Post Utme Economics Past Questions and Answers

Question 411:

The consumption that does not depend on income is referred to as ____________

A. Autonomous consumption
B. Independent consumption
C. Free consumption

Question 412:

All, except one of the following, are instruments of monetary policy?

A. Open market operations
B. Bank rate
C. Budget deficit.

Question 413:

A situation where a country is able to produce all commodities cheaper than the other in international trade is referred to as ____________

A. Comparative advantage
B. Absolute advantage
C. Reconciliation advantage

Question 414:

In a perfectly competitive firm, the MR curve is horizontal because ____________

A. Product price falls as output increases
B. The law of diminishing marginal utility is at work
C. The firm is a price taker.

Question 415:

The central bank could increase the money supply by ____________

A. Increasing the discount rate
B. Buying government securities in the open market
C. Increase the reserve requirement