Economics is a social science which studies how

A. to redistrubute income

B. human beings behave

C. the market price is fixed

D. scarce resources are allocated to satisfy human wants

E. high cost of a commodity

Scarcity in economics means

A. shortage of commodity

B. unlimited demands for consumer goods

C. limited supply of goods and services

D. total absence of a commodity in the market

E. high cost of a commodity

The decision on what to produce is a problem in

A. all economics system

B. a mixed economic system only

C. a democratic socialist economy only

D. a free enterprise system only

E. a planned eceonomic system only

The law of demand states that

A. as price increases, quantity demanded remains constant

B. demand increases as price increases

C. as price falls, quantity demanded also falls

D. as price falls, quantity demanded increases

E. demand and supply remains constant whether price fall or increase

Which of the following is an important limiting factor in the application of division of labour?

A. market size

B. availability of an infrastructure

C. wage rate

D. Raw materials

E. Availabily of land

Which of the following does not encourage the location of industries?

A. Nearness to the market

B. Availability of infrastructural facilities

C. Government influence in sitting industries

D. political instability

E. Abundance of cheap labour

All the under listed factors directly affects the supply of a commodity except

A. price

B. improved production method

C. access to capital

D. demand for the commodity

E. level of income

Which of the following economic system is in operation in Nigeria?

A. Capitalist economy

B. Socialist cum Maxist economy

C. Socialist economy

D. Capitalist and free economy

E. mixed economy

Giffen commodities are those commodities

A. which gives rise to a cobweb situation

B. for which demand increases as price increases

C. which have a low price elasticity of demand

D. which are in short supply

E. which have a high income elasticity of demand

Effective demand in economics means

A. the desire for a commodity

B. a proposal to purchase a good on credit

C. the desire for a commodity or service backed by purchasing power

D. an irrevocable instruction to the seller to meet up the need of the buyers

E. the propensiyt to consume googd produced by manufacturers