Post Utme Economics Past Questions and Answers

Question 196:

Given that Y=C+1 and C = bY
where b=0.8, what is the multiplier?

A. 4
B. 2
C. 10
D. 5

Question 197:

The function of the Central Bank as a lender of last resort means that when other sources fail, ____________

A. The consumer can always borrow money from the Central Bank
B. The government can ask the Central Bank print more money
C. Commercial banks can raise loans from the Central Bank
D. Commercial banks can deposit money with the Central Bank

Question 198:

If at 10k per Kg, 1000 Kg of yam were purchased and at 5k per Kg, 1500 Kg were purchased, the resultant point elasticity of demand is ____________

A. 0.33
B. 0.0001
C. 1.00
D. 10.00

Question 199:

The shut-down point for a firm in the short run is the output at which

A. The price of the product is lowest
B. Marginal cost is not constant
C. Average variable cost is not covered
D. Average cost is minimum

Question 200:

Which of the following equations is appropriate for determining the Net Domestic Product (NDP)?

A. NDP \(=\) GNP - Depreciation
B. \(N D P=\) GDP \(t\) Net income from abroad
C. \(\mathrm{NDP}=\mathrm{GDP}\) - Depreciation
D. NDP \(=\) GDP \(\times\) Net Income from abroad