Tuesday, 26 February 2019



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

2. The money market provides business firms with the avenue to __.
A. purchase goods and services
B. purchase capital equipment’s
C. obtain short- term funds
D. obtain long-term funds

3. The optimum level of output for pure monopolist occurs where _.
A. P is highest
B. P = AC
C. P = MC
D. MR = MC

4. According to the demographic transition theory, Africa can be said to be at stage __.
A. 2 and 3
B. 3 only
C. 2 only
D. 1 and 3

5. The Economic Community of West African States (ECOWAS) is an example of __.
A. globalization
B. regional marketing board
C. economic integration
D. economic union

6. Given: 32, 18, 24, 17, 16, 32, 28, 68, 71 and 15, the mode of the distribution is __.
A. 71
B. 56
C. 32
D. 15

7. The major determinant of income elasticity of demand is __.
A. government policy
B. the availability of substitutes
C. the price of the good
D. the level of consumer's income

8. Given: 2, 4, 6, 8, 4 and 6, the absolute mean deviation is __.
A. 6.00
B. 1.67
C. 30.00
D. 0.60

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

10. If the output of a firm experiencing economies of scale increases, the average cost would __.
A. be at minimum
B. rise
C. be at maximum
D. fall

11. The demand curve for a normal good is negatively sloped because __.
A. price is an incentive to producers
B. price is an incentive to consumers
C. demand always exceeds supply
D. price and quantity move in the same direction

12. The average total cost when 20 units are produced is __.
A. ₦45.30kg
B. ₦50.00kg
C. ₦47.50kg
D. ₦5.00kg

13. The major role of multinational companies in the Nigerian petroleum industry is __.
A. oil marketing only
B. oil marketing and prospecting
C. establishment of refineries
D. oil prospecting only

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

15. The wage rate is mostly related to __.
A. marginal productivity of labour
B. average productivity of labour
C. marginal efficiency of investment
D. total productivity of labour

16. The choice of how to produce in a command economy is determined by __.
A. consumers
B. government
C. industries
D. labour unions

17. The co-efficient of price elasticity of supply is __.
18. A change in supply of a commodity is due to a change in the __.
A. price of the commodity
B. cost of production
C. price of substitute
D. population growth rate

19. In a limited liability company, the greatest risk is borne by the __.
A. preference shareholders
B. debentures shareholders
C. ordinary shareholders
D. board of directors

20. A market characterized by absence of close substitutes of goods and services is an example of __.
A. a monopoly
B. an oligopoly
C. a perfect competition
D. a monopolistic competition

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

22. The growth and development of small and medium scale enterprises in Nigeria is hampered by __.
A. poor regulatory framework
B. poor access to credit facilities
C. poor management
D. the small size of the market

23. A major determinant of demand is __.
A. incentives to workers
B. level of technology
C. population
D. cost of production

24. Which of the following can be used to measure the Gross National Product __.
A. C+I+G-F(X+M)
B. C+I+G+(X-M)
C. C+I+G+X
D. C+I+G

25. Find the median of the following set of data 35, 10, 14, 38, 15, 18, 22, 30 and 28.
A. 10
B. 22
C. 38
D. 35

26. From the table above, determine the average product of the 5th unit of capital.
A. 310.5
B. 176.5
C. 70.6
D. 62.0

27. The problem of what to produce is determined by __.
A. consumption pattern
B. the distribution pattern
C. the state of technology
D. the volume of production

28. The main function NNPC is to __.
A. develop the oil producing areas
B. oversee the development of the oil sector
C. ensure regular supply of products
D. fix the prices of petroleum products

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

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

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

32. One of the ways of correcting a deficit balance of payments is to __.
A. devalue a country's currency
B. predominate a country's currency
C. reduce imports
D. reduce exports

33. A nation's net export is negative when her __.
A. export is adjusted upwards
B. external reserves deplete
C. depreciation exceeds investments
D. imports exceeds exports

34. Given: Qd = 30 — 3P and Qs = 9P — 15, determine the equilibrium price.
A. ₦12.00
B. ₦3.75
C. ₦2.80
D. ₦3.00

35. The problem of economic development in Nigeria is that of __.
A. poor weather conditions
B. overpopulation
C. surplus skilled manpower
D. inadequate infrastructure

36. The combination of two commodities that yield the same level of satisfaction is illustrated by __.
A. a budget line
B. an isocost curve
C. a production possibility curve
D. an indifference curve

37. The demand for inferior goods is inversely related to change in __.
A. income
B. price
C. supply
D. taste

38. The minimum number of shareholders for partnership is __.
A. 7
B. 4
C. 2
D. 3

39. When diminishing returns sets in, the total variable cost begins to __.
A. rise at an increasing rate
B. fall at a decreasing rate
C. rise at a decreasing rate
D. fall at an increasing rate

40. From the table above, the marginal product of the 7th Unit of Capital is __.
A. 80kg
B. 100kg
C. 310kg
D. 173kg

41. Given: 32, 18, 24, 17, 16, 32, 28, 68, 71 and 15, what is the range?
A. 26
B. 32
C. 56
D. 68
42. From the diagram above, the consumer is at equilibrium at point __.
A. G
B. F
C. K
D. M

43. If P = 1/4 (Qs + 30), what is the quantity supplied at ₦18?
A. 64.5
B. 42.0
C. 2.4
D. 30.0

44. When a consumer is at equilibrium, The MRS x y is equal to the __.
A. product of the two prices
B. sum of the two prices
C. ratio of the two prices
D. difference of the two prices

45. One of the major factors militating against industrialization in Nigeria is __.
A. low level of foreign investment
B. frequent break-down of equipment
C. inadequacy of infrastructural facilities
D. government participation

46. One of the factors that is considered in the location of a cement industry is nearness to __.
A. market
B. raw materials
C. infrastructural facilitates
D. skilled manpower

47. A problem facing the development of the Nigerian Petroleum industry in Nigeria is __.
A. persistent gas flaring
B. instability in demand for the products
C. dominance of multinationals
D. declining oil reserves

48. At full employment level, a contractionary monetary policy will lead to a
A. rise in aggregate supply
B. rise in aggregate demand
C. rise in level of inflation rate
D. fall in the level of inflation

49.   A country where the available population is unable to guarantee efficient utilization of available resources is experiencing
A. underpopulation
B. over-population
C. high population density
D. optimum population

50. One of the causes of instability in farmers' income is __.
A. high level of illiteracy
B. unfriendly land tenure
C. unfavourable weather condition
D. poor management of extension services


1. C

2. C

3. A

4. D

5. C

6. C

7. D

8. B

9. A

10. D

11. B

12. D

13. B

14. A

15. A

16. B

17. B

18. B

19. C

20. A

21. C

22. B

23. C

24. B

25. B

26. C

27. A

28. B

29. D

30. D

31. A

32. A

33. D

34. B

35. D

36. D

37. A

38. C

39. A

40. A

41. B

42. B

43. A

44. C

45. C

46. B

47. A

48. D

49. A

50. C