Tuesday, 26 February 2019



1. If the arithmetic mean of 2, 3, 5, 8, Z, 10 and 12 is 7, what is the value of Z?
A. 8
B. 9
C. 10
D. 7

2. The most important function of agriculture to the Nigerian economy is __.
A. the guarantee of food security
B. technical skill development
C. technological development
D. industrial development

3. Given that Qd=15-2P and Qs=5+3P, determine the equilibrium price.
A. 3 00
B. 5 00
C. 2 00
D. 6 00

4. Scale of preference is referred to as the __.
A. choices consumers make
B. array of consumer's needs
C. consumer preference for luxurious goods
D. consumer wants in order of priority

5. One of the basic assumptions of monopoly is __.
A. perfect information of the market condition
B. the ability to either control price or output
C. perfect mobility of factors of production
D. large number of buyers and sellers

6. The major advantage of a public limited liability company over a private limited liability company's __.
A. limited liability enjoyed by owner
B. separate legal entity
C. easy transfer-ability of shares
D. perpetual existence

7. The main activity in the upstream oil sector in Nigeria is __.
A. marketing of petroleum products
B. distribution of petroleum products
C. extraction of crude oil
D. refining of crude oil

8. The natural growth of population is calculated as __.
A. birth rate + death rate
B. labour force + dependent
C. death rate - birth rate
D. birth rate - death rate

9. The study of age structure of a population is important because it __.
A. determine the exchange rate
B. provide the government with statistics on the prevailing interest rate
C. reveals the cost of living
D. provides the government with statistics on present size of the labour force

10. If the demand for palm oil is for the purpose of soap production and cooking, the demand is said to be __.
A. competitive
B. complementary
C. composite
D. derived

11. The institution established to enhance the activities of Nigeria's exports is __.
A. Nigerian Export and Import Bank
B. Import-substitution strategy
C. Nigeria Export Promotion Council
D. Bank of Industry

12. From the pie chart above, the percentage contribution of entrepreneur is __.
A. 2.77%
B. 33.33%
C. 27.70%
D. 3.33%

13. A sustained increase in per capita income accompanied by an increase in output is __.
A. economies of scale
B. economic efficiency
C. economic development
D. economic growth

14. The reward for capita as a factor of production is __.
A. interest
B. rent
C. profit
D. wage

15. The type of inflation that emanates from excess demand over supply is __.
A. galloping inflation
B. cost-push inflation
C. demand-pull inflation
D. imported inflation

16. Which of the following problems is associated with national income measurement?
A. High interest rate
B. Inflation and deflation
C. Overpopulation
D. Population growth

17. Freedom of consumption and production are characteristics of __.
A. socialism
B. feudalism
C. capitalism
D. communism

18. Cost of raw materials in production is an example of __.
A. marginal cost
B. variable cost
C. total cost
D. fixed cost

19. Foreign exchange control in Nigeria is administered by the __.
A. Money deposit banks
B. Central Bank of Nigeria
C. Discount houses
D. Security and Exchange Commission


 From the pie chart above, determine the contribution of capital if the total contribution of all factors is __.
A. ₦12.50 million
B. ₦142.50 million
C. ₦50 million
D. ₦7.50 million

21. The volume of output in an economy is determined by __.
A. the foreign exchange rate
B. the standard of living of citizens
C. population density of a country
D. efficiency in the use of factors of production

22. Given Qd = 30 - 3P
Qs = 9P – 18

Determine the equilibrium quantity.
A. 18
B. 20
C. 25
D. 27

23. In Nigeria, industrial development can be enhanced by __.
A. ensuring stable prices for manufactured goods
B. reducing government expenditure on imported goods
C. providing efficient infrastructure
D. increasing the rate of interest

25. Capital gains tax is an example of __.
A. value Added tax
B. purchase tax
C. sales tax
D. income tax

26. Which of the following is NOT a source of government revenue?
A. Taxes, fees, licenses and fines
B. Interest, dividends, profits and earnings
C. Personal income, disposable income and transfer earnings
D. Grants, aids and borrowing

27. One of the important qualities that money must possess is __.
A. heterogeneity
B. easy availability
C. homogeneity
D. flexibility in value Price

28. The graph above represents __.
A. a decrease in quality supplied
B. an increase in supply
C. an increase in quantity supplied
D. a decrease in supply wages

29. From the diagram above, the arrow marked M indicates __.
A. payments made for foods and services
B. payments made to factors of production
C. the flow of capital goods
D. the flow of economics rent

30. A change in the quantity supplied of a commodity is influenced by __.
A. the price of substitutes
B. the price of the commodity
C. consumer's tastes
D. technological know-how

31. From the table above, calculate the elasticity of demand.
A. 0.03
B. 0.30
C. 0.33
D. 0.04

32. One of the functions of money deposit banks in economic development is _.
A. that it is banker to the government
B. the provision of credits facilities
C. the formulation of monetary policies
D. issuing of currency notes

33. One of the arguments against the practice of monopoly is __.
A. merging of producers
B. competition
C. exploitation
D. non-government ownership

34. The main reason why countries engaged in international trade is the __.
A. opportunity to earn high profit in trading
B. use of capital-intensive method of productions
C. difference in their endowment of economic resources
D. difference in the population structure

35. From the table above, what is the value X?
A. 32
B. 35
C. 34
D. 30

36. From the table above, it can be inferred that there is __.
A. diminishing returns to scale
B. excess of demand
C. diminishing marginal utility
D. diminishing marginal productivity

37. A well conducted census is important for __.
A. economic planning
B. providing economic opportunities in the rural areas
C. distribution of educational materials in the cities
D. revenue generation

38. The cost-saving advantages which a large firm can achieve on its own is called __.
A. internal economies of scale
B. dis-economies of large scale
C. external dis economies of scale
D. external economies of scale

39. A country uses the foreign exchange control measure to eliminate balance of payments deficit by __.
A. limiting her imports to its currency value of exports
B. limiting her exports to its currency value of imports
C. overvaluing the country's currency
D. reducing the nation's domestic price level

40. The role of IBRD as an international institution is to __.
A. improve trading among member nations
B. finance private businesses in member nations
C. facilitate the development of infrastructure in member nations
D. solve the problem of balance of payments of member nations


1. B

2. A

3. C

4. D

5. B

6. C

7. C

8. D

9. D

10. C

11. C

12. B

13. C

14. A

15. C

16. B

17. C

18. B

19. B

20. B

21. D

22. A

23. C


25. D

26. C

27. C


29. A

30. B

31. C

32. B

33. C

34. C

35. A

36. C

37. A

38. A

39. A

40. C