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