Which of these is the real cost of satisfying any want in the sense of the alternative that has to be foregone?
Answer
(B)
opportunity cost
3
Under normal circumstances, the concept of consumers sovereignty implies that
Answer
(C)
the consumer and not the producer determines what is to be produced
4
A firm is at its optimum size when?
Answer
(A)
it produce the greatest output at a minimum cost
5
The degree of specialization is limited by the
Answer
(A)
avalibility of specialized skills and machinery
6
Production in Economics can be defined as the
Answer
(D)
production of goods and services for consumption
7
A firm achieves least cost in production by substituting factors until
Answer
(C)
their marginal-physical products are each zero
8
If a person receives a higher wage than would be necessary to induce him to work, he is said to be receiving
Answer
(D)
surtax income
9
Mobility of labour is NOT affected by
Answer
(A)
optimum size of population
10
A country has a population distribution as shown below:
\(\begin{array}{c|c}
\text{Age Group years} & \text{ Corresponding percentage} \\
\text{Above 60} & 22 \\
15 - 60 & 60 \\
0 - 14 & 15 \\
\end{array}\)
The dependency ratio is?
Answer
(D)
1:5
11
Population density refers to?
Answer
(D)
the total population divided by the total area
12
What fundamentally determines how much a consumer spends in a producer's shop?
Answer
(C)
level of his income
13
Which of the following statements describes a mixed economy?
Answer
(A)
The government and the private sector interact in solving the basic economic problems
14
In drawing an individual's demand curve for a commodity, which of the following is not kept constant? The
Answer
(C)
price of complementary goods
15
Given that beef and fish are substitutes, a rise in the price of beef relative to that of fish will?
Answer
(B)
induce greater demand for fish
16
The main function of price mechanism is to?
Answer
(C)
allocate scarce resources among competing ends
17
Use the table below to answer question 17 and 18.
Market Demand Schedule for Commodity X. \(\begin{array}{c|c}
\text{ Price N} & \text{Quantity(Million units)} \\ 60 & 100 \\
50 & 140 \\
40 & 220 \\
30 & 260 \\
20 & 300 \\
10 & 340 \\
\end{array}\)
If the price of commodity X falls from N40.00 to N30.00 what is the price elasticity of demand?
Answer
(A)
0.62
18
The revenue accruing to the seller of commodity X as a result of a fall in price will
Answer
(B)
fall
19
Which of the following is an important function of prices in a market economy?
Answer
(D)
Equating level of purchases with level of needs
20
One major difference between monopoly and perfect competition is that?
Answer
(A)
the perfect competitor is a price taker while the monopolist determines his own output
21
A producer sustains a loss in the short run if
Answer
(B)
price is less than average cost
22
A monopolist will practice price discrimination in two markets if?
Answer
(B)
the markets have different elasticities of demand
23
In the normal channels of distribution the breaking of bulk is performed by the
Answer
(B)
wholesaler
24
The most important advantage of co-operative societies is?
Answer
(D)
the possibility of raising loans for the members
25
In a public company, shares are?
Answer
(C)
advertised to members of the public for subscription
26
Which of the following is a characteristic of private limited liability company?
Answer
(D)
the number of shareholders ranges from two to fifty
27
One of the advantages of a partnership over a sole proprietorship is that?
Answer
(C)
it makes an increase in the capital of the business possible
28
Which of the following is an external economy derived by a firm?
Answer
(A)
Low cost opportunities enjoyed by being in a place where other producers concentrate
29
Which of the following advantages of localization of industries may also be a disadvantage?
Answer
(B)
Concentration of industries and of people
30
The Nigeria Bank for Commerce and Industry is?
Answer
(B)
a developmment bank
31
To control inflation, the monetary authorities of a country can?
Answer
(D)
engage inrestrictive monetary policy
32
Which of the following is used by the Central Bank to control the rate of interest?
Answer
(D)
Open market operation
33
Gresham's law in economics shows that
Answer
(A)
bad money drives good money out of circulation
34
Given that the cash reserve ratio is 10 percent, what is the maximum amount of that the banking system can create from an initial cash deposit of N1,000.00?
Answer
(D)
N10,000.00
35
The most important economic characteristic differentiating commercial banks from other financial institutions is their?
Answer
(C)
status as an intermediary between savers and borrowers
36
Deflation is a persistent fall in the general price level and is usually caused by?
Answer
(A)
a reduction in total demand
37
Which of the following causes of inflation is related to demand-pull inflation?
Answer
(A)
Low productivity on farms and in firms
38
Which of the following is NOT a goal of modern budgets?
Answer
(C)
The shift of all resources from the private to the public sector
39
The best technical description of a progressive tax is a?
Answer
(C)
tax which takes a higher proportion of extra naira received as income rises
40
Tax incidence is the analysis of?
Answer
(D)
who ultimately pays the tax
41
In international trade, a country specializes in the production of a commodity or group of commodities for which it has?
Answer
(C)
the greatest relative advantage
42
Balance of payment deficit in Nigeria CANNOT be solved by
Answer
(A)
importing more goods and services
43
The term balance of trade, can be defined as the?
Answer
(A)
relation between value of exports and value of imports over a given period of time
44
The term of trade often measured by the ratio of the index of export
Answer
(A)
divided by the index of import prices multiplied by 100
45
A society which forgoes present consumption
Answer
(B)
is devoting new resources to new capital formation
