A Level Economics Quiz 2015 Part 2

15 Questions

Quiz Description

Economics is a branch of social science that studies how individuals, households, and firms make decisions relating to distribution of very limited resources to productive resources so as to derive maximum gain or satisfaction.

This quiz is designed to help students face the challenge of attempting questions during the examination session. The questions present in this session of the quiz are questions carefully selected from the Advance level Economic syllabus and the questions are based on past CGCE Advanced level Economics.

There are 15 questions present in this quiz and each student is advised to attempt all the questions. Each question has four options and just one is correct among these four options.

So, when answering these questions, make sure to read in between the lines to understand what the question is asking of you. We also have another set of 15 questions that awaits you after attempting these present questions. Remember, read in between the lines of the questions. To gain more of this materials, visit our website to boost your knowledge

Good Luck!!!

1:

If a nationalized industry adopts the marginal costs pricing policy for its services when its average cost is declining, it will likely


Correct
  • 1:
    Make a loss
  • 2:
    Break even
  • 3:
    Make a profit
  • 4:
    Not require state subvention
2:

A firm which aims at growth maximization should produce at the output level where


Correct
  • 1:
    AR=MC
  • 2:
    MR=MC
  • 3:
    AR=AC
  • 4:
    MR=Zero
3:

This question is based on figure below, illustrating perfect price discrimination situation.

The triangle PAB describes


<p>This question is based on figure below, illustrating perfect price discrimination situation. </p><p>The triangle PAB describes </p>
Correct
  • 1:
    Consumer surplus
  • 2:
    Community surplus
  • 3:
    Extra cost incurred
  • 4:
    Extra revenue gained
4:

When consumers buy in the cheaper markets and sell in more expensive markets, this is known as


Correct
  • 1:
    Resale price maintenance
  • 2:
    Seepage
  • 3:
    Price discrimination
  • 4:
    Penetrating pricing
5:

Firms in oligopoly are interdependent because


Correct
  • 1:
    They produce differentiated products
  • 2:
    Each firm is a price maker
  • 3:
    The behaviour of one firm will be influenced by the behaviour of its rivals
  • 4:
    The behaviour of one firm depends on its ability to use non price competition
6:

The following statistics relate to an automobile firm that has sold two cars. (Figures are in millions FCFA).

Cost price per car 10

Selling price per car 15

Total sales revenue 30

Cost of capital employed 12

Amount of profit per car 5

If the firm declares a rate of profit of 50% which method of measuring profit has been used?


Correct
  • 1:
    Profit as a percentage on turnover
  • 2:
    Profit as a return on capital employed
  • 3:
    Profit as a gross magazine percentage
  • 4:
    Profit as a percentage of total cost
7:

Normal profit is


Correct
  • 1:
    The positive difference between total revenue and total cost
  • 2:
    The level of reward where MC=MC^2
  • 3:
    The level of reward where AR=AC
  • 4:
    The average reward made by a firm
8:

Given that the market rate of interest is 15%. What is the market price of a bond that pays 18,000 FCFA interest?


Correct
  • 1:
    150,000 FCFA
  • 2:
    120,000 FCFA
  • 3:
    80,000 FCFA
  • 4:
    100,000 FCFA
9:

The market value of all goods and services produced by a country’s resources regardless of where the resources are located is


Correct
  • 1:
    Net national product
  • 2:
    Gross national product
  • 3:
    National income
  • 4:
    Gross domestic product
10:

Where are adjustments made for financial services in the output method of measuring national income?


Correct
  • 1:
    To eliminate the effect of stock appreciation
  • 2:
    To record all the interest paid by financial institutions
  • 3:
    To avoid double counting of interest paid and received by financial institutions
  • 4:
    To make adjustments for residual error
11:

This question is based on the table below, which shows information about a country in 2008 and
2009

The real GDP per capita in 2009 is


<p>This question is based on the table below, which shows information about a country in 2008 and<br/>2009 </p><p>The real GDP per capita in 2009 is </p>
Correct
  • 1:
    1,600 FCFA
  • 2:
    4,000 FCFA
  • 3:
    2,000 FCFA
  • 4:
    1,920 FCFA
12:

Which of the following will most likely be included in the measurement of Gross Domestic Product?


Correct
  • 1:
    The output of second hand goods
  • 2:
    Intermediate scales
  • 3:
    Legal services
  • 4:
    Social security benefits
13:

If the MPC in a particular economy is 0.5 and the government increases its expenditure by 1,000 million FCFA, by how much will national income increase?


Correct
  • 1:
    1,000 million FCFA
  • 2:
    2,000 million FCFA
  • 3:
    3,000 million FCFA
  • 4:
    500 million FCFA
14:

If C=1,500 million FCFA +0,8Y (where C= consumption and Y= income) and intended
investment is 500 million FCFA, then the equilibrium level of national income is


Correct
  • 1:
    20,000 million FCFA
  • 2:
    24,000 million FCFA
  • 3:
    15,000 million FCFA
  • 4:
    10,000 million FCFA
15:

Which of the following statements concerning the circular flow of income is true?


Correct
  • 1:
    The factors of production are owned by households
  • 2:
    The factors of production are owned by firms
  • 3:
    Only interactions in the product market reflect the value of national income
  • 4:
    Only interactions in the factor market reflect the value of national income

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A Level Economics Quiz 2015 Part 2
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