Shuffle all the questions below together and select the best 40

1. Economics is is a science which studies human behavior as a relationship between ends and scare
means which have alternative uses A. Resources B. Want C. Choice D. Outputs.

2.Scarcity in economics means that resources A. Limited B. Unlimited C. Constant D. Not available.

2. Data presented in tables are usually arranged A. Chart and table B. Rows and columns C. Graphics
and row D. Map and pre chart E. Pictogram and columns.

3.

Production is not complete if the goods produce did not get to the final...... A. Retailer B. Government C.
Consumer D. Seller.

5.

Which of the following can not describe as land A. Forest B. Diamond C. Road D crude oil.

6.

A basic economic problem of any society is A. High level of illiteracy B. Irregular B. Irregular power
supply C. Population growth D. Resources allocation.

7.
Which of the problems arises where there are more than one technical possible method of production
A. For whom to produce B. What to produce C. How to produce D. Efficiency of resources uses.

8.

Find the median of the following set of data 8,9,6,5,10 A. 5 B. 10 C. 8 D. 9.

9.

In economics, production takes place only when (a) producers sell to retailers(b)value has been added to
a commodity(c)modern equipment is used(d) consumption has taken place. Given the following data,
use it to answer questions 10 and 11. 2,4,2,3,1,2,4,1,2 and 3.

10.

What is the mode (a) 2(b) 4(c) 3(d)1.

11.

What is the mean of the data?(a) 2.2(b) 2.4(c) 2.5(d)2.3

12.

Which of the following is not fundamental economic problems? (a) how much capital is required to
produce(b)what to produce(c)how to produce(d)for whom to produce.

13.
A list of an individual wants in order of priority is called? (a)priority list (b) list of wants(c) demand
schedule(d) scale of preference.

14.

Who among the following defines economics most comprehensively? (a) Adam Smith (b)David Ricardo
(c)Lionel Robbins (d)Alfred Marshall

15.

An arrangement of data is rows and columns is reffered to as a (a) graph(b)pie chart (c) table(d) bar
chart.

16.

Economics is regarded as science because (a)its issues can be easily verified by reference to facts (b) it
adopts scientific method in making its analysis (c) its issues are relevant for national development (d) its
subject matter studies human behavior.

17.

The opportunity cost of worker going to university is (a)tuition fees and books(b) boarding and
lodging(c)the wages given up to attend university (d) transportation and entertainment.

18.
Scale of preference shows (a) income of consumer in order of size(b) utilities enjoyed by consumers (c)
opportunity cost of goods consumed (d) consumer's wants in order of priority. The diagram below
represents favorite subjects of 42 students in sss1 use the information in the table to answer questions
19 and 20.

19.

What percentage of students chose Mathematics as their favorite subject? (a) 36% (b) 34%(c) 40%
(d)44% 20.How many students chose Science as their favorite subject? (a) 4 (b) 6 (c) 5 (d) 7

20.

All economic systems must decide what to produce because (a) resources are not available(b)
consumers want maximum satisfaction(c) resources are limited in supply(d) producers want maximum
profit.

21.

Every society strives to pursue all the following except (a) increased production(b) price stabiliy(c) an
inequitable distribution of income (d) sustainable growth and development

22.

Which of the following is not true about land (a) the supply is fixed (b) land is mobile(c) it is subject to
diminishing returns (d) land is heterogeneous.

23.

The reward for labour as factor of production is (a) rent (b) wages(c) dividend (d) interest
24.

The type of production that involves tapping and harnessing of natural resources is (a) primary
production (b) secondary production (c) tertiary production(d) direct production.

25.

The study of Economics enable individual to (a) be miserly in spending of his money(b) derives
maximum satisfaction from the money he spends (c)determine the right market to visit (d) avoid the
purchase of luxurious items.

26.

To economist, efficiency of resources use means (a) the maximum use of resources to achieve minimum
objective(b) the reduction of cost for adequate output(c) relating value of input to that of output(d)
maximizing output from a given amount of resources.

27.

The basic problem that Economics attempt to solve is the (a) rankings of goods and services(b) pricing of
goods and services(c) scarcity of resources(d) forgone alternative.

28.

Most of problems of economies arise as a result of (a)competing demands for scarce resources (b)
increase in demand for more goods and services(c) the desire of producers to supply more goods and
services (d) the need to reduce the level of poverty.
29.

Which of the following is a characteristic of a normal goods (a) decrease in demand when income
increases(b) increase in demand when income increases(c) change in price will boost production(d) all of
the above.

30.

The assumption of the cardinalist approach is that (a) utility can be ranked(b) utility can be measured(c)
utility is constant(d) utility can be measured and ranked.

31.

The point where MU is zero and TU is at the maximum is called (a) consumer surplus(b) utility
maximization (c)saturation point (d) equilibrium point.

32.

The cost that varies with the level of output is called____(a) marginal costs(b) average fixed cost(c)
variable cost (d) fixed cost.

33.

As production increases, average cost____ (a) increases (b) decreases (c) remains constant(d) shift
outward. Use the following information to answer questions 6 and 7. 2,4,6,8,10.

34.
The mean deviation of the above data is (a) 3.2 (b)2.4(c)4.2(d) 2.82

35.

The standard deviation is (a)2.83(b) 2.38(c) 3.82(d)3.28.

36.

The first condition for profit maximization is that (a)the MC must cuts the MR from above(b) MC =MR(c)
MC must cuts MR from below(d) MC must be greater than MR. Use the table below to answer questions
9 and 10

37.

In the diagram above, Point QC is the (a) saturation point (b) zero utility (c) maximum point (d)
consumer surplus.

38.

In the diagram above, the moment after point QC (a) marginal utility increases (b) marginal utility falls
while to total utility increases (c) marginal utility becomes negative while total utility continues to falls
(d) marginal utility becomes negative as total utility increases.

39. If 10% increase in price leads to 20% decrease in quantity demanded, what is the price elasticity of
demand? (a) 0.5(b) 2(c) 1(d) 3

40.An additional money generated is selling an additional unit of output is known as (a) marginal cost(b)
marginal output(c) marginal revenue(d) Total revenue.

41.The coefficient of price elasticity of demand is zero when demand is (a) unitary elastic(b) fairly
elastic(c) perfectly elastic(d) perfectly inelastic.
42. One of the property of indifference curve is that it's (a) convex to the origin(b) concave to the origin
(c)it intercepts(d) it's use to measure cost.

43. When the demand for a commodity is inelastic, who bears greater burden of the indirect tax? (a)the
retailer(b) the consumer(c) the producer(d) the wholesaler.

44.If the quantity of men's hat demanded per week is represented by the demand function Qd= 20-⅓p
where p is the price, how many hats are demanded when the price is #90? (a) 23(b) 47(c) 17(d) 11

45.If mu¹, mu² and mu³ is given as 28, 17 and 11 respectively, Tu³ will be___ (a)46 (b) 56(c)55 (d) 65

46. Which of the following is regarded as fixed cost? (a) cost of raw materials(b)cost of fuel (c) labour
wages(d) cost of buildings.

47.

Given that fixed cost is 500, variable cost is 1500 and output is 50 units, what is the AFC of producing a
unit of output? (a) 10(b)100 (c)30 (d)200

48.

In order to calculate TU from given level of MU one has to (a) subtract MU from TU(b) add MU from the
various levels(c) multiply MU by the initial TU(d) divide current MU by previous MU.

49.

A price of mango falls from $100 to $50, the change in price is (a) 5%(b) 50% (c) 100%(d) 25% The table
below shows the total revenue schedule of a firm. Use the information to answer questions 22 and 23.
Output (units) 50 60 70 80 90

Total revenue (TR) $ 85 102 119 136 153

What is the firm marginal revenue? (a) $153(b)$17 (c)$1.70(d)0.80

2.

What is the unit price of the firm's output? (a) $10(b) $2.70(c) $2(d)$1.70

3.

A consumer maximizes his utility in consuming a good ‘x’ when (a) MUX=PX(b) MUX>PX(c)MUX<PX
(d)MUX≠PX

4.

What are inferior goods? These are goods (a) that are generally in short supply(b)that are no longer in
demand (c) whose demand falls as income increases (d) whose price falls as demand increases. Use the
diagram below to answer questions 26 and 27

5.

In the diagram above, the point where demand curve intercepts supply curve is (a) equilibrium
quantity(b) equilibrium point(c)equilibrium price (d) excess supply.

6.
The space above the interception of demand and supply above is (a)excess demand (b) excess supply(c)
equilibrium price(d) equilibrium quantity.

7.

When market supply increases, the equilibrium price (a) rises and quantity falls(b)falls and quantity rises
(c) and quantity falls(d) and quantity rises.

8.

When the demand for a commodity is inelastic, total revenue will fall if (a) price is increased(b) price is
reduced(c) price remains constant (d) the commodity is luxurious.

9.

If the market price is $100 and the consumer budgeted price is $150, the consumer surplus will be (a)
$50(b)$250 (c) $100(d) $150.

10.

In a public limited company, planning is carried out by (a) chairman of the board(b) the board of
directors(c) shareholders(d) employees.

11.

One major advantage of transportation to a business is to (a) extend firm's market coverage(b) ensure
the goods are produced faster(c) procure raw materials cheaply(d)ensure the quality of products.
12.

A body established to protect the interest of members against exploitation of retails trades and
manufacturers is the (a) wholesaler's association(b) consumer's association(c) government agency(d)
worker's union.

13.

An aspect of commerce that facilitates the distribution of products is (a) transportation(b) advertising(c)
branding(d)trading.

14.

A document which gives a level state of a company is the certificate of (a) incorporation (b) trading(c)
commencement of business(d)business registration.

15.

One of the functions of the Nigerian port Authority is the provision of (a) courier services to speedy
delivery(b) shelter for operators of cargoes (c) facilitates to enhance the speedy loading and offloading
of cargoes(d)facilitates to ensure that goods get to their destination.

16.

A major criticism of a cooperative society is (a) selling of goods to non members(b) management
incompetence(c) limited capital(d)granting excess loans to members.

17.
A major advantage of cooperative society is that it (a) encourages thrift among members(b) gives
members the opportunity to unite(c) promote awareness among members (d)draws members closers to
government.

18.

The major function of trade association is that it (a)helps to promote research on behalf of members(b)
facilitates members access to credit facilities(c) helps to promote foreign trade(d)lashes with trade
association

19.

One of the major disadvantage of pipeline transportation is it's (a) limitation in scope(b) high cost of
construction (c) vulnerability to climatic changes (d)high cost maintenance.

20.

Full meaning of ILAN is (a)Institute of loss association of Nigeria(b)Insurance Loss Ldjusters of

21.

The body charged with the responsibility of regulating foods and drugs in Nigeria is the (a) NDLEA(b)
SON (c) NAFDAC(d)CAC

22.
A feature common to both public and private limited company is (a)that they are legal entities(b) the
minimum numbers of their shareholders is five(c) that transfer of shares is not restricted(d) that their
annual account are published for public uses

23.

The distribution of petroleum product in Nigeria is through (a) Rail(b) Road(c) Sea(d)Air

24.

A cooperative society is a (a) finance house(b) self help business organization(c) public corporation(d)
non democratic business organization.

25.

Public enterprise are established mainly to (a) provide basic amenities for the people(b) make goods
available in the markets(c) make profit for the government(d)compete with foreigners in the industrial
sector.

26.

Which of the following is a public corporation (a) roads (Nigeria) PLC (b) national oil and chemical
marketing co. PLC(c) union bank of Nigeria PLC(d) National Electric Power Authority.

27.

In a public company, entrepreneurial functions are performed by the (a) workers(b)shareholders

The ownership of a public limited company is made up of (a) two to twenty people(b) a minimum of
seven shareholders(c)minimum of fifty and maximum of hundred shareholders (d) a maximum of fifty
shareholders.

29.

A limited liability company is owned by the(a) president of the country(b) workers (c)
shareholders(d)general manager. The two largest producer of crude oil in Nigeria are A. Kwara and
Benue state B. Borno and Ondo state C. Niger and river State D.. River and Bendel state.

30.

Which of these does not relate to the law of comparative advantage. A. This law was propounded by
David Ricardo B. The law stresses the importance of relative C. In order to specialize, a country must
have absolute advantage D. The principle if followed, should increase total world output.

31.

International trade and domestic trade are similar in all aspects except that A. Transportation by land,
water and air is involved B. Good are exchanged C. The same currency is used as medium of exchange D.
Specialization and increase consumption is encouraged.

32.

Which of the following roles is being played by OPEC with regards to Nigeria's crude oil? A. Exploiting B.
Refining C. Marketing D. Exporting.
33.

The term marginal propensity to consume can best be explained as the A. Desire to spend more income
in consumption B. Change in consumption C. Total expenditure on consumption D. Average income
regularly spend on consumption.

34.

If the magical propensity to consume is 0.76, what is the multiplier? A. 2 B. 1 C. 4 D. 3.

35.

The price and quality of crude oil and petrol sold to other countries by Nigeria is fixed by the A. ECOWAS
B. IMF C. OPEC D. NNPC

36.

All the following except one are member of ASEAN A. South Korea B. Hongkong C. Thailand D. Taiwon.

37.

Which of the following is not done by NNPC? A. Production of crude oil B. Pricing of crude oil C.
Exploration of crude oil D. Refining of crude oil.

38.
A disequilibrium in a country's balance of payment implies A. That her import exceed are Export B. That
her import equal to her export C. That her capital in flow exceed het capital outflow D. An overall deficit
or surplus in her current and capital account.

39.

If the MPC is 0.6 and consumption expenditure charges by #100 millions, the equilibrium level of income
charges. A. 40 million B. 25 million C. 250 million D. 155 million.

40.

Nigeria's exports usually comprise of A. Primary goods B. Intermediate goods C. Capital goods D.
Consumer goods.

41.

Given that Y= c+I where C =50+0.75Y and I= 45m what is the equilibrium level of income? A. 380m B.
20m C. 180m D. 200m.

42.

Another mame for brain-drain is....... A. Human right B. Capital drain C. Citizen flight D. Capital flight.

43.

The major contribution of the Petroleum industry to the Nigerian economy is the A. Generation of
revenue for the oil companies B. Provision of employment opportunity for citizens C. Generation of
revenue to the government D. Promotion of Industrial harmony.
44.

Which of the following is not a visible item in international trade payment? A. Payment for imported
cars B. Receipt from cocoa exports C. Receipts for oil exports D. Payments to foreign shipping
companies. Use the table below to answer question 17 and 18. Country Groundnut (units) Cocoa(units)

Nigeria 8000 1000

Ghana 1000 8000

Total 9000 9000

1. Applying the law of comparative cost how many unit of groundnut will Nigeria's produce A. 7000 B.
16000 C. 9000 D. 8000.

2. The difference in each country's total output on specialization is A. 16000 B. 9000 units C. 7000unit D.
8000 unit

3. The multiplier is A. I/MPs B. 1/1-mps C. 1/1- Apc D. 1/mps Use the table to answer the questions.

4. Which of the following is not among the items in the current account? A. Export of crude oil B.
Payment for insurance C. Medical fees D. Debit servicing.
5. In comparing the standard of living, which of the following is the most useful? A. National income B.
Return of investment C. Rate of inflation D. Per capital income.

6. The comparative advantage was pro pounded by A. David Ricardo B. Adam Smith C. A. C pigou D. Karl
Max.

7. The absolute advantage principle was pro pounded by A. David Ricardo 1954 B. Adam Smith 1954 C.
David Ricardo 1776 D. Adam Smith 1776.

8. Mining falls under A. Construction sectors B. Extractive sectors D. Manufacturing sector D. Service
sectors.

9. In national income allocating, C+I+G implies A. Open economy B. Closed economy C. Equilibrium D.
Semi-closed economy.

10. If income is $500 and consumption is $400, Average propensity to save is (a) 0.2(b) 0.8(c) 1.25(d) 0.4

11. Which of the following items in balance of payments account is an invisible transaction? (a) import
of cars (b) export of cocoa (c) advertising (d) export of crude oil
12. Where was oil first discovered in commercial quantities in Nigeria? (a) warri(b) oloibiri(c) Onitsha(d)
Port Harcourt.

13. One of the following is not a type of brain drain (a)industrial brain drain (b) occupational brain
drain(c) structural brain drain(d) geographical brain drain.

14. Which of the following is not a mineral resources? (a) Crude oil (b) Bauxite(c) Tin-Ore (d) shawarma.