Post Utme University of Ibadan Economics Past Questions and Answers

Question 11:

A rightward shift in the production possibility frontier may be due to ____________

A. Use of inferior inputs
B. Inefficiency
C. Improvement in production techniques and practices
D. Changes in the product mix
E. Changes in consumer taste

Question 12:

Direct payment incurred for producing a commodity is called ____________

A. Implicit cost
B. Real cost
C. Opportunity cost
D. Due cost
E. Explicit cost

Question 13:

Diseconomies of scale can be caused by the following EXCEPT

A. Managerial inefficiency
B. Increased resource-cost
C. Large market
D. Inefficient business environment
E. Technology

Question 14:

Diseconomies of scale operates when ____________

A. Doubling inputs brings about more than proportionate increase in output
B. Doubling inputs leads to a doubling of output
C. Doubling input brings about less than proportionate increase in output
D. Decrease in profit
E. Increase in revenue

Question 15:

Economic efficiency means ____________

A. Obtaining maximum output from available resources
B. Equitable distribution of nation's resources
C. Carrying out production without any waste
D. Producing the maximum output from available resources at the lowest possible cost
E. Efficient utilisation of the nation's resources.