A student in Obu'pu Secondary School discovers that he simultaneously needs a pen, an exercise book, an eraser and a ruler, but that he can purchase only one of these items. What is the first thing he is expected to do?
Answer
(C)
Draw up a scale of preference
3
What to produce in any society is determined by the?
Answer
(D)
supply and demand in the factor markets
4
The active intervention of the central authorities in the management of a country's economy rest upon the?
Answer
(A)
failure of the market force to produce satisfactory result
5
The problems of conducting census include?
Answer
(D)
poor town planning in urban areas
6
An aging population is a population?
Answer
(C)
in which the number of old persons is increasing
7
The population of Oh-aha L.G.A. WAS 480 000 in December 1980, out of which 60% were females . If within one year no birth were recorded, but 5% of the L.G.A. in December 1981?
Answer
(D)
470 400
8
What is meant by labour supply?
Answer
(A)
Number of people in working population
9
The advantages which firms obtain directly from expanding their operations are referred to as?
Answer
(A)
internal economies of scale
10
The factor of production that has the highest degree of mobility is?
Answer
(B)
labour
11
Any payment to a factor of production in excess of what is necessary to keep that factor in its present employment is known as?
Answer
(C)
economic rent
12
The opportunity cost of the use of productive resources which a producer owns and so does not pay constitutes?
Answer
(B)
an implicit cost
13
The effect of changes in the condition of demand on a demand schedule with the price constant is?
Answer
(D)
shift of the demand curve
14
Which of the following statement is TRUE of the effect of changes in demand and supply on price?
Answer
(D)
An increase in supply will lead to a fall price and a rise in the quantity bought and sold
15
In a free market economy, available resources are more efficiently allocated by complete reliance on?
Answer
(D)
price system
16
In order to maximize his profit, a businessman who faces a very elastic demand for his product is advised to?
Answer
(B)
slightly reduce the price of his products
17
What is the elasticity of demand for commodity X, if at a price of N25 the quantity demanded is 80 and when the price is reduced to N20 the quantity demanded is 100?
Answer
(A)
1.25
18
If y represents the income earned by workers in a factory, find the range of their income which satisfies the following inequality: 4Y - 300 > 500.
Answer
(C)
y > 200
19
Both in the short run and in the long run, a firm maximizes its profits when?
Answer
(A)
MC = MR
20
Stocking small quantities of a variety of goods is a function of the?
Answer
(C)
retailer
21
In a joint stock company, preference shareholders are those who receive?
Answer
(B)
a fixed rate of individend and have the first claim on the net profits of the company
22
The major reason for the survival of small shops despite competition from large business enterprises is because of?
Answer
(C)
their local srvices and longer hours of operation
23
One of the major advantages of public enterprises is that?
Answer
(A)
they are highly subsidize
24
When public enterprises become commercialized, it means that?
Answer
(B)
they are expected to operate with the primary aim of making profits
25
Which of the following statement are TRUE of agriculture in Nigeria? (i) it provides food for the growing population?
(ii) A large proportion of the population is engaged in agriculture.
(iii) Agriculture products are used as raw materials by the local industries.
(iv) It serves as sources of heavy equipment to local industries.
Answer
(B)
i,ii and iii only
26
In recent times, agriculture in Nigeria tends to lose its vital labour force as a result of?
Answer
(C)
rural-urban drift
27
The government can influence the price of agriculture products by?
Answer
(C)
the use of buffer stock and stabilization funds
28
The crucial factors which determine the location of petroleum refineries in Nigeria are availability of raw materials and?
Answer
(B)
political consideration
29
Infant industries denote industries which?
Answer
(B)
are too young to compete in the world market
30
When compared with a labour-intensive industry, a capital-intensive industry employs more?
Answer
(D)
machinery than workers
31
The major source of Nigeria's foreign exchange is the export of?
Answer
(C)
crude oil
32
The most important goal of OPEC is to?
Answer
(D)
ensure that rules on quota producion are strictly followed
33
the Central Bank's expansionary monetary policy is justified at a period?
Answer
(B)
of economic depression accompanied by low capacity utilization
34
The sharp increase in the prices of most goods and services during the last quarter of 1994 in Nigeria were mainly due to?
Answer
(C)
the introduction of value-added tax
35
The best method to curb inflation in Nigeria is to
Answer
(B)
increase the general level of production
36
A bank is said to be distressed when it?
Answer
(D)
experiences serious liquidity crisis
37
One method through which the Central Bank can restrict the commercial banks' power of credit expansion is to?
Answer
(A)
demand for increased special deposit
38
Which of the following is the cheapest for the government in improving the welfare of its citizens?
Answer
(C)
Donation to specific projects
39
Which of the following is mostly used to determine the cost of living?
Answer
(B)
Consumer price index
40
Ajanka, a medical student entitled to an annual allowance of N6,000, decides to leave the university to take up a job where he earns N7,000 per annum. By this singular act, the national income level will?
Answer
(C)
increase by N7,000
41
An increasing population might be of economic benefit to a country if?
Answer
(C)
a continuosly higher proportion falls into working class category
42
The demand made on each other by the agriculture and industrial sector as the economy grows are reflected in?
Answer
(A)
backward and forward linkages
43
Foreign exchange rate in a free market economy is determined by?
Answer
(C)
demand and supply
44
The primary objective of all international economic organizations is to?
Answer
(B)
promote international economic co-operation for the mutual benefit of all members
45
In the circular flow of income above, the direction of flow of payments for consumption purchases is shown by the arrow
