Exam Started

1. The production cost that varies inversely with output is the

A. total fixed cost B. marginal cost C. average fixed cost D. average cost

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

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

3. The major characteristics of an undeveloped nation is

A. Over-dependence on foreign products B. Dominance of the industrial sector C. High per capita income D. Efficient and sensitive financial sector

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

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

5. Economic problems arise mainly as a result of?

A. Lack of foresight on the part of resource users B. Inaccurate statistical data in West Africa C. Excessive wastage of available resources D. Limitations in availability of resources

6. 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

7. 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

8. 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

9. When a country's population is experiencing increasing returns, that country is said to be?

A. overpopulated B. economically poor C. over-producing goods and services D. under-populated

10. A commodity is defined as normal when its demand changes in the same direction as ______

A. income B. price C. taste D. preferences

11. Plywood industries are often located near the source of?

A. finance B. labour C. power supply D. raw materials

12. 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

13. 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

14. A good measure of the standard of living usually used for international comparison is ______

A. Per capita income (PCI) B. Gross national product (GND) C. Net national income (NNI) D. Gross domestic product (GDP)

15. The part of income after tax that is not consumed is defined as

A. Wages and salaries B. Saving C. Capital investment D. Nondurable goods expenditure

16. Under the ECOWAS agreement, a Nigerian can enter and stay in Ghana without a Visa for a period of ______

A. 100 days B. 30 days C. 90 days D. 14 days

17. Among the disadvantages of the one-man business is the fact that ______

A. its capital may not be increased without government permission B. the proprietor is personally liable for the firm's debts C. the proprietor is not able to obtain credit D. the proprietor may not sue for bad debts

18. If the government imposes a minimum price on a commodity,

A. market surplus occurs B. the market will be cleared in the short-run C. excess demand occurs D. government regulation is no longer needed

19. The Nigerian bank for commerce and industry is?

A. a commercial bank B. a development bank C. an industrial bank D. a merchant bank

20. Which of the following sets fully represents factors of production?

A. Sunlight, machinery, man, land B. Land, water, weather C. Money, market, middlemen D. Land, labour, capital, enterprise, technology

21. Which of the following is an example of free good?

A. Free education B. Water in the ocean C. Dinner you did not pay for D. Your rented apartment

22. A major factor contributing to productivity is

A. Immigration of young workers B. The labour force C. The baby boom of generation D. The rate of GDP per year

23. The sector which contribute highly to the economy is ______

A. Primary sector B. Secondary sector C. Tertiary sector D. Education sector

24. What effect would a change in price of a commodity have on its supply?

A. An increase in supply B. No change in supply C. A decrease in supply D. A change in the quantity supplied

25. The release of a liquid petroleum hydrocarbon into the environment is ______

A. Oil glut B. Oil spill C. Oil shock D. Oil wastage

26. 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

27. The law of diminishing marginal utility indicates that if a consumer increases his consumption of a commodity continously

A. total utility must fall B. marginal utility must fall C. marginal utility may rise D. marginal utility may fall even though his total utility may be rising

28. One of the factors limiting the effectiveness of division of labour in the production process is the

A. Prevailing wage rate B. Level of technology C. Unemployment rate D. Population size

29. 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

30. The value of money depends primarily on ______

A. The gold backing of the currency B. The general price level C. Government decree that it is legal tender D. None of the above

31. 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

32. A countrys terms of trade can be improved by

A. Revaluation of currency B. Collective bargaining C. Reducing demand for imported goods D. Imposing lower export duties

33. 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

34. Which of the following is an indicator of economic growth?

A. High tax rate B. Technology development C. High gross domestic product D. High interest rate

35. Inflation is likely to benefit ______

A. Debtors B. Persons with back savings C. Creditors D. Persons who lived on fixed pension funds

36. The main objective of marketing boards is to

A. accumulate revenue for government B. educate farmers on pricing of cash crops C. stabilize the incomes of cash crop farmers D. provide warehousing facilities

37. A government budget proposing to spend more than its expected revenue in a year will create

A. Opportunity for combating inflation B. Depression in the economy C. Shortage in money supply D. Opportunity for full employment

38. Palm oil industry is located in Old Bendel State because the state _____

A. Land is suitable for oil B. Is a palm tree growing area C. Soil is unsuitable for other crops D. Imports raw materials for palm oil industry

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. Real cost is

A. Alternative commodities forgone B. Amount of money spent on goods and services C. Cost of goods and services D. True cost

Economics