2023 Economics

  1. A tariff is a tax imposed on
  • A. Consumer goods
  • B. Domestic goods
  • C. Imported goods
  • D. Exported goods
  1. The demand for a good is price inelastic if
  • A. The price elasticity is less than one
  • B. The price elasticity is one
  • C. The price elasticity is negative
  • D. The price elasticity is greater than one
  1. Which of the following is an example of free good?
  • A. Free education
  • B. Water in the ocean
  • C. Dinner you did not pay for
  • D. Your rented apartment
  1. The marginal propensity to consume is
  • A. Options A, B and C
  • B. ΔC/ΔY
  • C. The slope of the consumption function
  • D. Coefficient c in the equation C = C + cYd
  1. The short run can be defined as the period of time during which
  • A. All inputs are fixed
  • B. At least one of the firm’s input is fixed
  • C. At least two inputs are fixed
  • D. All inputs are variable
  1. The “velocity” of money is
  • A. The real money supply divided by the real GDP
  • B. The money supply multiplied by the price level
  • C. The money supply divided by the price level
  • D. The ratio of real GDP to the real money supply
  1. The part of income after tax that is not consumed is defined as
  • A. Wages and salaries
  • B. Saving
  • C. Capital investment
  • D. Nondurable goods expenditure
  1. An industry is
  • A. A group of firms producing differentiated products
  • B. A group of firms producing distinct commodities
  • C. A group of firms producing related goods
  • D. A group of firms producing unrelated goods
  1. The type of unemployment that occurs when an individual cannot find job as a result of obsolete skill is
  • A. Structural unemployment
  • B. Cyclical unemployment
  • C. Seasonal unemployment
  • D. Frictional unemployment
  1. The theory of …………… was propounded by ………………
  • A. Comparative advantage; Mercantilists
  • B. Absolute advantage; Adam Smith
  • C. Comparative advantage; Adam Smith
  • D. Absolute advantage; David Ricardo
  1. If a business’ total economic cost of producing 10,000 units of a product is N750,000 and this output is sold to consumers for N1,000,000, then the firm would earn
  • A. A normal profit of N750,000
  • B. An economic profit of N750,000
  • C. A normal profit o N1,750,000
  • D. An economic profit of N250,000
  1. One major problem facing West African countries is
  • A. Relations with Colonial Masters
  • B. Joint Military operations in Member States
  • C. Political integration
  • D. Financial crunch of Member States
  1. The development of an economic hypothesis through intuition, insight, or logic is associated with
  • A. Deduction
  • B. Policy economics
  • C. Normative economics
  • D. Induction
  1. 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
  1. ………….is presently used in Nigeria to measure inflation
  • A. GNP implicit price deflator
  • B. Consumer price index
  • C. Wholesale price index
  • D. Real Gross Domestic Product
  1. The fundamental problem of economics is
  • A. Finding striking determinants between the forces of supply and demand
  • B. The scarcity of productive resources relative to society’s unlimited wants
  • C. The establishment of a political framework to determine the what, how and for whom of production
  • D. To establish an equitable distribution of income

17.

The diagram above represent

  • A. perfect competition
  • B. mononpoly
  • C. demand curve
  • D. competitive market

18.

What is the lowest price the monopolist can charge

  • A. P2
  • B. P1
  • C. P3
  • D. P4

19

The maximum price is

  • A. P1
  • B. P2
  • C. P3
  • D. P4
  1. Real cost is
  • A. Alternative commodities forgone
  • B. Amount of money spent on goods and services
  • C. Cost of goods and services
  • D. True cost
  1. ………………… is the highest body in ECOWAS organogram
  • A. Authority of Head of State and Government
  • B. The Executive Secretariat
  • C. The Defense Council
  • D. Council of Ministers
  1. Government uses all of the following ways to redistribute income, except
  • A. Market intervention
  • B. Transfer earnings
  • C. Limited liability
  • D. Taxation
  1. The principle that specified that the amount, when and how to pay tax should be made known to tax payer is known as
  • A. Principle of economy
  • B. Principle of convenience
  • C. Principle of simplicity
  • D. Principle of certainty
  1. Money could be defined as
  • A. Options A, B and C
  • B. Medium of exchange
  • C. Settlement of debt
  • D. Medium of payment
  1. Business cycle is associated with
  • A. Recession
  • B. Unemployment
  • C. Seasonal variation
  • D. Inflation
  1. Economic problem occurs when
  • A. There is scarcity relative to demand
  • B. All raw materials are imported
  • C. Many people are out of work
  • D. There are no buyers for our goods
  1. A ………… in the price of the domestic currency in terms of a foreign currency is referred to as ………….
  • A. Decrease, appreciation
  • B. Increase, de-appreciation
  • C. Decrease, depreciation
  • D. Increase, consolidation
  1. Among all the determinants of economic growth, the most important one is
  • A. Human capital
  • B. Increased GDP
  • C. Land and Natural resources
  • D. Technologies
  1. An increase in money income with constant price results in
  • A. Outward shift in the budget line
  • B. Inward parallel shift in the budget line
  • C. Options A and C
  • D. Budget line remain constant
  1. The law of supply states that, other things being constant, as price increases
  • A. Supply increases
  • B. Supply decreases
  • C. Quantity supplied increases
  • D. Quantity supplied decreases
  1. The demand for money will fall if
  • A. People expect deflation soon
  • B. Real GDP rises
  • C. Real interest rates rise
  • D. The GDP deflator rises
  1. Which of the following is an example of expansionary monetary policy by the Central Bank of Nigeria?
  • A. Lowering income taxes
  • B. Increasing the discount rate
  • C. Increasing the reserve ratio
  • D. Buying Treasury securities from commercial banks
  1. If commodities X and Y are substitute, their cross elasticity of demand will be
  • A. One
  • B. positive
  • C. negative
  • D. zero
  1. The term ‘investment’ in macroeconomics means
  • A. Profit
  • B. Total amount of money invested in bonds and stocks
  • C. The total amount of capital goods in the country
  • D. The production of goods for immediate consumption
  1. The following are economic agents in any economy EXCEPT
  • A. Central Bank
  • B. House hold
  • C. Firm
  • D. Government
  1. One major criticism of foreign aid to developing countries is that it
  • A. Gives too much power and control to world bank
  • B. Encourages growth in government bureaucracy
  • C. Is capital using rather than capital saving
  • D. Provides incentives for capital flight
  1. Public corporation is financed with
  • A. Capital raised from shareholders
  • B. Tax payer’s money
  • C. Capital raised from stock exchange
  • D. Capital contributed by owners
  1. The type of price elasticity of demand for a commodity whose quantity demanded remain unchanged despite changes in the price is
  • A. Perfectly elastic
  • B. Infinitely elastic
  • C. Inelastic
  • D. Perfectly inelastic
  1. An increase in total production (real GDP) causes the demand for money to ______and the interest rate to _________
  • A. Increase; decrease
  • B. Decrease; decrease
  • C. Increase; increase
  • D. Decrease; increase
  1. Part-time workers who desire full-time employment are:
  • A. Underemployed and contribute to the unemployment statistic
  • B. Underemployed but do not contribute to the unemployment statistic
  • C. Not part of the labour force and do not contribute to the unemployment statistic
  • D. Cyclical unemployment
  1. Which of the following is the resultant effect of a fall in the profit margin of producers in an economy?
  • A. Unemployment will fall
  • B. Unemployment will remain constant
  • C. Unemployment will increase
  • D. Unemployment will fluctuate
  1. Indicator of underdevelopment is
  • A. high life expectancy
  • B. low birth rate
  • C. low population growth rate
  • D. low per capita income
  1. The decision to consume more of one product under normal circumstances will apply
  • A. less of another product will be consumed
  • B. more of another product will be consumed
  • C. less of the product will be consumed
  • D. no other products will be consumed
  1. Identify one of the following which can NOT be used to close deflationary gap
  • A. Increased interest rate
  • B. Increased money supply
  • C. Increase government expenditure
  • D. Reduction in taxes
  1. An increase in nominal income without increase in price will result to
  • A. increased real income
  • B. increased GDP
  • C. decreased real income
  • D. decreased GNP
  1. If demand function for a product is Qd = 30 – 4P, and the price and quantity of products is 4 and 14 respectively. What is the price elasticity of demand for the product?
  • A. 1.14
  • B. 7.1
  • C. 14.1
  • D. 1.7
  1. Macroeconomics focuses on the following units in an aggregative manner
  • A. household, firms, government, corporate sector and external sector
  • B. individual consumers, individual firms, government and external sector
  • C. government, household firms, individual consumers and external sector
  • D. individual consumers, household firms and manufacturing sector
  1. Which of the following would not be a reason for a government to impose a quota on imports?
  • A. To support strategic industry
  • B. To prevent dumping
  • C. To decrease tax revenue
  • D. Employment oppourtunity
  1. The economies of West African Countries depend majorly on
  • A. primary product
  • B. secondary product
  • C. tertiary product
  • D. manufacturing product
  1. When a generalization is made based on observed facts, it is
  • A. inductive reasoning
  • B. normative reasoning
  • C. theoretical reasoning
  • D. deductive reasoning

 

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