Tuesday, 12 March 2019


1. A non-specific factor of production is:
A. machine
B. factory building
C. unskilled labour
D. farmland

2. Which of the following is another expression for opportunity cost?
A. money cost
B. real cost
C. artificial cost
D. None of the above

3. Which of the following definition of Economies is the most generally accepted?
A. science that deals with the production
B. science that deals with distribution
C. science that studies mankind
D. science which studies human behaviour as a relationship between ends and scares means which have alternative uses.

4. Factors of Production are said to be specified when.
A. they can be put to all in product production
B. they can be put to only one use in production
C. they are used to analyse cost effect
D. None of the above

5. Total product refers to:
A. The total amount of goods produced over a period of time by factors of production
B. The total amount of goods produced over a period of time by a non-specific factor of production
C. The total amount of food produced over a period of time by a specific factor of production
D. None of the above.

6. One of the aims of the Economic Community of West African States (ECOWAS) is the
A. Liberalisation of trade among member states.
B. Establishment of its headquarters in each of the member states.
C. Discouragement of trade among member countries
D. The takeover of business in member states.

7. The theoretical basis for international trade is the principle of
A. Comparative advantage
B. different currencies
C. international co-operation
D. exchange between countries

8. Which of the following, is not an objective of the African Development Bank (ADB)
A. promotion of private and public investment in member states.
B. financial viable projects in member countries.
C. provision of technical assistance needed for the execution of development projects
D. encourage member countries to revolt against former colonial masters.

9. One of the following is the correct characterization of the advanced market capitalist economy
A. proper distribution of income.
B. a greater standard by the generality of the citizens
C. it is not rolled to economic uncertainties and political upheavals
D. the rich getting richer and the poor getting poorer

10. The other appropriate name for the Third World Nations is
A. Nigeria
B. Bangladesh
C. Underdeveloped
D. India

11. Which of the following is leakage out of a circular flow:
A. saving
B. investment
C. consumption
D. expenditure

12. Which of the following is rot gain from petroleum in the Nigerian economy:
A. rural-urban migration
B. creation of employment
C. source of foreign exchange
D. source of energy

13. development plan covering a period of fifteen years is:
A. perspective plan
B. short term plan
C. medium-term plan
D. combined plan

14. A foreign exchange market where there is the official operating side by side with The autonomous market is called:
A. the second tier
B. co-operation
C. foreign exchange market
D. foreign exchange currency

15. The theoretical basis for international trade is:
A. international co-operation
B. exchange between countries
C. absolute advantage
D. comparative advantage

16. Which of the following is not a characteristic of good money
A. divisibility
B. inflation
C. portability
D. durability

17. Trade by barter means
A. borrowing money from CBN
B. selling on credit
C. exchange of goods for other goods
D. None of the above

18. Factor militating against improved agriculture in Nigeria are;
A. land tenure
B. lack of proper storage Facilities
C. A and B above
D. None of the above

19. Which of these will cause the population to increase
A. 5% increase in both birth and death rate
B. 5% increase in death rate with a 4% increase in birth rate.
C. 10% decrease in both birth and death rate
D. 4% increase in death rate with a 5% increase in birth rate.

20. Which of the following will you recommend to a country facing inflation
A. surplus budgeting
B. deficit budgeting
C. rise in interest rate
D. reduction in income tax

21. To facilitate the exportation of crude oil from Nigeria, special
A. roads were built to connect the major oil wells to the port
B. pipelines were laid to connect the major oil wells to the ports
C. railway lines were constructed to connect the major oil wells to the ports
D. airstrips were constructed for jets to evacuate the oil

22. In order to accelerate economic development, a country must
A. pursue a rational population policy
B. pursue an incremental population policy
C. stimulate her population growth rate
D. pursue a high population growth rate

23. The reduction of high fertility rate is a measure in population control designed to make the
A. female population higher than the male
B. male population higher than the female
C. female and male population equal
D. growth in population more sustainable

24. The efficiency of labour can be increased by:
A. placing an embargo on recruitment
B. constant training of workers
C. retirement of workers on a regular tic
D. engaging expatriate only

15. if the labour force in a given community is 2,000000, the wage employment 200,000 and the unemployed are 80,000. what is the unemployment rate in the community?
A. 40.0%
B. 10.0%
C. 4.0%
D. 0.4%

26. The price paid for labour services is the
A. income rate
B. salary rate
C. wage rate
D. commission rate

27. The distribution channel that contributes mom to the cost production is
A. producer-wholesaler-retailer-consumer
B. producer-retailer-wholesaler-consumer
C. producer-retailer-consumer
D. producer-wholesaler-consumer

28. GNP not a good measure of social welfare because there are unrecorded
A. government
B. transfer payments
C. indirect taxes
D. social costs

29. in national income accounting, NNP is derived by subtracting from the GNP.
A. indirect taxes
B. capital consumption
C. transfer payments
D. allowance for wastage

30. Money may not be accepted as a store of value if
A. its value is stable
B. it is easily divisible
C. it is easily transferable
D. its value is unstable

31. Which of the following is the major function of the wholesaler?
A. Bulk breaking
B. Provision of useful information to the manufacturer on products
C. Provision of after-sales service to consumers
D. Provision of warehousing facility.

32. In the distribution channels for goods and services, the middleman's mark-up margin provides a rough measure for the
A. quantity discounts allowed final consumers
B. reward for business entrepreneurship
C. effectiveness of government control over the economy's marketing channels
D. extend of exploitation of the final consumer

33. Which of the Following reasons could induce a manufacturer to bypass the wholesaler in the distribution chairs
A. To provide the quantity needed by retailers
B. To collect useful information on his product
C. To provide warehousing facilities
D. To violate government regulation on distribution

34. A major difference between a state-owned enterprise and a private enterprise is that the former
A. is not expected to cover its costs of production while the latter is
B. is not always expected to maximize profits while the latter is
C. has shareholders while the latter does not
D. has a board of directors while the latter does not

35. The divorce of ownership from control is a characteristic of
A. sole proprietorship
B. a limited liability company
C. partnership
D. a private limited company

36. Capital provided by individuals to the firm by purchasing stocks is called
A. debt capital
B. fixed capital
C. circulating capital
D. equity capital

37. Which of the following factors is the most important in siting a petrochemical plant?
A. Nearness to the source of raw materials
B. Nearness to the source or power
C. Availability of labour
D. Proximity to financial institutions

38. Which of the following will be the effect of allowing only economic factors to dictate the location of industries in Nigeria?

A. A more even development of the different parts Of the country will be assured
B. There will be an unbalanced spread in the distribution of industries
C. The less developed parts of the country will be able to attract more industries
D. Only the government will be able to finance the establishment of industries

39. If the same basket of goods which cost ₦12.90 in 1985 cost ₦15.00 in 1987, the price index for 1987 is
A. 25
B. 80
C. 10
D. 125

40. Which of the following is likely to be inflationary?
A. Tax increase
B. Increase in unemployment
C. Budget surplus
D. Wages increase


1.   C
2.   B
3.   D
4.   A
5.   A
6.   A
7.   A
8.   D
9.   B
10. C
11. A
12. A
13. A
14. A
15. D
16. B
17. C
18. C
19. D
20. C
21. C
22. A
23. D
24. B
25. C
26. C
27. A
28. B
29. B
30. D
31. A
32. B
33. B
34. B
35. B
36. D
37. A
38. B
39. B
40. D

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