NDA PAST QUESTIONS AND ANSWERS ON ECONOMICS 2015
A. an increase in the commodity's price
B. an improvement in technology
C. a reduction in factor price
D. a decrease in the cost of material
2. Which of the following statements is not true when the price is above the equilibrium price?
A. there is a shortage of the commodity
B. the quantity supplied exceeds the quantity demanded of the commodity
C. the pressure on the commodity price is downward
D. there is a surplus of the commodity
3. A specific argument advanced for protection is?
A. to protect domestic labour against cheap foreign labour
B. to reduce unemployment
C. to protect infant industries and industries important for national defence
D. all of the above
4. The interest rate is?
A. the price of using money or loanable funds
B. expressed in percentage terms
C. determined by demand and supply of loanable funds
D. all of the above
5. In order to maximize profits, a firm borrows until the return on investment
A. equals the rate of interest
B. exceeds the rate of interest
C. is smaller than the rate of interest
D. none of the above
6. The market supply of labour depends on
A. the population size
B. the proportion of the population in the labour force
C. the state of the economy
D. all of the above
7. Which of the following are leakages from the circular flow?
A. consumption and saving
B. saving and imports
C. imports and exports
D. exports and saving
8. Which of the following cost items refers to price?
A. variable cost
B. average cost
C. opportunity cost
D. fixed cost
9. The basis for all economic activities is
C. industrial expansion
D. economic development
10. Which of these factors does not determine the level of aggregate savings?
A. the level of income
B. the size of the population
C. income distribution
D. the rate of interest
11. In the theory of the firm, the curve used in the determination of profit level is?
A. the average fixed cost
B. the marginal cost
C. the average variable cost
D. the average cost
12. If the supply of a commodity is perfectly inelastic the market price is determined by?
C. the cost of production
D. quantity supplied.
13. One of the economic problems of Nigeria today arises from?
A. the overutilization of human resources
B. inadequate man-power resources
C. overutilization of manpower resources
D. the underutilization of manpower resources.
14. International trade is necessary because?
A. different countries arc differently endowed in natural and human resources
B. no country is an autarky
C. some countries have a comparative advantage in the production of particular commodities over other countries.
D. countries are determined to increase their gold.
15. The monetary system that relates to the double coincidence of wants is referred to as?
A. the gold standard
B. the cheque system
D. the commodity system
16. The World Trade Organization is responsible for?
A. stabilizing and harmonizing oil price
B. ensuring equal participation of countries in trade
C. minimizing obstacles to international trade and investment
D. modernizing world economics
17. The money paid per hour for work done is
D. wage rate
18. In modern economies, the Malthusian theory of population is ineffective because of
A. technical progress
B. government policies
C. birth control measures
D. natural disaster
19. During the era of barter, money was generally in the form of
D. precious metals
20. The downturn in the prices of shares on stock markets is a highlight of
A. Invisible hand
B. efficient allocation of resources
C. consumer rationality
D. the regulatory nature of the market
21. If x̄ = 6 and N = 6, determine the value of Σfx
22 A typical feature of a market economy is that
A. there is equality of economic agents
B. full employment exists
C. consumer sovereignty
D. all producers make a profit
23. In long-run, one of the characteristics of monopolistic competitive firms is that they?
A. suffer losses
B. collude with each other
C. make abnormal profits
D. make normal profits
24. Per Capita Income in any African country is measured by
A. adding total investment to the GNP
B. adding total saving to the GNP
C. dividing the GNP by the total population
D. adding total saving to the GDP
25. The income-consumption relationship indicates that the marginal propensity to consume?
A. is greater than zero and greater than one
B. equals to zero
C. equal to one
D. lies between zero and one
26. What is the equilibrium price?
27. What is the equilibrium quantity
28. what is the excess supply at the price of ₦5.00?
29. What is excess supply at the equilibrium price?
30. The additional revenue obtained by using one more unit of a factor is called its?
A. Marginal product
B. additional product
C. marginal revenue product
D. average product
31. In the operation of market forces, the market is in equilibrium at the point where?
A. demand and supply curves intersect in more than one point provided the market is cleared.
B. the excess in the market can be conveniently stored
C. excess demand is negative
D. demand and supply curves intersect.
In the diagram above, PS is the supply curve for a particular commodity, while OP is the price. Which of the following statements is correct?
A. The quantity is infinitely elastic
B. When the price is zero, the quantity supplied infinitely
C. When the price is infinite, the quantity supplied zero
D. The quantity supplied in indefinite
In which of the diagram below is the consumer surplus correctly shaded?
34. A budget with projected revenue in excess of its expenditure is said to be?
35. Frictional unemployment?
A. is total unemployment minus structural unemployment
B. occurs when the unemployed are persons with specific training.
C. occurs when the number of job seekers exceeds the number of vacancies
D. occurs when people are changing jobs.
From the diagram above, a shift in the demand curve from D0 D0 to D1 D1 implies?
A. a rise in the demand for the commodity
B. a fluctuation in the demand for the commodity
C. a fall in the demand for the commodity
D. an equilibrium in the demand for the commodity
37. If the equilibrium price of a certain commodity is ₦120.00 and the government fixed its price at ₦110.00, the supply will be?
A. greater than the equilibrium supply
B. smaller than the equilibrium supply
C. the same as the equilibrium supply
D. a determinant of the market forces of equilibrium
38. Economic development is distinguishable from economic growth because the former?
A. is not concerned with growth parameters
B. affects only poor people
C. also includes an efficient distribution of economic growth
D. is an increase in the production of goods and services.
39. The joint ventures operating in the Nigerian oil industry are between?
A. the NNPC and independent marketers
B. the NNPC and multinational marketers
C. the NNPC and producer/marketers
D. multinational corporations and independent marketers.
40. Comparative advantage implies that a country will specialize in producing the Commodity?
A. with the highest opportunity cost
B. for which output per worker is lower than in other countries
C. with the lowest opportunity cost
D. for which output per worker is the same with those of other countries.