Economics Past Questions

Refresh Questions
Among the principles of taxation propounded by Adam Smith was that
  • A. a tax should be impossible to evade
  • B. a tax should be convenient to pay
  • C. no tax should be levied on food
  • D. there should be no taxation without representation
A policy by which governments restrict the amount of foreign currencies bought and sold is known as
  • A. devaluation
  • B. credit creation
  • C. exchange control
  • D. export promotion
A fall in national output will necessitate
  • A. a rise in expenditure on imports
  • B. a rise in the level of savings
  • C. an increase in consumption expenditure
  • D. a rise in the standard of living
A firm enjoying economics of scale is said to be
  • A. reducing average cost as production increases
  • B. maximizing profits as production increases
  • C. benefiting from the activities of other firms
  • D. having an upward - sloping average cost curve
Which of the following is obtainable in a perfect market?
  • A. P = MR >AR
  • B. MR = MC>P
  • C. MR < P
  • D. P = MR = MC
A negative effect of the presence of a large number of middlemen in the distributive network is
  • A. greater variety of goods
  • B. greater quality of goods
  • C. lower price of goods
  • D. higher price of goods
Age distribution is important because it helps the government to
  • A. check rural-urban drift
  • B. determine the number of foreigners
  • C. determine the number of factories
  • D. undertake effective planning
The amount of satisfaction obtained from the consumption of a commodity at a particular time is called
  • A. marginal utility
  • B. diminishing utility
  • C. total utility
  • D. average utility
Which of the following is not true about land?
  • A. The supply is fixed
  • B. Land is mobile
  • C. It is subject to diminishing returns
  • D. Land is heterogeneous
The law of diminishing marginal utility states that, the more a commodity is consumed the
  • A. higher the satisfaction derived from an additional unit
  • B. higher the price to be paid
  • C. lower the quantity supplied
  • D. lower the rate of increase in the total utility derived