With a given level of money income, a consumer maximizes satisfaction from the consumption of goods and services when the?
Answer
(C)
marginal utility derived per naira spent is the same for all the goods and services
2
Ike's scale of preference reveals that he prefers bananas to pawpaw, pawpaw to oranges and oranges to bananas. Ike's preferences are therefore?
Answer
(A)
inconsistent
3
One of the features of a free market economy is that?
Answer
(A)
resources are directed by the price mechanism
4
One of the fundamental differences between a capitalist and a socialist economy is that while?
Answer
(B)
in the former, prices act as signals in the allocation of resources, it is central authority that performs this function in the letter
5
When a country's population is experiencing increase returns, that country is said to be?
Answer
(A)
overpopulated
6
In a country, if the proportion of people who are below 15 years is 45% and those above 60 years is 30%, this implies that the?
Answer
(A)
dependency is ratio high
7
One of the objectives of Nigeria's current population policy is to?
Answer
(A)
reduce the birth rate
8
Labour productivity is the ratio of?
Answer
(C)
output to man-hours
9
The type of cost which has to be covered for a firm to continue production in the short-run is the?
Answer
(D)
average variable cost
10
A good is said to be inferior if its demand?
Answer
(B)
falls as it price rises
11
Given a market demand curve Q=120-2p and a supply curve Q = 4p, the equilibrium price and quantity respectively are?
Answer
(A)
20 and 80
12
If a demand curve that intersects a perfectly inelastic supply curve shifts rightward, then?
Answer
(B)
only the price will increase
13
The elasticity of demand for a firm's product is 2.
If the firm reduces its price by 20 percent, its sales revenue will increase by?
Answer
(D)
40 per cent
14
If the percentage change in the income of the consumers of an industrial product is less than the resulting percentage change in the quantity demanded of the product, then the income elasticity of demand for the product is?
Answer
(C)
greater than one
15
A market where there are many differentiated products is called?
Answer
(C)
monopolistic competition
16
The best channel of distribution of baked bread is through?
Answer
(B)
direct sales to consumers
17
A form of business organization which is characterized by limited authority and liability of individual owners is the?
Answer
(C)
joint stock company
18
The shares that must be redeemed first at liquidation of a company are?
Answer
(A)
preference shares
19
The suggestion that peasants in Africa have backward-bending supply curves of output implies that their response to an increase in the price of their crops will be to?
Answer
(A)
increase their output
20
The most important requirement for increasing agriculture output in Nigeria is?
Answer
(C)
to increase farmers'incomes and improve the farming techniques
21
What is the effect of inelastic demand for agricultural products on the income of a farmer?
Answer
(A)
A price rise results in its fall
22
Plywood industries are often located near the source of?
Answer
(D)
raw materials
23
A firm is said to have benefited from external economies in production if it has realized?
Answer
(C)
reduced resources costs due to operation of other firms
24
One of the dangers of the localization of industries is?
Answer
(C)
structural unemployment
25
A glut in the world market for crude oil means?
Answer
(B)
an excess supply of crude petroleum
26
The main problem of the Organization of Petroleum Exporting Countries is how to?
Answer
(A)
prevent members from violating their quota
27
The most important attribute of money is?
Answer
(D)
general acceptability
28
Which of the following is inflationary?
Answer
(D)
An increase in government expenditure
29
In commercial banking, an account from which the customer cannot withdraw money instantly is a?
Answer
(B)
time deposit account
30
Banks can create more money by?
Answer
(D)
lending out money from customers deposits
31
Stock and shares as well as bonds are examples of instruments used in the?
Answer
(D)
security markets
32
The use of legally permissible means to reduce tax liabilities is known as tax?
Answer
(B)
avoidance
33
The greatest proportion of government revenue in Nigeria comes from?
Answer
(C)
custom duties and excise duties
34
One of the factors which is likely to check the growth of public debts is?
Answer
(D)
debt-equility swap
35
If the marginal propensity to consume is 0.75 and private investment increases by N10 billion while government expenditure decreases by N15 billion, GDP will decrease by?
Answer
(D)
N25 billion
36
Given: Investment = N100 million Consumption = N200 m + 0.75Y Y = C + I
where, Y =Income, C = Consumption and where I = Investment
What is the income level to the nearest million?
Answer
(D)
N1,200 Million
37
The total money values of all goods and services produced in a country during a certain period is measured by using the?
Answer
(C)
output method
38
Privatization of government-owned companies means the?
Answer
(A)
relinquishing of government equility participation to private individuals
39
The major determinant of the total volume of output in an economy is the?
Answer
(C)
level of total expenditure
40
The most important factor ensuring economic development is the?
Answer
(C)
formulation of appropriate government policies
41
Which of the following classes of goods accounts for largest proportion of Nigeria's imports?
Answer
(D)
Machinery and transport equipment
42
Counter trading is an international arrangement whereby?
Answer
(A)
goods and services are exchanged in a manner similar to barter
43
In recent years, Nigeria's balance of payments has continued to register a deficit due to (i) increased government overseas' spending.
(ii) increasing prices of exports.(iii) rising import prices .(iv)more payment to overseas' investors.
Answer
(C)
i, ii, iii and vi
44
The organization which provides credit to help countries achieve short-term balance in their balance of payment is the?
Answer
(B)
International Monetary Fund
45
An important feature of a cartel is that?
Answer
(B)
each member has a fixed output above which it is not expected to produce
