Exam Started

1. The following are type of business organization EXCEPT

A. co-operative society B. partnership C. Entrepreneurship D. public corporation

2. Economics problems arise in all societies because

A. the services of economists are not employed B. resource are not in adequate supply C. there is no proper planning D. resources are mismanaged by leaders

3. The concept of marginal utility indicates the relationship between utility and

A. Price B. Satisfaction C. Cost D. Revenue

4. What form of market is found in an imperfect competition where there are few buyers and many sellers

A. monopoly B. oligopoly C. duopoly D. oligopsony

5. The value of money depends primarily on ______

A. The gold backing of the currency B. The general price level C. Government decree that it is legal tender D. None of the above

6. In Nigeria, most agricultural policies are aimed at

A. Ensuring equitable distribution of income B. Liberalizing all sectors of the nations economy C. Encouraging the development of manufacturing sector D. Achieving self-sufficiency in food production

7. Which of the following statements is not a feature of a monopoly?

A. New entrances are restricted B. Buyers and seller are price takers C. There is only one seller of the commodity D. Seller is allowed to fix his own price

8. Given that the total production of Bandako farmers with one worker is 10kg. When the workers increased to 2, 3, and 4, the total production increases to 20, 36 and 60kg respectively. Calculate the average product (AP) of the 4th unit of labour.

A. 20 B. 13 C. 15 D. 10

9. One of the important features of perfect competition is

A. Adequate knowledge of existing prices B. The influence on prices by individual economic units C. The restriction in terms of movement of goods and services D. The administration of a centralized price system

10. One relationship between marginal utility and total utility is that when total utility is

A. falling, marginal utility is negative B. maximum, marginal utility is maximum C. rising, marginal utility is rising D. falling, marginal utility is rising

11. The sector which contribute highly to the economy is ______

A. Primary sector B. Secondary sector C. Tertiary sector D. Education sector

12. The Power Holding Company of Nigeria (PHCN) is a ______

A. Public limited company B. Private authority C. Public Corporation D. Public Liability company

13. Which of the following rewards is associated with entrepreneurship

A. salaries B. profits C. interest D. rent

14. A major factor contributing to productivity is

A. Immigration of young workers B. The labour force C. The baby boom of generation D. The rate of GDP per year

15. A commodity is defined as normal when its demand changes in the same direction as ______

A. income B. price C. taste D. preferences

16. One of these is not a way by which government encourage industrialization?

A. Protection of Infant industries B. Establishment of Nigeria Enterprises Promotion Decree C. Low Productivity and inefficiency D. Establishment of higher institutions

17. When the government fix the price of essential commodities, this is referred to as:

A. Price equilibrium B. Price control C. Demanded price D. Asking price

18. Effective demand for a commodity is desire for that commodity backed by ______

A. a wish for the lowest possible price B. ability and willingness to pay C. cash in one's pocket D. a promise to make payment

19. If the quantity demanded of a commodity increases from 20 units to 30 units when there is an increase in price from $4.00 to $5.00, the elasticity of demand is

A. 0.50 B. 0.65 C. 2.00 D. 2.50

20. In manufacturing, division of labour may be hindered by

A. excessive demand for the product B. low level of technology C. excess supply of labour D. increase in the export of goods

21. Which of the following is NOT among the financial institutions in Nigeria?

A. Federal Mortgage Bank B. Microfinance Banks C. Insurance Banks D. Federal Ministry of Finance

22. If the price of commodity X rises and consumers shift to commodity Y, then commodities X and Y are

A. inferior goods B. substitutes C. complements D. bought together

23. The supply curve of a locally-produced good may shift to the right if

A. there is an increase in taxes on inputs B. government increases subsidies C. rural-urban migration is encouraged D. the price of the commodity increases

24. An indication that there is inflation in a country is that

A. there is a decrease in the demand for goods and services B. people prefer to lend than to borrow C. the same amount of money buys lower quantity of goods D. there are too many goods in circulation

25. What is the most important factor influencing the location of the iron and steel industry at Ajaokuta?

A. Availability of labour in the area B. Availability of power C. Nearness of raw material D. Access to transport facilities

26. Wholesalers play an important in the distribution of goods and services because they

A. are located very close to consumers B. pass information on from retailers to consumers C. sell in small units to consumers D. finance both producers and retailers

27. If the price of a ball point pen falls from N1.00 to N0.60 and the quantity demanded increases from 200 to 300, the point elasticity of demand is equal to____________

A. 0.50 B. 0.40 C. 1.25 D. 0.80

28. Whether a monopolist is able to increase his revenue by restricting his output depends on the shape of the _______

A. marginal product B. marginal cost curve C. demand curve D. average cost curve

29. The demand for labour is a ______

A. Derived demand B. Joint demand C. Complementary demand D. Composite demand

30. Which of the following over estimate the value of national income?

A. Wrong timing of computation B. Changes of prices of goods within the year C. Double counting D. Incomplete statistical data

31. An argument for the use of commercial policy rest on the need to

A. make imported goods affordable B. encourage the importation of non-essential goods C. make a country enjoy absolute advantage in production of all goods D. reduce domestic unemployment

32. In Nigeria, cheques are not money because _____

A. Most Nigerians cannot identity them B. They are not legal tender C. There are no banks in rural areas D. They are not generally acceptable as a medium of exchange

33. If the prices of a commodity increases from N8.00 to N10.00 and the demand decreases from 100 to 80 respectively, wha is the price elasticity of demand for the commodity?

A. 1 B. 0.8 C. 0.5 D. 1.5

34. A situation in which a commodity is sold abroad below its cost of production in the home country is known as?

A. dumping B. counter trade C. bilateral trade D. trade liberalization

35. Development plans fail in Nigeria mainly because of

A. Corruption and political instability B. Over-dependence on foreign aid C. High cost of plan implementation D. Shortage of personnel

36. When an economy is having a balance of payment surplus the best alternative opened to it is to

A. devalue its currency B. borrow from abroad C. promote imports into the country D. increase its foreign reserve

37. Economic problems arise mainly as a result of?

A. Lack of foresight on the part of resource users B. Inaccurate statistical data in West Africa C. Excessive wastage of available resources D. Limitations in availability of resources

38. Which of the following is not a direct tax?

A. capital gains tax B. purchase tax C. personal income tax D. capital tax

39. The coefficient of the price elasticity of supply is always __________

A. Constant B. Zero C. Positive D. Negative

40. A group formed to enable members adopt a common policy in labour negotiation is known as?

A. Employer’s association B. Craft Union C. Trade union D. Employee’s union