Post Utme Economics Past Questions and Answers

Question 21:

Economics may be described as ____________

A. The study of demand and supply of things in our environment
B. The study of production and distribution
C. The study of human behaviour in the allocation of scarce resources
D. The study of the employment of labour, capital, land and capital
E. The study of money and banking

Question 22:

From an economics point of view, an activity does not have cost when ____________

A. Someone else pays for it
B. The returns are greater than costs
C. The choice involves given up nothing
D. Government pays for it
E. It is paid for from gift

Question 23:

Opportunity cost is a term which describes ____________

A. Initial cost of setting up a business venture
B. A study of the ways man devices to satisfy his unlimited wants from limited resources
C. Cost of one product in terms of forgone production of others
D. The mandatory equivalent of the utility of a commodity
E. Cost related to an optimum level of production

Question 24:

Scarcity in economics means ____________

A. A period of scarce things
B. When things are costly to acquire
C. Monopolisation of available resources by a few
D. Nationalisation of natural resources such as petroleum in Venezuela
E. None of the above

Question 25:

Which of these is the real cost of satisfying any want in the sense of the alternative that has to be forgone

A. Variable cost
B. Opportunity cost
C. Total cost
D. Prime cost
E. Marginal cost