ECONOMICS (2006) 1. Production in Economics can be defined as the: A. Totality of producing, buying and consuming. B. Transformation for raw materials for services in order to provide ultimate utility. C. Transformation of raw materials and services in order to make maximum profit. D. Production of goods and services for consumption. 2. If a person receives a higher wage than would be necessary to induce him to work, he is said to be receiving: A. Rent. B. Profit. C. Interest. D. Period of training. 3. Population density refers to: A. Density populated urban centre. B. The total area divided by the total population. C. Density populated rural areas. D. The total population divided by the total area. 4. In drawing an individual's demand curve for a commodity which of the following is NOT kept constant? A. Individual's money income. B. Price for substitutes. C. Price of complementary goods. D. Price of the commodity under consideration 5. Air is essential to life but commands no price! Diamond is not essential to life but commands a high price. This is the paradox of: A. Thrift. B. Value. C. Abundance. D. Scarcity.
6. The average product of labour in a given period is obtained by dividing the: A. Number of workers by the total product. B. Total product by the number of hours actually worked. C. Change in total product by the change in the total number of workers. D. Total product by the number of workers. 7. The Law of Diminishing Return begins to operate when: A. Total product begins to rise. B. Total product begins to fall. C. Marginal product begins to fall. D. Marginal product begins to rise. 8. The demand and supply equations for a commodity are given respectively as D=20-i/2p S=8-l/4p Recalling that at equilibrium price (P) and quantity (Q) can be obtained as: A. P = 12, Q=16 B. P = 14, Q = 16 C. P = 16, Q = 12 D. P = 16, Q = 12 9. Industries tend to be located closer to market centres than to the sources of major raw materials if the: A. Products are relatively cheap lo transport to market centres. B. Products are relatively more expensive to transport than the major raw materials. C. Raw materials are bulky. D. Raw materials can also be imported. 10. One disadvantage of trade by barter is that: A. People are happier when they exchange the same quantities of goods through the medium of money rather than by baiter. B. The person wishing to buy goods X may not have good Y which is what the other person wants.
C. One person must always be cheated when trade takes place by barter. D. It increases the initial cost of producing goods. 11. The term Stock of capital means: A. Amount of money necessary to start a business. B. Total amount receivable by all factors of production. C. Amount of equipment plant and inventory existing at a time. D. Total amount available for economic development. 12. One of the advantages of international trade is that it: A. Increases world output. B. Encourages economic independence among nations. C. Restricts spread of technical knowledge. D. Promotes self-reliance and satisfaction with only what can be produced internally. 13. Every economy requires an accurate census because it assists in: A. Solving inflation problem, B. Providing a sound framework for policy formulation. C. Stimulating economic activities in the national economy. D. Solving unemployment problem. 14. Unemployment can be reduced by: A. Restricting the productive base of the economy. B. Adopting capital intensive techniques of production. C. Adopting a mixture of labour and capital intensive techniques of production. D. Adopting a labour - intensive techniques of production. 15. A firm determines its profit when it studies its: A. Marginal Cost. B. Average Cost. C. Total Cost. D. Average Cost relative to price in the market.
16. An increase in the supply of labour in a factory while other things remain equal will lead to: A. An increase in the wage and an increase in the number of people employed. B. A decrease in the wage rate and a decrease in employment. C. An increase in the wage rate and decrease in employment. D. A decrease in the wage rate and an increase in employment. 17. In a free market economy the price system allocates resources: A. Under government s directives. B. To ensure general welfare. C. To their best alternative uses. D. To reduce poverty. 18. At consumer equilibrium, the slope of the indifference curve is: A. Half the slope of the budget constraint line. B. Equal to the slope of the budget constraint line. C. Greater than the slope of the budget constraint line. D. Less than the slope of the budget constraint line. 19. Internal economies of scale are expected to bring about: A. An increase in short-run average cost. B. An increase in long-run average cost. C. A decrease in long-run average cost D. A decrease in short-run average cost. 20. If government fixes price below the equilibrium price, what effect will it have on demand? A. Quantity demanded and supplied will be equal. B. Quantity supplied will be greater than quantity demanded. C. Quantity demand will increase. D. Quantity demanded will decrease. 21. The following except one is not a known practiced economic system: A. Capitalism. B. Socialism.
C. Mixed economy. D. Monopoly. 22. What is (he median of the following distribution: 1, 2, 3,4,5,6? A. 2 B. 3.5 C. 3 D. 4. 23. Labour productivity is defined as: A. Total level of output. B. The maximum number of hours worked. C. Average output. D. Output per man/hour. 24. Nigeria has Petroleum Refineries in; A. Rivers, Cross River and Kaduna States. B. Rivers, Imo and Edo States, C. Kaduna, Delta and Abia States, D. Kaduna, Rivers and Delta States. 25. By open market operations we mean the procedure by which: A. The commercial bank rate is determined in the open market. B. People buy and sell goods in the open market, C. The commercial banks intervene in thv open market to buy and sell securities. D. The Central Bank intervenes in the open market to sell or buy securities. 26. We can define the production possibility curve as: A. The curve that is used in production in advance economies. B. The curve used by the third world countries in production. C. The geometrical representation of the possible area within which production is possible using the limited resources. D. An abnormal demand curve shows the irresponsiveness of consumer to change in price.
27. Which of the following is a correct description of per capita income of a country? A National Income/population. B. The ratio between the population and the capital assets of the country. C. Income generated per capital used in production. D. National Income/Working population. 28. Economic Growth of a country could be narrowed to: A. Increase in a country s GDP. B. Increase in the economic well-being of the citizens C. Increase in the sizes of a country s population. D. Increase in workers wages. 29. A major factor that has threatened the Nigerian development process remains: A. Inadequate capital B. Debt burden. C. Corruption. D. Relationship with other developing nations. 30. When a country acquires loans from outside its economy it is said to be: A. Long term loans. C. Internal debt. B. Short term loans. D. External debt. 31. One of the major reasons for the present monetization policy in the public sector is that: A. It will empower public servants' purchasing power of goods and services. B. U will increase the well-being of the National Assembly members, C. It will reduce government overhead cost. D. It will reduce corruption. 32. One of the functions of International Bank for Reconstruction and Development (IBRD) is; A. The provision of foreign investment. B. The provision of technical assistance. C. The provision of long term loans. D. To maintain stability of foreign exchange.
33. The price index number is equal to: A. Current Price/base period X 100. B. Current Price/price period X 100 C. Base Period Price/Current price X 100. D. Price Period/Current price X 100. 34. An inflationary pressure that is about 9% is said to be: A. Creeping inflation. B. Trotting inflation C. Running inflation. D. Hyper inflation 35. N? (? )2. Is the formula for? A. Mean deviation. B. Variance. C. Standard deviation. D. Coefficient of determination. 36. Of the range, variance and standard deviation, which is the most reliable? A. Range. B. Variance. C. Standard Deviation. D. None of the above. 37. What is the value of S if L=3 in the below equation. S = 4L+8 A. 3 B. 20 C. 4 D. 12 38. Which of these is not a characteristic of the mode: A. Very easy to compute. B. Ignores other values.
C. Suitable for further statistical work. D. Very cumbersome to handle. 39. The following are different types of bar charts except one: A. Simple bar charts. B. Pie bar charts. C. Component bar charts. D. Multiple bar charts. 40...definition of economics is universally accepted as the most comprehensive because it embraces almost all aspects of economics. A. Professor L Robbins. B. Karl Max. C. Adams Smith. D. J.S. Mills. 41. Economics as a science is concerned with: A. Factors of production. B. Manufacturing activities. C. National income. D. Allocation of scarce resources 42. Statistics is used in economics to interpret: A. Geometric events. B. Economic events. C. Harmonic events. D. Algebraic events. 43. A budget where current receipts are less than current expenditure is called? A. Balanced budget. B. Unbalance budget. C. Deficit budget. D. Surplus budget.
44. The market form in which there is only one producer is called A. Unfair competition. B. Monopoly. C. Oligopoly. D. Imperfect competition 45. One of the reasons why barter system was abandoned was because: A. of double coincidence of wants. B. it was too simple C. it was not reasonable. D. all of the above. 46. Inflation can be defined as: A. When the economy becomes inflated. B. A persistent rise in the general price level over time. C. When there is too much money in circulation. D. When there is shortage of goods. 47. Given that Mr Eze consumes Gari and Sugar and his income is 4500 while the prices of Gari an Sugar are 420 and 450 respectively. What is the quantity of Gari consumed? A. 25-5 /2m. B. 250-5 /2m. C. 25-50m. D. 25m-%. 48. National income is: A. The value of economic goods consumed in a country at a particular time. B. Total money in circulation in a country at a particular time. C. Total current account balances. D. Total output of all firms in a country at a particular time.
49. The rate at which a country s export is exchanged for its imports is called? A. Terms of Trade. B. Balance of Trade. C. Balance of Payments. D. International Trade 50. The economist sees cost in terms of: A. Money spent in production. B. The cost of goods produced to satisfy human wants. C. Maximization of profits by producers. D. The opportunity cost of producing one commodity instead of the others. ANSWERS 1. A 6. B 11. B 16. A 21. D 26. C 31. A 36. C 41. D 46. B 2. C 7. C 12. A 17. A 22. D 27. A 32. C 37. B 42. B 47. A 3. C 8. A 13. B 18. A 23. C 28. A 33. A 38. D 43. C 48. A 4. B 9. B 14. D 19. C 24. D 29. C 34. A 39. B 44. B 49. B 5. B 10. B 15. D 20. C 25. D 30. D 35. C 40. A 45. A 50. A