UTME Economics Past Questions & Answers 1978


31. If the demand for a product with a perfectly elastic supply increases, there will be 
A. an increase in price and quantity offered B. an increase in quantity but price will remain the same C. a reduction in price and quantity-offered D. an increase in price but a reduction in quantity offered for sale E. an increase in quantity offered but a reduction in price

32. Which of these would not be included in the fundamental principles of a free enterprise economy? 
A. Private ownership of factors of production B. The right to organize factors for productive purposes C. The right to make private profit D. Government’s control of the mobility of factors of production E. Government’s efforts to encourage competitive capitalism within the laws of the country

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33. Economics is called a social science because it is 
A. a branch of the social studies B. a study of the ways man devises to satisfy his unlimited wants from limited resources C. a dismal science in the malthusian sense D. governed by scientific laws E. the study of human wants by means of scientific methods of observation

34. Opportunity cost is a term which describes 
A. the initial cost of setting up a business venture B. cost of one product in terms of foregone production of others C. the monetary equivalent of the utility of a commodity D. costs related to an optimum level of production E. implicit costs

35. If consumer’s demand for product X increases as the price of product Y decreases, we can be fairly certain that
A. X and Yare complementary goods B. X and Yare substitute goods C. X and Yare independent goods D.X and Y are jointly supplied E. X and Yare inferior commodities

1. C 4 B 7.B 10.B 13. B 16. A 19. A 22.E 25. B 28. D 31. B 34. B 37. C 40.A 43.C 46.B 49.E
2. C 5.B 8.C 11.E 14. B 17. B 20. B 23.C 26. D 29. B 32. D 35. A 38. D 41.C 44.C 47.E 50.A
3. B 6.C 9.D 12.C 15. D 18. B 21. E 24.A 27. B 30. D 33. B 36. D 39. D 42.C 45.A 48.C

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