Question 1

Economic a science which studies human behaviour as a relationship between ends and scarce means which have alternative uses "Ends" here refers to

resources

wants

choice

output

Question 2:

The price of the commodity is determine by the

Supplier

Consumer

Quantity of goods demanded

Interaction of demand and supply

Question 3:

 In which of the following economic systems is the consumer referred to as "The king"?

Planned economy

Mixed economy

traditional economy

Free market economy

Question 4:

 A normal demand curve

is concave to the point of origin

is convex to the point of origin

is parallel to x-axis

is parallel to y-axis

Question 5:

A demand schedule is

a table containing the price of goods

a table showing the relationship between price and quantity demanded of a commodity

a table showing the consumer demand in order of importance

The quantity of goods a consumer is prepared to buy

Question 6:

Which of these factors does not cause a change in demand?

income

Taste and fashion

Population

Price of the commodity concerned

Question 7:

 When the price of commodity A increases, the demand for commodity B decreases, then, A and B are

Close substitute

Complementary goods

Supplementary goods

gifften goods

Question 8:

In any economic system, which of the following is not an economic problem?

What goods and services to produce

For whom to produce goods or services

What technique of production to be adopted

Equal distribution of the goods and services

Question 9:

An economic system in which most capital goods are owned by the individuals and private firms is known as

mixed economy

planned economy

Capitalist economy

Traditional economy

Question 10:

The coefficient of price elasticity of demand is zero when demand is

fairly elastic

Perfectly inelastic

fairly inelastic

Unitary elastic

Question 11:

When the demand of a commodity is inelastic, who bears greater burden of the indirect tax?

The producer

The government

The retailer

The consumer

Question 12:

All the following are sources of finance to a joint stock company EXCEPT

bank loan

equity shares

debentures

cooperative thrift

Question 13:

Data presented in tables are usually arranged in

charts and tables

rows and columns

graphs and rows

pictograms and columns

Question 14:

A firm is said to be a public joint stock company when it

is owned by the government

operate as a public corporation

is a limited liability company

sells its shares to members of the public

Question 15:

One of the advantages of a sole proprietorship is that

risks are unlimited

technological progress is often out of reach

shares and stocks can be issued to raise funds

initiative can be use in all cases

Question 16:

The money paid per hour or week for work done is known as

cost

time rate

bonus

wage rate

Question 17:

Demand in Economics is synonymous with

need

wants of the consumers

all goods demanded in the market

wants supported with ability to pay

Question 18:

A rational consumer tends to do all the following EXCEPT

buying more at a high price than at a low price

buying more at a low price than at a high price

buying at utility maximization

complying with the law of demand

Question 19:

Limited liability in Economics means that

A shareholder's liability in the event of debt or bankruptcy is limited to the amount he has invested

A shareholder's liability for the debt company is dependent on how much he is owing

Shareholders cannot be asked to pay for the debt of the company

Shareholders try to ensure that only a small proportion of the debt come to them

Question 20:

When a business has unlimited liability

the owners are not responsible for all its financial debts

all its profit can be taxed by the government

the owners are responsible for all its financial debts

all its assets belong to the members of its board of directors

Question 21:

Choice is necessary because resources

are available

can be found everywhere

are constant

are scarce

Question 22:

A movement along the demand curve for some goods may be caused by a change in

consumer income

the price of goods

consumer taste

the price of other goods

Question 23:

A shift of the demand curve to the right when the supply curve remains constant, implies that

both price and quantity demanded will increase

only price increases

both price and quantity demanded will decrease

the price remains constant

Question 24:

In the event of a limited liability company going into liquidation, each shareholders

may lose a maximum of amount he has invested

loses nothing

loses everything including his house

may have an unlimited liability

Question 25:

Which of the following is a public corporation?

Roads (Nigeria) Plc.

National Oil and Chemical Marketing Co., Plc.

Volkswagen of Nigeria Plc.

Federal Radio Corporation of Nigeria

Question 26:

A vertical demand curve shows

perfectly inelastic demand

perfectly elastic demand

zero elasticity

fairly elastic demand

Question 27:

Opportunity cost is defined as the

money cost

cost of production

real cost

variable cost

Question 28:

The equilibrium price of oranges is 50K. If for some reasons the price rises to 60K, there will be

excess demand

excess supply

shortage in the market

many buyers in the market

Question 29:

A society that is on its production possibility curve

has attained full employment but not full production

has attained full production but not full employment

is using it resources inefficiently

has attained both full employment and full production

Question 30:

If the price of margarine rises substancially, the equilibrium price and quantity of butter demanded will

decrease

increase

remain constant

fluctuate

Question 31:

Change in supply implies a

shift in supply curve to the right and not to the left

shift in supply curve to the left and not to the right

shift in the supply curve to the left or to the right

movement along the supply curve

Question 32:

The real cost of a commodity is

the cost of the alternative that has to be sacrifice for it

the alternative that has to be foregone in order to purchase it

its market price

the alternative cost involve when the opportunity of buying the commodity is mixed

Question 33:

Given that the demand and supply functions are

Q = 25 - 4p and Q = 40 + 5p respectively.

Determine the equilibrium price

N1.67

N5.20

N4

N10

Question 34:

An inferior goods is one

that is too bad for consumption

whose price is lower than the prices of other goods

whose demand falls when the income of its consumers increases

that is easily perishable

Question 35:

Price elasticity of demand is defined as the

responsiveness of demand to changes in price

responsiveness to changes in demand

increase in demand resulting from a rise in price

unit decrease in price resulting from a fall in demand

Question 36:

The method by which a country approaches the major economic problem confronting her is known as

problem-solving approach

proactive measure

economic system

reactive measure

Question 37:

In 2005, Mr Gorge's total demand for an item was 2500 units with an annual income of N300,000. In 2010, his total demand increased to 3000 units as a result of a 20% increase in his annual income. What is the coefficient of income elasticity?

3

1

1.6

2

Question 38:

The demand for beans in bags is given by the function

Q = 36 + 0.4p  = 0, where p is price in naira and Q is the quantity, find Q when P = N20

12 bags

24 bags

38 bags

30 bags

Question 39:

The satisfaction derived from the use of a commodity is its

demand

elasticity

wealth

utility

Question 40:

The three principal economic units in any system are

trade, industry and banking

workers, consumers and shareholders

households, firms and governments

companies, industries and plants