Tuesday, 26 February 2019



1. Which question paper type of Economics is given to you?
A. Type F
B. Type E
C. Type L
D. Type S

2. The choice of how to produce in a command economy is determined by
A. government
B. consumer
C. industrialists
D. labour unions

3. In capitalist economies, questions about what to produce are ultimately answered by __.
A. income level of households
B. available technical skills in the economy
C. output decisions of firms
D. holding decision of households

4. The best measure of dispersion to determine the tallest tree in a forest is __.
A. range
B. variance
C. standard deviation
D. mean deviation

Use the Pie chart below to answer question 5 and 6.

5. What is the percentage contribution of services to the national income?
A. 15%
B. 10%
C. 54%
D. 24%

6. If the national income is ₦60m, the contribution of the manufacturing sector is __.
A. ₦12m
B. ₦9m
C. ₦18m
D. ₦17m

7. A combination of factors responsible for a shift from D0D0 to D1Dare __.
A. consumers income and change in technology
B. price of the commodity and weather conditions
C. consumers income and population size
D. consumers taste and change in price

8. Given that Qd = 40-2P and Qs = 6P+24. Calculate the equilibrium price.
A. ₦34
B. ₦32
C. ₦36
D. ₦16

9. A change in demand for a normal goods implies that, there is a __.
A. change in the quantity demanded as price changes
B. shift in the demand curve
C. movement along a given demand curve
D. change in the price elasticity of demand

10. If a 10% rise in price causes a 5% decrease in the quantity demanded of a commodity, the elasticity of demand is __.
A. unitary elastic
B. zero elastic
C. elastic
D. inelastic

11. From the graph above, the consumer will attain equilibrium at point __.
A. J
B. K
C. L
D. M

12. A rightward shift of the budget line is caused by a __.
A. fall in consumer income
B. change in consumer taste
C. fall in the commodity relative price
D. rise in the commodity relative price

13.    Given the supply function P = 1/4(Qs+10) when P = ₦10, what is Qs?
A. 20
B. 15
C. 50
D. 30


From the table above, Calculate the price elasticity of supply.
A. 0.50
B. 0.80
C. 2.00
D. 1.25

15. When price is set below equilibrium, this will lead to __.
A. an increase in the quantity supplied
B. a new equilibrium
C. a decrease in the quantity supplied
D. a fall in price

16.   Price mechanism determines the prices of commodities through __.
A. auctioning
B. market forces
C. the sales of treasury bills
D. government legislation

17.  From the table above, find the values of E and F respectively
A. 27 and 1
B. 68 and 12
C. 28 and 5
D. 12 and 19

18. If the production of a large firm is higher than that of a small firm, it is experiencing __.
A. external economies of scale
B. external diseconomies of scale
C. internal economies of scale
D. internal diseconomies of scale

19. Division of labour requires that, the tasks in a production line be performed __.
A. by specialists
B. in stages
C. by all workers
D. by unskilled labourers

20. Given that FC = ₦500, VC = ₦1,500, and Q = 50 units. Find the average cost of the product.
A. ₦30
B. ₦40
C. ₦10
D. ₦20

21. Rent and administrative expenses are examples of __.
A. average fixed costs
B. average variable costs
C. fixed costs
D. variable costs

22. A perfect competitor will continue to expand output up to the point where __.
A. TC > TR
B. MR = AR
C. MC < MR
D. MC > MR

23. One of the characteristics of a monopolist is that, he can influence ___.
A. quantity produced by other producers
B. prices charged by other producers
C. both price and quantity
D. price or quantity

24. A monopolist can boost up his revenue by __.
A. adjusting both price and output upward
B. reducing total output to match price
C. increasing price
D. reducing price

25. Which of the following can be used to measure the Gross National product in an open economy?
A. C+I+G+(X+M)
B. C+I+G+X
C. C+I+G
D. C+I+G+(X-M)

26.   If MPC = 2/and investment is ₦100 million, the level of national income is __.
A. ₦100 million
B. ₦10 million
C. ₦303 million
D. ₦300 million

27. The precautionary demand for money is determined by __.
A. the rate of interest
B. the level of savings
C. the level of income
D. general price level

28. An inflation that co-exists with high rate of unemployment is __.
A. hyperinflation
B. stagflation
C. demand-pull inflation
D. cost-push inflation

29. One of the challenges facing the banking industry in Nigeria is __.
A. ensuring technological security
B. providing employment
C. providing loans for investment
D. creating more money

30. Short-term loans for investment are usually obtained through the __.
A. stock market
B. development banks
C. money market
D. capital market

31. Given a base year and the price index of 175% the following year, which of the following year will arise?
A. The cost of living decreases of that year
B. The cost of living remains unchanged
C. The value of money rises by 75%
D. The value of money falls by 75%

32. Wage freeze is a policy measure aimed at __.
A. encouraging investors
B. curbing inflation
C. regulating standard of living
D. curbing deflation

33. A major obstacle to the development of Nigeria economy is __.
A. low capital formation
B. rural-urban migration
C. over dependence on oil
D. poor developmental policies

34. A major feature of an underdeveloped economy is __.
A. excess capacity utilization
B. low rate of population growth
C. low level of standard of living
D. low level of unemployment

35. An important role of agriculture in Nigeria's economic development is the ___.
A. processing of raw materials for industries
B. regulation of price system
C. provision of infrastructure
D. provision of employment

36. An advantage of large-scale farming over peasant farming is in the area of __.
A. providing research and massive employment of labour
B. redistributing national income to various regions of the country
C. encouraging the use of traditional implements
D. encouraging urban-rural migration

37. A major disadvantage of localization of industry is __.
A. the risk of structural unemployment
B. over-utilization of installed industrial capacity
C. the risk of seasonal unemployment
D. under-utilization of installed industrial capacity

38. One major factor that determines the location of an industry is __.
A. tax exemption grant
B. its proximity to the market
C. the capital base
D. the social responsibility of the firm

39. The major contribution of OPEC to the Nigerian economy is the __.
A. provision of social infrastructures
B. granting of subsidies on petroleum products
C. stabilization of oil prices
D. building of refineries

40. The loading of crude oil at the terminal is an activity in the __.
A. downstream sector of the oil industry
B. upstream and downstream sector of the oil industry
C. upstream sector of the oil industry
D. midstream and upstream sectors of the oil industry

41. The short-run average variable cost of a firm will rise owing to __.
A. the expansion of factory space
B. the building of new warehouse
C. an increase in the cost of labour
D. an increase in the salaries of directors

42. Firms embark on vertical integration in other to __.
A. take over markets formally controlled by other firms
B. prevent other firms from entering the market
C. reduce advertisement and management cost
D. enjoy economies of large-scale production

43. The voting power in co-operative societies is vested on __.
A. management
B. members without loan
C. shareholders
D. members with the highest contribution

44. An accurate census figure is an important tool for planners in __.
A. providing employment
B. siting industries
C. providing social amenities
D. allocating resources

45. An accurate population census is important in other to __.
A. produce more food for the growing population
B. provide employment opportunities for the people
C. estimate a country's per capita income
D. fast track industrial development

46. A major determinant of floating exchange rate is __.
A. the highest denomination of the currency
B. an Act of the parliament
C. the system of government
D. the forest of demand and supply

47. If the importation of a commodity is limited to a definite quantity, the trade control measure imposed is __.
A. excise duties
B. import duties
C. quotas
D. tariff

48. The main objective of WTO is to __.
A. ensure adequate protection of infant industries
B. provide a mechanism for tariff reduction
C. assist countries with chronic balance of payments problem
D. assist developing countries to execute developmental projects

49. The major determinant of the total volume of output in an economy is the __.
A. level of total expenditure
B. composition of consumer spending
C. number of farmers
D. size of the labour force

50. The labour force of a country is determined by the __.
A. age structure of the population
B. geographical distribution of the population
C. sex distribution of the population
D. number of people available for work


1. C

2. A

3. C

4. B

5. C

6. C

7. D

8. D

9. D

10.   C

11.   B

12.   D

13.   A

14.   B

15.   D

16.   B

17.   C

18.   C

19.   B

20.   D

21.   D

22.   C

23.   C

24.   B

25.   C

26.   D

27.   A

28.   A

29.   C

30.   B

31.   A

32.   B

33.   C

34.   C

35.   D

36.   A

37.   D

38.   B

39.   C

40.   B

41.   C

42.   D

43.   C

44.   C

45.   D

46.   D

47.   A

48.   D

49.   A

50.   B