# Economics 2015 | Study Mode

Question 61
A
subsidiary industry
B
constructive industry
C
manufacturing industry
D
infant industry
##### Explanation

Question 62
A
There has been an increase in the consumers money income
B
There has been a reduction in the price of both A and B
C
There has been no change in the price of A or B
D
There has been no change in the price of A relative to the price of B
##### Explanation
Since a budget line imposed a constraint on an individual budget that he cannot buy more where the constraint is. An increase in income will make the consumer income higher that the price of the commodity which leads to shift in budget line from JK to GH

Question 63
A
Improvement in transport system
B
Instability in international exchange rate
C
Restrictions on the movement of resources
D
increase in tariff
##### Explanation
Efficient transport system encourages international division of labour.

Question 64
A
N4
B
N8
C
N2
D
N10
##### Explanation
Qd = 20 - 2p
Qs = 6p - 12
Therefore, equilibrium price is Qd = Qs
20 - 2p = 6p-12
20 + 12 = 6p+2p
32 = 8p
Equilibrium price = 32/8= 4
Equilibrium price = N4

Question 65
A
retailing
B
dumping
C
D
##### Explanation
In economics, "dumping" is a kind of predatory pricing, especially in the context of international trade. It occurs when manufacturers export a product to another country at a price either below the price charged in its home market or below its cost of production.

Question 66
A
N75.00
B
N100
C
N175.00
D
N125.00
##### Explanation
Total cost (Tc) = N75.00
Price (P) = N7.00
Output (Q) = N25 units
Profit = ?
To derive the profit of the firm, the total revenue must be expressed. It can be expressed as
Total revenue (TR) = Price (P) Quantity (q)
Therefore, TR = P Q
= 7 25 units
Tr = N175
Therefore, Profit = TR TC
= N175 N75
Profit = N100

Question 67
A
B
Reverend Thomas Malthus
C
Professor trum fisher
D
David Ricardo

Question 68
A
4
B
1
C
2
D
5
##### Explanation
Percentage change in quantity supplied = (Change in quality supplied Old quantity supplied ) 100
(30 20) 20 100
(10 20) 100 = 50%
Percentage change in price
(Change in price Old price ) 100
((5 4) 4) 100
100 = 25%
Therefore, the coefficient of price elasticity of supply is
Percentage change in quantity supplied Percentage change in price
50% 25% = 2

Question 69
A
600
B
800
C
900
D
1000
##### Explanation
he profit maximizing output level is 900 because at this, output level MC = MR. The marginal cost curve is tangential to the marginal revenue line which shows the price maximizing level output.

Question 70
A
50litres
B
32.5litres
C
30litres
D
35litres
##### Explanation
Qs = 25 + 0.25p
= 25 + 0.25(30) = 25 + 7.5
= 32.5litres

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