ECONOMICS REVISION - HOUSEHOLD - AGRICULTURE - UTILITY

What is utility?

• The total income of a consumer

• The volume of goods that give satisfaction

• The amount of satisfaction from consumption

• The total amount of money spent to achieve satisfaction

What is savings?

• The part of income put into bank savings

• The part of income not spent on goods

• The part of income used to generate more production

• The part of income unspent on loans

Which is not likely true about cooperative farming?

• farmers can pool resources together

• farmers can create more output and employment opportunities

• farmers can afford more technology or create them to sell to other countries

• farmers can encourage foreign control of the economy

A person earns $80,000 annually and consumes $65,000 of it. If next year their income rises to $100,000 and their consumption increases to $78,000. What is the MPC?

• 0.5

• 0.6

• 0.65

• 0.75

What does the law of diminishing utility state?

• Total utility decreases with consumption

• Marginal utility declines as consumption increases

• Utility remains constant with consumption

• Utility increases with consumption

When is a consumer at equilibrium?

• MUx = MUy

• MUa = Pb

• Py = MUy

• Pa = Pb

What is the opportunity cost of spending?

• savings

• consumption

• borrowing

• income

What is the demand for labour?

• The total wages paid to workers

• The total hours worked by employees

• The total number of jobs available

• The total people employers are willing to hire

Wones receives 100,000 monthly, he saves 40%, pays 10% as tax and invests 5% of his income monthly. How much is his disposable income?

• 100,000

• 10,000

• 90,000

• 40,000

Which factor does NOT influence our choice of occupation?

• Weather conditions

• Wages

• Job security

• Location