Post Utme Economics Past Questions and Answers

Question 751:

For a bicycle company, an economist predicted that. other things being equal. a rise in consumer incomes will increase the demand for bicycles. This prediction is based on the assumption that ____________

A. There are many goods that are substitutes for bicycles
B. There are many goods that are complementary to bicycles
C. There are few goods that are substitutes for bicycles
D. Bicycles are normal goods

Question 752:

A demand curve which is parallel to the horizontal axis is ____________

A. Perfectly inelastic
B. Perfectly elastic
C. Relatively inelastic
D. Relatively elastic

Question 753:

Allocative efficiency occurs only at that output where ____________

A. Marginal benefit exceeds marginal cost the by the greatest amount
B. Consumer surplus exceeds producer surplus by the greatest among
C. The areas of consumer and producer surplus are equal \(\quad\)
D. The combined amounts of consumer surplus and producer surplus are maximized.

Question 754:

The primary problem of economics is ____________

A. To obtain more equitable distribution of money income
B. Production of a given output with the lowest cosT combination of factors of production
C. Adoption of capital-intensive technology
D. Increasing the quantity of the fixed factor of production

Question 755:

For two substitute goods the cross elasticity of demands is ____________

A. Greater than one but less than
B. Zero
C. Negative
D. Positive
E. Infinity