(i) What and how much will be produced
(ii) How will it be produced
(iii) For whom will it be produced
(iv) How much will be exported and consumed?
From the above, identify the combination of basic resource allocation questions in economic analysis.
Answer
(A)
i, ii and iii
3
In a capitalist economy, the economic problem of what goods to produce is decided mainly by?
Answer
(B)
profit level
4
Which of the following is an example of derived demand?
Answer
(B)
Labour
5
Use the information below to answer the question that follows.
When commodity X sold for N25 per unit, 50 units of commodity Y were purchased. With an increase in the price of commodity X to N50 per unit, the demand for commodity Y fell to 20 units.
Determined the cross elasticity of demand?
Answer
(C)
-0.6
6
Use the information below to answer questions.
When commodity X sold for N25 per unit, 50 units of commodity Y were purchased. With an increase in the price of commodity X to N50 per unit, the demand for commodity Y fell to 20 units.
The two commodities can be classified as?
Answer
(D)
complements
7
A central argument of cardinal utility is that utility is?
Answer
(A)
measurable
8
In a free market system, trading can only take place when the?
Answer
(B)
equilibrium price is attained
9
The condition for equilibrium price and quantity under perfect competition is?
Answer
(C)
MC = AR = P
10
In a small scale business, the fixed cost is N5,000, variable cost is N15,000 and the output is 500 units. What will be the unit cost of the goods?
Answer
(C)
N40.00
11
External dis-economies of scale result from excessive growth of?
Answer
(C)
external factors
12
If a total cost curve is plotted, marginal cost can be illustrated by the?
Answer
(B)
U-shaped curve cutting the total cost curve at its lowest point
13
The short-run equilibrium in a perfectly competitive market requires that?
Answer
(B)
marginal cost and marginal revenue be equal
14
At the point where the marginal revenue of a monopolist is equal to zero, its total revenue will be?
Answer
(D)
maximum
15
A distinguishing characteristic of cooperative societies is that voting power depends on the?
Answer
(C)
equality of members
16
The concept of privatization presupposes?
Answer
(A)
efficiency
17
One problem in the marketing of agricultural products in Nigeria is?
Answer
(D)
inadequate storage facilities
18
Increased output will cause farmers' revenue to decrease when market demand is?
Answer
(A)
elastic
19
A primary industry is concerned with?
Answer
(A)
extraction of resources in their raw states
20
The slow pace of industrial growth in Nigeria can be attributed to?
Answer
(D)
inadequate infrastructural facilities
21
Industries contribute to national economic development because they?
Answer
(A)
utilize local raw materials
22
The Nigerian economy is mono-cultural because government revenue is derived mainly from?
Answer
(D)
crude oil
23
As a producer' association, the OPEC expects its members to maintain production where marginal cost is?
Answer
(B)
less than price
24
A well conducted census is important for?
Answer
(C)
good economic planning
25
The age distribution of a country's population determines the?
Answer
(A)
ratio of the dependent to the working group
26
Firms continue to employ workers until the wage rate equals the?
Answer
(B)
marginal revenue product of labour
27
A major effect of a long distribution chain is?
Answer
(B)
scarcity of commodities
28
The major function of the wholesaler to his customers is?
Answer
(A)
breaking of bulk
29
Which of the following is used for measuring national income?
Answer
(C)
Income, output and expenditure
30
Exclusions that makes Gross National Product a poor measure of welfare are?
Answer
(D)
housewives services
31
An increase in money supply, other things being equal, will?
Answer
(D)
increase money demand
32
A persistent rise in the general level of prices implies?
Answer
(C)
a steady fall in the purchasing power of money
33
Two principal ways by which banks can lend money to their customers are through?
Answer
(A)
loans and overdrafts
34
A capital market differs from the money market in that in the former?
Answer
(C)
loan sought is long term
35
An aspect of taxation that involves normative economics is the?
Answer
(B)
effect on incentive to work
36
Public debt is composed of?
Answer
(C)
internal and external debts
37
A country exporting mainly primary products and with a high percentage of her labour force in agriculture is said to be?
Answer
(A)
developing
38
A country's import price index by 1995 was 50 and her index of export price was 70. Calculate the terms of trade?
Answer
(D)
140%
39
If the United Kingdom buys gold for $60 an ounce and Nigeria buys the same ounce for N500, what will be United Kingdom's exchange rate with Nigeria?
Answer
(D)
$0.12 =N1.00
40
Being a member of the OPEC, Nigeria is in a favorable position to?
Answer
(C)
reap the benefit of a cartel
41
The supply of commodity II increasing from S 1 S 1 to S 2 S 2
Answer
(B)
Leads to a fall in price from OP 1 to OP 2
42
Commodities I and II are
Answer
(B)
Substitute supply
43
In the diagram L1L1 and L2L2 are budget lines. 1112 and 1 3 are indifference curves. which points are optimal?
