Post Utme Economics Past Questions and Answers

Question 731:

A person should consume more of something when its marginal ____________

A. Benefit exceeds its marginal cost
B. Cost exceeds its marginal benefit
C. Cost equals its marginal I. benefit
D. Benefit is still positive.

Question 732:

Macroeconomics can best be described as the ____________

A. Analysis of how a consumer tries to spend income
B. Study of the large aggregates of the economy or the economy as a whole
C. Analysis of how firms attempt to maximize their profits
D. Study of how supply and demand determine prices in individual markets.

Question 733:

When economists say that people act rationally in their self interest, they mean that individuals ____________

A. Look for and pursue opportunities to increase their utility
B. Generally disregard the interests of others
C. Are mainly creatures of habit
D. Are unpredictable.

Question 734:

As it relates to international trade dumping ____________

A. Is a form of price discrimination illegal under U.S. antitrust laws
B. Is the practice of selling goods in a foreign market at less than cost
C. Constitutes a general case4 for permanent tariffs
D. Is defined as selling more goods than allowed by an import quota.

Question 735:

A nation's production possibilities curve is bowed out from the origin because ____________

A. Wants are virtually unlimited
B. The originator of the idea drew it this way and modern economists follow this convention
C. Resources are scarce
D. Resources are not equally efficient in producing every good.