1. Which question paper type of Economics as indicated above is given to you?
A. Type Green
B. Type Purple
C. Type Red
D. Type Yellow
2. A major disadvantage of a socialist economy is that __.
A. corruption is rampant
B. consumer's sovereignty is lost
C. income inequality is entrenched
D. there is high level of unemployment
3. The privatization of public enterprises will lead to efficient management of resources in the economy. This statement can best be described as __.
A. normative reasoning
B. inductive reasoning
C. deductive reasoning
D. positive reasoning
4. The sign of the slope of a graph in economic analysis is important because it __.
A. shows whether a good is normal or inferior
B. shows the relationship between variables
C. reveals the magnitude of the change between variables
D. helps to determine the unit of measurement of variables
5. The percentage contribution of manufacturing sector is __.
6. If the GDP is ₦60 billion, what is the difference between the contributions of oil and manufacturing sectors?
A. ₦11.7 billion
B. ₦13.3 billion
C. ₦21.7 billion
D. ₦26.6 billion
7. If the quantity of rice bought decreases from 250 tonnes to 200 tonnes owing to a 2% rise in price, it shows that there is a change in __.
A. consumers' income
C. consumers' tastes
D. quantity demanded
8. A rise in income will, ceteris paribus, bring about __.
A. a movement along the demand curve
B. a leftward shift of the demand curve
C. a rightward shift of the demand curve
D. no effect on the demand curve
9. From the above, calculate the price elasticity of demand.
10. If the price of an item increases by 8% while the quantity demanded falls from 1500 units to 1492 units, the demand is said to be ___.
A. perfectly elastic
D. perfectly inelastic
11. Comparison of interpersonal utility is impossible because __.
A. utility is measured in utils
B. marginal utility is not observable
C. utility is subjectively determined
D. individual income differ
12. When the slope of the total utility curve is declining, the marginal utility of a consumer will be increasing if he __.
A. stops consuming more of the commodity
B. reduces the quantity consumed
C. increases the quantity consumed
D. consumes more of another commodity
Use the diagram below to answer question 13 and 14
13. The consumer is at equilibrium at point __.
14. To move from point M to K, the consumer has to increase the __.
A. consumption of X and reduce the consumption of Y
B. expenditure on Y
C. expenditure on X
D. consumption of Y and reduce the consumption of X
15. The supply of cocoa is influenced by __.
A. seasonal conditions
B. the efficacy of fertilizer used
C. the demand for beverages
D. the availability of close substitutes
16. If quantity supplied is constant irrespective of price changes, the supply elasticity is __.
C. fairly elastic
D. perfectly inelastic
17. The cost elasticity of supply is a useful instrument for measuring __.
C. national income
D. price index
18. The invisible hand promotes the interests of __.
19. Fixing price above equilibrium will cause __.
A. demand and supply to remain constant
B. an increase in quantity supplied
C. an increase in supply
D. a decrease in quantity supplied
20. An important function of the price system is to __.
A. ensure that producers' profits remain high
B. guarantee full employment of resources
C. allocate resources to most productive uses
D. protect the economic interests of government
21. If all factors are variable in the long run,firms will experience __.
A. decreasing returns to scale
B. increasing returns to scale
C. diminishing returns
D. economies of scale
22. The equilibrium point of a firm is attained at the point where the isoquant is __.
A. greater than the isocost
B. less than the isocost
C. tangent to the isocost
D. greater than the output
23. The long-run average cost curve touches to the short-run average cost curves at the __.
A. minimum points of all short run average cost curves
B. declining points of all short-run average cost curves
C. minimum point of only one of the short-run cost curves
D. rising points of all short-run average cost curves
24. If a firm doubles all inputs in the long run and the total output is less than doubled, this results in __.
A. diminishing returns
B. constant returns to scale
C. increasing returns to scale
D. decreasing returns to scale
25. Patents and copyrights enable monopolists to __.
A. determine the quality of their products
B. determine the scale of their products
C. restrict information flow to new firms
D. restrict entry of new firms
26. A discriminatory monopoly is characterized by __.
A. a common elasticity in different markets
B. different elasticities in different markets
C. a finite elasticity in all markets
D. zero elasticity in all markets
27. Net National Product is derived by deducting __.
A. net exports from GNP
B. subsidies from GDP
C. taxes from GDP
D. depreciation from GNP
Use the information below to answer question 28 and 29.
The investment expenditure of economy changes by ₦2 Million and MPC is 0.75
28. What is the change in income?
29. The multiplier is __.
30. The money that commands a higher market value than its face value is called __.
A. paper money
B. standard money
C. commodity money
D. fiat money
31. If a basket of commodities cost N120 in the base year and N240 in the current year, calculate the price index.
32. The minimum amount which banks are required to deposit with the central bank is determined by the __.
A. liquidity ratio
B. cash reserve ratio
C. minimum lending rate
D. aggregate credit ceiling
33. The major function of money market is to __.
A. provide funds for long-term financing
B. provide funds short-term financing
C. stabilize the value of the local currency
D. stabilize domestic prices
34. An ad valorem tax is imposed on __.
A. special commodities
D. the value of a commodity
35. A huge national debt is an indication that the gold reserves of a nation has __.
36. Rapid economic development in Nigeria is realizable by __.
A. continuous dependence on oil
B. concentrating more on agriculture
C. developing the tourism industry
D. diversifying the economy
37. The primary reason for desiring economic growth is to __.
A. control inflation
B. reduce poverty
C. redistribute income
D. raise standard of living
38. An emerging agricultural export crop in Nigeria is __.
D. soya beans
39. A strategy for improving agriculture in Nigeria will involve __.
A. controlling the prices of agricultural products
B. ensuring self-sufficiency in food production
C. reducing agricultural exports
D. establishing commodity boards
40. A sugar industry is best located near the source of __.
B. raw materials
41. An important contribution of small-scale industries to the Nigerian economy is in the area of __.
A. technological development
B. foregin exchange earnings
C. raw materials processing
D. labour employment
42. A change in the pump price of petrol in Nigeria has a direct effect on the __.
A. prices of consumer goods
B. prices of essential goods
C. cost of raw materials
D. cost of transportation
43. Long-term funds for investment projects are sourced from the __.
A. money market
B. commodity market
C. foreign exchange market
D. capital market
44. A policy aimed at enhancing globalization of the Nigerian economy is __.
45. The Malthusian theory was concerned about the relationship between __.
A. population growth rates of the rich and the poor nations
B. population density and national income
C. population growth rate and natural resources
D. age distribution of population
46. In a village of 50 persons, 10 immigrated, 25 died and 5 emigrated in year. Determine the total population.
47. A deficit balance of payments is measured by subtracting the debits from the credits in the __.
A. current account
B. current and capital accounts
C. current and escrow accounts
D. capital and escrow accounts
48. One of the functions of ECOWAS is to __.
A. provide funds for infrastructural development
B. determine prices of exports
C. redistribute income among citizens
D. provide employment for citizens of member nations
49. The reward on machinery and equipment in the process of production is known as __.
50. From this diagram, the minimum wage OW will lead to __.
A. full employment of resources
D. full employment of factors of production