Post Utme Economics Past Questions and Answers

Question 666:

When the product of any one firm in an industry is not perceived by consumers as a perfect substitute for the product of any other firm in the same industry, we have ____________

A. Perfect competition
B. Monopoly
C. Oligopolist
D. Monopolistic competition

Question 667:

In which of the following situations do we have a free good?

A. At zero price. more is demanded than supplied
B. At zero price, quantity supplied exceeds quantity demanded
C. At equilibrium price, quantity supply is equal to quantity demanded.
D. Any quantity can be obtained when the price is low

Question 668:

In economics. a commodity is said to have an opportunity cost because ____________

A. The price of the commodity is high
B. The commodity is scarce
C. Another good may have been purchased instead of it
D. The commodity provides many benefits

Question 669:

One among the following options is not correct

A. Any point inside the production possibility curve indicates unemployment or underemployment
B. Increase in the price of a commodity leads to a fall in the demand for its substitute
C. The fixing of price above the equilibrium price level leads to surplus of the commodity
D. An increase in both market supply and market demand may not result in a change in equilibrium price and quantity.

Question 670:

A country's aggregate consumption was N20 million when its GDP was N100million. Following an increase in GDP to N120 million, consumption increased to N25 million. The marginal propensity to consume is given as ____________

A. 0.25
B. 0.50
C. 0.75
D. 0.80