Post Utme Economics Past Questions and Answers

Question 536:

The point of equilibrium for a firm is reached when ____________

A. Marginal cost is equal to marginal revenue
B. Marginal cost is falling as output rises
C. Marginal cost is equal to average cost
D. Average cost is constant

Question 537:

When economists say that the central bank is the “lender of last resort”, they means that the bank is ____________

A. The bank to go to when a company is in financial difficulties
B. The bank that other banks go to borrow from when they are in difficulties
C. The bank that lends money to government
D. All of the above

Question 538:

When a consumer’s real income rises he ____________

A. Increases consumption
B. Buys less of an inferior good
C. Moves to a higher indifference curve
D. All of the above

Question 539:

Suppose two goods are substitutes, other things being equal, when the price of one of them rises ____________

A. The demand for a second good will fall
B. The demand for a second good will rise
C. The prices of a second good will rise
D. The price of a second good will fall

Question 540:

The consumers maximum attainable utility is given by ____________

A. An indifference curve which lies everywhere above the budget line
B. An indifference curve which is tangent to the consumer’s budget line
C. An indifference curve which lies everywhere below the budget in line
D. The middle point of the budget line