Exam Started

1. One of the important features of perfect competition is

A. Adequate knowledge of existing prices B. The influence on prices by individual economic units C. The restriction in terms of movement of goods and services D. The administration of a centralized price system

2. The following are type of business organization EXCEPT

A. co-operative society B. partnership C. Entrepreneurship D. public corporation

3. Collectivism refers to the management of state enterprises in a?

A. mixed economy B. co-operative organizations C. capitalist economic system D. socialist economy

4. The fundamental problem of economics is

A. Finding striking determinants between the forces of supply and demand B. The scarcity of productive resources relative to society's unlimited wants C. The establishment of a political framework to determine the what, how and for whom of production D. To establish an equitable distribution of income

5. The type of unemployment that occurs when an individual cannot find job as a result of obsolete skill is

A. Structural unemployment B. Cyclical unemployment C. Seasonal unemployment D. Frictional unemployment

6. If the prices of a commodity increases from N8.00 to N10.00 and the demand decreases from 100 to 80 respectively, wha is the price elasticity of demand for the commodity?

A. 1 B. 0.8 C. 0.5 D. 1.5

7. The group of unemployed members of a community who are physically handicapped or disable, is generally classified under unemployment as?

A. frictional B. cyclical C. residual D. hidden

8. Petro-chemical industries are located in the Rivers State of Nigeria because of ________

A. favourable soil B. coal deposit C. crude oil deposit D. favourable climate

9. The middlemen is responsible for

A. providing research facilities B. purchasing raw materials C. designing the product D. breaking the bulk

10. Which of the following budgets will increase government expenditure?

A. zero base budget B. surplus budget C. deficit budget D. balanced policy

11. The development of an economic hypothesis through intuition, insight, or logic is associated with

A. Deduction B. Policy economics C. Normative economics D. Induction

12. If a demand curve that intersects a perfectly inelastic supply curve shifts rightward, then _________

A. only the quantity will increase B. The prices will remain constant C. the equilibrium price and quantity will increase D. only the price will increase

13. Scale of preference shows

A. incomes of consumers in order of size B. utilities enjoyed by consumers C. opportunity cost of goods consumed D. consumer's wants in order of priority

14. Which of these is NOT associated with the problem of internal trade?

A. bargaining B. market trade unions C. lack of specialization D. natural barriers

15. Net migration is the difference between

A. Per capita income and population B. Internal and external migration C. Population and census D. Immigrants and Emigrants

16. Given 0.25, 1.25, 1.80, 1.110, 10.20, 10.15 and 1.55. Determine the range?

A. 0.25 B. 10.00 C. 1.55 D. 9.95

17. The determination of price by bargaining between buyers and sellers is _______

A. Sales by Auction B. Tender C. Higgling and Haggling D. Price Control

18. Use the following information given to answer this question

Total of all expenditure incurred during the year ₤ 80,000m
Indirect taxes on goods and services ₤ 8,000m
Capital consumption ₤ 6,000m

National income is _____

A. ₤ 74,000m B. ₤ 66,000m C. ₤ 60,000m D. ₤ 14,000m

19. Which of the following is NOT among the financial institutions in Nigeria?

A. Federal Mortgage Bank B. Microfinance Banks C. Insurance Banks D. Federal Ministry of Finance

20. The basic economic problems of society include __________

A. scarcity, for whom to produce and where B. what to produce, how and for whom C. scarcity, when to produce and how D. how to produce and sell

21. If government in a fiscal year has its revenue receipts less than the expenditure, such country is having

A. deficit budget B. favorable budget C. balanced budget D. surplus budget

22. In a free market economy, the rationing of scarce goods is done principally by?

A. the government B. business organizations C. the price mechanism D. consumers

23. A situation in which a commodity is sold abroad below its cost of production in the home country is known as?

A. dumping B. counter trade C. bilateral trade D. trade liberalization

24. Which of the following is NOT a factor that brings about changes in demand?

A. the price of the good or service B. a change in real income C. government policy D. increase in population

25. If Mr Wale took a loan for the purpose of investment, the demand for money is

A. Precautionary motive B. Transactionary and Precautionary motive C. Speculative motive D. Speculative and Transactionary motives

26. The short run can be defined as the period of time during which

A. All inputs are fixed B. At least one of the firm's input is fixed C. At least two inputs are fixed D. All inputs are variable

27. Which of the following must be true to have a closed economy with no government, and yet the value of the investmet multiplier still increase?

A. Marginal propensity to save has fallen B. Actual investment had fallen C. Average propensity to invest has fallen D. Actual saving has fallen

28. Which of the following industries will add more value to primary products?

A. Service industry B. Construction industry C. Mining industry D. Processing industry

29. An economy in which the whole income is not consumed is referred to as ______

A. Frugal economy B. Spend thrift economy C. Capitalist economy D. Mixed economy

30. The establishment of industries in rural areas will help to reduce____________

A. Urban-Rural migration B. Rural-Urban migration C. Rural-Rural migration D. Urban-Urban migration

31. Which of the following is not an argument for the policy of privatization in West Africa?

A. To make businesses more profitable B. Government is able to participate and control the operation of the privatized businesses C. It encourages the inflow of capital and expertise from local and foreign sources D. Members of the public are able to acquire shares

32. Excess supply over demand will place a price advantage on _____

A. government B. foreign investors C. suppliers D. consumers

33. If the price of a commodity falls and the quantity purchased does not rise, the commodity can be described as ______

A. Scarce B. Normal C. Superior D. Inferior

34. Which of the following will shift the demand curve for cocoa to the right?

A. An increase in consumers' income B. A rise in the price of cocoa C. A fall in the quantity demanded of cocoa D. A tax on cocoa producers

35. An argument for the use of commercial policy rest on the need to

A. make imported goods affordable B. encourage the importation of non-essential goods C. make a country enjoy absolute advantage in production of all goods D. reduce domestic unemployment

36. Consumers allocate their resources based on the

A. Law of diminishing marginal utility B. Value in use and value in exchange principle C. Law of returns to scale D. Diamond and water paradox

37. One major problem encountered by ECOWAS is

A. Conflict of interest among members B. Increasing population C. Weakness in the trade relationship D. Language barrier

38. Money becomes a very poor store of value in a period of ______

A. Harvest B. Deflation C. Recession D. Inflation

39. The term 'investment' in macroeconomics means

A. Profit B. Total amount of money invested in bonds and stocks C. The total amount of capital goods in the country D. The production of goods for immediate consumption

40. The concept of marginal utility indicates the relationship between utility and

A. Price B. Satisfaction C. Cost D. Revenue

Economics