Wednesday, 27 February 2019



1. Which question paper type of Economics is given to you?
A. Type B
B. Type I
C. Type B
D. Type U

2. An economy in which both the public and private sectors contribute to economic growth is as
A. feudal economy
B. capitalist economy
C. socialist economy
D. mixed economy

3. If the standard deviation of a given data is 53, what is the variance?
A. 2082
B. 2809
C. 2808
D. 2209

4. Which of the following set of statistical tools is used for further economic analysis?
A. the median and standard deviation
B. the mean and mode
C. the mean and standard deviation
D. the mode and median

5. An advantage of the range as a measure of dispersion is that it __.
A. can be used to calculate open-ended distribution
B. make use of all values of observations in a distribution
C. takes all values into consideration
D. is useful for further statistical calculation

6. Find the median of the following set of data 35, 10, 14, 38, 15, 18, 22, 30 and
A. 10
B. 38
C. 35
D. 22

7. An increase in demand without a corresponding change in supply will lead to __.
A. a decrease in equilibrium price and increase in equilibrium quantity
B. an increase in equilibrium price and quantity
C. a decrease in equilibrium price and quantity
D. an increase in equilibrium price and a decrease in equilibrium quantity

8. An increase in the price of a commodity will result in __.
A. a decrease in the quantity demanded
B. an increase in demand
C. an increase in quantity demanded
D. a decrease in demand

9. If the price of a bicycle changes from 120 to 80 and quantity bought changes from 300 to 500 units, the elasticity of demand for bicycle is __.
A. 66.7
B. 0.5
C. 1.5
D. 2.0

10.From the graph above, the price elasticity of demand is __.
A. unitarily elastic
B. perfectly elastic
C. perfectly inelastic
D. fairly inelastic

11. One of the assumptions of the cardinalist approach is
A. diminishing marginal rate of substitution
B. the consistency and transitivity of choice
C. that total utility depends on the quantity of the commodities consumed
D. unstable marginal utility of money

12. Utility is the satisfaction derived from the __.
A. distribution of goods and services
B. use of goods and services
C. demand of goods and services
D. production of goods and services

13. From the indifference curve above, consumer will prefer combination __.
A. F
B. S 
C. M 
D. K

14. One of the major factors that brings about changes in supply is  __.
A. market discrimination
B. availability of storage facilities
C. the cost of storage
D. incentives granted to workers

15. If P = 1/4(Qs + 10). What is the quantity supplied at 14?
A. 14
B. 60
C. 46
D. 32

16. If the supply of a product is elastic, a small reduction in price will  __.
A. reduce the cost of production 
B. reduce the quantity supplied 
C. increase the quantity supplied
D. lead to no change in the quantity supplied

17. The supply of beverages by firms in a monopolistic market is an example of  __.
A. derived demand
B. competitive supply 
C. composite supply 
D. joint demand

18. If the price of a commodity is fixed below equilibrium, this will lead to  __.
A. excess demand
B. a decrease in price
C. an increase in price
D. excess supply

19. One of the criticisms of the price mechanism is that  __.
A. producers are sovereign
B. it provides low degree of freedom
C. it widens the inequitable gap
D. consumers are sovereign

20. In Nigeria, government can reduce the cost of accommodation by fixing rent  __.
A. at the prevailing rate
B. at the equilibrium price
C. above the equilibrium price
D. below the equilibrium price

21. If a refinery achieves a reduction in cost by purchasing and transporting crude oil in large quantities, it enjoys  __.
A. economies of scale
B. specialization
C. division of labour
D. diseconomies of scale

22. An isoquant lying above to the right of another represents  __.
A. a higher output level
B. constant returns to scale
C. over-capacity utilization
D. a lower output level

23. From the graph above, R represents  __.
A. marginal cost
B. total cost
C. variable cost
D. fixed cost

Use the graph below to answer question 24 and 25.

24. The optimum level of output of the firm is  __.
A. BC 

25. The total revenue of the firm is represented by  __.

26. A measure of national income used as comparison of standard of living among nations is  __.
A. net national product
B. gross domestic product 
C. gross national product 
D. per capita income

27. The speculative demand for money is inversely related to the __.
A. interest rate
B. level of income
C. exchange rate
D. inflation rate

28. If Mr. K obtains a 50.000 loan from a bank for the purpose of providing household needs, the demand for money is said to be  __.
A. transactionary
B. speculative
C. precautionary and speculative
D. transactional and speculative

29. Which of the following is used by the Central Bank of Nigeria to control inflation?
A. Tariff on imports
B. Tax rate
C. Exchange rate
D. Discount rate

30. If CBN reduces money supply, the interest rate will  __.
A. fluctuate
B. rise
C. fall
D. remain unchanged

31. An example of an expansionary fiscal policy action is  __.
A. decrease in the corporate profit tax rates
B. decrease in welfare payments
C. purchase of government securities
D. decrease in the bank rate

32. A tax on land will ultimately fall  __.
A. partly on agents and users
B. entirely on users
C. entirely on owners
D. partly on users and owners

33. One of the goals of development plans in Nigeria is to  __.
A. increase the profitability of multinational businesses
B. improve the country's GDP
C. achieve higher standard of living for the citizens
D. deregulate the economy

34. Life insurance companies contribute to economic development by holding a part of their assets in  __.
A. long-term financial instruments
B. money market instruments
C. cash and near money
D. short-term financial instruments

35. In order to add value to Nigeria agricultural produce, there is need to  __.
A. cultivate high breed crops
B. process them into finished goods
C. adopt modern storage methods
D. advertise them in European markets

36. The main reason for low agricultural produce in west Africa is need to  __.
A. the presence of large-scale agro-allied industries
B. high dependency ratio
C. over dependence on agriculture for subsistence
D. the use of crude implements in farming process

37. The most important determinant for the location of a brick industry is the availability of  __.
A. market
B. power supply
C. water
D. raw materials

38. In Nigeria, efficiency in public corporations can be achieved through  __.
A. public offer
B. indigenization
C. privatization
D. nationalization

39. Government participation in the oil industry was necessitated by the  __.
A. annual increase in production
B. formation of OPEC
C. high demand for crude oil
D. huge investment outlay

40. The deregulation of the petroleum sector in Nigeria will bring about  __.
A. efficiency in pricing and distribution of the products
B. an end to the importation of fuel
C. an end to foreign firms' dominance
D. fixing appropriate production quotas

41. A distinguishing characteristic of consumer co-operative society is that the  __.
A. the maximum number of shareholders is 20
B. members are the owners
C. members are the workers
D. the minimum number of shareholders is 5

42. A major disadvantage of partnership business is  __.
A. difficulty in the transfer of shares
B. distrust among members
C. limited liability
D. large capital outlay

43. The quality of labour force in Nigeria can be improved by  __.
A. establishing more tertiary institutions
B. creating sufficient job opportunities
C. encouraging the study of science and technology
D. establishing more skills acquisition centres

44. The effect of emigration on a country's population is  __.
A. decrease in the population
B. decrease in job opportunities
C. increase in population
D. increase in dependency ratio

45. A measure for preventing the external value of the naira from falling is for the government to  __.
A. increase its spending with foreign reserve
B. sell its own currency
C. reduce interest rate
D. buy its currency with foreign reserve

46. A fiscal policy instrument that can influence the demand pattern in an economy is  __.
A. government spending
B. interest rate
C. income tax
D. tariff

47. One of the main achievements of the  __.
Economic Commission for Africa is
A. eliminating trade restrictions among states
B. encouraging transport and communication development
C. guaranteeing a steady flow of foreign investment into Africa
D. providing the machinery for collaboration on monetary issues

48. The rate of interest change on loans depends largely on  __.
A. the prevailing exchange rate
B. marginal efficiency of capital
C. the risk associated with the loan
D. the prevailing tax rate

49. A valid explanation for real wage growth is  __.
A. an increase in the rate of productivity
B. the rising cost of capital accumulation
C. a contraction of employment in service industries
D. an increase in the quantity of labour

50. If Mr. X lost his clerical job at a store and searched for a similar job for ten months before finding one this implies that Mr. X was  __.
A. structurally unemployed 
B. frictionally unemployed 
C. seasonally unemployed 
D. cyclically unemployed


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

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