Post Utme Economics Past Questions and Answers

Question 611:

A utility function is homothetic if ____________

A. The marginal utility depends on the average of the goods
B. The total utility depends on the sum of the goods
C. The marginal rate substitution for the function depends only on the ratio of the amount of the two goods
D. The MRS for the function depends on the total quantities of the two goods

Question 612:

A pricing behaviour in which a firm charges different prices to different consumers for the same good or service is known as ____________

A. Uniform pricing behaviour
B. Price discrimination
C. Market separability
D. Price differentiation

Question 613:

____________ is a market for the sale and purchase of existing securities

A. Primary market
B. Money market
C. Secondary markel
D. Capital market

Question 614:

The demand curve for a commodity is more elastic ____________

A. The greater the number of good substitute available
B. The greater the proportion of income spent on the commodity
C. The longer the period of time considered
D. All of the above

Question 615:

The velocity of money measures ____________

A. The use of each unit of money in purchasing final output
B. The average use of money in purchasing final output
C. The average use of money by consumers in purchasing consumer goods
D. The average use of money by the business sector