Post Utme Economics Past Questions and Answers

Question 81:

Air is essential to life but commands no price! Diamond is not essential to life but commands a high price! This is the paradox of ____________

A. Thrift
B. Value
C. Abundance
D. Scarcity

Question 82:

Economies of scale operate only when ____________

A. Marginal cost is falling with input.
B. Average cost is falling with input
C. Fixed cost is variable
D. Variable cost is less than fixed cost

Question 83:

Efficiency in production involves ____________

A. Reducing the size of workforce
B. Producing 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 84:

An effect of inflation is that it ____________

A. Discourages trade by barter
B. Favours debtors at the expense of creditors
C. Increases the real income of salary earners
D. Increases the value of a country's exports

Question 85:

The migration of young people from rural areas in Nigeria should help to raise the ____________

A. Standard of living in the urban areas
B. Total productivity of labour in the rural areas
C. Marginal productivity of labour in the rural areas
D. Marginal productivity of labour in the urban areas