1. Economics is a science which deals with ____.
A. the factors or production
B. oil exploration
C. allocation of scarce resources
D. the gross. domestic product (GDP)
2. An effective way to controlling inflation in a mixed economy is to ____.
A. increase productivity
B. reduce income tax
C. ration available output
D. increase imports
A. scale of preference
B. consumer sovereignty
C. consumer rationality
D. price of the commodity
4. If the demand for one commodity excludes another, it is said to be ____.
B. competitive demand
C. composite demand
D. derived demand
5. When 20 units of output are produced, TC will be ____.
From the table above, the price elasticity of supply is ____.
Use the diagram below to answer Questions 7 and 8.
8. A country achieves economic development when there is ____.
A. an increase in military expenditure
B. an increase in capacity utilization
C. a sustained increase in per capita income
D. an even distribution of goods and services
9. The transfer of public shareholding, in corporations to private enterprises is ____.
Given the demand and supply equations Qd = 120,000 - 20,000P
and Qs = 20,000P,
Answer Questions 10 and 11.
10. What is the equilibrium price?
11. What is the equilibrium quantity?
12. The middlemen in the chain of distribution are
A. retailers and consumers
B. manufacturer and consumer
C. wholesalers and retailers
D. consumer and wholesalers
13. The Central Bank of Nigeria creates liquidity in the economy through
A. Exchange control
B. Demand and savings
C. Monetary policy
D. Fiscal policy
14. When government revenue in a fiscal year is less than its expenditure, we have a ____.
A. financial statement
B. balanced budget
C. deficit budget
D. surplus budget
15. if the growth rate of available resources continuously outpaces that of the population a country will experience ____.
A. under population
B. optimum population
C. maximum population
D. over population
16. The equilibrium wage rate in an economy is determined by the ____.
A. workers' union
B. supply and demand for labour
C. rate of inflation
D. efficiency of labour
17. Composite demand refers to ____.
A. some commodities that serve two or more purposes
B. products which have no clear relationship with one another
C. commodities which are consumed jointly
D. all of the above
18. An economic system in which means of production belong to private
individuals are known as ____.
B. Mixed economic system
C. The capitalist mode of production
D. Central planning system
19. The elasticity of supply shows the responsiveness of ____.
A. supply to demand
B. demand to supply
C. supply to changes in price
D. demand to changes in price
20. The sized labour force of a country depends on but one of the following factors
A. official employment age
B. the pursuit of higher education
C. proportion of men not willing to work
D. age composite of population
21. Suppose 201l is given as the base and the national income for 2012 is 3600,000
and the index number for 2011 is 3200. Calculate the real income for 2012.
22. NEPAD means ___.
A. Nigerian European Partnership for Africa's Development
B. New Partnership for Advancement of Democracy
C. New Partnership for Africa's Democracy
D. New Partnership for Africa's Development
23. The account that shows the actual transfer of money from one country to the
other is called ____.
A. Capital account
B. Foreign account
C. Foreign exchange account
D. Domiciliary account
24. For an inferior good, a decrease in income will lead to ____.
A. a lower equilibrium price
B. a change in the quantity demanded
C. an outward shift of the demand curve
D. an inward shift of the demand curve
25. Statutory organizations usually established by acts of parliament are called ____.
A. public corporations
B. cooperative societies
C. joint stock companies
D. public enterprises
26. Taxes and government expenditure are instruments of ____.
A. tax policy
B. economic policy
C. monetary policy
D. fiscal policy
27. Farmers' income may fall if they produce more cash crops for export because ____.
A. foreign demand is inelastic
B. of domestic currency depreciation
C. the price of the crops will rise
D. of export duties
28. A firm with a marginal cost equals its marginal revenue will produce the equilibrium output of
A. pure competition only
B. pure monopoly only
C. monopolistic competition only
D. any type of market
29. The migration of young people from rural to urban areas in Nigeria should help to raise the ____.
A. standard of living in urban areas
B. marginal productivity of labour in urban areas
C. total productivity of labour in rural areas
D. marginal productivity of labour in rural areas
30. Money becomes a very poor store of value in the period of ____.
B. stable price
31. One of the effects of an increased minimum wage in Nigeria is ____.
A. to create voluntary unemployment
B. to decrease the wage rate
C. to increase the level of unemployment
D. to create involuntary unemployment
32. In a capitalist economy. the economic problem of what goods to Produce is divided mainly by:
A. shadow prices
B. relative prices
C. profit level
D. a central planner
33. National debt is an expected outcome of ____.
A. consolidated budget
B. deficit budget
C. balanced budget
D. surplus budget
34. One way of correcting the balance of payments problem of a country is to
A. introduce import — promotion measures
B. buy investments abroad
C. devalue the currency
D. de-emphasize import - substitution industries
35. The theory of comparative advantage states that a commodity should be produced
in that nation where the
A. absolute money cost is least
B. absolute cost is least
C. production possibility curve increases
D. opportunity cost is least
36. An 'adverse environmental impact of the petroleum industry on the economy is
A. oil spillage
B. the vandalization of oil equipment
C. communal riots
D. community development
37. When importation of a commodity is limited to a definite quantity, the trade
control means used is known a ____.
B. tax relief
D. exchange control
38. A discount house is a market where ____.
A. various bills are exchanged
B. short-term and medium-term loans are obtained
C. shares are bought and sold
D. short-term loans are obtained
39. Economic growth is different from economic development because economic growth ____.
A. describes expansion and change
B. is measurable but not objective
C. describes expansion and not change
D. is not measurable but objective
40. In economics, the concept of utility means:
A. the monetary value of the goods we consume
B. the total value of all the goods and services consumed
C. the amount of satisfaction we derive from the consumption of goods and services
D. the utilization of goods and services
12. C13. C
39. B40. C