Post Utme Economics Past Questions and Answers

Question 746:

If actual reserves in the banking system are N \(40.000\), excess reserves are \(N 10.000\), and checkable deposits are \(+240,000\), then the legal reserve requirement is ____________

A. \(10 \%\)
B. \(12.5 \%\)
C. \(20 \%\)
D. \(5 \%\)

Question 747:

The discount rate is the interest ____________

A. Rate at which the Central Bank of Nigeria lend to the Nigerian Government
B. Yield on long-term government bonds
C. Rate at which commercial banks lend to the public
D. Rate at which the Central Bank of Nigeria lend to Commercial Banks.

Question 748:

The basic formula for the price elasticity of demand coefficient is ____________

A. Absolute decline in quantity demanded/ absolute increase in price
B. Absolute decline in price / absolute increase in quantity demanded
C. \% change in price/ \% change in quantity demanded
D. \% change in quantity demanded \(/ \%\) change in price.

Question 749:

If a firm can sell 3,000 units of product \(A\) at \(\$ 10\) unit and \(5.000\) at \(\$ 8\), then ____________

A. The price elasticity of demand is \(0.44\)
B. A is a complementary good
C. The price elasticity of demand is \(2.25\)
D. A is an inferior good

Question 750:

Assume a household would consume \(\mathrm{A} 100\) worth of goods and services per week if its weekly income were zero and would spend an additional \(N 80\) per week for each \(N 100\) of additional income. If \(\mathrm{C}\) represents consumption and \(Y\) income. the equation that summarizes this relationship is ____________

A. \(C=80+100 \mathrm{Y}\)
B. \(\mathrm{C}=100+0.8 \mathrm{Y}\)
C. \(C=100+80 Y\)
D. \(C=80+10 Y\)