» the study of economics becomes necessary because of the
Atbilde
(B)
scarcity of resources
2
The concept of opportunity cost is also referred to as
Atbilde
(B)
real cost
3
choice is necessitated by
Atbilde
(D)
scarcity of resources
4
A type of unemployment which occurs due to technological progress is called
Atbilde
(A)
frictional unemployment
5
All the following are features of market economies except
Atbilde
(D)
public ownership of capital
6
the economic system which relies mainly on the price mechanism for the allocation of scarce resources is known as
Atbilde
(A)
capital economic system
7
In a capitalist economy, resources are
Atbilde
(C)
privately owned
8
An economic system where the central planning authority determines what goods to produce and in what quantity is known as
Atbilde
(B)
socialist economy
9
The main objective of setting up a private business organization is to
Atbilde
(D)
maximize profits
10
The demand and supply function of a commodity are given as below.
Qd = 20 - 2p
Qs = 6p - 12
Where p = price in naira, Qd = Quantity demanded and Qs = Quantity supplied. The equilibrium price is
Atbilde
(B)
4 Naira
11
The type of demand that exist between torchlight and battery is
Atbilde
(D)
joint demand
12
When the price of a commodity increases and the quantity demanded also increases, this is a case of
Atbilde
(A)
exceptional demand
13
If a fall in price of one commodity leads to an increase supply of another commodity, both commodities have
Atbilde
(C)
competitive supply
14
At a co-efficient of price elasticity of supply of 0.5, supply is
Atbilde
(B)
inelastic
15
In the short-run commodity X and commodity Y are supplied jointly, which of the following is correct?
Atbilde
(A)
An increase in demand for X will increase supply of Y
16
If an increase in earning leads to more of of a commodity being demanded, the good is said to have
Atbilde
(A)
positive income elasticity
17
The interaction of supply and demands for labour determines
Atbilde
(C)
wage
18
Government fixing of prices below the equilibrium point is aimed at protecting the
Atbilde
(D)
consumers
19
A consumer maximizes his utility in consuming a good 'X' when
Atbilde
(A)
Mux = Px
20
The relationship between Marginal Product (MP) and Average Product (AP) is such that they are equal when
Atbilde
(D)
Marginal Product is increasing
21
who among the following is the intermediary between the producer and the retailer?
Atbilde
(B)
wholesaler
22
which of the following sector is most capital intensive?
Atbilde
(B)
petroleum
23
A society that operates below the production possibility curve is using its productive resources
Atbilde
(C)
inefficiently
24
labour can be efficient when there are
Atbilde
(A)
adequate tools to work with
25
What accounts for the ‘U-shaped’ of the short run average cost (AC) curve?
Atbilde
(A)
the law of variable proportions
26
which of these is true of a perfect competitor?
Atbilde
(D)
P = AR = MR
27
One advantage of a sole proprietor is that
Atbilde
(A)
it can be managed without conflicts
28
which of the following is a condition necessary for a perfect market?
Atbilde
(C)
there is a large number of buyers and sellers
29
A market in which a single price obtains for a product is known as
Atbilde
(D)
a perfect market
30
what is the effect of pursuit of higher education on the size of labour force?
Atbilde
(D)
it reduces the size of labour force
31
The population density of town Y made up of 50 square kilometre land area and 100 million people is
Atbilde
(D)
2 million people per square kilometre
32
manufacturing involves the process of
Atbilde
(C)
changing items to new states
33
disposable income is total income
Atbilde
(A)
less tax
34
Use the information below to answer these questions
Depreciation = $40,000
Gross Domestic Product = $100,000
Factor Payments to Foreigners = $20,000
Factor Receipts from Abroad = $25,000
The Gross National Product is equal to
Atbilde
(C)
$105,000
35
Depreciation = $40,000
Gross Domestic Product = $100,000
Factor Payments to Foreigners = $20,000
Factor Receipts from Abroad = $25,000
The National Income is equal to
Atbilde
(C)
$65,000
36
Depreciation = $40,000
Gross Domestic Product = $100,000
Factor Payments to Foreigners = $20,000
Factor Receipts from Abroad = $25,000
The Net Domestic Product is
Atbilde
(B)
$60,000
37
which of the following is specialized in lending money for the purpose of developing real estate?
Atbilde
(B)
mortgage banks
38
The marketing of government security by the Central Bank is termed
Atbilde
(B)
open market operation
39
which of the following serves as a banker's bank?
Atbilde
(C)
The Central Bank
40
The tax imposed on good manufacture within a country is
Atbilde
(A)
an excise tax
41
Government expenditure on the construction of roads and bridges is
Atbilde
(B)
capital expenditure
42
Fiscal policy is associated with
Atbilde
(A)
taxation and government expenditure
43
The need for development planning arises largely from the fact that
Atbilde
(D)
productive resource are scarce relative to the demand for them
44
Economic development is reflected in the
Atbilde
(D)
increase in productive capacity
45
Terms of trade may be define as the
Atbilde
(C)
rate at which a country's export exchange for imports
