PAPER TYPE: B
1. Which question paper type of economics
is given to you?
A. Type A
B. Type B
C. Type C
D. Type D
2. An effective way of controlling inflation in a mixed economy is to
A. increase productivity
B. reduce income tax
C. ration available output
D. increase imports
3. One of the limitations PPC assumption is that there is
A. no indication of technological development
B. no recognition of preferred goods for countries
C. technical inefficiency
D. abundant resources
4. A major disadvantage of the arithmetic means is that it is
A. not useful for large data
B. not suitable for further statistical analysis
C. cumbersome to determine the actual value
D. affected by extreme data
5. Demand patterns are determined by the market on the basis of
A. scale of preference
B. consumer sovereignty
C. consumer rationality
D. price of the commodity
6. A consumer surplus measures the
A. benefits derived from consuming a cheap commodity
B. excess of total expenditure over total utility
C. difference between marginal utility and marginal cost
D. excess of marginal utility over price
7. If the demand for one commodity excludes another, it is said to be
A. complementary demand
B. competitive demand
C. composite demand
D. derived demand
|
Price (N) |
Quantity |
|
1 |
100 |
|
2 |
120 |
|
3 |
150 |
|
4 |
180 |
|
5 |
200 |
8.
The graph of the schedule above will depict
A. a kinked demand curve
B. a normal demand curve
C. an abnormal demand curve
D. a diminishing marginal utility curve
9. The median of an odd-numbered set of scores is the
A. Middle value in the set
B. Highest value in the set
C. Arithmetic means of the set
D. Most frequent occurring score
10.If demand increases without a change in supply, equilibrium price and quantity will
A. remain unchanged
B. shift inward
C. fall
D. rise
11.In the process of production, total output is at maximum when
A. MP=0
B. MP > 0
C. AP = 0
D. AP > 0
12.
|
Price (N) |
Quantity/(bags) |
|
1 |
60 |
|
2 |
120 |
From that table above, the price elasticity of supply is
A. 4
B. 25
C. 1
D. 2
13.When a consumer is at equilibrium, the MRS is equal to the
A. sum of the prices
B. product of the two prices
C. ratio of the two prices
D. difference of the two prices
14.Minimum price legislation by government will
A. reduce supply
B. increase supply
C. reduce demand and create surplus
D. increase demand and create scarcity
15. Ranking is the method use in measuring
A. marginal utility
B. ordinal utility
C. cardinal utility
D. total utility
16. If a firm is faced with an elastic supply curve, its revenue will
A. be supplied at a higher price
B. double at a higher price
C. increase by more than the percentage increase in price
D. equal percentage change in price
17.The optimal range of output for a perfectly competitive firm is
A. AC is lowest
B. AVC is lowest
C. MC is rising
D. MC is falling
18.A firm will experience diseconomies of scale when
A. there are difficulties in coordinating production
B. there is shortage in labour supply
C. the size of market is small
D. there is an increase in the price of raw materials
19.The law of variable proportions is applicable only
A. in the long-run period
B. to large-scale enterprises
C. to small-scale enterprises
D. in the short-run period
20.
From the Diagram above, the optimal point of production is
A. R
B. T
C. U
D. S
21.If real income increases while nominal income remains the same, it can be inferred that
A. Unemployment rate has decreased
B. General prices have fallen
C. Employment rate has risen
D. General prices have risen
22.One of the characteristics of oligopoly is the availability of
A. few sellers
B. few buyers
C. many sellers
D. a single seller
Use the diagram below to answer question 23 and 24
23.The average total cost when 20 units are produced is
A. N20.00
B. N23.00
C. N13.00
D. N15.00
24.When 20 units of output is produced, TC will be
A. N360
B. N300
C. N460
D. N400
25.The profit of a monopolist can be eliminated where price equals
A. AFC
B. MC
C. AC
D. AVC
26.Bank consolidation policy in Nigeria is a measure to increase
A. the capital base of banks
B. employment opportunities in banks
C. the number of shareholders
D. the number of branches
27.An increase in the circulation of money without a corresponding increase in output will lead to
A. a rise in income levels
B. stagflation
C. inflation
D. deflation
28.In national income accounts, an item counted as part of government spending is
A. salaries and wages
B. pension
C. scholarship
D. social welfare
29.If aggregate demand is lower than total output in an economy national income will
A. be constant
B. be at equilibrium
C. increase
D. fall
30.During the era of barter, money was generally in the form of
A. notes
B. precious metals
C. coins
D. commodities
31.A country achieves economic development when there is
A. an increase in military expenditure
B. an increase in capacity utilization
C. a sustained increase in per capital income
D. an even distribution of goods and services
32.An indicator of growth in an economy over a period of time is the
A. GDP gap
B. GDP at factor cost
C. GDP at market price
D. GDP deflator
33.A country embarks on deficit financing in order to
A. increase revenue
B. reduce aggregate demand
C. curb inflation
D. stimulate investment
Use the diagram below to answer question 34 and 35
34.The deflationary gap is defined by
A. X
B. K
C. X + K
D. X - K
35.What does X represent?
A. recessionary gap
B. GNP gap
C. inflationary gap
D. deflationary gap
36.The import-substitution strategy of industrialization is to encourage
A. domestic production
B. large-scale production
C. importation
D. exportation
37.Upstream oil activities involve the
A. management of pollution
B. marketing of refined products
C. exploration of crude oil
D. refining of crude oil
38.Agricultural production in Nigeria is constrained by
A. ineffective use of stabilization measures
B. inadequate demand
C. poor implementation of policies
D. balance of payments deficits
39.The main function of NNPC is to
A. oversee the development of the oil sector
B. develop the oil producing area
C. fix the price of products
D. ensure regular supply of products
40.investing heavily in the agricultural sector will lead to
A. sufficient food production
B. a vibrant commodity market
C. capital inflow
D. stable export prices
41.Industrial development in Nigeria can be encouraged through
A. signing WTO treaty
B. granting subsidies
C. the provision of efficient infrastructure
D. direct government participation
42.The record of a country's transactions in international trade is her
A. capital account
B. balance of payments
C. current account
D. balance of trade
43.The transfer to public shareholding corporations to private enterprises is
A. concession
B. incorporation
C. commercialization
D. privatization
44.A condition in which official and autonomous exchange rate coexist is
A. dual exchange rate system
B. managed floating rate system
C. market determined exchange rate system
D. multiple exchange rate system
45. In modern economies, the Malthusian theory of population is ineffective
because of
A. birth control measures
B. technical progress
C. government policies
D. natural disasters
46.Optimum population enables an economy to attain the highest level of
A. Industrial development
B. Income per head
C. Revenue generation
D. Economic development
47.A change from one industry to another by a worker is an example of
A. geographical mobility
B. horizontal mobility
C. professional advancement
D. vertical mobility
48.The money paid per hour for work done is
A. salary
B. wage rate
C. cost
D. bonus
49.Trade takes place because of
A. marginal utility
B. inefficiency in production
C. opportunity cost
D. comparative advantage
50.The World Trade Organization is responsible for
A. stabilizing and harmonization oil prices
B. ensuring equal participation of countries in trade
C. modernising world economies
D. minimizing obstacles to international trade and investment