Economics

Question 1

1A price floor set above equilibrium in an agricultural market leads to

Hard

A. surplus produce B. shortage C. black markets for buyers D. lower prices

Question 2

2A surplus occurs when

Easy

A. demand exceeds supply B. price equals equilibrium C. there are no sellers D. quantity supplied exceeds quantity demanded

Question 3

3The law of diminishing returns operates in the

Easy

A. very long run B. short run C. market period only D. long run only

Question 4

4A firm in perfect competition with P = GH¢10 and AC = GH¢8 at output 100 earns supernormal profit of

Hard

A. GH¢2 B. GH¢1,000 C. GH¢800 D. GH¢200

Question 5

5Economics is described as a social science because it

Hard

A. is only about money B. studies rocks C. uses laboratory experiments only D. studies human behaviour in using scarce resources

Question 6

6The demand for labour is a

Easy

A. derived demand B. joint supply C. composite supply D. Giffen demand

Question 7

7Supply is perfectly inelastic when

Easy

A. supply is very responsive B. demand is high C. price is zero D. quantity supplied does not change as price changes

Question 8

8The Bank of Ghana can reduce money supply by

Medium

A. reducing reserve requirements B. printing money C. lowering interest rates D. selling government securities (open market operations)

Question 9

9A favourable balance of trade occurs when

Easy

A. visible exports exceed visible imports B. imports exceed exports C. there is no trade D. exports equal zero

Question 10

10An import quota restricts trade by

Hard

A. subsidising exports B. limiting the quantity of imports C. banning exports D. taxing imports