Post Utme Economics Past Questions and Answers

Question 806:

Which of the following is not a basic assumption underlying the theory of consumer behaviour.

A. Consumers prefer more to less
B. Consumers are rational
C. Consumers are willing to make choices
D. Consumers make consistent choices.

Question 807:

8 . The slope of the budget constraint ____________

A. Change as the marginal rate of satisfaction changes
B. Is the ratio of the prices of the two goods?
C. Is the ratio of the budget of total utility?
D. Equal one. since the consumer can buy 2 combination along the budget constraint

Question 808:

Disposable income equals ____________

A. Personal income les business profits
B. Personal income less taxes and subsidies
C. Personal income less taxes plus subsidies
D. National income plus transfer payments.

Question 809:

The 'terms of trade' means ____________

A. The trade agreement between two countries
B. The difference in the volumes of exports of two countries
C. The value of a unit of export in relation to the value of a unit of import
D. None of the above

Question 810:

The burden of tax on a commodity whose demand is infinitely inelastic

A. Is zero
B. Will be borne by sellers alone
C. Will be borne by buyers alone
D. Is impossible to tell