Post Utme Economics Past Questions and Answers

Question 146:

Economic decisions are taken ____________

A. At the margin
B. At once as consumption goes on
C. At the beginning of events
D. At the level of the household

Question 147:

If units of a variable factor are increasingly added to a fixed factor and the marginal physical product keeps increasing, production is said to be taking place under conditions of ____________

A. Increasing returns to the variable factor
B. Fixed cost less its variable cost.
C. Constant returns to the variable factor
D. External economies of scale.

Question 148:

Short run period in production is a period too short for a firm to be able to change its ____________

A. Scale of operation
B. Total revenue
C. Variable inputs
D. Total outputs

Question 149:

A firm's shut-down point is reached when the average revenue fails to cover the ____________

A. Marginal cost
B. Average fixed cost
C. Average total cost
D. Average variable cost

Question 150:

The need to construct a scale of preference is necessitated by

A. The need to satisfy wants
B. Scarcity and the need for choice
C. Scarcity of resources
D. Non-availability of factors of production