# Economics | Study Mode

Question 41
A
inversely with the price level
B
Directly with the volume of employment.
C
Directly with the price level.
D
Directly with interest rate.
Explanation.
According to the fisherian equation of exchange, Mv=PT money supply varies with price level, given that the velocity and the level of transaction is constant (D)

Question 42
A
16.1%.
B
12.5%:
C
20%
D
5%
Explanation.
LRR= Initial Deposit x 100 = 40,000 X100 16.1% Deposit Greated 240,000

Question 43
A
rate at which the Central Bank of Nigeria lends to the Nigeria government.
B
Yield on long-term government bonds.
C
Rate at which the Central bank of Nigeria lend money to commercial Banks.
Explanation.
The discount rate or the minimum rediscount rate (MRR) in Nigeria is the rate at which the central bank of Nigeria lends to commercial banks to. control money supplying in the economy (D)

Question 44
A
Absolute decline in quality demand/absolute increase in price
B
Absolute decline in price fabsolute increase in quality demand
C
change in quantity demand
D
% change in price 1% change in price.
Explanation.
Elasticity of demand is the proportional change in quantity demand to proportional change in price

Question 45
A
the price elasticity demand 0.44.
B
A is a complementary good.
C
The price elasticity of demand is 2.25.
D
A is a inferior good.
Explanation.
3,000-5000 x 10 - 2000 x 10 3000 10-8 3000 2 = 3.33 Option B seems to close to the answer but substitusbility and complimentary of a commodity is deforming with cross elasticity

Question 46
A
C =80+100Y.
B
C=1 00 8Y.
C
C=1 00 + 0.8Y
D
C=80+11 Y.
Explanation.
C=C+CY C=100 (i) CY = L= 0.8Y(ii) C = 100 + 0.8y (C)

Question 47
A
There are many goods that are substitute for bicycle. (b)there are many goods that are complementary to bicycle.
B
there are few goods that are substitute for bicycle.
C
Bicycle are normal goods.
Explanation.
If the quantity demanded of a commodity increases from the increase in consumers income, then such goods is a normal goods (D) It is a perfectly elestic demand curve which reflect no change in price of the commodity irrespective of the change in quantity demanded.

Question 48
A
Perfect inelastic
B
Perfect elastic
C
relatively inelastic
D
relatively elastic.
Explanation.

No official Explanation yet!

Question 49
A
Marginal benefit exceeds marginal cost the greatest amount.
B
consumer surplus exceeds producer surplus by the greatest amount.
C
The areas if consumer and producer surplus are equal.
D
the combined amount of consumer surplus and producer surplus are maximized.
Explanation.
Allocation efficiency is reached only at equilibrium point. At this point, both producers and consumers surplus must be equal. (C)

Question 50
A
To obtain more equitable distribution of money income
B
Production of a given output with the lowest cost combination of factors of production
C
D
Increase the quantity of the factors of production.
Explanation.
The primary concern of economics is to satisfy needs with available limited resources. (B)

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