In a market economy, resource allocation is primarily determined by
A market economy allocates resources based on supply and demand, driven by consumer preferences.
An economy with both public and private sector involvement is called a
A mixed economy combines public and private sector contributions to economic growth.
If the standard deviation of a dataset is 25, what is the variance?
Variance is the square of the standard deviation: 25² = 625.
Which statistical tools are most useful for advanced economic analysis?
Mean and standard deviation provide insights into central tendency and data dispersion, crucial for economic analysis.
The range as a measure of dispersion is advantageous because it
The range is easy to calculate and can be applied to open-ended distributions.
What is the median of the dataset: 12, 45, 23, 67, 19, 34, 28?
Ordered data: 12, 19, 23, 28, 34, 45, 67. Median is the middle value: 28.
An increase in demand with no change in supply leads to
Increased demand shifts the demand curve right, increasing both equilibrium price and quantity.
A rise in the price of a good typically causes
Per the law of demand, a higher price reduces the quantity demanded.
If the price of a good falls from N50 to N30 and quantity demanded rises from 200 to 300 units, what is the price elasticity of demand?
% change in quantity = (300-200)/200 = 50%. % change in price = (30-50)/50 = -40%. Elasticity = 50 / 40 = 1.25 (absolute value).
Demand is perfectly elastic when
Perfectly elastic demand implies any price increase reduces quantity demanded to zero.
A key assumption of the cardinalist approach to utility is
The cardinalist approach assumes utility is quantifiable and measurable.
Utility refers to the satisfaction gained from
Utility is the satisfaction derived from consuming goods and services.
On an indifference curve, a consumer prefers a combination
Higher indifference curves indicate greater utility and are preferred.
A major factor influencing supply changes is
Improved technology can increase supply by reducing production costs.
Given the supply function P = 1/5 (Qs + 20), what is the quantity supplied at P = N10?
10 = 1/5 (Qs + 20). Multiply by 5: 50 = Qs + 20. Qs = 50 - 20 = 30.
If supply is elastic, a small price decrease will
Elastic supply means a small price decrease leads to a large increase in quantity supplied.
The supply of similar products by firms in a monopolistic market is known as
Competitive supply occurs when firms produce similar goods in a monopolistic market.
Fixing a price below the equilibrium price causes
A price below equilibrium creates a shortage, leading to excess demand.
A drawback of the price mechanism is that it
The price mechanism can widen income gaps by favoring wealthier consumers.
To reduce housing costs, the government can fix rent
Fixing rent below equilibrium lowers costs but may cause shortages.
A firm reduces costs by buying raw materials in bulk. This is an example of
Economies of scale occur when bulk purchasing reduces per-unit costs.
An isoquant to the right of another represents
A higher isoquant indicates greater output for the same inputs.
A firm maximizes profit at the output level where
Profit is maximized where marginal cost equals marginal revenue.
In a perfectly competitive market, a firm maximizes profit when
In perfect competition, profit maximization occurs where marginal cost equals marginal revenue.
The best measure for comparing living standards across countries is
Per capita income accounts for population size, making it ideal for living standard comparisons.
Speculative demand for money is inversely related to
Higher interest rates reduce speculative demand, as holding money becomes costlier.
A loan taken for household expenses reflects which type of money demand?
Money for household expenses is used for transactions, indicating transactional demand.
The Central Bank of Nigeria controls inflation using
Open market operations adjust money supply to control inflation.
A reduction in money supply by the Central Bank will likely cause interest rates to
Less money supply reduces liquidity, increasing interest rates.
An expansionary fiscal policy could involve
Subsidies increase spending, stimulating the economy.
A tax on land primarily affects
Land supply is fixed, so land taxes fall entirely on landowners.
A primary goal of Nigeria’s development plans is to
Development plans focus on improving citizens’ quality of life.
Life insurance companies support economic growth by investing in
Long-term investments fund infrastructure, aiding economic growth.
To add value to agricultural produce in Nigeria, the government should focus on
Processing adds value by creating higher-value finished products.
Low agricultural productivity in West Africa is mainly due to
Traditional tools limit efficiency and yield in agriculture.
The location of a cement factory is primarily determined by
Cement production requires limestone as a key raw material.
Efficiency in Nigeria’s public corporations can be improved through
Privatization introduces competition, enhancing efficiency.
Government involvement in Nigeria’s oil industry was driven by
The oil industry’s high investment needs necessitated government participation.
Deregulating Nigeria’s petroleum sector is expected to improve
Deregulation fosters market-driven pricing and efficient distribution.
A monopoly is characterized by
A monopoly features one seller controlling the market.
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