# Economics 2015 | Study Mode

Question 41
A
24
B
5
C
19
D
12
##### Explanation
Range is the difference between the highest and the lowest value in a set of data.
Highest value = 24
Lowest value = 5
The range = 24 5
= 19

Question 42
A
it can intersect
B
it slopes downward from left to right like that of a normal demand curve
C
as it shift rightward it indicate higher and higher level of satisfaction
D
it does not intersect
##### Explanation

Question 43
A
Theory of consumer behaviour
B
Theory of cost
C
Theory of production
D
Theory of value

Question 44
A
total cost
B
variable cost
C
fixed cost
D
marginal cost

Question 45
A
proportional tax
B
regressive tax
C
D
progressive tax
##### Explanation
A proportional tax is a flat rate payment of tax. The same level of tax is paid irrespective of the level of income or wealth.

Question 46
A
regressive tax
B
progressive tax
C
D
proportional tax
##### Explanation
A regressive tax falls as incomes increases while progressive tax rises as income increases. Proportional tax is a flat rate while value added tax is the tax imposed on goods and services at each stage of production.

Question 47
A
Increase in demand
B
Reduce public spending
C
Control excessive import
D
Increase in direct tax
##### Explanation
Excess demand without a corresponding increase in supply causes inflation.

Question 48
A
(Price index of export Price index of export) 100
B
(price index of import price index of export) 100
C
(Price index of export Price index of import) 100
D
(Price index of export Price index of import) 100
##### Explanation
Term of trade is the comparison between visible and invisible export and visible and invisible import expresses in price. The ratio of export to import. It could be expressed as
(price index of export price index of import) 100
Which can be dented as (px pm) 100

Question 49
A
2
B
0.4
C
1
D
0.5
##### Explanation
The Marginal Propensity to Consume (MPC) is the additional amount consumed as a fraction of additional disposable income.
Initial income = N150.
New income = N250.
Change in income = N250 N150 = 100
Initial consumption = N100
New consumption = N150.
Change in consumption = N150 - N100 = N50.
MPC = Change in consumption Change in income .
= 50/100 =
MPC = 0.5

Question 50
A
Macro economics
B
deductive method of economic analysis
C
micro economics
D
Inductive method of economics analysis
##### Explanation
Macro Economics studies the fluctuations in the levels of large aggregates and way to prevent the fluctuation.

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