Economics is often described as a science because it
Answer
(D)
use scientific methods to explain observed phenomena
2
Scarcity in Economics means that
Answer
(E)
resources are limited relative to wants
3
which of the following has a derived demand?
Answer
(A)
labour
4
In Economics production is complete when
Answer
(B)
are sold to the final consumer
5
Goods are said to be in competitive demand when they
Answer
(A)
Are substitutes
6
The formula for calculating price elasticity of demand coefficient is
Answer
(C)
Percentage change in quantity demanded/percentage change in price
7
when the price of a given product is reduced from N100 to N90, the quantity demanded increases from 50 to 60 units. From this we can conclude that the product's
Answer
(A)
demand is elastic
8
a shift in supply curve to the right will result in a
Answer
(B)
fall in price but an increase in supply
9
one of the disadvantages of the division of labour is that it
Answer
(B)
makes work monotonous
10
The value of money is affected by the
Answer
(B)
price level
11
which of the following is not a problem in the barter economy?
Answer
(E)
inflation
12
The optimum population of a country is reached when the
Answer
(B)
output per head is at its highest with a given volume of resources
13
when the death rate for old people and the infant mortality rate are high , with no migration , there will be in the population a higher number of
Answer
(A)
younger people in the population
14
In the long-run, potential GNP is variable because. I technological change takes place II the quantity of labour and capital is not fixed III. unemployment is not constant
Answer
(C)
I and II only
15
for two commodities A and B, MA and MB are the respective marginal utilities while PA and PB are the respective prices. Marginal utilities of the commodities are maximized when
Answer
(A)
MA/PA = MB/PB
16
If the price of product K declines , the demand curve for the complementary product J will
Answer
(D)
shift to the left
17
a stock exchange is a market that
Answer
(B)
deals with purchase and sales of securities
18
The situation whereby government revenue is less than government expenditure is referred to as
Answer
(A)
budget deficit
19
which of the following will not increase the population of a country?
Answer
(E)
Emigration
20
the actual output of an economy is the output
Answer
(A)
which would exist if al resources were fully employed
21
one of the instruments of protection of infants industries is the
Answer
(C)
tarrif
22
inflation caused by increase in demand can be curbed by
Answer
(C)
increasing the level of output
23
which of the following is a function of commercial banks?
Answer
(B)
accepts deposits
24
Division of labour leads to
Answer
(C)
monotony of work
25
The largest employment sector in a typical West African country is
Answer
(D)
agriculture
26
The indigenisation policy in Nigeria is aimed at
Answer
(E)
increasing equity participation and control by Nigerians
27
the foregone alternative in Economics is simply the
Answer
(D)
opportunity cost
28
all the following are different forms of money except
Answer
(E)
bank sellers
29
The developments banks are essentially different from commercial banks because they
Answer
(A)
medium and long term loans
30
The outward shift to the production possibility curve could be due to
Answer
(D)
economic growth
31
which of the following is not true of a firm in equilibrium condition in perfect competition?
Answer
(C)
MR>AR
32
Hoarding in distributive trade leads to
Answer
(E)
artificial scarcity of goods
33
Hoarding in distributive trade leads to
Answer
(E)
artificial scarcity of goods
34
If an economy grows at an annual rate of 6% of which 4% is deemed to be due to improvement in the productivity of labour and capital combined ,the remaining 2% is generally attributed to the
Answer
(A)
amount of natural resources
35
when the government imposes a unit tax on a commodity with perfectly inelastic demand , the
Answer
(D)
tax is borne entirely by the consumer
36
Free Trade means
Answer
(C)
non-restriction of international trade
37
In a public company , entrepreneural function are performed by the
Answer
(D)
board of directors
38
Term of trade is the
Answer
(E)
ratio of index of export prices to index of import prices
39
Tariff can be define as a compulsory levy on
Answer
(E)
imports and exports
40
international trade is different from internal trade because of the
