Post Utme Obafemi Awolowo University Economics Past Questions and Answers

Question 11:

$$\begin{array}{|lllllllll|}\hline \text{(}\mathrm{Q}\text{)}& 1& 2& 3& 4& 5& 6& 7& 8\\ \text{(}\mathrm{Mu}\text{)}& 16& 14& 12& 10& 8& 6& 4& 2\\ Mus& 11& 10& 9& 8& 7& 6& 5& 4\\ \hline\end{array}$$

In the above. The price of commodity $\mathrm{y}$ is $\mathrm{N}2$ and that of $x$ is $\mathrm{H}1$ while the individual has an income of $+12$. Determine the combination of the two commodities the individual should consume to maximize his utility

A. $6y$ and $4x$
B. $3y$ and $6x$
C. $5y$ and $5x$
D. $3y$ and $3x$

Question 12:

The production possibility function can illustrate one of the following

A. The principle of opportunity cosi and increasing opportunity costs.
B. The distinction between micro and macrocconomics.
C. Efficient, infeasible and inefficient production combinations.
D. All of the above.

Question 13:

The quantity demanded (Qd) of a soft drink brand $X$ has decreased. This could be because ____________

A. X's consumers have had an increase in income
B. The price of $X$ has increased
C. X's advertising is not as effective as in the past
D. The price of rival brand $Y$ has increased.

Question 14:

Economics used the term 'utility' to mean ____________

A. The value of a product before it has been advertised
B. The satisfaction obtains from a good or service
C. Total satisfaction gained when consuming a given number of units
D. The contribution a good or service makes to social welfare.

Question 15:

If the cross-price elasticity of demand between two goods is negative, then the two goods are ____________

A. Unrelated goods
B. Substitutes
C. Complements
D. Normal goods