Post Utme Economics Past Questions and Answers

Question 661:

If the cross elasticity of demand between \(X\) and \(Y\) is zero, then ____________

A. \(X\) and \(Y\) are substitutes
B. \(X\) and \(Y\) are complements
C. \(\mathrm{X}\) and \(\mathrm{Y}\) are dependent on each other
D. \(\mathrm{X}\) and \(\mathrm{Y}\) are independent of each other

Question 662:

Which of the following correctly defines inflation?

A. A one-time increase in commodity prices
B. A period when prices increase rapidly
C. A sustained increase in the overall price level
D. An increase in the overall level of business activity

Question 663:

If a market for good \(X\) is in disequilibrium, which of the following statements is true about the quantity of \(\mathrm{X}\) that is actually exchanged?

A. It is determined by the forces of demand
B. It is determined by the forces of supply
C. It is determined by both demand and supply forces
D. It is determined by the forces of demand or supply whichever is shorter

Question 664:

How can we eliminate a surplus in a commodity market?

A. Increase quantity supplied
B. Decrease quantity demanded
C. Allowing price to fall towards equilibrium
D. Allowing price to rise towards equilibrium

Question 665:

Identify one among the following which is NOT part of the objectives or functions of the African Development Bank (ADB).

A. Provision of technical assistance for development projects
B. Provision of funds for the supply and demand of infrastructural facilities
C. Adoption of a common tariff policy for trade and development
D. Provision of fund for agricultural development