ECONOMICS

2010-
2018
JAMB
Questions And
Answers

1
 UTME 2010 ECONOMICS QUESTIONS
1. Which Economics question paper type 8. If the demand for a good is more elastic
is given to you?
than its supply, the tax burden is borne
A. Type A A. equally by consumers and producers
B. Type B
B. more by producers
C. Type C C. more by consumers
D. Type D D. more by retailers and producers
2. Economics is the study of 9. If the price of a commodity with elastic
human behaviour as it relates to demand increases, the revenue
the accruing to the producer will
A. efficient allocation of resources A. double
B. production of goods B. increase
C. operation of companies C. be constant
D. generation of income D. decrease
3. The downturn in the prices of shares on
10. An excess demand for beans will result
stock markets is a highlight of
from
A. efficient allocation of resources
A. an increase in the price of beans
B. the invisible hand
B. a decrease in the price of beans
C. the regulatory nature of the market
C. an increase in the supply of beans
D. consumer rationality
D. a decrease in the supply of beans
4. If = 6 and N = 6, determine the value of
11. Consumer surplus tends to be
∑fx
higher when demand is
A. 36
A. inelastic
B. 12
B. perfectly elastic
C. 1
C. elastic
D. 72
D. unitarily elastic
5. The standard deviation of a set of data is
12. One of the assumptions of ordinal utility
A. always measured from the mode
theory is that
B. the most representative of averages
A. choice is not consistent
C. always measured from the median
B. utility can be ranked
D. a measure of dispersion
C. total utility is a function of price
D. satisfaction is measurable
6. The mean is the best measure of central
tendency because it
13. The law of diminishing marginal utility
A. is not affected by extreme values in
explains why
a data
A. the slope of a normal demand
B. is a midpoint value in an array of data
curve is negative
C. is a balancing point in an observation
B. an abnormal demand curve
D. can be calculated from incomplete data
slopes upwards
C. the slope of a normal demand
7. The most popular sizes of dresses and curve is positive
shoes are determined by the D. the consumption of inferior goods
A. range increases with income
B. mean
C. mode 14. If a consumer plans to spend 120k on
D. median four oranges but spent 80k, his
consumer surplus is
A. ₦1.50

2
 B. ₦0.40 A. reducing average cost
C. ₦1.00 as production increases
D. ₦2.00 B. benefiting from the activities of other
firms
15. A set of factors that can shift the supply C. maximizing profits
curve are changes in as production
A. weather, price and technology increases
B. technology, weather and population D. having an upward-sloping average cost
C. technology, price and taste curve
D. population, price and taste
22. The rising portion of the long-run
16. If the coefficient of price elasticity of average cost curve of a firm is an
supply is greater than one, the supply is indication that it is experiencing
said to be A. increasing efficiency
A. perfectly elastic B. economies of scale
B. fairly inelastic C. diseconomies of scale
C. infinitely inelastic D. increasing marginal returns
D. fairly elastic
23. An industry's supply curve is more likely
17. If commodity X is a by-product of to be elastic when firms are
commodity Y, this implies that both A. enjoying free entry and exit
commodities are B. operating at full capacity
A. in competitive supply C. operating below capacity
B. in composite supply D. maximizing profits
C. jointly supplied
D. in excess supply 24. One of the characteristics of
monopolistic competition is that
18. In perfect competition, price A. there is mobility of factors
is determined by the of production
A. government B. no single seller dominates the market
B. sellers C. the firms are price-takers
C. buyers D. consumers have perfect knowledge
D. market of price

19. In order to reduce hardship faced by 25. The demand curve for factors of
consumers due to high prices production
government can introduce A. is perfect elastic
A. maximum prices B. slopes upwards
B. commodity boards C. slopes of downwards
C. minimum prices D. is perfectly inelastic
D. price control boards
26. An agreement among firms on price and
20. Average product is less than marginal segmentation is termed
product when A. cartel
A. there is constant returns to scale B. collusion
B. there is increasing returns to scale C. haggling
C. there is decreasing returns to scale D. specialization
D. diminishing returns set in
27. In national income accounting, tax is
21. A firm enjoying economies of scale is determined by the
said to be A. level of income
B. level of consumption

3
 C. level of investment
` D. rate of savings 34. A strategy for curbing unemployment is
to
28. A decrease in aggregate spending A. implement
in an economy will ultimately lead government
to stabilization policy
A. boom B. increase taxes and
B. inflation decrease government
C. deflation expenditure
D. recession C. increase government
expenditure and decrease taxes
29. If MPC is 0.7 while government D. ensure even distribution of job
expenditure increased by ₦ opportunities
150m, the equilibrium national
income is 35. In Nigeria, the distribution of
A. ₦ 214 million job opportunities
B. ₦ 45 million A. balanced budgeting
C. ₦ 105 million B. deficit budgeting
D. ₦ 500 million C. surplus budgeting
D. zero budgeting
30. The function of money which
makes division of labour possible is
its 36. National development plans in
A. unit of account Nigeria fail mainly because of
B. store of value A. overdependence on foreign aids
C. medium of exchange B. inadequate funding of projects
D. standard of deferred payment C. poor implementation strategies
D. shortage of skilled manpower
31. By buying treasury bills, the
Central Bank of Nigeria intends to 37. The ultimate aim of
A. increase money supply in the economy agricultural policies in Nigeria
B. reduce the cash reserve ratio for banks is to achieve
C. reduce money supply in the economy A. food sufficiency
D. increase the capital base of B. industrialization
commercial banks C. full employment
D. industrial capacity utilization
32. The velocity of money is represented as
A. Money supply 38. Government can boost
Real GDP agricultural output in Nigeria
B. Real GDP primarily by
Money supply A. embarking on buffer stock
C. Nominal GDP programmes
Money supply B. placing embargo on food importation
D. Real GDP
C. granting subsidies on farm inputs
Nominal GDP
D. placing farmers on monthly income
33. One of the functions of
39. Localization of industries refers to the
commercial banks is
A. maintaining stable price A. spread of firms producing different
in the economy products
B. regulating monetary policies B. siting of industries near the market
C. granting loans to customers C. concentration of firms of an industry
D. issuing bank notes and coins D. siting of firms producing
different products

4
 40. In developing countries, governments B. 25%
influence the location of industries in C. 8%
order to
D. 80%
A. spread development
B. redistribute wealth 46. One of the characteristics of free
C. encourage entrepreneurs trade zone is
D. encourage industries to A. common tariff against non-
earn high profits member countries
B. different trade policies of non-
41. A disadvantage of Nigeria's member countries
dependence on imported petroleum C. free factor mobility within the zone
products is the D. harmonized trade among
A. instability in the demand for member countries
the products
B. dominance of multinational firms 47. If Nigeria imports vehicles from Japan
C. instability in the supply of the product the transaction will appear as a
D. poor maintenance of the refineries A. debit on Japan's balance of payments
B. credit on Japan's balance of payments
42. The maximum number of shareholders C. credit on Nigeria's balance of trade
for a limited liability company's is D. credit on Nigeria's balance of payment
A. twenty
B. five 48. One of the objectives of ADB is to
C. seven A. provide subsidies on imported
D. infinite goods to member countries
B. mobilize short-term loans for
43. The primary motive for an individual member countries
engaging in production is to C. promote economic and social
A. make profit development of member
B. satisfy basic human wants countries
C. redistribute wealth D. provide technical assistance to
D. put inputs into use only poor member countries

Use the table below to answer 49. The choice of the method of
question 44 and 45. production in an economy is
determined by the
Year Population Working A. level of technical know-how
(000) Population(000) B. rate of population growth
2000 25 13 C. availability of natural resources
2001 30 19 D. level of income
2002 40 32
2003 50 49 50. The amount of labour hired depends on
the
44. What is the population growth rate A. number of skilled labour available
in 2003? B. skill of labour
A. 33.3% C. marginal productivity of labour
B. 20.0% D. price of the inputs
C. 11.0%
D. 50%

45. The percentage of working population

in 2002 is?
A. 50%

5
 25. B
ANSWER KEYS: 26. A
1. C 27. A
2. A 28. B
3. B 29. B
4. A 30. B
5. D 31. B
6. B 32. A
7. A 33. B
8. C 34. D
9. C 35. C
10. A 36. B
11. C 37. A
12. D 38. B
13. B 39. D
14. C 40. A
15. A 41. B
16. C 42. D
17. C 43. C
18. D 44. D
19. D 45. D
20. D 46. D
21. A 47. C
22. A 48. B
23. C 49. C
24. C 50. C

6
 UTME 2011 ECONOMICS QUESTIONS
7. If the demand for one commodity
1. Which question paper type of excludes another, it is said to be
economics is given to you? A. complementary demand
A. Type A B. competitive demand
B. Type B C. composite demand
C. Type C D. derived
D. Type D
demand 8.
2. An effective way of controlling inflation in
Price (₦) Quality (Kg)
a mixed economy is to 1 100
A. increase productivity 2 120
B. reduce income tax 3 150
C. ration available output 4 180
D. increase imports 5 200
3. One of the limitations PPC assumption is The graph of the schedule above will
that there is depict
A. no indication of A. a kinked demand curve
technological B. a normal demand curve
development
C. an abnormal demand curve
B. no recognition of preferred goods
D. a diminishing marginal utility curve
for countries
C. technical inefficiency
9. The median of an odd-numbered set of
D. abundant resources
scores is the
A. Middle value in the set
4. A major disadvantage of the
B. Highest value in the set
arithmetic means is that it is
C. Arithmetic means of the set
A. not useful for large data
D. Most frequent occurring score
B. not suitable for further
statistical analysis
10.If demand increases without a change in
C. cumbersome to determine the
supply, equilibrium price and quantity
actual value
will
D. affected by extreme data
A. remain unchanged
5. Demand patterns are determined by B. shift inward
the market on the basis of C. fall
A. scale of preference D. rise
B. consumer sovereignty
C. consumer rationality 11.In the process of production, total
output is at maximum when
D. price of the commodity
A. MP=0
6. A consumer surplus measures the B. MP>0
A. benefits derived from consuming C. AP=0
a cheap commodity D. AP>0
B. excess of total expenditure over
total utility 12.
C. difference between marginal Price (₦) Qty./ (bags)
utility and marginal cost 1 60
D. excess of marginal utility over price 2 120

From that table above, the price

elasticity of supply is

7
 A. 4 A. in the long-run period
B. 25 B. to large-scale enterprises
C. 1 C. to small-scale enterprises
D. 2 D. in the short-run period

13. When a consumer is at equilibrium, the 20.

MRSxy 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 From the Diagram above, the optimal
point of production is
15. Ranking is the method use in measuring
A. R
A. marginal utility
B. T
B. ordinal utility
C. U
C. cardinal utility
D. S
D. total utility
21. If real income increases while nominal
16. If a firm is faced with an elastic supply
income remains the same, it can be
curve, its revenue will inferred that
A. be supplied at a higher price A. Unemployment rate has decreased
B. double at a higher price B. General prices have fallen
C. increase by more than the
C. Employment rate has risen
percentage increase in
D. General prices have risen
price
D. equal percentage change in price
22. One of the characteristics of oligopoly
is the availability of
17. The optimal range of output for a
A. few sellers
perfectly competitive firm is
B. few buyers
A. AC is lowest
C. many sellers
B. AVC is lowest
D. a single seller
C. MC is rising
D. MC is falling
Use the diagram below to answer
question 23 and 24
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

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 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
23. The average total cost when 20 units are
produced is 30. During the era of barter, money was
A. N20.00 generally in the form of
B. N23.00 A. notes
C. N13.00 B. precious metals
D. N15.00 C. coins
D. commodities
24. When 20 units of output is produced, TC
will be 31.A country achieves
A. N360 economic development
B. N300 when there is
C. N460 A. an increase in military expenditure
D. N400 B. an increase in capacity utilization
C. a sustained increase in per
25. The profit of a monopolist can be capital income
eliminated where price equals D. an even distribution of goods and
A. AFC services
B. MC
C. AC
32. An indicator of growth in an
D. AVC
economy over a period of time is the
A. GDP gap
26. Bank consolidation policy in Nigeria
B. GDP at factor cost
is a measure to increase
C. GDP at market price
A. the capital base of banks
D. GDP deflator
B. employment opportunities in banks
C. the number of shareholders
33.A country embarks on deficit financing
D. the number of branches
in order to
A. increase revenue
27. An increase in the circulation of money
B. reduce aggregate demand
without a corresponding increase in
C. curb inflation
output will lead to
D. stimulate investment
A. a rise in income levels
B. stagflation
Use the diagram below to answer
C. inflation
question 34 and 35
D. deflation

28. In national income accounts, an item

counted as part of government spending
is
A. salaries and wages

9
 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
34. The deflationary gap is defined by B. granting subsidies
A. X C. the provision of efficient infrastructure
B. K D. direct government participation
C. X+K
D. X-K 42. The record of a country's transactions in
international trade is her
A. capital account
35. What does X represent? B. balance of payments
A. recessionary gap C. current account
B. GNP gap D. balance of trade
C. inflationary gap
D. deflationary gap 43. The transfer to public shareholding
corporations to private enterprises
36. The import-substitution strategy of is
industrialization is to encourage A. concession
A. domestic production B. incorporation
B. large-scale production C. commercialization
C. importation D. privatization
D. exportation
44.A condition in which official and
37. Upstream oil activities involve the autonomous exchange rate coexist
A. management of pollution is
B. marketing of refined products A. dual exchange rate system
C. exploration of crude oil B. managed floating rate system
D. refining of crude oil C. market determined exchange
rate system
38. Agricultural production in Nigeria D. multiple exchange rate system
is constrained by
A. ineffective use of 45.In modern economies, the Malthusian
stabilization measures theory of population is ineffective
B. inadequate demand because of
C. poor implementation of policies A. birth control measures
D. balance of payments deficits B. technical progress
C. government policies
39. The main function of NNPC is to D. natural disasters
A. oversee the development of
the oil sector
B. develop the oil producing area 46.Optimum population enables an
C. fix the price of products economy to attain the highest level
D. ensure regular supply of products of
A. Industrial development
B. Income per head
C. Revenue generation
D. Economic development
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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

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ANSWER KEYS:
20. D
1. B 21. B
2. A 22. B
3. B 23. D
4. D 24. B
5. B 25. B
6. D 26. A
7. B 27. D
8. B 28. D
9. A 29. D
10. B 30. D
11. A 31. C
12 C 32. C
13. A 33. C
14. C 34. A
15. B 35. D
16. C 36. B
17 B 37. C
18 C 38. C
19. A 39. A

12
 UTME 2012 ECONOMICS QUESTIONS
1. Which question paper type of
Economics as indicated above is given C. 32.4
to you? D. 25.0
A. Type Green
B. Type Purple 6. If the GDP is N60 billion, what is the
C. Type Red difference between the contributions of oil
D. Type Yellow and manufacturing sectors?
A. N11.7 billion
2. A major disadvantage of a socialist economy is B. N13.3 billion
that C. N21.7 billion
A. corruption is rampant D. N26.6 billion
B. consumer's sovereignty is lost
C. income inequality is entrenched 7. If the quantity of rice bought decreases from
D. there is high level of unemployment 250 tonnes to 200 tonnes owing to a 2% rise
in price, it shows that there is a change in
A. consumers' income
3. The privatization of public enterprises will lead
B. demand
to efficient management of resources in the
C. consumers' tastes
economy. This statement can best be
described as D. quantity damanded
A. normative reasoning
B. inductive reasoning 8. A rise in income will, ceteris paribus, bring about
C. deductive reasoning A. a movement along the demand curve
D. positive reasoning B. a leftward shift of the demand curve
C. a rightward shift of the demand curve
4. The sign of the slope of a graph in D. no effect on the demand curve
economic analysis is important because
it 9.
A. shows whether a good is normal or inferior Price (₦) Quality (Kg)
B. shows the relationship between variables 50 500
C. reveals the magnitude of the change 70 400
between variables
D. helps to determine the unit of From the above, calculate the price
measurement of variables elasticity of demand
A. 5.0
5. B. 2.0
C. 1.0
D. 0.5

10. If the price of an item increases by 8% while

the quantity demanded falls from 1500 units
to 1492 units, the demand is said to be
A. perfectly elastic
B. inelastic
C. elastic
D. perfectly inelastic

11. Comparison of interpersonal utility is

impossible because
A. utility is measured in utils
B. marginal utility is not observable
The percentage contribution of C. utility is subjectively determined
manufacturing sector is D. individual income differ
A. 67.5
B. 40.0

13
 A. unitary
12. When the slope of the total utility curve is B. infinity
declining, the marginal utility of a consumer C. fairly elastic
will be increasing if he D. perfectly inelastic
A. stops consuming more of the commodity
B. reduces the quantity consumed 17. The cost elasticity of supply is a useful
C. increases the quantity consumed instrument for measuring
D. consumes more of another commodity A. profit
B. productivity
Use the diagram below to answer question C. national income
13 and 14 D. price index

18. The invisible hand promotes the interests of

A. consumers
B. society
C. government
D. producers

19. Fixing price above equilibrium will cause

A. demand and supply to remain constant
B. an increase in quantity supplied
C. an increase in supply
D. a decrease in quantity supplied

20. An important function of the price system is to

A. ensure that producers' profits remain high
B. guarantee full employment of resources
C. allocate resources to most productive uses
D. protect the economic interests of government
13. The consumer is at equilibrium at point
A. N 21. If all factors are variable in the long run,firms
B. P will experience
C. M A. decreasing returns to scale
D. K B. increasing returns to scale
C. diminishing returns
14. To move from point M to K, the consumer D. economies of scale
has to increase the
A. consumption of X and reduce the 22. The equilibrium point of a firm is attained at
consumption of Y the point where the isoquant is
B. expenditure on Y A. greater than the isocost
C. expenditure on X B. less than the isocost
D. consumption of Y and reduce C. tangent to the isocost
the consumption of X D. greater than the output

15. The supply of cocoa is influenced by 23. The long-run average cost curve touches
A. seasonal conditions to the short-run average cost curves at the
B. the efficacy of fertilizer used A. minimum points of all short run
C. the demand for beverages average cost curves
D. the availability of close substitutes B. declining points of all short-run average
cost curves
16. If quantity supplied is constant irrespective of
price changes, the supply elasticity is

14
 C. minimum point of only one of the short- D. fiat money
run cost curves
D. rising points of all short-run average cost
31. If a basket of commodities cost N120 in the
curves
base year and N240 in the current year,
calculate the price index
24. If a firm doubles all inputs in the long run and A. 100
the total output is less than doubled, this B. 200
results in
C. 240
A. diminishing returns
D. 300
B. constant returns to scale
C. increasing returns to scale
D. decreasing returns to scale 32. The minimum amount which banks are
required to deposit with the central bank is
determined by the
25. Patents and copyrights enable monopolists to
A. liquidity ratio
A. determine the quality of their products
B. cash reserve ratio
B. determine the scale of their products
C. minimum lending rate
C. restrict information flow to new firms
D. aggregate credit ceiling
D. restrict entry of new firms
33. The major function of money market is to
26. A discriminatory monopoly is characterized by
A. provide funds for long-term financing
A. a common elasticity in different markets
B. provide funds short-term financing
B. different elasticities in different markets C. stabilize the value of the local currency
C. a finite elasticity in all markets
D. stabilize domestic prices
D. zero elasticity in all markets
34. An ad valorem tax is imposed on
27. Net National Product is derived by deducting
A. special commodities
A. net exports from GNP
B. exports
B. subsidies from GDP
C. imports
C. taxes from GDP
D. the value of a commodity
D. depreciation from GNP
35. A huge national debt is an indication that the
Use the information below to answer gold reserves of a nation has
question 28 29.
A. appreciated
B. decreased
The investment expenditure of economy
changes by ₦2 Million and MPC is 0.75 C. depreciated
28. What is the change in income? D. stagnated
A. N0.5m
B. N1.5m 36. Rapid economic development in
Nigeria is realizable by
C. N2.6m
A. continuous dependence on oil
D. N8.0m
B. concentrating more on agriculture
C. developing the tourism industry
29. The multiplier is
D. diversifying the economy
A. 8
B. 4
37. The primary reason for desiring economic
C. 3
growth is to
D. 2
A. control inflation
B. reduce poverty
30. The money that commands a higher market C. redistribute income
value than its face value is called D. raise standard of living
A. paper money
B. standard money
38. An emerging agricultural export crop in Nigeria is
C. commodity money

15
 A. cassava C. population growth rate and natural resources
B. cotton D. age distribution of population
C. cocoa
D. soya beans 46. In a village of 50 persons, 10 immigrated, 25
died and 5 emigrated in year. Determine the
39. A strategy for improving agriculture in Nigeria total population
will involve A. 10
A. controlling the prices of agricultural products B. 20
B. ensuring self-sufficiency in food production C. 30
C. reducing agricultural exports D. 50
D. establishing commondity boards
47. A deficit balance of payments is
40. A sugar industry is best located near the measured by subtracting the debits from
source of the credits in the
A. labour A. current account
B. raw materials B. current and capital accounts
C. power C. current and escrow accounts
D. capital D. capital and escrow accounts

41. An important contribution of small-scale 48. One of the functions of ECOWAS is to

industries to the Nigerian economy is in the A. provide funds for infrastructural development
area of B. determine prices of exports
A. technological development C. redistribute income among citizens
B. foregin exchange earnings D. provide employment for citizens
C. raw materials processing of member nations
D. labour employment
49. The reward on machinery and equipment in
42. A change in the pump price of petrol in Nigeria the process of production is known as
has a direct effect on the A. profit
A. prices of consumer goods B. interest
B. prices of essential goods C. rent
C. cost of raw materials D. wage
D. cost of transportation
s 50.
43. Long-term funds for investment projects
are sourced from the
A. money market
B. commodity market
C. foreign exchange market
D. capital market

44. A policy aimed at enhancing globalization of

the Nigerian economy is
A. indigenization
B. dereglation
C. commercialization From this diagram, the minimum wage OW
D. privatization will lead to
A. full employment of resources
45. The Malthusian theory was concerned about B. unemployment
the relationship between C. inflation
A. population growth rates of the rich and D. full employment of factors of production
the poor nations
B. population density and national income

16
ANSWER KEYS:
1. B 50. D
2. A
3. B
4. D
5. B
6. D
7. B
8. B
9. A
10. B
11. A
12. C
13. A
14. C
15. B
16. C
17. B
18. C
19. A
20. D
21. B
22. B
23. D
24. B
25. B
26. A
27. D
28. D
29. D
30. D
31. C
32. C
33. C
34. A
35. D
36. B
37. C
38. C
39. A
40. A
41. B
42. B
43. D
44. D
45. B
46. B
47. D
48. B
49. D

17
 UTME 2013 ECONOMICS QUESTIONS
1. Which question paper type of 7. An increase in demand without a
Economics is given to you? corresponding change in supply will
A. Type B lead to
B. Type I A. a decrease in equilibrium price
C. Type B and increase in equilibrium
D. Type U quantity
B. an increase in equilibrium
2. An economy in which both the public price and quantity
and private sectors contribute to C. a decrease in equilibrium
economic growth is as price and quantity
A. feudal economy D. an increase in equilibrium price
B. capitalist economy and a decrease in equilibrium
C. socialist economy quantity
D. mixed economy
8. An increase in the price of a
3. If the standard deviation of a given commodity will result in
data is 53, what is the variance? A. a decrease in the quantity demanded
A. 2,082 B. an increase in demand
B. 2,809 C. an increase in quantity demanded
C. 2,808 D. a decrease in demand
D. 2,209
9. If the price of a bicycle changes from
4. Which of the following set of statistical N120 to N80 and quantity bought
tools is used for further economic changes from 300 to 500 units, the
analysis? elasticity of demand for bicycle is
A. the median and standard deviation A. 66.7
B. the mean and mode B. 0.5
C. the mean and standard deviation C. 1.5
D. the mode and median D. 2.0

5. An advantage of the range as a measure 10.10.

of dispersion is that it
A. can be used to calculate open-
ended distribution
B. make use of all values of
observations in a
distribution
C. takes all values into consideration
D. is useful for further
statistical
calculation

6. Find the median of the following set of

data 35, 10, 14, 38, 15, 18, 22, 30 and From the graph above, the price
28 elasticity of demand is
A. 10 A. unitarily elastic
B. 38 B. perfectly elastic
C. 35 C. perfectly inelastic
D. 22 D. fairly inelastic

11.One of the assumptions of the

cardinalist approach is
A. diminishing marginal rate
of substitution

18
 B. the consistency and A. reduce the cost of production
transitivity of choice B. reduce the quantity supplied
C. that total utility depends on the quantity
C. increase the quantity supplied
of the commodities consumed
D. lead to no change in the
D. unstable marginal utility of money
quantity supplied
12.Utility is the satisfaction derived from
17.The supply of beverages by firms in a
the
monopolistic market is an example of
A. distribution of goods and services
A. derived demand
B. use of goods and services
B. competitive supply
C. demand of goods and services
C. composite supply
D. production of goods and services
D. joint demand
13.
18. If the price of a commodity is fixed
below equilibrium, this will lead to
A. excess demand
B. a decrease in price
C. an increase in price
D. excess supply

19.One of the criticisms of the price

mechanism is that
A. producers are sovereign
B. it provides low degree of freedom
C. it widens the inequitable gap
D. consumers are sovereign

From the indifference curve above, 20.In Nigeria, government can reduce the
consumer will prefer combination cost of accommodation by fixing rent
A. F A. at the prevailing rate
B. S B. at the equilibrium price
C. M C. above the equilibrium price
D. K D. below the equilibrium price

14.One of the major factors that 21.If a refinery achieves a reduction in cost
brings about changes in supply by purchasing and transporting crude oil
is in large quantities, it enjoys
A. market discrimination A. economies of scale
B. availability of storage facilities B. specialization
C. the cost of storage C. division of labour
D. incentives granted to workers D. diseconomies of scale

15. If P = 14(Qs + 10). What is the quantity 22.An isoquant lying above to the right of
supplied at N14? another represents
A. 14 A. a higher output level
B. 60 B. constant returns to scale
C. 46 C. over-capacity utilization
D. 32 D. a lower output level
16.If the supply of a product is elastic, a 23.
small reduction in price will

19
 26.A measure of national income used as
comparison of standard of living among
nations is
A. net national product
B. gross domestic product
C. gross national product
D. per capita income

27.The speculative demand for money is

inversely related to the
A. interest rate
B. level of income
From the graph above, R represents
C. exchange rate
A. marginal cost
D. inflation rate
B. total cost
C. variable cost
28.If Mr. K obtains a N50.000 loan from a
D. fixed cost bank for the purpose of providing
household needs, the demand for money
Use the graph below to answer is said to be
question 24 and 25 A. transactionary
B. speculative
C. precautionary and speculative
D. transactional and speculative

29.Which of the following is used by the

Central Bank of Nigeria to control
inflation?
A. Tariff on imports
B. Tax rate
C. Exchange rate
D. Discount rate

30.If CBN reduces money supply, the

interest rate will
A. fluctuate
24.The optimum level of output of the firm B. rise
is C. fall
A. BC D. remain unchanged
B. OB
C. OS 31.An example of an expansionary fiscal
D. BS policy action is
A. decrease in the corporate
25.The total revenue of the firm is profit tax rates
represented by B. decrease in welfare payments
A. GHEF C. purchase of government securities
B. GHJC D. decrease in the bank rate
C. EFJC
D. GHOB 32. A tax on land will ultimately fall
A. partly on agents and users
B. entirely on users
C. entirely on owners

20
 D. partly on users and owners

33.One of the goals of development plans 39. Government participation in the oil
in Nigeria is to industry was necessitated by the
A. increase the profitability A. annual increase in production
of multinational B. formation of OPEC
businesses C. high demand for crude oil
B. improve the country's GDP D. huge investment outlay
C. achieve higher standard of
living for the citizens 40.The deregulation of the petroleum
D. deregulate the economy sector in Nigeria will bring about
A. efficiency in pricing and
34.Life insurance companies contribute to distribution of the products
economic development by holding a B. an end to the importation of fuel
part of their assets in C. an end to foreign firms' dominance
A. long-term financial instruments D. fixing appropriate production quotas
B. money market instruments
C. cash and near money 41.A distinguishing characteristic of
D. short-term financial instruments consumer co-operative society is
that the
35. In order to add value to Nigeria A. the maximum number of shareholders
agricultural produce, there is need to is 20
A. cultivate high breed crops B. members are the owners
B. process them into finished goods C. members are the workers
C. adopt modern storage methods D. the minimum number of shareholders
D. advertise them in European markets is 5

36.The main reason for low agricultural 42.A major disadvantage of partnership
produce in west Africa is need to business is
A. the presence of large-scale agro- A. difficulty in the transfer of shares
allied industries B. distrust among members
B. high dependency ratio C. limited liability
C. over dependence on D. large capital outlay
agriculture for subsistence
D. the use of crude implements 43.The quality of labour force in Nigeria can
in farming process be improved by
A. establishing more tertiary institutions
37.The most important determinant for the B. creating sufficient job opportunities
location of a brick industry is the C. encouraging the study of science
availability of and technology
A. market D. establishing more
B. power supply skills acquisition
C. water centres
D. raw materials
44.The effect of emigration on a
38. In Nigeria, efficiency in public country's population is
corporations can be achieved A. decrease in the population
through B. decrease in job opportunities
A. public offer C. increase in population
B. indigenization D. increase in dependency ratio
C. privatization
D. nationalization 45.A measure for preventing the external
value of the naira from falling is for the
government to

21
 A. increase its spending with foreign
Reserve
B. sell its own currency
C. reduce interest rate
D. buy its currency with foreign reserve

46. A fiscal policy instrument that can

influence the demand pattern in an
economy is
A. government spending
B. interest rate
C. income tax
D. tariff

47. One of the main achievements of the

Economic Commission for Africa is
A. eliminating trade restrictions among
States
B. encouraging transport and
communication development
C. guaranteeing a steady flow of foreign
investment into Africa
D. providing the machinery for
collaboration on monetary issues

48. The rate of interest change on loans

depends largely on
A. the prevailing exchange rate
B. marginal efficiency of capital
C. the risk associated with the loan
D. the prevailing tax rate

49. A valid explanation for real wage growth

Is
A. an increase in the rate of productivity
B. the rising cost of capital accumulation
C. a contraction of employment in service
industries
D. an increase in the quantity of labour

50. If Mr. X lost his clerical job at a store

and searched for a similar job for ten
months before finding one this implies
that Mr. X was
A. structurally unemployed
B. frictionally unemployed
C. seasonally unemployed
D. cyclically unemployed

22
ANSWER KEYS:

1. D
2. D
3. B
4. B
5. A
6. D
7. B
8. A
9. D
10. C
11. C
12. B
13. B
14. C
15. C
16. C
17. C
18. A
19. D
20. C
21. A
22. A
23. C
24. B
25. D
26. D
27. A
28. D
29. B
30. B
31. A
32. C
33. C
34. C
35. D
36. D
37. A
38. C
39. B
40. A
41. B
42. B
43. D
44. A
45. B
46. C
47. A
48. C
49. A
50. B

23
 UTME 2014 ECONOMICS QUESTIONS
1. Which question paper type of D. 24%
Economics is given to you?
A. Type F 6. If the national income is 360m, the
B. Type E contribution of the manufacturing
C. Type L sector is
D. Type S A. 312m
B. 39m
2. The choice of how to produce in a C. 318m
command economy is determined D. 317m
by
A. government 7.
B. consumer
C. industrialists
D. labour unions

3. In capitalist economies, questions about

what to produce are ultimately answered
by
A. income level of households
B. available technical skills
in the economy
C. output decisions of firms
D. holding decision of households
A combination of factors responsible for
4. The best measure of dispersion to a shift from D0D0to D1D1 are
determine the tallest tree in a forest is A. consumers income and change
A. range in technology
B. variance B. price of the commodity and
C. standard deviation weather conditions consumers
D. mean deviation income and population size
C. consumers taste and change in price
5. What is the percentage contribution
of services to the national income? 8. Given that Qd = 40-2P and Qs = 6P+24.
A. 15% Calculate the equilibrium price.
B. 10% A. ₦34
C. 54% B. ₦32
C. ₦36
D. ₦16

9. A change in demand for a normal goods

implies that, there is a
A. change in the quantity
demanded as price changes
B. shift in the demand curve
C. movement along a
given demand curve
D. change in the price
elasticity of demand

10.If a 10% rise in price causes a 5%

decrease in the quantity demanded of
a commodity, the elasticity demand is
A. unitary elastic
B.

2
 11.11. 15. When price is set below equilibrium, this
will lead to
A. an increase in the quantity supplied
B. a new equilibrium
C. a decrease in the quantity supplied
D. a fall in price

16. Price mechanism determines the prices

of commodities through
A. auctioning
B. market forces
From the graph above, the consumer will C. the sales of treasury bills
attain equilibrium at point D. government legislation
A. J
B. K 17.
C. L Unit Total Average Marginal
D. M of product product product
labour
12.A rightward shift of the budget line is 1 8 8 --
caused by a 2 20 10 12
A. fall in consumer income 3 E 9 7
B. change in consumer taste 4 28 7 F
C. fall in the commodity relative price 5 40 8 12
D. rise in the commodity relative price From the table above, find the values of E and
F respectively
13. Given the supply function P = A. 27 and 1
1/4(Qs+10) when P = N10, what is Qs? B. 68 and 12
A. 20 C. 28 and 5
B. 15 D. 12 and 19
C. 50
D. 30 18.If the production of a large firm is higher
than that of a small firm, it is
14. 14. experiencing.
Price Quantity A. external economies of scale
(₦) supplied B. external diseconomies of scale
8 20 C. internal economies of scale
10 24 D. internal diseconomies of scale
From the table above, Calculate the
price elasticity of supply 19.Division of labour requires that, the
A. 0.50 tasks in a production line be performed
B. 0.80 A. by specialists
C. 2.00 B. in stages
D. 1.25 C. by all workers
D. by unskilled labourers

25
 D. C+I+G+(X-M)
20. Given that FC = ₦500, VC = ₦1,500,
and Q = 50 units. Find the average cost 26. If MPC = 2/3 and investment is ₦100
of the product. million, the level of national income is
A. ₦30 A. ₦100 million
B. ₦40 B. ₦10 million
C. ₦10 C. ₦303 million
D. ₦20 D. ₦300 million

21. Rent and administrative expenses 27. The precautionary demand for money is
are examples of determined by
A. average fixed costs A. the rate of interest
B. average variable costs B. the level of savings
C. fixed costs C. the level of income
D. variable costs D. general price level

22.A perfect competitor will continue to 28. An inflation that co-exists with high rate
expand output up to the point where of unemployment is
A. TC>TR A. hyperinflation
B. MR=AR B. stagflation
C. MC<MR C. demand-pull inflation
D. MC>MR D. cost-push inflation

23. One of the characteristics of a 29. One of the challenges facing the banking
monopolist is that, he can industry in Nigeria is
influence A. ensuring technological security
A. quantity produced by other producers B. providing employment
B. prices charged by other producers C. providing loans for investment
C. both price and quantity D. creating more money
D. price or quantity
30. Short-term loans for investment are
24.A monopolist can boost up his usually obtained through the
revenue by A. stock market
A. adjusting both price and B. development banks
output upward C. money market
B. reducing total output to match price D. capital market
C. increasing price
D. reducing price 31. Given a base year and the price index of
175% the following year, which of the
25. Which of the following can be used to following year will arise?
measure the Gross National product in an A. The cost of living decreases of that
open economy? year
A. C+I+G+(X+M) B. The cost of living remains unchanged
B. C+I+G+X C. The value of money rises by 75%
C. C+I+G

26
 D. The value of money falls by 75% B. over-utilization of
installed industrial
32. Wage freeze is a policy measure capacity
aimed at C. the risk of seasonal unemployment
A. encouraging investors D. under-utilization of installed
B. curbing inflation industrial capacity
C. regulating standard of living
D. curbing deflation 38.One major factor that determines the
location of an industry is
33.A major obstacle to the development of A. tax exemption grant
Nigeria economy is B. its proximity to the market
A. low capital formation C. the capital base
B. rural-urban migration D. the social responsibility of the firm
C. over dependence on oil
D. poor developmental policies 39.The major contribution of OPEC to the
Nigerian economy is the
34.A major feature of an underdeveloped A. provision of social infrastructures
economy is B. granting of subsidies on petroleum
A. excess capacity utilization products
B. low rate of population growth C. stabilization of oil prices
C. low level of standard of living D. building of refineries
D. low level of unemployment
40.The loading of crude oil at the terminal is
35. An important role of agriculture in an activity in the
Nigeria's economic development is A. downstream sector of the oil industry
the B. upstream and downstream sector of
A. processing of raw the oil industry
materials for industries C. upstream sector of the oil industry
B. regulation of price system D. midstream and upstream sectors of
C. provision of infrastructure the oil industry
D. provision of employment 41.The short-run average variable cost of a
firm will rise owing to
36. An advantage of large-scale farming over A. the expansion of factory space
peasant farming is in the area of B. the building of new warehouse
A. providing research and C. an increase in the cost of labour
massive employment of D. an increase in the salaries of directors
labour
B. redistributing national income 42.Firms embark on vertical integration in
to various regions of the country other to
C. encouraging the use A. take over markets formally
of traditional controlled by other firms
implements B. prevent other firms from entering
D. encouraging urban-rural migration the market
C. reduce advertisement
37.A major disadvantage of and management cost
localization of industry is
A. the risk of structural unemployment

27
 D. enjoy economies of large- 47. If the importation of a commodity is
scale production limited to a definite quantity, the
trade control measure imposed is
43.The voting power in co-operative A. excise duties
societies is vested on
B. import duties
A. management
C. quotas
B. members without loan
D. tariff
C. shareholders
D. members with the highest contribution 48. The main objective of WTO is to
A. ensure adequate protection
44.An accurate census figure is of infant industries
an important tool for planners B. provide a mechanism for
in tariff reduction
A. providing employment C. assist countries with chronic
B. siting industries balance of payments problem
C. providing social amenities D. assist developing countries to
D. allocating resources execute developmental
projects
45.An accurate population census
is important in other to 49. The major determinant of the total
A. produce more food for the volume of output in an economy is the
growing population A. level of total expenditure
B. provide employment B. composition of consumer spending
opportunities for the people C. number of farmers
C. estimate a country's per capita income D. size of the labour force
D. fast track industrial development
50. The labour force of a country
46.A major determinant of floating is determined by the
exchange rate is A. age structure of the population
A. the highest denomination B. geographical distribution of
of the currency the population
B. an Act of the parliament C. sex distribution of the population
C. the system of government D. number of people available for work
D. the forest of demand and supply

28
1. C 9. D 17. C ANSWER KEYS:
2. A 10. C 18. C
3. C 11. B 19. B 25. C 33. C 41. C 49. A
4. B 12. D 20. D 26. D 34. C 42. D 50. B
5. C 13. A 21. D 27. A 35. D 43. C
6. C 14. B 22. C 28. A 36. A 44. C
7. D 15. D 23. C 29. C 37. D 45. D
8. D 16. B 24. B 30. B 38. B 46. D
31. A 39. C 47. A
32. B 40. B 48. D

29
 UTME 2015 ECONOMICS QUESTIONS
1. The major implication of high
dependency ratio on an economy 8.
is Unit of TP AP MP
A. high capital formation labour
B. vicious cycle of poverty 1 6 6 --
C. low cost of living 2 14 7 8
D. high standard of living. 3 K 9 13
4 40 10 F
2. One of the major problems of From the table above, find the values
agricultural sector in Nigeria of K and F respectively
is A. 13 and 27
A. low literacy level of farmers
B. 27 and 13
B. small size of farms
C. 10 and 27
C. pest attack on crops D. 27 and 10.
D. inadequate modem farm implements.
9. In the theory of consumer behaviour,
3. Cooperative societies the sum of all marginal utilities is
are characterized with A. average marginal utility
A. divergent interest of members B. the initial marginal utility
B. limited liability C. total utility
C. free entry and exit D. diminishing marginal utility.
D. unlimited size of membership.
10.In a pure capitalist economy, the means
4. The marginal propensity to and forces of production are owned and
save measures the controlled by the
A. ratio of change in saving A. public and private sectors
B. change in supply as a result of
B. feudal lords
a change in consumption
C. public sector
C. ratio of change in consumption to a
D. private sector.
change in the level of income
D. average propensity to consume.
11.A factor earning which is paid out as
5. Structural unemployment is mainly unemployment benefit is referred to
caused by as
A. a change in the consumption pattern A. interest rate
B. a change in the business cycle B. direct rate
C. decrease in the output level C. eco
D. Seasonal variation.
12. From the graph above, FG indicates
6. One of the major problems of census in A. equilibrium quantity demanded
Nigeria is B. excess supply
A. inadequate skilled personnel C. equilibrium quantity supplied
B. high dependency ratio D. Excess demand.
C. distortion of census figures
13. The demand for money is referred to as
D. High cost of conducting census.
the
A. amount of money in fixed deposit
7. A decrease in government expenditure
in an economy will cause general price B. desire to hold money intangible assets
level to C. need for money to invest
A. remain constant D. Desire to hold money in liquid
B. fluctuate form rather than investing it.
C. fall
D. Rise.

30
14.In the theory of production, a producer A. range
is at equilibrium at a point where B. variance
A. isocost is above the isoquant curve
C. mean
B. isoquant is below the isocost curve
D. mode.
C. isocost is tangent to the marginal
revenue
20. Localization of industry is
D. isoquant is tangent to the
mainly determined by
isocost curve.
A. diseconomies of scale
B. population growth
15.Balance of trade shows the relationship
C. division of labour
between the
A. internal and external trade D. access to raw materials.
B. total value visible import and Export
21. Geographical distribution of a
C. deficit and surplus
population is affected by
balance of payments
D. total value of invisible import and A. low birth rate
export. B. the availability of skilled manpower
C. the availability of agricultural land
16.If the cash reserve ratio is 30%, a new D. high birth ratenomic rent
deposit of ₦20 million will increase E. transfer payment.
supply by
A. ₦57.8m 22.A tax burden on a commodity will
B. ₦47.9m be shared equally if the demand
C. ₦69.78m is
D. ₦66.7m. A. fairly elastic
B. perfectly inelastic
17.A fall in the price c f ostentatious goods C. fairly inelastic
will D. unitary elastic.
A. increase the quantity demanded
B. decrease the quantity demanded 23. Higher income taxes can be
C. decrease demand used to control
D. increase demand. A. demand-pull inflation
B. high interest rates
18.Payment of interests on loans and the C. cost- push inflation
repayment of capital sum at a future D. hyperinflation.
date is
A. balance debt 24.
B. debt servicing
C. debt relief
D. debt retaking.

19.The most difficult measure of central

tendency to determine in a grouped
data is

31
 A. provision of short-run loans to medium
scale industries
B. provision of long-term loans
for infrastructure
C. development of agriculture
in member countries
D. maintenance of stable exchange rates

29. One of the major activities in the

upstream sector of the Nigeria
petroleum industry includes
A. transportation of finished products
From the graph above, a shift of the
B. refining of crude oil
Supply curve from S0S0, to S1S1 will lead
C. marketing of refined petrol
to
D. exploration of crude oil.
A. a decrease in price and quantity
B. no change in price and quantity 30. The law of supply states that the
C. an increase in price and quantity A. higher the price the higher
D. a decrease in price and an the quantity supplied
increase in quantity. B. quantity supplied is always equal
to the quantity demanded
25.An indifference map is made up of a C. lower the price the higher the
set of quantity supplied
A. consumers' total utility D. higher the price the lower the
B. consumer surplus quantity supplied.
C. budget lines
D. indifference curves. 31. One of the features of a
perfect competitive firm
26.Recapitalization policy will enable is
commercial banks to A. restrictions to entry and exit
A. employ more qualified workers B. price discrimination
B. open more branches C. absence of transportation cost
C. reduce interest rate D. product differentiation.
D. have a very strong capital base
32. The basis for international trade is the
27.The number of persons required to form A. differences in natural
a private company ranges from resources endowment
A. ten to twenty B. differences in the population size
B. two to fifty C. prevailing interest rate on multilateral
C. two to seven loans
D. seven to ten. D. economic system in practice.

28.The major function of international 33. Training farmers on the improved

monetary funds is the farming techniques is the major
activity of

32
 A. intermediate workers 39. If a fall in the price of commodity
B. middlemen K brought about an increase in the
C. extension workers demand for commodity Y, the two
D. creditors. commodities are
A. composites
34.In a free market economy, prices are B. derived in nature
determined by C. substitutes
A. consumers D. c implements.
B. producers
C. the central government 40. In the theory of production, the price
D. the forces of demand and supply. of a factor input is determined by
A. the prevailing exchange rates
35. The basic economic problem of what to B. its elasticity of demand
produce in an economy is determined C. the existence of large market
by D. the prevailing interest rates.
A. the availability of labour
B. the means of distribution 41.
C. the availability of resources
D. technological know-how.

36.In Nigeria, a fall in the supply of petrol

would generally affect the
A. import of goods and services
B. export of goods and services
C. general price level in the country From the graph above, find the
D. exchange rate of the Naira. modal score
37.The short-run equilibrium point of a A. 40
perfectly competitive firm is attained at a B. 20
point where C. 100
A. is equal to total cost D. 60.
B. the demand curve is tangential to
42. When the selling price of a monopolist
the marginal cost
C. the marginal cost curve is equal to the is below his short-run marginal cost, he
marginal revenue curve is said to be making
D. the marginal cost is equal to A. an economic profit
the price of the firm. B. Losses
C. profit
38.Government can protect consumers D. supernormal profit.
from exploitative prices by
introducing 43. The overall economic performance
A. minimum price of a country can be assessed
B. price differentiation through
C. price floor A. overlooking of its agricultural sector
D. maximum price. B. employment estimates
C. national income estimates

33
 D. balance of payment. A. lack of raw materials
B. inadequate market for industrial goods
44. The supply of agricultural products C. underdeveloped
is mainly determined by infrastructural facilities
A. consumers' taste D. inadequate capital.
B. consumers' income
C. technology 48. If Qd = 40-4P and P = N4, what is
D. consumers. the quantity demanded?
A. 30
45. Determine the median of 6 10, 5, 12, B. 32
20, 18, 20 and 4 C. 24
A. 11 D. 26.
B. 9.67
C. 12.56 49. The long-run total cost curve shows
D. 12. the cost of
A. all fixed factors of production
46. 46. B. the average fixed cost
X 10- 21- 31- 41- 51- 61- C. all factor inputs that are employed
20 30 40 50 60 70 D. variable factors of production.
F 4 6 10 50 3 5
50. The supply of farm produce is
From the table above, find the range of mainly determined by
the distribution A. consumers’ income
A. 50 B. weather condition
B. 11 C. population
C. 70 D. consumers’ taste
D. 59.

47. The failure of the Nigeria industrial

sector is mainly associated with

34
ANSWER KEYS

35
 UTME 2016 ECONOMICS QUESTIONS
1. A country embarks on deficit financing in 8. Given: 2, 4, 6, 8, 4 and 6, the absolute
order to mean deviation is
A. reduce aggregate demand A. 6.00
B. increase revenue B. 1.67
C. stimulate investment C. 30.00
D. curb inflation D. 0.60
2. The money market provides business 9. The precautionary demand for money
firms with the avenue to is determined by
A. purchase goods and services A. the level of savings
B. purchase capital equipment’s B. the rate of interest
C. obtain short- term funds C. general price level
D. obtain long-term funds D. the level of income.
3. The optimum level of output for pure 10.If the output of a firm experiencing
monopolist occurs where economies of scale increases, the
A. P is highest average cost would
B. P=AC A. be at minimum
C. P=MC B. rise
D. MR=MC C. be at maximum
D. fall.
4. According to the demographic
transition theory, Africa can be said to 11.The demand curve for a normal good is
be at stage negatively sloped because
A. 2 and 3 A. price is an incentive to producers
B. 3 only B. price is an incentive to consumers
C. 2 only C. demand always exceeds supply
D. 1 and 3 D. price and quantity move in the
same direction.
5. The Economic Community of West
African States (ECOWAS) is an 12.12.
example of
A. globalization
B. regional marketing board
C. economic integration
D. economic union.

6. Given: 32, 18, 24, 17, 16, 32, 28, 68, 71

and 15, the mode of the distribution is
A. 71
B. 56
C. 32
D. 15 The average total cost when 20 units are
produced is
7. The major determinant of income
A. ₦45.30kg
elasticity of demand is
B. ₦50.00kg
A. government policy
C. ₦47.50kg
B. the availability of substitutes
D. ₦5.00kg
C. the price of the good
D. the level of consumer's income

36
13.The major role of multinational 18.A change in supply of a commodity
companies in the Nigerian is due to a change in the
petroleum industry is A. price of the commodity
A. oil marketing only B. cost of production
B. oil marketing and prospecting C. price of substitute
C. establishment of refineries D. population growth rate.
D. oil prospecting only.
19.In a limited liability company,
14.Life insurance companies contribute to the greatest risk is borne by the
economic development by holding a A. preference shareholders
part of their assets in B. debentures shareholders
A. long-term financial instruments C. ordinary shareholders
B. equipment D. board of directors.
C. cash and near money
D. money-market instruments. 20.A market characterized by absence of
close substitutes of goods and services
15. The wage rate is mostly related to is an example of
A. marginal productivity of labour B. A. a monopoly
average productivity of labour C. B. an oligopoly
marginal efficiency of investment D. C. a perfect competition
total productivity of Labour. D. a monopolistic competition.

16.The choice of how to produce in a 21.An inflation that co-exists with high rate
command economy is determined of unemployment is
by A. hyperinflation
A. consumers B. cost-push inflation
B. government C. stagflation
C. industries D. demand-pull inflation.
D. labour unions.
22.The growth and development of small
17.The co-efficient of price elasticity of and medium scale enterprises in
supply is Nigeria is hampered by
A. % change in supply A. poor regulatory framework
% change in price B. poor access to credit facilities
C. poor management
B. % change in quantity D. the small size of the market.
supplied % change in price
23. A major determinant of demand is
D. % change in quantity
A. incentives to workers
supplied %change in income
B. level of technology
D. % change in quantity demanded C. population
%change in income D. cost of production.

37
 24.Which of the following can be used to B. oversee the development of
measure the Gross National Product the oil sector
A. C+I+G-F(X+M) C. ensure regular supply of products
B. C+I+G+(X-M) D. fix the prices of petroleum products
C. C+I+G+X
D. C+I+G 29.A major feature of an underdeveloped
economy is
25.Find the median of the following set of A. low rate of population growth
data 35, 10, 14, 38, 15, 18, 22, 30 and B. excess capacity utilization
28. C. low level of unemployment
A. 10 D. low level of standard living.
B. 22
C. 38 30. A tax on land will ultimately fall
D. 35 A. partly on agents and users
B. partly on users and owners
26. C. entirely on owners
Unit of Total D. entirely on users.
Capital output(kg)
1 13 31.The deregulation on the petroleum
2 43 sector in Nigeria will bring about
3 123 A. efficiency in pricing and
4 243 distribution of the products
5 353 B. fixing appropriate production quotas
6 483 C. an end to the importation of fuel
7 563 D. an end to foreign firms' dominance.
8 663
32.One of the ways of correcting a
From the table above, determine the average deficit balance of payments is
th
product of the 5 unit of capital to
A. 310.5 A. devalue a country's currency
B. 176.5 B. predenominate a country's currency
C. 70.6 C. reduce imports
D. 62.0 D. reduce exports.

27.The problem of what to produce 33.A nation's net export is negative when
is determined by her
A. consumption pattern A. export is adjusted upwards
B. the distribution pattern B. external reserves deplete
C. the state of technology C. depreciation exceeds investments
D. the volume of production D. imports exceeds exports.

28. The main function NNPC is to 34. Given: Qd = 30 — 3P and Qs = 9P —

A. develop the oil producing areas 15, determine the equilibrium price
A. ₦12.00
B. ₦3.75

38
 C. ₦2.80 40.
D. ₦3.00 Unit of Total
capital output(kg)
35.The problem of economic development 1 13
in Nigeria is that of 2 43
A. poor weather conditions 3 123
B. overpopulation 4 243
C. surplus skilled manpower 5 353
D. inadequate infrastructure. 6 483
7 563
36.The combination of two commodities 8 663
that yield the same level of
satisfaction is illustrated by From the table above, the
A. a budget line th
marginal product of the 7 Unit of
Capital is
B. an isocost curve A. 80kg
C. a production possibility curve B. 100kg
D. an indifference curve C. 310kg
D. 173kg
37.The demand for inferior goods is
inversely related to change in 41. Given: 32, 18, 24, 17, 16, 32, 28, 68,
A. income 71 and 15, what is the range?
B. price A. 26
C. supply B. 32
D. taste. C. 56
D. 68
38.The minimum number of shareholders
for partnership is 42.
A. 7
B. 4
C. 2
D. 3

39.When diminishing returns sets in, the

total variable cost begins to
A. rise at an increasing rate
B. fall at a decreasing rate
C. rise at a decreasing rate
D. fall at an increasing rate. From the diagram above, the consumer
is at equilibrium at point
A. G
B. F
C. K
D. M

39
43. If P = 1/4 (Qs + 30), what is the B. instability in demand for the products
quantity supplied at ₦18? C. dominance of multinationals
A. 64.5
D. declining oil reserves.
B. 42.0
C. 2.4 48. At full employment level, a
D. 30.0 contractionary monetary policy will
Lead to a
44. When a consumer is at equilibrium, The A. rise in aggregate supply
MRS x is equal to the B. rise in aggregate demand
A. product of the two prices C. rise in level of inflation rate
B. sum of the two prices D. fall in the level of inflation
C. ratio of the two prices
D. difference of the two prices. 49.A country where the available
population is unable to guarantee
45. One of the major factors militating efficient utilization of available resources
against industrialization in Nigeria is experiencing
is A. under population
A. low level of foreign investment B. over-population
B. frequent break-down of equipment C. high population density
C. inadequacy of infrastructural facilities D. optimum population.
D. government participation.
50. One of the causes of
46. One of the factors that is considered in instability in farmers' income
the location of a cement industry is is
nearness to A. high level of illiteracy
A. market B. unfriendly land tenure
B. raw materials C. unfavourable weather condition
C. infrastructural facilitates D. poor management of
D. skilled manpower. extension services

47.A problem facing the development of the

Nigerian Petroleum industry in Nigeria is
A. persistent gas flaring

40
ANSWER KEY

41
 UTME 2017 ECONOMICS QUESTIONS
1. If the arithmetic mean of 2, 3, 5, 8, Z,
10 and 12 is 7, what is the value of Z? 8. The natural growth of population
A. 8 is calculated as
B. 9 A. birth rate + death rate
C. 10 B. labour force + dependant
D. 7 C. death rate - birth rate
2. The most important function of
D. birth rate - death rate
agriculture to the Nigerian economy
is
9. The study of age structure of a
A. the guarantee of food security
population is important because
B. technical skill development it
C. technological development A. determine the exchange rate
D. industrial development B. provide the government with
statistics on the prevailing interest
3. Given that Qd=15-2P and Qs=5+3P, rate
determine the equilibrium price. C. reveals the cost of living
A. N3.00 D. provides the government with
B. N5.00 statistics on present size of the labour
C. N2.00 force
D. N6.00
10. If the demand for palm oil is for the
4. Scale of preference is referred to as the purpose of soap production and
A. choices consumers make cooking, the demand is said to be
B. array of consumer's needs A. competitive
C. consumer preference B. complementary
for luxurious goods C. composite
D. consumer wants in order of priority D. derived

5. One of the basic assumptions of 11. The institution established to

monopoly is enhance the activities of Nigeria's
A. perfect information of exports is
the market condition A. Nigerian Export and Import Bank
B. the ability to either control price or B. Import-substitution strategy
output C. Nigeria Export Promotion Council
C. perfect mobility of factors of D. Bank of Industry
production
D. large number of buyers and sellers

6. The major advantage of a public limited

liability company over a private limited
liability company's
A. limited liability enjoyed by owner
B. separate legal entity
C. easy transferability of shares
D. perpetual existence

7. The main activity in the upstream oil

sector in Nigeria is 12. From the pie chart above, the
A. marketing of petroleum products percentage contribution of
B. distribution of petroleum products entrepreneur is
C. extraction of crude oil A. 2.77%
D. refining of crude oil B. 33.33%
C. 27.70%
D. 3.33%
42
13.A sustained increase in per capita 19. Foreign exchange control in Nigeria
income accompanied by an is administered by the
increase in output is A. Money deposit banks
A. economies of scale B. Central Bank of Nigeria
B. economic efficiency C. Discount houses
C. economic development D. Security and Exchange Commission
D. economic growth

14.The reward for capita as a factor of

production is
A. interest
B. rent
C. profit
D. wage

15.The type of inflation that emanates

from excess demand over supply is
A. galloping inflation
B. cost-push inflation 20. From the pie chart above, determine
C. demand-pull inflation the contribution of capital if the total
D. imported inflation contribution of all factors is
A. ₦12.50 million
16.Which of the following problems is B. ₦142.50 million
associated with national income
C. ₦50 million
measurement?
D. ₦7.50 million
A. High interest rate
B. Inflation and deflation
21. The volume of output in an economy
C. Overpopulation is determined by
D. population growth A. the foreign exchange rate
B. the standard of living of citizens
17.Freedom of consumption and
C. population density of a country
production are characteristics
D. efficiency in the use of factors of
of
production
A. socialism
B. feudalism
22. Given Qd = 30 - 3P, Qs = 9P – 18.
C. capitalism Determine the equilibrium quantity
D. communism A. 18
B. 20
18.Cost of raw materials in production C. 25
is an example of
D. 27
A. marginal cost
B. variable cost
23.In Nigeria, industrial development can
C. total cost be enhanced by
D. fixed cost
2

43
 A. ensuring stable prices
for manufactured goods
B. reducing government
expenditure on imported goods
C. providing efficient infrastructure
D. increasing the rate of interest

25. Capital gains tax is an example of

A. Value Added Tax
B. purchase tax
C. sales tax
D. income tax 29. From the diagram above, the
arrow marked M indicates
26.Which of the following is NOT a source A. payments made for foods and
of government revenue? services
A. Taxes, fees, licenses and fines B. payments made to factors of
B. Interest, dividends, profits production
and earnings C. the flow of capital goods
C. Personal income, disposable D. the flow of economics rent
income and transfer
earnings 30.A change in the quantity supplied
D. Grants, aids and borrowing of a commodity is influenced by
A. the price of substitutes
27.One of the important qualities that B. the price of the commodity
money must possess is
C. consumer's tastes
A. heterogeneity
D. technological know-how
B. easy availability
C. homogeneity 31.
D. flexibility in value Price Price Quantity
(₦) demanded
6 20
5 16
From the table above, calculate the
elasticity of demand
A. 0.03
B. 0.30
C. 0.33
D. 0.04

32. One of the functions of money deposit

banks in economic development is
28. The graph above represents A. that it is banker to the government
A. a decrease in quality supplied B. the provision of credits facilities
B. an increase in supply C. the formulation of monetary policies
C. an increase in quantity supplied
D. a decrease in supply Wages 3

44
 D. issuing of currency notes From the table above, it can be inferred
that there is
33.One of the arguments against A. diminishing returns to scale
the practice of monopoly is B. excess of demand
A. merging of producers C. diminishing marginal utility
B. competition D. diminishing marginal productivity
C. exploitation
D. non-government ownership 37.A well conducted census is
important for
34. The main reason why countries A. economic planning
engaged in international trade is
B. providing economic opportunities
the
in the rural areas
A. opportunity to earn high profit C. distribution of
in trading educational materials in
B. use of capital-intensive method of the cities
productions D. revenue generation
C. difference in their endowment
of economic resources
38. The cost-saving advantages which a
D. difference in the population structure
large firm can achieve on its own is
called
35.
A. internal economies of scale
Cup of Total Marginal
B. diseconomies of large scale
milk taken utility utility
C. externa diseconomies of scale
1 18 18
D. external economies of scale
2 24 6
3 29 5 39.A country uses the foreign exchange
4 X 3 control measure to eliminate balance
5 34 Z of payments deficit by
6 35 1 A. limiting her imports to its currency
7 35 0 value of exports
From the table above, what is the value X? B. limiting her exports to its currency
A. 32 value of imports
B. 35 C. overvaluing the country's currency
C. 34 D. reducing the nation's domestic
D. 30 price level

36. 40. The role of IBRD as an international

Quantity Total Marginal institution is to
consumed utility utility A. improve trading among member
0 0 -- nations
1 10 10 B. finance private businesses in
2 15 5 member nations
3 17 2 C. facilitate the development of
4 18 1 infrastructure in member nations
5 18 0
D. D. solve the problem of balance
of payments of member nations

45
ANSWER KEYS:
1. B
2. A
3. C
4. D
5. B
6. C
7. C
8. D
9. D
10. C
11. C
12. B
13. C
14. A
15. C
16. B
17. C
18. B
19. B
20. B
21. D
22. A
23. C
24.
25. D
26. C
27. C
28. C
29. A
30. B
31. C
32. B
33. C
34. C
35. A
36. C
37. A
38. A
39. A

46
 UTME 2018 ECONOMICS QUESTIONS
1. Occupational distribution of 8. The number of people who are
population is mainly influenced by qualified to work and who offer
A. economic factors themselves for employment is
B. religious factors called
C. geographical factors A. migrant labour
D. social factors. B. working population
C. labour turnover
2. The reward for capital is D. mobility of labour.
A. interest
B. rent 9. Which of the following is an
C. risk advantage of localisation of
D. premium. industry?
A. Development of subsidiary firms
3. The reduction in the value of a B. creation of parallel markets
country's currency in relation to the C. Development of slums
value of the currencies of other nations D. Attraction of foreign capital.
is known as
A. deflation 10. The Economic Community of West
B. inflation African States (ECOWAS) has been slow
C. devaluation in achieving its objectives because of
D. revaluation A. the activities of multinationals
B. inadequate personnel at
4. Mortgage banks give loans to investors the secretariat
on a long- term basis to C. political instability
A. finance agriculture D. inadequate international support.
B. establish banks
C. acquire machinery 11. Joint ventures are partnership involving
D. build houses. A. the poor and the rich
B. employers and workers
5. In a capitalist economy, factors of C. government and private investors
production are owned and controlled D. multinationals and individuals.
by the
A. citizens 12. In which of the following business units
B. businessmen are the owners mostly the customers?
C. government A. co-operatives
D. foreigners. B. limited liability companies
C. partnership
6. The establishment of industries in rural D. public corporations.
areas will help to reduce 13. The formula index of export prices x 100, is
A. urban-rural migration index of import prices
B. rural-urban migration used to measure the
C. rural-rural migration A. volume of trade between countries
D. urban-urban migration. B. direction of international trade
C. commodity terms of trade
7. International trade is an application D. volume of imports.
of the principle of
A. industrial production Use the table below to answer
B. mass production question 14.
C. regional production Products Ghana Sierra
D. comparative cost advantage. Leone
Coffee 8 tonnes 2 tonnes
Cocoa 7 tonnes 9 tonnes

47
 19. The study of Economics
14.If specialisation should take place, becomes necessary because of
then the
A. Ghana should produce A. large population size of the world
coffee and cocoa B. scarcity of resources
B. Ghana would benefit by C. opportunity cost of goods and
producing cocoa only services
C. Sierra Leone should not produce any D. need to satisfy every desire of man.
of the products
D. Sierra Leone should produce coca 20. The type of demand that exists
and Ghana coffee. between torchlight and battery
is
15.Which of the following is an A. competitive demand
invisible item? B. complementary demand
A. Petroleum services C. composite demand
B. Processed rice D. independent demand.
C. Processed milk
D. Banking services 21. The population density of a town
made up of 50 square kilometre land
16. The full meaning of OPEC is area and 100 million people is
A. Oil and Petroleum A. 50,000 people per square kilometre
Exporting Countries B. 0.2 million people per square
B. Original Petroleum kilometre
Exporting Countries C. 0.5 million people per square
C. Organisation of Petrol kilometre
Exporting Countries D. 20 million people per
D. Organisation of Petroleum square kilometre
Exporting Countries.
Use the table below to
17. The main concern of economists is to answer question 22 and 23.
A. control the growth of population X 2 3 4 5
B. redistribute income between the F 2 5 2 1
rich and the poor
C. satisfy all human wants 22. From the table, the mean of the
D. allocate scarce resources distribution is
to satisfy human wants. A. 2.2
B. 2.5
18. Productive resources can also be called C. 3.2
A. principles of production D. 4.5 23.
B. factors of production
C. items of production 23. What is the median of the distribution?
D. labour and materials resources. A. 5
B. 4
C. 3
D. 2

48
24.Human wants are insatiable because A. Raw material
wants are B. Money
A. limited while means are scarce
C. Fuel
B. unlimited and means
D. Machinery
are also unlimited
C. limited and means are also limited
28. The principle of comparative
D. unlimited while means are scarce. cost advantage was propounded
by
A country's budget allocation to A. David Ricardo
various sectors of the economy is B. Alfred Marshal
shown in the pia chart below. Use
C. J.S. Mill
it to answer question 25 and 26
D. Adam Smith

29. The rate at which a country's exports

is exchanged for her imports is
A. trade balance
B. balance of payments
C. terms of trade
D. balance of currency account.

30. Efficiency of labour in a country is

determined by the following except
the
A. social attitude to work
B. education and training
C. total population
D. working conditions of workers.
25. If the budget of the country was
$7,200.00, how much is allocated to
31. The diagram below
education
represents a production
A. $2,400.00
function.
B. $2,000.00
C. $ 200.00
D. $ 1,000.00

26. What is the ratio of expenditure on

health to Agriculture?
A. 2:3
B. 3:4
C. 4:3
D. 5:4

27. Which of the following items is not an At which of the points does
example of circulating capital? diminishing returns set in?
A. R
3 B. S
C. T
D. V

49
32. Taxes and government 36. If the pass mark was 40, how many
expenditures are instruments of students passed the examination?
A. monetary policy A. 100
B. tax policy B. 120
C. economic policy C. 160
D. fiscal policy. D. 200
33.A situation in which a commodity is 37. How many students took the
sold abroad below its cost of examination?
production in the home country is A. 280
known as B. 240
A. dumping C. 200
B. counter trade D. 80
C. bilateral trade
D. trade liberalisation. 38. Utility is the satisfaction derived from
A. production
34. The Family Support Programme in
B. distribution
Nigeria essentially focuses on
C. consumption
A. the generation of employment
D. demand.
B. the alleviation of poverty
C. agricultural and
39. When a union is composed of workers
industrial development
with the same skill it is called
D. economic emancipation of women.
A. an industrial union
B. a workers' union
35. The Economic Commission for
Africa was set up by the C. a craft union
A. UNO D. a technical union.
B. ECOWAS
40. The major objective, of a revenue
C. OAU
allocation formula in a country is to
D. IMF
A. share revenue between the
public and private sectors
Use the histogram below to answer
B. ensure the financial viability of
question 36 and 37.
the country
C. share revenue between the
different tiers of government
D. divert revenue from areas of surplus
to areas of needs.

50
ANSWER KEYS:
1. A
2. A
3. C
4. D
5. B
6. B
7. D
8. B
9. A
10. C
11. C
12. A
13. C
14. D
15. D
16. D
17. D
18. B
19. B
20. B
21. D
22. B
23. B
24. D
25. A
26. B
27. D
28. A
29. D
30. C
31. C
32. B
33. A
34. D
35. A
36. A
37. A
38. C
39. A
40. C

51