If the price elasticity of demand for a good is 0.43, an increase in the price of the good will result in?
Answer
(B)
a net gain
2
In a free market economy, the price system allocates resources?
Answer
(C)
to their best alternatives
3
At the consumer equilibrium, the slope of the indifference curve is?
Answer
(B)
equal to the slope of the budget constraint line
4
For a supply curve, an increase in the price of a commodity will result in?
Answer
(D)
an increase in the quantity supplied
5
A normal good with close substitutes is likely to have its price elasticity of demand?
Answer
(D)
greater than unity
6
Economics is regarded as a social science because it?
Answer
(C)
adopts the scientific method in the study of human behaviour
7
A change in supply is best described as a?
Answer
(B)
shift of the supply curve to the left or to the right
8
When a generalization is made based on observed facts, it is known as?
Answer
(B)
inductive reasoning
9
A major problem facing all economies is how to?
Answer
(D)
allocate scarce resources
10
A vertical supply curve indicates that?
Answer
(B)
the same fixed quantity will be supplied no matter the price
11
In a demand curve, the relationship between price and quantity is?
Answer
(D)
inverse
12
If the arithmetic mean of 1,2,3,4,5,6,x, 16 and 18 is 8.0, find the value of x?
Answer
(D)
17.0
13
The fixing of the price of an item above or below the equilibrium price is most likely to take place in a?
Answer
(B)
free market economy
14
A consumer's scale of preference is an arrangement of his?
Answer
(B)
needs in order of importance
15
A firm's shut-down point is reach when the average revenue fails to cover the?
Answer
(B)
marginal cost
16
Internal economies of scale are expected to bring about?
Answer
(C)
a decrease in long-run average cost
17
In the long-run, a monopolist maximized his profit when the marginal cost equals?
Answer
(D)
price
18
The long run is a period during which a firm?
Answer
(B)
varies all its inputs
19
An important feature of perfect competition is that?
Answer
(B)
there is adequate knowledge of existing prices
20
If government fixes price below the equilibrium price, what effect will it have on demand?
Answer
(C)
Quantity demanded will increase
21
An imperfect market exist where?
Answer
(D)
the location of some sellers gives them an advantage over others
22
A production function relates?
Answer
(D)
output to input
23
A major advantage of specialization and division of labour is that?
Answer
(A)
time wastage will be minimized
24
Which of the following is an example of a fixed cost?
Answer
(C)
Rent on building
25
In the agricultural sector, improved extension services facilitate?
Answer
(A)
acquistion of techniques
26
A disadvantage of concentrating industries in an area is that it could?
Answer
(B)
result in evironmental pollution
27
The losses suffered by a sole proprietor are?
Answer
(D)
not limited to the amount invested
28
To facilitate the exportation of crude oil from Nigeria, special?
Answer
(C)
pipelines were laid to connect the major oil wellsto the ports
29
An industry is?
Answer
(B)
group of firms producing related commodities
30
The raising of funds by selling stocks to the public is called?
Answer
(A)
equity financing
31
A tax that increases at a higher percentage as income increase is called?
Answer
(C)
a progressive tax
32
The price paid for labour services is the?
Answer
(B)
wages rate
33
The capital market is a market for trading of financial assets such as?
Answer
(C)
long-term securities
34
In national income accounting, NNP is derived by subtracting from the GNP?
Answer
(D)
capital consumption
35
Economic growth can be accelerated through?
Answer
(C)
planned current consumption
36
An increase in the discount rate is an indication of a central bank's intention to pursue?
Answer
(A)
an expansionary monetary policy
37
The efficiency of labour can be increased by?
Answer
(A)
constant training of workers
38
In Nigeria, revenue sharing from the federation Account is between the?
Answer
(D)
federal, state and local governments
39
The reduction of high fertility rate is a measure in population control designed to make the?
Answer
(D)
growth in population more sustainable
40
National debts is an expected outcome of?
Answer
(A)
deficit budget
41
The distribution channel that contributes most to the cost of production is?
Answer
(D)
producer-wholesaler-retailer-consumer
42
Money may not be accepted as a store of value if?
Answer
(A)
its value is unstable
43
In order to accelerate economic development, a country must?
Answer
(C)
pursue a rational population policy
44
If the labour force in a given community is 2,000,000, in the wage employment 200,000 and the unemployed are 80,000, what is the unemployment rate in the community?
Answer
(B)
40.0%
45
GNP is not a good measure of social welfare because there are unrecorded?
