Which of the following situations can give rise to economic problems?
Answer
(A)
Unlimited human wants
2
Scale of preference refers to?
Answer
(C)
list of goods and servicesin order of priority
3
For an economy which last year produced only two commodities X and Y, the real cost of the quantity of X which it produced can be measured by the?
Answer
(C)
total amount of Y it could have produced
4
Which of the following is applicable in a wholly capitalist economy?
Answer
(C)
The price mechanism allocates resources
5
the major objective of current campaign for family planning in Nigeria is to?
Answer
(D)
raise the standard of living of the population
6
The migration of young people from rural to urban areas in Nigeria should help to raise the?
Answer
(D)
marginal productivity of labour in the urban areas
7
BY definition, variable cost (VC) is related to total costs (TC) and fixed costs (FC) by the equation?
Answer
(B)
VC = TC - FC
8
The higher the price of capital relative to the price of labour, the more production techniques should be?
Answer
(B)
capital-intensive
9
The U-shape of the long run average cost curve can be explained by the?
Answer
(A)
law of increasing returns
10
The price mechanism is more effective in achieving efficient performance of the economy than the planning mechanism because of the?
Answer
(A)
role of supply and demand
11
If demand is relatively inelastic and sellers are able to raise the price of their commodity, then there we be a?
Answer
(A)
fall in both quantity of demand and total revenue
12
The demand curve for a normal good will shift to the left if?
Answer
(B)
the price of the goods rises
13
A firm with marginal cost equals to its marginal revenue will produce the equilibrium output if it is in?
Answer
(A)
pure competition only
14
An important function of the retailer is to?
Answer
(B)
break bulk and sell products in small units
15
The main handicap of sole proprietorship is?
Answer
(D)
inadequate capital
16
The main reason for the current programme of privatization and commercialization of public enterprises in Nigeria is to?
Answer
(B)
encourage efficiency in the performance of such enterprises
17
The type of business finance that entitles the holder to a fixed rate of dividend is?
Answer
(C)
debenture
18
Farmers' income may fall if they produce more cash crops for export because?
Answer
(A)
foreign demand is inelastic
19
Under the Nigerian Structural Adjustment Programme, the marketing of agricultural commodities in Nigeria has been placed under?
Answer
(D)
private investors and individuals
20
The primary barrier to land reform in developing countries is the?
Answer
(A)
frequent opposition by the landlords
21
Firms are often set up close to each other in order to take advantage of?
Answer
(D)
external economies of scale
22
The consumer-goods industry is predominant in the industrial sector of the Nigerian economy because of the?
Answer
(A)
availability of market and most of the raw materials required
23
A significant effect of the growth of the oil sector in Nigeria has been to?
Answer
(B)
diminish the percentage contribution of the agricultural sector to GNP
24
Because most of her crude oil is exported, the foreign exchange earnings and the forward linkage effects Nigeria realize from her oil production are?
Answer
(B)
respectively high and low
25
Which of the following is NOT directly concerned with dealings in treasury bills?
Answer
(D)
Discount houses
26
Monetization refers to the ratio of?
Answer
(D)
money in circulation to total income
27
The best way to reduce the supply of money in the economy is to?
Answer
(A)
increase the liquidity ratio
28
The total amount of money in circulation includes cash?
Answer
(C)
and current acount balances owned by banks and non-bank public
29
To reduce the high rate of inflation in the economy, the government should?
Answer
(A)
increase taxes and have a budget surplus
30
When interest rates are high and still rising the least-cost method used by public limited companies to obtain additional funds for their operations is by?
Answer
(D)
selling new ordinary shares to the general public
31
The objective of public finance is to promote?
Answer
(A)
full employment, national income and price stability
32
An account from which allocations are made to the three tier of government in Nigeria is called the?
Calculate the GNP per head of the population in year 1 and year 2.
Answer
(D)
N1000.00; N1125.00
35
In national income accounting, aggregate saving in any year is defined as?
Answer
(A)
all disposable income not spent on consumption
36
Which of the following combinations is a veritable set of development indicators?
Answer
(D)
Low infant mortality and high per capital income and literacy rates
37
If an economy grows at an annual rate of 5% of which 3% is deemed to be due to improvement in the productivity of labour and capital combined the remaining 2% is generally attributed to?
Answer
(B)
technical progress
38
If a country has a balance of payment crisis, which of the following measures can best bring about a improvement in the short run?
Answer
(C)
Large-scale export of locally made abroad
39
When a foreigner on a visit to Nigeria pays for hotel accommodation and meals with some foreign currency,the amount paid should be recorded in Nigeria's balance of payment as an item of?
Answer
(A)
Nigeria's invisible export trade
40
The Nigerian Trust Fund is managed on behalf of Nigeria by the?
Answer
(C)
African Development Bank
41
One of the gains by member states of the Economic Community of West Africa?
Answer
(C)
trade inversion
42
In the diagram, the profit maximizing output is
Answer
(C)
Q2, while l = MC and ll AC
43
if in the graph, it is assumed that the price is initially P1, it can be deduced that price will
Answer
(A)
fall because there is a surplus
44
Calculate the marginal physical product of the last unit of input
Answer
(B)
2
45
At what level of input has diminishing marginal returns set in?
