Economics is often described as a science because it

A. adopts the use of laboratory experiments

B. involves accurate predictions of human beings

C. makes use of controlled experiment

D. use scientific methods to explain observed phenomena

E. deals with observation and field work

Scarcity in Economics means that

A. the economy can scarecely produce anything

B. human wants are limitless

C. the economy has very few resources

D. human wants are limited, relative to resources

E. resources are limited relative to wants

Which of the following has a derived demand?

A. labour

B. butter

C. television set

D. breads

E. motor cars

In Economics production is complete when

A. Goods are manufactured in the factories

B. are sold to the final consumer

C. goods and services are distributed by the government

D. producers fixed the price of goods produced

E. goods and services gets to the retailer

Goods are said to be in competitive demand when they

A. Are substitutes

B. Are complementary to each other

C. Are jointly demanded

D. Have equal coefficient of elasticity

E. Are identical

The formula for calculating price elasticity of demand coefficient is

A. Percentage change in price/percentage change in quantity demanded

B. Absolute decline in price/absolute increase in quantity demanded

C. Percentage change in quantity demanded/percentage change in price

D. Absolute decline in quantity demanded/absolute increase in price

E. Change in quantity demanded/decrease in price

When the price of a given product is reduced from N100 to N90, the quantity demanded increases from 50 to 60 units. From this we can conclude that the product's

A. demand is elastic

B. demand is inelastic

C. demand is perfectly inelastic

D. supply is not elastic

E. demand has decline

A shift in supply curve to the right will result in a

A. fall in both the price and supply

B. fall in price but an increase in supply

C. rise in both price and supply

D. rise in price and fall in supply

E. no change in price and supply

One of the disadvantages of the division of labour is that it

A. saves time

B. makes work monotonous

C. encourages full utilization of capital

D. makes workers skilled at their work

E. allows greater use of machinery