Which of the following is central to the definition of Economics?
Answer
(C)
scarcity
2
When the production possibility curve shifts outwards, the economy experiences
Answer
(A)
growth
3
Land as a factor of production is made useful through the
Answer
(A)
application of human effort
4
In a free market economy, resources are allocated through the
Answer
(B)
price mechanisms
5
Use the figure below to answer question that follows
What does the diagram above depict
Answer
(C)
component bar chart
6
The figure above shows the change in demand for Commodity X which is a normal good. Use it to answer the question that follows.
Which of the following caused the change in demand from D\(_{1}\) D\(_{1}\) to D\(_{2}\)D\(_{2}\)
Answer
(B)
Rise in the price of a substitute
7
Use the figure below to answer the question that follows
The curves D\(_{0}\)D\(_{0}\) and S\(_{0}\)S\(_{0}\) are the initial demand and supply curves respectively. What happens when government provides subsidies to producers?
Answer
(B)
The supply curve will shift from S\(_{0}\)S\(_{0}\) to S\(_{1}\)S\(_{1}\)
8
In the figure above, YZ represents
Answer
(B)
excess supply
9
Goods are described as inferior if their demand
Answer
(C)
decreases as income increases
10
A consumer is in equilibrium when
Answer
(B)
he maximizes his satisfaction from spending his income
11
Goods that are abundant in supply usually have low
Answer
(B)
marginal utility
12
If an increase in the price of crude oil led to an increase in the prices of kerosene and grease, then kerosene and grease are in
Answer
(A)
joint supply
13
If an increase in the supply of beef increased the supply of hides, then beef and hides are in
Answer
(B)
joint supply.
14
An increase in supply means that
Answer
(B)
more is sold at the same price
15
A seller increased the quantity he offered for sale from 200 units to 250 units when the price of his product increased by 12.5%. What is the price elasticity of the supply of his product?
Answer
(A)
2.00
16
If a beef market is in equilibrium at $4.00 per kg, an increase in price to $6.00 per kg may cause
Answer
(A)
surplus in the market
17
A large firm may experience diseconomies of scale if there is
Answer
(A)
difficulty in coordinating decisions
18
Increasing returns to scale suggests that
Answer
(B)
a firm can make more profit by increasing output
19
One feature of the average fixed cost is that it
Answer
(A)
falls continuously but is never equal to zero.
20
If the average fixed cost (AFC) of producing 5 bags of rice is $20.00, the average fixed cost of producing 10 bags will be
Answer
(C)
$10.00
21
The table below shows the total revenue schedule of a firm. Use the information to answer the question that follows
Output (units)
50
60
70
80
90
Total revenue (TR) $
85
102
119
136
153
What is the unit price of the firm's output
Answer
(D)
$1.70
22
The table below shows the total revenue schedule of a firm. Use the information to answer the question that follows
Output (units)
50
60
70
80
90
Total revenue (TR) $
85
102
119
136
153
What is the firm's marginal revenue?
Answer
(C)
$1.70
23
Organization and entrepreneurship are vested in diferrent persons in a
Answer
(D)
public company.
24
The public sector in a mixed economy is not always because of
Answer
(A)
bureaucratic practice
25
Which function of the wholesaler enables him to stabilize prices?
Answer
(A)
Warehousing goods
26
In the long run, as individuals receive higher wages, it causes
Answer
(A)
demand for food to decrease
27
Labor productivity is defined as
Answer
(A)
output per man-hour
28
Which of the following problem has the least effect on agricultural productivity in West Africa?
Answer
(D)
Illiteracy
29
The location of iron and steel industry at a place is due to
Answer
(A)
easy access to raw materials
30
Import substitution as a strategy of industrialization is the
Answer
(B)
development of locally produced goods with imported ones
31
Which of the following are intermediate products?
Answer
(A)
Cement and steel
32
How is NNP at factor cost derived from GNP at market prices?
Answer
(D)
GNP+
Depreciation- Indirect taxes + Subsidies
33
Inflation may occur if
Answer
(C)
wage increase is granted without an increase in productivity
34
Money would cease to be a good store of value when
Answer
(C)
prices of goods and services are rising rapidly
35
Which of the following factors may lead to the underestimation of national income figures?
Answer
(C)
Emigration of skilled workers to foreign countries
36
Governments in West Africa can curtail inflation by
Answer
(B)
selling securities in the open market
37
The central bank Can reduce the ability of commercial banks to give out loans by
Answer
(A)
raising the bank rates
38
Tools of monetary policy do not include
Answer
(D)
tax and public expenditure
39
During inflation, the appropriate fiscal measure to adopt is to
Answer
(B)
increase direct taxes
40
Mr. X and Mrs. Y pay $500.00 and $1,400.00 as taxes on their earning of S5,000.00 and $7,000.00 respectively. The system of taxation employed is
Answer
(D)
progressive tax
41
Expenditure on food takes a large proportion of the incomes of people in
Answer
(C)
developing countries
42
A country should embark on development planning to ensure that
Answer
(C)
its scarce productive resources are efficiently utilized
43
A country is allowed to import just 50,000 tonnes of rice annually. This describes
Answer
(D)
quota
44
Dumping is selling goods in a foreign market at a price
Answer
(A)
below what is sold at the home market
45
The principle of comparative advantage encourages a country to
Answer
(B)
engage in trade if it can produce a commodity at a lower cost
