Post Utme Economics Past Questions and Answers

Question 31:

The residual of production which accrues to the ownership of land after all other expenses have been met is called ____________

A. Wages
B. Profit
C. Rent
D. Interest

Question 32:

Average fixed cost is ____________

A. Average total cost less the sum of average variable cost
B. Half the sum of all costs
C. Total fixed cost divided by the level of output
D. Total fixed cost plus marginal cost
E. Total variable cost divided by output

Question 33:

Average fixed cost is a rectangular hyperbola

A. Since unit cost increases as output increases
B. Unit cost increases as output decreases
C. Unit cost decreases as output increases
D. Unit cost remains the same as output increases
E. None of the above

Question 34:

Long run cost is U-shaped because of the operation of ____________

A. Economies of scale on the left hand side and diseconomies of scale on the right hand side
B. Diseconomies of scale on the left and right hand sides
C. Economies of scale on the left and right hand sides
D. Constant return to scale
E. Diseconomies of scale of the left hand side and economies of scale of the right hand side

Question 35:

Marginal cost is the cost ____________

A. The lowest cost of producing goods
B. The cost of production of the most efficient firm in an industry
C. The cost of production of the most inefficient firm in an industry
D. The cost of production of the last unit of goods produced by a firm
E. The cost of production at which minimum profit is obtained by the firm