Tuesday, 26 February 2019


1.  The major implication of high dependency ratio on an economy is __.
A.  high capital formation
B.  vicious cycle of poverty
C.  low cost of living
D.  high standard of living

2.  One of the major problems of agricultural sector in Nigeria is ___.
A. low literacy level of farmers
B.  small size of farms
C.  pest attack on crops
D.  inadequate modem farm implements

3.  Cooperative societies are characterized with __.
A. divergent interest of members
B. limited liability
C. free entry and exit
D. unlimited size of membership

4. The marginal propensity to save measures the ___.
A. ratio of change in saving
B. change in supply as a result of a change in consumption
C. ratio of change in consumption to a change in the level of income
D. average propensity to consume

5. Structural unemployment is mainly caused by ___.
A. a change in the consumption pattern
B. a change in the business cycle
C. decrease in the output level
D. seasonal variation

6. One of the major problems of census in Nigeria is
A. inadequate skilled personnel
B. high dependency ratio
C. distortion of census figures
D. high cost of conducting census

7. A decrease in government expenditure in an economy will cause general price level to __.
A. remain constant
B. fluctuate
C. fall
D. rise

8. From the table above, find the values of K and F respectively.
A. 13 and 27
B. 27 and 13
C. 10 and 27
D. 27 and 10

9. In the theory of consumer behaviour, the sum of all marginal utilities is __.
A. average marginal utility
B. the initial marginal utility
C. total utility
D. diminishing marginal utility

10. In a pure capitalist economy, the means and forces of production are owned and controlled by the __.
A. public and private sectors
B. feudal lords
C. public sector
D. private sector

11. All the following are factors that would bring about a change in supply except __.
A. level of technology
B. government policy
C. Entry of new firms
D. Price of the commodity

12. The combination of two commodities each yielding the same level of satisfaction to the consumer is __.
A. consumer surplus
B. indifference curve
C. budget constant
D. goods of necessity

13.The demand for money is referred to as the __.
A. amount of money in fixed deposit
B. desire to hold money intangible assets
C. need for money to invest
D. desire to hold money in liquid form rather than investing it

14. In the theory of production, a producer is at equilibrium at a point where __.
A. isocost is above the isoquant curve
B. isoquant is below the isocost curve
C. isocost is tangent to the marginal revenue
D. isoquant is tangent to the isocost curve

15. Balance of trade shows the relationship between the __.
A. internal and external trade
B. total value visible import and Export
C. deficit and surplus balance of payments
D. total value of invisible import and export

16. If the cash reserve ratio is 30%, a new deposit of ₦20 million will increase supply by
A. ₦57.8m
B. ₦47.9m
C. ₦69.78m
D. ₦66.7m

17. A fall in the price c f ostentatious goods will __.
A. increase the quantity demanded
B. decrease the quantity demanded
C. decrease demand
D. increase demand

18. Payment of interests on loans and the repayment of capital sum at a future date is __.
A. balance debt
B. debt servicing
C. debt relief
D. debt retaking

19.  The most difficult measure of central tendency to determine in a grouped data is __.
A. range
B. variance
C. mean
D. mode

20. Localization of industry is mainly determined by __.
A.  dis-economies of scale
B.  population growth 
C.  division of labour
D.  access to raw materials

21. Geographical distribution of a population is affected by __.
A. low birth rate
B. the availability of skilled manpower
C. the availability of agricultural land
D. high birth ratenomic rent

22.   A tax burden on a commodity will be shared equally if the demand is __.
A. fairly elastic
B. perfectly inelastic
C. fairly inelastic
D. unitary elastic

23. Higher income taxes can be used to control
A. demand-pull inflation
B. high interest rates
C. cost- push inflation
D. hyperinflation

24.  Quantity From the graph above, a shift of the Supply curve from Sa Sa to S1 Swill lead to __.
A. a decrease in price and quantity
B. no change in price and quantity
C. an increase in price and quantity
D. a decrease in price and an increase in quantity

25. An indifference map is made up of a set of __.
A. consumers' total utility
B. consumer surplus
C. budget lines
D. indifference curves

26. Recapitalization policy will enable commercial banks to __.
A. employ more qualified workers
B. open more branches
C. reduce interest rate
D. have a very strong capital base

27. The number of persons required to form a private company ranges from __.
A. ten to twenty
B. two to fifty
C. two to seven
D. seven to ten

28. The major function of international monetary funds is the ___.
A. provision of short-run loans to medium scale industries
B. provision of long-term loans for infrastructure
C. development of agriculture in member countries
D. maintenance of stable exchange rates

29. One of the major activities in the upstream sector of the Nigeria petroleum industry includes __.
A. transportation of finished products
B. refining of crude oil
C. marketing of refined petrol
D. exploration of crude oil

30. The law of supply states that the __.
A. higher the price the higher the quantity supplied
B. quantity supplied is always equal to the quantity demanded
C. lower the price the higher the quantity supplied
D. higher the price the lower the quantity supplied

31. One of the features of a perfect competitive firm is __.
A. restrictions to entry and exit
B. price discrimination
C. absence of transportation cost
D.  product differentiation

32. The basis for international trade is the  __.
A. differences in natural resources endowment
B. differences in the population size
C. prevailing interest rate on multilateral loans
D. economic system in practice

33. Training farmers on the improved farming techniques is the major activity of __.
A. intermediate workers
B. middlemen
C. extension workers
D. creditors

34. In a free market economy, prices are determined by __.
A. consumers
B. producers
C. the central government
D. the forces of demand and supply

35. The basic economic problem of what to produce in an economy is determined by __.
A. the availability of labour
B. the means of distribution
C. the availability of resources
D. technological know-how

36.   In Nigeria, a fall in the supply of petrol would generally affect the __.
A. import of goods and services
B. export of goods and services
C. general price level in the country
D. exchange rate of the Naira

37. The short-run equilibrium point of a perfectly competitive firm is attained at a point where
A. is equal to total cost
B. the demand curve is tangential to the marginal cost
C. the marginal cost curve is equal to the marginal revenue curve
D. the marginal cost is equal to the price of the firm

38. Government can protect consumers from exploitative prices by introducing __.
A. minimum price
B. price differentiation
C. price floor
D. maximum price

39. If a fall in the price of commodity K brought about an increase in the demand for commodity Y, the two commodities are __.
A. composites
B. derived in nature
C. substitutes
D. complements

40.   In the theory of production, the price of a factor input is determined by __.
A. the prevailing exchange rates
B. its elasticity of demand
C. the existence of large market
D. the prevailing interest rates.

41.  From the graph above, find the modal score
A. 40
B. 20
C. 100
D. 60

42. When the selling price of a monopolist is below his short-run marginal cost, he is said to be making __.
A. an economic profit
B. losses
C. profit
D. super-normal profit

43. The overall economic performance of a country can be assessed through __.
A. overlooking of its agricultural sector
B. employment estimates
C. national income estimates
D. balance of payment

44. The supply of agricultural products is mainly determined by __.
A. consumers' taste
B. consumers' income
C. technology
D. consumers

45. Determine the median of 6 10, 5, 12, 20, 18, 20 and 4
A. 11
B. 9.67
C. 12.56
D. 12

46. From the table above, find the range of the distribution.
A. 50
B. 11
C. 70
D. 59

47. The failure of the Nigeria industrial sector is mainly associated with
A. lack of raw materials
B. inadequate market for industrial goods
C. underdeveloped infrastructural facilities
D. inadequate capital.

48. If Qd = 40-4P and P = 4, what is the quantity demanded?
A. 30
B. 32
C. 24
D. 26

49. The long-run total cost curve shows the cost of __.
A. all fixed factors of production
B. the average fixed cost
C. all factor inputs that are employed
D. variable factors of production

50. The supply of farm produce is mainly determined by __.
A. consumers’ income
B. weather condition
C. population
D. consumers’ taste


1. B

2. D

3. D

4. A

5. A

6. A

7. C

8. B

9. D

10. D



13. D

14. D

15. B

16. D

17. B

18. B

19. B

20. D

21. C

22. D

23. A

24. D

25. D

26. D

27. B

28. D

29. D

30. A

31. B

32. A

33. C

34. D

35. C

36. C

37. C

38. D

39. D

40. C

41. D

42. B

43. C

44. C

45. A

46. A

47. D

48. C

49. C

50. B