of happiness or satisfaction connected with choices?

b.utility

 

cardinal utility theory uses _ as a measure of Utility.

a.utile

 

Difference between total utility derived from one level of consumption and total utility derived from another level of consumption.

c.Marginal utility

 

The satisfying power goods have?

c.Utility

 

MU means?

a.Marginal Utility

 

_ is the measure of the additional utility that is derived when an additional unit of the good is consumed

c.Marginal utility

 

Satisfaction obtained from all units of a particular commodity consumed over some time

c.Total utility

 

The total benefit received from the purchase of a commodity is expected to exceed the opportunity cost. This provides a net gain from trade, referred to as?

c.consumer surplus

 

According to budget constraint, income is equal to the sum of?

b.consumer expenditure

 

I = Px*X +

d.Py*Y

 

_Can be portrayed as the slope of the indifference curve?

d.MRS

 

which theory makes the assumption that the consumer has a budget constraint and that the consumer is consistent?

d.revealed preference theory

 

_map or graphically represent consumer preferences.

d.Indifference curves

 

_ Is the price of one good in terms of another?

d.relative price

 

If a consumer equally prefers two product bundles, then the consumer is _ between the two bundles.

c.indifferent

 

_ is best defined as the structural/organisational and other characteristics of a market

c.Market structure

 

Which of the following is not part of a presentation planner speech

c.Directory

 

 

An academic field that deals with the processes of communication, commonly defined as the sharing of symbols over distances in space and time is known as?

d.Communication Studies

 

ECO231 EXAM KEYNOTE IS NOW AVAILABLE, CLICK HERE TO GET IT NOW! 

In Parts of Speech, Coordinating, Subordinating, and Correlative are types of …….

a. Conjunction

 

Which of these is not among the recommended 4Ps methods for succeeding in an interview?

b.Publicity

 

Which of the following is not a speaking style

d.Engagement style

 

The following are relevant organization structures in the presentation except

d.Description

 

 

In Communication Processes, which of the following is not a type of non-verbal communication?

b.Singing

 

One of these is essential to balance both theoretical and practical skills required for good communication.

d.Communications Training

 

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Effective crisis communications strategies will achieve all of the following except

c.Maintain supervision

 

What is an example of investment according to economists?

c.Depositing money in a bank account

 

 

Sources of finance can be divided into internal and ……..

a.external

 

What are the risks of losses as the result of unforeseen intervention by the government?

a.political risks

 

According to Beattie (2017), what is an investment?

d.Something acquired with money for generating income or profit

 

How do economists generally view investment?

b. As deferred consumption

 

Which type of investment is known for lower risk compared to ownership investments?

d.Bonds and debentures

 

 

What type of return do debentures typically offer?

c.interest

 

 

What type of financial instrument are preference shares considered?

d.Debt instruments

 

What are derivatives used for in investment?

a.Insuring against price movements and speculation

 

What is the Exchange that serves as an intermediary between fundraisers and suppliers of capital in Nigeria?

b.NSE

 

 

The stages involved in the venture creation process include the following 

b. Reactivation stage

what is an investment that is undertaken to reduce the risk of adverse price?

a.hedge

 

What is the expected variability of the income flow?

Ans. risk

 

Which of the following is the apex regulatory body in the Nigerian banking sector?

a.CBN

 

ECO231 EXAM KEYNOTE IS NOW AVAILABLE, CLICK HERE TO GET IT NOW! 

A value investor buys undervalued securities and ———–

c.sells overvalued securities

 

The strategic roles of the entrepreneur in creating a new venture revolve around the following?

d.Analysis

 

 

 

which utility theory uses the indifference curve to ascertain utility?

c.ordinal utility

 

Which utility theory assigns consumer satisfaction numerical values?

c.cardinal utility

 

_can be used to explain the negative slope of a consumer\’s demand curve?

c.consumer equilibrium

 

two types of utility theories are?

b.ordinal and cardinal utility theory

 

The satisfying power goods have?

d.Utility

 

When good X becomes relatively more expensive, the quantity of goods X demanded falls as a result.

c.substitution effect

 

_ occurs when the price of a good changes?

b.income effect

 

_ states that consumption of any item yields the consumer declining utility holding taste constant?

b.law of diminishing marginal utility

 

The indifference curve is connected to ……

Ans. consumer behavior

ECO231 EXAM KEYNOTE IS NOW AVAILABLE, CLICK HERE TO GET IT NOW! 

 

A monopolistic business maximizes its earnings when

Ans. MR = MC

 

The theory of ….. is an attempt to explain how income is shared among the factors of production

Ans. distribution

 

In trying to spend his money to derive the maximum amount of satisfaction, a consumer is said to be …………

Ans. Rational

 

The demand of goods and services is a ………… demand

Ans. direct

 

When oligopoly firms get tired of competing with each other, they are inclined to formally cooperate. This is called ………….

Ans. merger

 

A product ………. Is a collection of goods with the same features.

Ans. group

 

 

The consumer preferences include all except…….

Ans. concavity

 

A firm is said to face………….. a sloping demand curve in a monopolistic competitive market

Ans. downward

 

ECO231 EXAM KEYNOTE IS NOW AVAILABLE, CLICK HERE TO GET IT NOW! 

The slope of indifference curve is also known as ………….

Ans. marginal rate of substitution

 

 

Market power also means that a monopolistic competitive firm faces a downward-sloping ……. Curve

Ans. demand

 

 

The total utility of goods x can be symbolized as ………….

Ans. Tux = ?Mux

The price takers are buyers and sellers of ………….

Ans. factors

 

 

The additional cost of employing/purchasing one unit of a factor is referred to as ………

Ans. Marginal Factor Cost

 


ECO231 EXAM KEYNOTE IS NOW AVAILABLE, CLICK HERE TO GET IT NOW!

 


A market where there are a few sellers with similar or identical products is referred to as ……… market

Ans. oligopoly

 

 

Fundamentally, …………. In the market is what drives demand.

Ans. consumer behavior

 

 

The ……….. equilibrium in monopolistic competition is the same as that of a monopolist

Ans. short run

 

 

The satisfying power goods have is referred to as …………..

Ans. utility

 

 

A monopolistic business maximizes its earnings when

Ans. MR = MC

 

Kindly note that the ECO231 exam practice questions and answers will be updated from time to time.

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