Post Utme Economics Past Questions and Answers

Question 216:

At any given level of output, the total cost of a firm equals the ____________

A. Marginal cost plus the average cost
B. Fixed cost less its variable cost
C. Average cost multiplied by its output
D. Economic costs multiplied by variable cost

Question 217:

If two commodities are good substitutes for one another, an increase in the demand for one will reduce the demand for the other. This type of demand is called ____________

A. Composite demand
B. Elastic demand
C. Competitive demand
D. Inelastic demand

Question 218:

As long as marginal utility is positive; the total utility must be ____________

A. Negative
B. Increasing
C. Zero
D. Decreasing

Question 219:

Inductive method of scientific reasoning involves ____________

A. Drawing conclusions from specific to general
B. Making inferences based on theory
C. Using the past to explain the present
D. Drawing conclusions from general to specific

Question 220:

The ability of commercial banks to create money depends on the ____________

A. Reserve ratio
B. Liquidity ratio
C. Interest rate
D. Capital base