Which of the following is an example of free good?
Answer
(B)
Water in the ocean
4
The marginal propensity to consume is
Answer
(A)
Options A, B and C
5
The short run can be defined as the period of time during which
Answer
(B)
At least one of the firm's input is fixed
6
The "velocity" of money is
Answer
(D)
The ratio of real GDP to the real money supply
7
The part of income after tax that is not consumed is defined as
Answer
(B)
Saving
8
An industry is
Answer
(C)
A group of firms producing related goods
9
The type of unemployment that occurs when an individual cannot find job as a result of obsolete skill is
Answer
(A)
Structural unemployment
10
The theory of ............... was propounded by ..................
Answer
(B)
Absolute advantage; Adam Smith
11
If a business' total economic cost of producing 10,000 units of a product is N750,000 and this output is sold to consumers for N1,000,000, then the firm would earn
Answer
(D)
An economic profit of N250,000
12
One major problem facing West African countries is
Answer
(A)
Relations with Colonial Masters
13
The development of an economic hypothesis through intuition, insight, or logic is associated with
Answer
(C)
Normative economics
14
A major factor contributing to productivity is
Answer
(B)
The labour force
15
.............is presently used in Nigeria to measure inflation
Answer
(B)
Consumer price index
16
The fundamental problem of economics is
Answer
(B)
The scarcity of productive resources relative to society's unlimited wants
17
The diagram above represent
Answer
(B)
mononpoly
18
What is the lowest price the monopolist can charge
Answer
(A)
P2
19
The maximum price is
Answer
(D)
P4
20
Real cost is
Answer
(A)
Alternative commodities forgone
21
..................... is the highest body in ECOWAS organogram
Answer
(A)
Authority of Head of State and Government
22
Government uses all of the following ways to redistribute income, except
Answer
(C)
Limited liability
23
The principle that specified that the amount, when and how to pay tax should be made known to tax payer is known as
Answer
(D)
Principle of certainty
24
Money could be defined as
Answer
(A)
Options A, B and C
25
Business cycle is associated with
Answer
(A)
Recession
26
Economic problem occurs when
Answer
(A)
There is scarcity relative to demand
27
A ............ in the price of the domestic currency in terms of a foreign currency is referred to as .............
Answer
(C)
Decrease, depreciation
28
Among all the determinants of economic growth, the most important one is
Answer
(B)
Increased GDP
29
An increase in money income with constant price results in
Answer
(A)
Outward shift in the budget line
30
The law of supply states that, other things being constant, as price increases
Answer
(C)
Quantity supplied increases
31
The demand for money will fall if
Answer
(C)
Real interest rates rise
32
Which of the following is an example of expansionary monetary policy by the Central Bank of Nigeria?
Answer
(D)
Buying Treasury securities from commercial banks
33
If commodities X and Y are substitute, their cross elasticity of demand will be
Answer
(B)
positive
34
The term 'investment' in macroeconomics means
Answer
(D)
The production of goods for immediate consumption
35
The following are economic agents in any economy EXCEPT
Answer
(A)
Central Bank
36
One major criticism of foreign aid to developing countries is that it
Answer
(C)
Is capital using rather than capital saving
37
Public corporation is financed with
Answer
(B)
Tax payer's money
38
The type of price elasticity of demand for a commodity whose quantity demanded remain unchanged despite changes in the price is
Answer
(D)
Perfectly inelastic
39
An increase in total production (real GDP) causes the demand for money to ______and the interest rate to _________
Answer
(C)
Increase; increase
40
Part-time workers who desire full-time employment are:
Answer
(B)
Underemployed but do not contribute to the unemployment statistic
41
Which of the following is the resultant effect of a fall in the profit margin of producers in an economy?
Answer
(C)
Unemployment will increase
42
Indicator of underdevelopment is
Answer
(D)
low per capita income
43
The decision to consume more of one product under normal circumstances will apply
Answer
(A)
less of another product will be consumed
44
Identify one of the following which can NOT be used to close deflationary gap
Answer
(A)
Increased interest rate
45
An increase in nominal income without increase in price will result to
Answer
(A)
increased real income
46
If demand function for a product is Qd = 30 - 4P, and the price and quantity of products is 4 and 14 respectively. What is the price elasticity of demand for the product?
Answer
(A)
1.14
47
Macroeconomics focuses on the following units in an aggregative manner
Answer
(C)
government, household firms, individual consumers and external sector
48
Which of the following would not be a reason for a government to impose a quota on imports?
Answer
(C)
To decrease tax revenue
49
The economies of West African Countries depend majorly on
Answer
(A)
primary product
50
When a generalization is made based on observed facts, it is
Answer
(A)
inductive reasoning
51
A persistence rise in the prices of inputs will lead to
Answer
(A)
cost push inflation
52
From the graph below, Point "E" shows--------------
Answer
(A)
product inefficiency
53
Which of the following Age group belongs to active Labour force?
Answer
(D)
18 - 64yrs
54
Suppose the public expenditure as a percentage of GDP of four countries is shown in the table below
A
40%
B
50%
C
33%
D
36%
Which type of economy exists in these countries?
Answer
(D)
Mixed
55
The diagram above represent
Answer
(B)
Production possibility curve
56
40 men were employed in a farm, and they produced an average of 30 tonnes of cassava per person. Calculate the total product.
Answer
(C)
1,200 tonnes
57
Economists refer to private goods as
Answer
(B)
rivalrous and excludable
58
The rate of output per worker (or group of workers) per unit time is called
Answer
(C)
individual output
59
The quantity of commodity a consumer is willing and able to buy at a particular time is called
Answer
(C)
demand
60
If the supply curve of labour market is given as S = 4L + 8. What is L when s = 20?
Answer
(D)
3
61
All of the following describes conditions necessary for existence of a perfect market EXCEPT
Answer
(A)
lack of homogeneity of goods
62
From the graph above, the consumer is at equilibrium at point
Answer
(A)
k
63
Calculate the equilibrium level of national income (Y) where Y = C + I + G; C = 100 + 0.75Y; I = 50; G = 200
Answer
(D)
1400
64
When a kilogram of carrot is #8.00, 20 kilograms are demanded and when the price decreased to #6.000 per kilogram, 30 kilograms are demanded. The elasticity of demand equals to
Answer
(D)
2
65
Agriculture accounts for about 60% of the
Answer
(C)
active labour force in West Africa
66
Which of the following shows why individual demand curve for a good usually slopes downward from left to right?
Answer
(A)
More of commodities are offered for sale at a lower than higher prices
67
Multiplier can be described as
Answer
(A)
the ratio of change in an endogenous variable to the change spending
68
Which one of the following measures the natural growth rate of population?
Answer
(B)
Birth rate - Death rate
69
In a two by two model of international trade, it is assumed that
Answer
(B)
both countries could gain from trade at the same time, but the volume of the gains depends on terms of trade
70
------------- is NOT the cause of balance of payments (BOP) deficits in Nigeria
Answer
(A)
Poor performance of non-oil sector
71
Institutions serving as links between surplus and deficit units can be identified as
Answer
(C)
financial intermediates
72
Which of the following will cause an increase in cost of production?
Answer
(B)
Cost push inflation
73
The number of people who are qualified to work and who offered themselves for employment are called
