Post Utme University of Nigeria Economics Past Questions and Answers

Question 11:

The process by which West African countries attempt of reduce the import of manufactured goods by encouraging firms to produce these goods at home is known as ____________

A. Industrialization
B. Export promotion
C. Import substitution
D. Export substitution

Question 12:

If the Central Bank intends to increase the money supply through open market operations, then it will ____________

A. Sell securities in the open market
B. Buy securities in the open market
C. Issue more currency notes
D. Withdraw money supply from the market
E. Print more demand deposits

Question 13:

A downward sloping demand curve intersects a fixed supply curve. A shift of this demand curve to the right implies that ____________

A. Both price and quantity will increase
B. Only price increases
C. Only quantity increases
D. The price remains constant
E. The price falls

Question 14:

An important feature of a cartel is that ____________

A. Members do not reduce price below the cartel price
B. Each member has a fixed output above which it is not expected to produce
C. A powerful member fixes the price at which others will sell
D. Members fix the prices for their products

Question 15:

When a firm's average revenue curve is downward sloping, its price elasticity of demand will be ____________

A. One
B. Between zero and infinity
C. Greater than one
D. Zero