» the study of economics becomes necessary because of the
Answer
(B)
scarcity of resources
2
The concept of opportunity cost is also referred to as
Answer
(B)
real cost
3
choice is necessitated by
Answer
(D)
scarcity of resources
4
A type of unemployment which occurs due to technological progress is called
Answer
(A)
frictional unemployment
5
All the following are features of market economies except
Answer
(D)
public ownership of capital
6
the economic system which relies mainly on the price mechanism for the allocation of scarce resources is known as
Answer
(A)
capital economic system
7
In a capitalist economy, resources are
Answer
(C)
privately owned
8
An economic system where the central planning authority determines what goods to produce and in what quantity is known as
Answer
(B)
socialist economy
9
The main objective of setting up a private business organization is to
Answer
(D)
maximize profits
10
The demand and supply function of a commodity are given as below.
Qd = 20 - 2p
Qs = 6p - 12
Where p = price in naira, Qd = Quantity demanded and Qs = Quantity supplied. The equilibrium price is
Answer
(B)
4 Naira
11
The type of demand that exist between torchlight and battery is
Answer
(D)
joint demand
12
When the price of a commodity increases and the quantity demanded also increases, this is a case of
Answer
(A)
exceptional demand
13
If a fall in price of one commodity leads to an increase supply of another commodity, both commodities have
Answer
(C)
competitive supply
14
At a co-efficient of price elasticity of supply of 0.5, supply is
Answer
(B)
inelastic
15
In the short-run commodity X and commodity Y are supplied jointly, which of the following is correct?
Answer
(A)
An increase in demand for X will increase supply of Y
16
If an increase in earning leads to more of of a commodity being demanded, the good is said to have
Answer
(A)
positive income elasticity
17
The interaction of supply and demands for labour determines
Answer
(C)
wage
18
Government fixing of prices below the equilibrium point is aimed at protecting the
Answer
(D)
consumers
19
A consumer maximizes his utility in consuming a good 'X' when
Answer
(A)
Mux = Px
20
The relationship between Marginal Product (MP) and Average Product (AP) is such that they are equal when
Answer
(D)
Marginal Product is increasing
21
who among the following is the intermediary between the producer and the retailer?
Answer
(B)
wholesaler
22
which of the following sector is most capital intensive?
Answer
(B)
petroleum
23
A society that operates below the production possibility curve is using its productive resources
Answer
(C)
inefficiently
24
labour can be efficient when there are
Answer
(A)
adequate tools to work with
25
What accounts for the ‘U-shaped’ of the short run average cost (AC) curve?
Answer
(A)
the law of variable proportions
26
which of these is true of a perfect competitor?
Answer
(D)
P = AR = MR
27
One advantage of a sole proprietor is that
Answer
(A)
it can be managed without conflicts
28
which of the following is a condition necessary for a perfect market?
Answer
(C)
there is a large number of buyers and sellers
29
A market in which a single price obtains for a product is known as
Answer
(D)
a perfect market
30
what is the effect of pursuit of higher education on the size of labour force?
Answer
(D)
it reduces the size of labour force
31
The population density of town Y made up of 50 square kilometre land area and 100 million people is
Answer
(D)
2 million people per square kilometre
32
manufacturing involves the process of
Answer
(C)
changing items to new states
33
disposable income is total income
Answer
(A)
less tax
34
Use the information below to answer these questions
Depreciation = $40,000
Gross Domestic Product = $100,000
Factor Payments to Foreigners = $20,000
Factor Receipts from Abroad = $25,000
The Gross National Product is equal to
Answer
(C)
$105,000
35
Depreciation = $40,000
Gross Domestic Product = $100,000
Factor Payments to Foreigners = $20,000
Factor Receipts from Abroad = $25,000
The National Income is equal to
Answer
(C)
$65,000
36
Depreciation = $40,000
Gross Domestic Product = $100,000
Factor Payments to Foreigners = $20,000
Factor Receipts from Abroad = $25,000
The Net Domestic Product is
Answer
(B)
$60,000
37
which of the following is specialized in lending money for the purpose of developing real estate?
Answer
(B)
mortgage banks
38
The marketing of government security by the Central Bank is termed
Answer
(B)
open market operation
39
which of the following serves as a banker's bank?
Answer
(C)
The Central Bank
40
The tax imposed on good manufacture within a country is
Answer
(A)
an excise tax
41
Government expenditure on the construction of roads and bridges is
Answer
(B)
capital expenditure
42
Fiscal policy is associated with
Answer
(A)
taxation and government expenditure
43
The need for development planning arises largely from the fact that
Answer
(D)
productive resource are scarce relative to the demand for them
44
Economic development is reflected in the
Answer
(D)
increase in productive capacity
45
Terms of trade may be define as the
Answer
(C)
rate at which a country's export exchange for imports
