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UI Post-UTME Economics 2013 (Model questions) past questions and answers

2 questions. Try each one, then open the answer to check yourself and read the explanation.

Question 12

Theory of Demand

The table below depicts ------------- Price (₦): 1, 2, 3, 4, 5; Quantity (kg): 100, 120, 150, 180, 200

  1. A.a normal demand curve
  2. B.an abnormal demand curve
  3. C.a diminishing marginal utility curve
  4. D.a kinked demand curve.
Show the answer and explanation

Answer: B (an abnormal demand curve)

Explanation

Quantity demanded rises as price rises, the opposite of the law of demand, so it is an abnormal demand curve.

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Question 16

Theory of Demand

Demand patterns are determined by the market on the basis of

  1. A.consumer sovereignty
  2. B.consumer rationality
  3. C.price of the commodity
  4. D.scale of preference.
Show the answer and explanation

Answer: A (consumer sovereignty)

Explanation

In a market system consumers are 'king': what they choose to buy with their money (consumer sovereignty) decides which goods are demanded and so what producers make.

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