Post Utme University of Ibadan Economics Past Questions and Answers

Question 1:

When the supply of a commodity is fixed, its price elasticity of supply is said to be ____________

A. Perfectly elastic
B. Perfectly inelastic
C. Undefined
D. Elastic
E. Inelastic

Question 2:

Given Demand function: Q_{d}=5 P+10; Supply function: Q_{s}=7 P-5.
The equilibrium quantity is ____________

A. 50
B. 55
C. 75.5
D. 47.5
E. 55.5

Question 3:

In market economies, resources are allocated through the ____________

A. Government authorities
B. Price system
C. Banking system
D. Central planning bureau
E. Revenue allocation formula

Question 4:

In the operation of market forces, the market is in equilibrium at the point where ____________

A. Demand and supply curve intersects in more than one point
B. The excess in the market
C. Excess demand is positive curves intersect
D. Demand and supply can be conveniently stored
E. Excess demand is negative

Question 5:

The basic feature of a market economy is ____________

A. The reduction in the power of sellers the enthronement of consumer sovereignty
B. The dismantling of barriers to trade
C. The perfectly elastic price for every transaction
D. The intersection of demand and supply curves