Post Utme University of Ibadan Economics Past Questions and Answers

Question 16:

External economies are ____________

A. The advantages accruing to firm as a result of its expansion
B. The advantages accruing to one firm as a result of the existence of other firms in the same locality
C. Benefits derived by a firm as a result of its own external economies policy
D. Economies reaped only by firms that are externally focused
E. Bound to increase the cost of production

Question 17:

If a firm doubles its output and its costs increase by 60%, the firm is experiencing ____________

A. Increasing costs
B. Economies of scale
C. Decreasing returns
D. Decreasing costs
E. None of the above

Question 18:

In economics, production is complete when ____________

A. Goods are produced in the factories
B. E Goods are sold to the wholesaler
C. Goods and services are produced by the government
D. Prices are fixed for goods and services
E. Goods and services finally reach the consumer

Question 19:

In the study of economics, land, labour, capital and entrepreneur are referred to as factors of production. These factors produce commodities only if they are ____________

A. Profitable to the production process
B. Purchased for the purpose of production
C. Combined in the production process
D. Produced adequately for the production process
E. Brought into factory

Question 20:

Production that takes place within the production possibility curve is said to be ____________

A. Inefficient
B. Possible
C. With increased output
D. X-efficient
E. Pareto-compliant