Post Utme Economics Past Questions and Answers

Question 171:

A perfect example of a public good is ____________

A. Air
B. Education
C. Defence
D. Transport
E. All the above

Question 172:

A school girl who needs a book and a mirror, each costing five naira, decides to purchase the book instead of the mirror since she cannot pay for the two at the same time. Determine the real cost of her book.

A. The five naira she spent on the book
B. Five-naira real cash value
C. The mirror
D. The book
E. None of the above

Question 173:

A system in which the means of production is held in trust for the people by government is known as a ____________

A. Social economy
B. Capitalist economy
C. Subsistence economy
D. Mixed economy
E. Open economy

Question 174:

A firm determines its profits when it studies its ____________

A. Marginal cost
B. Average cost
C. Total cost
D. Average cost relative to price in the market
E. Average variable cost

Question 175:

Given that the elasticity of demand for a commodity is 2.5, the percentage change in the quantity demanded as a result of \(10 \%\) change in its price is ____________

A. 0.25
B. 0.40
C. 4.00
D. 25.00
E. 10.00