Wednesday, 27 February 2019




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

2. An effective way of controlling inflation in a mixed economy is to  __.
A. increase productivity
B. reduce income tax
C. ration available output
D. increase imports

3. One of the limitations PPC assumption is that there is __.
A. no indication of technological development
B. no recognition of preferred goods for countries
C. technical inefficiency
D. abundant resources

4. A major disadvantage of the arithmetic means is that it is  __.
A. not useful for large data
B. not suitable for further statistical analysis
C. cumbersome to determine the actual value
D. affected by extreme data

5. Demand patterns are determined by the market on the basis of   __.
A. scale of preference
B. consumer sovereignty
C. consumer rationality
D. price of the commodity

6. A consumer surplus measures the  __.
A. benefits derived from consuming a cheap commodity
B. excess of total expenditure over total utility
C. difference between marginal utility and marginal cost
D. excess of marginal utility over price

7. If the demand for one commodity excludes another, it is said to be  __.
A. complementary demand
B. competitive demand
C. composite demand
D. derived demand


8.  The graph of the schedule above will depict  __.
A. a kinked demand curve
B. a normal demand curve
C. an abnormal demand curve
D.  a diminishing marginal utility curve

9. The median of an odd-numbered set of scores is the  __.
A. Middle value in the set
B. Highest value in the set
C. Arithmetic means of the set
D. Most frequent occurring score

10. If demand increases without a change in supply, equilibrium price and quantity will  __.
A. remain unchanged
B. shift inward
C. fall
D.  rise

11. In the process of production, total output is at maximum when  __.
A. MP=0
B. MP > 0
C. AP = 0
D. AP > 0

12. From that table above, the price elasticity of supply is
A. 4
B. 25
C. 1
D. 2

13. When a consumer is at equilibrium, the MRSxy is equal to the __.
A. sum of the prices
B. product of the two prices
C. ratio of the two prices
D. difference of the two prices

14. Minimum price legislation by government will  __.
A. reduce supply
B. increase supply
C. reduce demand and create surplus
D. increase demand and create scarcity

15. Ranking is the method use in measuring  __.
A. marginal utility
B. ordinal utility
C. cardinal utility
D. total utility

16. If a firm is faced with an elastic supply curve, its revenue will  __.
A. be supplied at a higher price
B. double at a higher price
C. increase by more than the percentage increase in price
D. equal percentage change in price

17. The optimal range of output for a perfectly competitive firm is  __.
A. AC is lowest
B. AVC is lowest
C. MC is rising
D. MC is falling

18. A firm will experience diseconomies of scale when  __.
A. there are difficulties in coordinating production
B. there is shortage in labour supply
C. the size of market is small
D. there is an increase in the price of raw materials

19. The law of variable proportions is applicable only  __.
A. in the long-run period
B. to large-scale enterprises
C. to small-scale enterprises
D. in the short-run period

20. From the Diagram above, the optimal point of production is  __.
A. R
B. T
C. U
D. S

21.If real income increases while nominal income remains the same, it can be inferred that  __.
A. Unemployment rate has decreased
B. General prices have fallen
C. Employment rate has risen
D. General prices have risen

22. One of the characteristics of oligopoly is the availability of  __.
A. few sellers
B. few buyers
C. many sellers
D. a single seller

Use the diagram below to answer question 23 and 24
23. The average total cost when 20 units are produced is  __.
A. 20.00
B. 23.00
C. 13.00
D. 15.00

24. When 20 units of output is produced, TC will be __.
A. 360
B. 300
C. 460
D. 400

25. The profit of a monopolist can be eliminated where price equals __.

26. Bank consolidation policy in Nigeria is a measure to increase __.
A. the capital base of banks
B. employment opportunities in banks
C. the number of shareholders
D. the number of branches

27. An increase in the circulation of money without a corresponding increase in output will lead to __.
A. a rise in income levels
B. stagflation
C. inflation
D. deflation

28. In national income accounts, an item counted as part of government spending is __.
A. salaries and wages
B. pension
C. scholarship
D. social welfare

29. If aggregate demand is lower than total output in an economy national income will __.
A. be constant
B. be at equilibrium
C. increase
D. fall

30. During the era of barter, money was generally in the form of __.
A. notes
B. precious metals
C. coins
D. commodities

31. A country achieves economic development when there is __.
A. an increase in military expenditure
B. an increase in capacity utilization
C. a sustained increase in per capital income
D. an even distribution of goods and services

32. An indicator of growth in an economy over a period of time is the __.
A. GDP gap
B. GDP at factor cost
C. GDP at market price
D. GDP deflator

33. A country embarks on deficit financing in order to __.
A. increase revenue
B. reduce aggregate demand
C. curb inflation
D. stimulate investment

Use the diagram below to answer question 34 and 35
34. The deflationary gap is defined by __.
A.  X
B. K
C. X + K
D. X - K

35. What does X represent?
A. recessionary gap
B. GNP gap
C. inflationary gap
D. deflationary gap

36. The import-substitution strategy of industrialization is to encourage __.
A. domestic production
B. large-scale production
C. importation
D. exportation

37. Upstream oil activities involve the __.
A. management of pollution
B. marketing of refined products
C. exploration of crude oil
D. refining of crude oil

38. Agricultural production in Nigeria is constrained by __.
A. ineffective use of stabilization measures
B. inadequate demand
C. poor implementation of policies
D. balance of payments deficits

39.The main function of NNPC is to __.
A. oversee the development of the oil sector
B. develop the oil producing area
C. fix the price of products
D. ensure regular supply of products

40. Investing heavily in the agricultural sector will lead to __.
A. sufficient food production
B. a vibrant commodity market
C. capital inflow
D. stable export prices

41. Industrial development in Nigeria can be encouraged through __.
A. signing WTO treaty
B. granting subsidies
C. the provision of efficient infrastructure
D. direct government participation

42. The record of a country's transactions in international trade is her __.
A. capital account
B. balance of payments
C. current account
D. balance of trade

43. The transfer to public shareholding corporations to private enterprises is __.
A. concession
B. incorporation
C. commercialization
D. privatization

44. A condition in which official and autonomous exchange rate coexist is __.
A. dual exchange rate system
B. managed floating rate system
C. market-determined exchange rate system
D. multiple exchange rate system

45. In modern economies, the Malthusian theory of population is ineffective because of __.
A. birth control measures
B. technical progress
C. government policies
D. natural disasters

46. Optimum population enables an economy to attain the highest level of __.
A. Industrial development
B. Income per head
C. Revenue generation
D. Economic development

47. A change from one industry to another by a worker is an example of __.
A. geographical mobility
B. horizontal mobility
C. professional advancement
D. vertical mobility

48. The money paid per hour for work done is __.
A. salary
B. wage rate
C. cost
D. bonus

49. Trade takes place because of __.
A. marginal utility
B. inefficiency in production
C. opportunity cost
D. comparative advantage

50. The World Trade Organization is responsible for __.
A. stabilizing and harmonization oil prices
B. ensuring equal participation of countries in trade
C. modernising world economies
D.  minimizing obstacles to international trade and investment


1. B

2. A

3. B

4. D

5. B

6. D

7. B

8. B

9. A

10. B

11. A

12. C

13. A

14. C

15. B

16. C

17. B

18. C

19. A

20. D

21. B

22. B

23. D

24. B

25.   B

26.   A

27.   D

28.   D

29.   D

30.   D

31.   C

32.   C

33.   C

34.   A

35.   D

36.   B

37.   C

38.   C

39.   A

40.   A

41.   B

42.   B

43.   D

44.   D

45.   B

46.   B

47.   D

48.   B

49.   D

50.   D