Post Utme Economics Past Questions and Answers

Question 231:

If a good is an inferior good, then ____________

A. It is also necessarily a Giffen good
B. The quantity of the good demanded varies inversely with its price
C. Its income elasticity of demand is negative
D. The poor buy the good only out of habit

Question 232:

The Law of Diminishing Returns begins to operate when ____________

A. Total product begins to rise
B. Total product begins to fall
C. Marginal product begins to fall
D. Marginal product begins to rise

Question 233:

One of the dangers of the localization of industries is ____________

A. Residual unemployment
B. Mass unemployment
C. Cyclical unemployment
D. Structural unemployment

Question 234:

If a government wants to reduce the level of inflation, it will ____________

A. Run a budget surplus
B. Run a budget deficit
C. Run a balanced budget
D. Borrow more money

Question 235:

An issue of bank-notes not backed by gold but by government securities is known as ____________

A. Fiduciary issue
B. Guaranteed money
C. Seigniorage
D. Legal tender