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