2014 ECONOMICS

A production possibility curve shows

Which of the following best describes the concept of opportunity cost?

Choice in economic life is neccessitated by

In economics analysis, a statement is said to be normalize if it

The degree of specialization is limited by the

Which of these statements describes a mixed economy?

Which of the financial institutions charged with the formulation monetary policies in Nigeria?

The primary function of non-bank financial institutions is to

In drawing an individual’s demand curve for a commodity, which of the following is NOT kept constant?

Given that beef and fish are substitutes, rise in the price of beef relative to that fish will

The main function of price mechanism to

Production in Economics can be defined as the

Gresham’s law in economics shows that

Given that the cash reserve ratio is 10 Percent, what is the maximum amount of money that the banking system can create from an initial cash deposit of ₦1000.00?

The most important economic characteristic differentiating commercial banks from other financial institutions is their

Given that Y= C+ I and C = BY where b= 0.08, what is the multiplier?

The difference between payments and receipts for visible trade is called

A free trade area emerges when

Population density refers to

An aspect of taxation that involves normative economics is the

A tax that increases at a higher percentage as income increases is called

One of the assumptions of ordinary utility in consumer behavior is that

In the normal channel of distribution the breaking of bulk is performed by the

One of the most outstanding disadvantage of cooperative societies as business organization is that

A disadvantage of joint – stock company is

A characteristics of a debenture is that

Which of the following situations can give rise to economic problems?

The main objective of the economic community of West African state is to

In international trade, shipping and other freight charges are treated as

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

The borrowing rights of a member country of the international monetary fund are determined by

An increase in money supply, other things being equal, will

Two principal ways by which banks can lend money to their customers are through

An increase in the discount rate is an indication of a central bank intension pursue

A firm is in its optimum size when

A firm achieves least cost in produce by substituting factors until

Which of these is the real cost of satisfying Any want in the sense of the alternative that has to be foregone?

Scarcity in economics means that

Economics is often described as a science because

Which of the following is an important function of prices in a market economy?

In the history of economic thought, the concept of division of labor is usually associated with

In the operation of market forces, the market is in equilibrium at the point where

A shift in demand curve for a commodity when the supply curve is vertical will lead to change in the

The difference between personal income and personal disposable income is

The Maithusian theory of population growth is often said to be

Labor productivity is defined as

Efficiency of labor is enhanced by

Devaluation helps in checking adverse balance of payments if the

Gains from trade depends on

Favorable terms of trade is important to a country because it facilitates

The tax takes an increasing fractional of income as income goes down is called

A greater burden of the taxes on essential goods is borne by the

The effect of an increase in the personal income tax is to

The most important advantage of  cooperative societies is

In a public company, shares are

Which of the following is a characteristic of the private limited liability company?

An important function for the retailer is to

The main handicap of sole proprietorship is

The type of business organization mostly used for producing public goods in Nigeria is

The types of business finance that entitles the holder to fixed rate of dividend is

A debenture share entitles its holder to

Tariffs on imports are meant to

If a country has a balance of payment crisis, which of the following measures can best bring about an improvement the short run?

The terms of trade of a country is defined as

One of the gains by member states of the Economic Community of West States is

Deflation is a persistent fall in the gen price level and is usually caused by

Price can be defined as

Money market differs from capital market in that it

The ultimate objective of economics is to

What to produce in any society is determined by the

One of the fundamental differences between a capitalist and a socialist economy is that while

If at ₦50 per kg. 1000kg of yam were purchased and at ₦30 per kg, 1500kg were purchased, the resultant point elasticity of demand is

If as the price of a commodity rises, the quantity demanded of the commodity remains the same, then the demand for the commodity is

Economic development may be defined as economic growth

If the price of ball point pen falls from ₦20 to ₦15 and the quantity demanded increases from 200 to 300 the point elasticity of demand is equal to

If the equilibrium price of a certain commodity is less than unity, then

Use the table below to answer the question

The marginal product of X is

Use the table below to answer the question

The average product of Y is

Frictional Unemployment

The Nigerian Bank for commerce and industry is

To control inflation, the monetary authorities of a country can

Which of the following is used by central bank to control the rate of interest?

The organization which provide credits to help countries achieve short term balance in their balance of payment is the

An increasing population might be of economic benefit to a country if

The demands made on each other by the agricultural and industrial sectors as  the economy grows are reflected in

A corporation can obtain funds by issue bonds. A bond is a form of debt which falls due for repayment after

The age distribution of a population is NOT influenced by

The tax that takes an increasing fractional of income as income goes down is called

The average tax is defined as the

Unlike the retailer, the wholes provides

Liquidation of a limited liability company implies that the

One form of business organization which is not motivated solely by the profit objective is the

Import duties will increase total expenditure on imports if the demand for imports is

The difference between gross national product and net national product is equal to

The value of the total output produced within Nigeria by all residents (citizens and non – citizens) is referred to as the

International and inter-region trade differ primarily because

Banks aid economic expansion and development by

The purchasing power of the naira will fall when

Monetization refers to the ratio of

The best way to reduce the supply of money in the economy is to

The relationship between the value of money and the price level is

Non-bank financial intermediaries do not

If the cost of production for a firm continues to increase as its output rises, the firm is said to be experiencing

One of the fundamental differences between a capitalist and a socialist economy is that while

The shape of a production possibility frontier is determined by the

Normative economics deals with

In a free market economy, the price system allocates resources

In a centrally planned economy, the economic problem of deciding what to produce is dependent on

A demand which is positively related to price is true of

Use the table below to answer the question that follow

What is the equilibruim quantity?

Use the table to answer the question that follows

Above the equilibrium point, a further rise in price tends to

A firm faces diminishing returns when its

Cross elasticity of demand can be mathematically expressed as the

Situation in which all inputs are doubled and output also doubles is known as

At any given level of output, the total of a firm equals the

At any given level of output, a firm’s variable cost equals

The main reason for charging interest is to

In the Keynesian model,

If inflation is anticipated to continue,

Restriction on credit creation by commercial banks can be effected through

Counter trading is an international arrangement whereby

In recent years, Nigeria’s balance of payments has continued to register a deficit due to
(i) increased government overseas’ spending
(ii) increasing prices of exports
(iii) rising import prices
(iv) more payment to overseas’ investors

Which of the following is a direct tax?

The three major groups of government revenue are

A tax on a commodity whose supply is perfectly inelastic is

Under partnership, investors who have no desires to be actively involved in the day- to-day management of such organizations, are called

The cooperatives as a form of business organization differs from partnership by having

Stocking small quantities of a variety of goods is a function of the

In a joint stock company, preference share holder are those who receive

One of the major advantages of public enterprises it that

A major effect of a long distribution chain is

The major function of the wholesaler to his customers is

The distribution channel that contributes most to the cost of production is

The law of comparative advantage states that a country should specialize in the production of a commodity

By using exchange controls, a country tries to eliminate a balance of payments deficit by

ITEM                                   AMOUNT IN MILLION NAIRA

Visible export                                                  5554

Visible imports                                                5332

Invisible exports                                              3056

Invisible imports                                             2870

Balance                                                               408

The amount N408 million shown as balance in the table above represents

The need to construct a scale of preference is necessitated by

A shift in the production possibility frontier could result from

The primary problem of economics is

If one orange costs ₦20 and one kilogram of beef costs ₦400, the opportunity cost of one kilogram of beef is

In economics life, choice among alternative depends on the

Given an original price of ₦400 per kilogram of rice and a change in price of ₦20, and given the quality purchased at the old price as 10kg and a change in quantity as 5kg after the price changed the elasticity is equal to

For normal goods the income elasticity of demand is

An increase in supply will lower price on less

Air is essential to life but commands no price! Diamond is not essential to life but commands a high price! This is the paradox of

Average fixed cost is

The form of capital which is usually consumed or transformed into finished goods and services in the production process is called

The average production of labor in given period is obtained by dividing the

Which of the following best describes the product function?

Which of the following factors enhance the ability of commercial banks to create money

In any economy, what is use as money is determined by

The rate of which money changes hands is known as the

Merchant banks perform all the following functions EXCEPT

The most acceptable economics measure for trade protection is to

Export promotion policy is primarily concern with the

Which of the following classes of goods account for the largest proportion of Nigerians’ import?

If birth rate is constant and death rate declines, population

The higher the dependency ratio, the

The age distribution of a countries population is of economics importance because it affects the

Which of the following is NOT a goal of modern budget?

The best technical description of a progressive task is a

The ultimate objective of economics is to

One of the advantages of partnership over a sole proprietorship is that

The liability of a sole trade is

Which of the following is NOT a type of business ownership?

A limited liability company is usually owned by

A public liability company is different from private limited company because it

A modern corporation is owned by

A major short coming of a sole proprietorship form of business is lack of

In the event of liquidation of a private limited liability company, the shareholders liability is limited to their total

Under a system of freely exchange rate, an increase in an international value of a countries currency will cause

Balance of trade is the difference between

Which of the following is likely to reduce a surplus in the balance of payment of a country?

Which of the following is a tariff?

The best method to curb inflation in Nigeria is to

A bank is said to be distressed when it

One method through which the central bank can restrict the commercial banks power of credit expansion is to

The most important attribute of money is

In a market economy, the question of what, how and for whom to produce are solved by the

Economic goods are termed scarce goods when they are

Macroeconomics is the study economic science from the point of view of

The demand and supply equations for a commodity are given respectively as
D =20 – 1/2P, S =8 – ¼P
Recalling that at equilibrium D = S, the equilibrium price (p) and quantity (Q) can be obtained as

A commodity is said to have a derived demand when the commodity

Which of the following changes in equilibrium price and quantity is as a result of an upward shift in the market demand for a commodity?

Which of the following Best describes the production function?

The Law of diminishing returns begins to operate when

Total fixed cost measures the cost of

The output on which total revenue equals total cost is known as

Use the following production and cost data of a profit-maximizing firm to answer the questions below

Calculate the marginal physical product of the last unit of input

Use the following production and cost data of a profit-maximizing firm to answer the questions below

At what level of input have diminishing marginal returns set in?

The total money in circulation includes cash

To reduce the high rate of inflation in the economy, Government should

The money market is a financial market that specializes in the provision of

Foreign exchange rate in a free market economy is determined by