MFT Exam Economics Questions And
Answers
Opportunity Cost -
correct answer ✅Cost of not being able to pursue another
economic activity which could have been pursued if the first one
was not pursued.
Production Possibilities Frontier (PPF) -
correct answer ✅Maximum combinations of goods that can be
produced when resources are used fully and in the most efficient
way.
Economics -
correct answer ✅The study of how we can work together to
transform our scare resources to satisfy the most pressing of our
unlimited wants.
Theory of Comparative Advantage -
correct answer ✅Suggests that each country will only specialize in
the goods in which they have comparative advantage.
Supply and Demand -
correct answer ✅Ceteris paribus (everything else remaining
constant or unchanged), when the price of commodity increases
, MFT Exam Economics Questions And
Answers
there will be a reduction in the quantity demanded of that
commodity.
Equilibrium Price -
correct answer ✅The price at which the quantity demanded
exactly matches the quantity supplied. There is no excess demand
or excess supply.
Excess Demand or Shortage -
correct answer ✅If the price of the commodity falls below the
equilibrium price, then the quantity demanded at that price
becomes much higher than the quantity supplied and an excess
demand or shortage appears int he market than then puts pressure
on the price to go up.
Price Floors -
correct answer ✅Meant to increase the market price above the
equilibrium price and thereby creates the problem of excess supply
or surplus.
Price Ceilings -
correct answer ✅Are imposed to with the intention of lowering
Answers
Opportunity Cost -
correct answer ✅Cost of not being able to pursue another
economic activity which could have been pursued if the first one
was not pursued.
Production Possibilities Frontier (PPF) -
correct answer ✅Maximum combinations of goods that can be
produced when resources are used fully and in the most efficient
way.
Economics -
correct answer ✅The study of how we can work together to
transform our scare resources to satisfy the most pressing of our
unlimited wants.
Theory of Comparative Advantage -
correct answer ✅Suggests that each country will only specialize in
the goods in which they have comparative advantage.
Supply and Demand -
correct answer ✅Ceteris paribus (everything else remaining
constant or unchanged), when the price of commodity increases
, MFT Exam Economics Questions And
Answers
there will be a reduction in the quantity demanded of that
commodity.
Equilibrium Price -
correct answer ✅The price at which the quantity demanded
exactly matches the quantity supplied. There is no excess demand
or excess supply.
Excess Demand or Shortage -
correct answer ✅If the price of the commodity falls below the
equilibrium price, then the quantity demanded at that price
becomes much higher than the quantity supplied and an excess
demand or shortage appears int he market than then puts pressure
on the price to go up.
Price Floors -
correct answer ✅Meant to increase the market price above the
equilibrium price and thereby creates the problem of excess supply
or surplus.
Price Ceilings -
correct answer ✅Are imposed to with the intention of lowering
