Your results on Economics 2011 are shown below

1. Human wants are

• limited
• scarce
• unlimited
• in grades

2. The difference between the money cost and the real cost of any item is that

• real cost is the alternative forgone while the money cost is the actual amount paid for buying the item
• the real cost is the opportunity cost, while the money cost is the marginal cost.
• money cost is the opportunity cost, while the real cost is the actual cost in monetary terms.
• money cost is always greater than real cost.

3. The Production Possibility Curve (PPC) indicates that as more of one good is produced

• less of the other good is produced
• the same quantity of the other good is produced
• more of the other good is produced
• none of the other good is produced

4. An arrangement of data in rows and columns is referred to as a

• graph
• bar chat
• pie chart
• table

5. A normal demand curve slopes

• downwards from left to right
• upwards from right to left
• downwards from right to left
• upwards from left to right

6. The co-efficient of income elasticity of demand for inferior goods is

• positive
• eqaul to one
• less than one
• nagative

7. If a 20% rise in the price of Whisky leads to a 30% increase in quantity demanded of Schnapps, the cross elasticity of demand is

• 3.0
• 2.5
• 2.3
• 1.5

8. Palm oil and palm kernel have

• competitive supply
• excess suply
• joint supply
• composite supply

9. A supply curve which is vertical has an elasticity co-efficient of

• 0
• 0.5
• 1.5
• 2

10. If the current price of an apple is twice that of last year, it implies that the value of money is

• stable
• falling
• rising
• getting stronger

11. Price fixed above the equilibrium is to

• protect agricultural producers
• discourage agricultural producers
• lower the prices of agricultural produce
• favour consumers

12. A consumer purchasing a commodity X will maximize his satisfaction if

• Px = MUx
• Px > MUx
• Px>MUx
• PxE

13. When total utility is constant, it means marginal utility is

• increasing
• zero
• decreasing
• one

14. A rational consumer is one who

• spends his income to maximize satisfaction
• is not influenced by advertisement
• behaves in a particular way all the time
• knows the prices of all the goods and buys the cheapest

15. Which of the following is not true about land?

• the supply is fixed
• land is mobile
• it is subject to diminishing returns
• land is heterogeneous

16. The type of production that involves the tapping and harnessing of natural resources is

• primary production
• secondary production
• tertiary production
• industrial production

17. Which of the following does not change in the short run?

• variable cost
• marginal cost
• total cost
• fixed cost

18. The resources used in production are called

• variable inputs
• factors of production
• capital for production
• fixed inputs

19. A firm will shut down in the long run if its earning is

• less than normal profit
• greater than normal profit
• equal to super normal profit
• less than super normal profit

20. A market structure where profit is maximized when marginal revenue, marginal costand price are equal is known as

• perfect competition
• monopoly
• oligopoly
• imperfect competition

21. In which of the following markets does a firm have power to make super normal profits both in the short run and long run?

• monopoly
• duopoly
• oligopoly
• monopsony

22. If there are no barriers to entering a market, it means that

• anyone can become a buyer or seller
• unwanted goods can always enter the market
• the market becomes a dumping ground
• the goods are not inspected

23. A firm’s main aim is to

• survive in business
• maximize profits
• increase its market share
• satisfy the ambitions of its managers.

24. One good reason for the elimination of middlemen is that they

• cause increase in price
• help in price stability
• grade and blend goods
• are to many

25. The increase in population growth in big cities is referred to as

• settlement
• migration
• industrialization
• urbanization

26. Frictional unemployment can be reduced by

• encouraging the use of restaining schemes
• removing barriers of labour mobility
• restricting the introduction of new technology
• lowering the level of wages paid to young people

27. If the labour force of a country is 2.5 million and 2 million are employed, what is the unemployment rate?

• 0.2%
• 20%
• 200%
• 250%

28. The grouping of population according to the economic activities people engage in is

• age distribution.
• sex distribution.
• geographical distribution.
• occupational distribution.

29. Natural growth rate of population can be defined as the

• difference between birth rate and death rate.
• number of births in a year.
• increase in the population growth in a year.
• difference between the total population and the death rate.

30. Which of the following is not a consequence of increased unemployment?

• A fall in tax revenue for the government
• A reduction in trade unionâ€s influence
• A fall in the death rate
• An increase in the labour force

31. The following are features of subsistence agriculture except

• little capital
• processing of raw materials
• small allotments of land
• use of crude implements

32. Which of the following is not true of small companies? They

• cannot benefit from economies of scale.
• are a good source of new jobs.
• can satisfy demand in specialist markets
• have a good record of technical innovations.

33. The effect of privatization on the industrial sector of a country is that it

• ensures efficiency
• discourages efficiency
• leads to decrease in output.
• leads to liquidation

34. The production strategy used in an over-populated country is .

• import substitution
• capital intensive
• labour intensive
• first come first employed

35. National income is used to measure

• a country’s population size
• a countryâ€s economic growth.
• the human level of development. .
• the flow of imports to a country

36. A tax is regressive if the

• rate of tax is constant at all income levels.
• rate of tax decreases as income increases
• rate of tax increases as income increases.
• tax is direct rather than indirect.

37. When a country’s net income from abroad is added to its total output, the result is

• gross domestic product
• net national product
• gross national product
• net domestic product

38. A fall in national output will necessitate

• a rise in expenditure on imports.
• a rise in the level of savings.
• an increase in consumption expenditure.
• a rise in the standard of living.

39. The demand for money to take advantage of changes in bond prices is the

• unforeeen motive
• transaction motive
• speculative motive
• precautionary motive

40. Cost push inflation is caused by a

• rise in the cost of production
• decrease in the transportation cost
• rise in the demand for goods
• decrease in the cost of production.

41. Deposits held in a commercial bank are part of

• money supply
• transfer payments
• ordinary shares
• treasury bills

42. One profitable form of business undertaken by the commercial banks is

• the issuing of cheques.
• the payment of standing order.
• lending money to borrowers.
• accepting cheques from customers.

43. When governments want to discourage consumption, they tax goods whose demand is

• price inelastic
• abnormal in nature
• price elastic
• normal in nature

44. A rise in government expenditure can lead to

• higher inflation
• higher unemploymen
• lower profits for industries.
• lower importation of raw materials by industries.

45. Tariff is used to protect domestic industries by making foreign goods relatively

• cheaper in the domestic market
• more expensive in the domestic narket
• more expensive in the international market
• cheaper in the international market

46. The process of increasing the real per capita income and effecting changes in various sectors of the economy is known as

• economic acceleration
• economic development
• economic integration
• economic growth

47. Development plans in West Africa tend to deviate from their targets mainly due to

• political instability
• lack of manpower
• high populaion growth rate
• low level of education

48. The balance of trade is .

• an annnal statement showing transactions within a country.
• the relationship between a countryâ€s visible exports and imports.
• the relationship between a countryâ€s receipt from visible and invisible trade.
• an account that shows a countryâ€s payments to other countries.

49. As one of the instruments of commercial policy, quotas is

• a qualitative restriction on imports.
• a normal restriction on imports.
• a quantitative restriction on imports.
• an outright prohibition of imports.

50. The full meaning of the IMF is

• International Military Force.
• International Monetary Fund.
• International Mortgage Fund.
• International Monetary Financing.

ANSWERS

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