Economics is often described as a science because it
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(D)
use scientific methods to explain observed phenomena
2
Scarcity in Economics means that
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(E)
resources are limited relative to wants
3
which of the following has a derived demand?
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(A)
labour
4
In Economics production is complete when
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(B)
are sold to the final consumer
5
Goods are said to be in competitive demand when they
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(A)
Are substitutes
6
The formula for calculating price elasticity of demand coefficient is
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(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
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(A)
demand is elastic
8
a shift in supply curve to the right will result in a
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(B)
fall in price but an increase in supply
9
one of the disadvantages of the division of labour is that it
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(B)
makes work monotonous
10
The value of money is affected by the
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(B)
price level
11
which of the following is not a problem in the barter economy?
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(E)
inflation
12
The optimum population of a country is reached when the
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(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
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(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
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(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
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(A)
MA/PA = MB/PB
16
If the price of product K declines , the demand curve for the complementary product J will
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(D)
shift to the left
17
a stock exchange is a market that
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(B)
deals with purchase and sales of securities
18
The situation whereby government revenue is less than government expenditure is referred to as
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(A)
budget deficit
19
which of the following will not increase the population of a country?
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(E)
Emigration
20
the actual output of an economy is the output
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(A)
which would exist if al resources were fully employed
21
one of the instruments of protection of infants industries is the
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(C)
tarrif
22
inflation caused by increase in demand can be curbed by
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(C)
increasing the level of output
23
which of the following is a function of commercial banks?
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(B)
accepts deposits
24
Division of labour leads to
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(C)
monotony of work
25
The largest employment sector in a typical West African country is
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(D)
agriculture
26
The indigenisation policy in Nigeria is aimed at
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(E)
increasing equity participation and control by Nigerians
27
the foregone alternative in Economics is simply the
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(D)
opportunity cost
28
all the following are different forms of money except
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(E)
bank sellers
29
The developments banks are essentially different from commercial banks because they
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(A)
medium and long term loans
30
The outward shift to the production possibility curve could be due to
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(D)
economic growth
31
which of the following is not true of a firm in equilibrium condition in perfect competition?
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(C)
MR>AR
32
Hoarding in distributive trade leads to
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(E)
artificial scarcity of goods
33
Hoarding in distributive trade leads to
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(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
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(A)
amount of natural resources
35
when the government imposes a unit tax on a commodity with perfectly inelastic demand , the
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(D)
tax is borne entirely by the consumer
36
Free Trade means
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(C)
non-restriction of international trade
37
In a public company , entrepreneural function are performed by the
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(D)
board of directors
38
Term of trade is the
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(E)
ratio of index of export prices to index of import prices
39
Tariff can be define as a compulsory levy on
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(E)
imports and exports
40
international trade is different from internal trade because of the
