𝐉𝐀𝐌𝐁 𝐔𝐓𝐌𝐄 𝟐𝟎𝟐𝟔/𝟐𝟎𝟐𝟕: 𝐒𝐎𝐌𝐄 𝐄𝐂𝐎𝐍𝐎𝐌𝐈𝐂𝐒 𝐔𝐓𝐌𝐄 𝐌𝐎𝐂𝐊 𝐐𝐔𝐄𝐒𝐓𝐈𝐎𝐍𝐒 𝐆𝐀𝐓𝐇𝐄𝐑𝐄𝐃 𝐅𝐑𝐎𝐌 𝐂𝐀𝐍𝐃𝐈𝐃𝐀𝐓𝐄𝐒 𝐓𝐇𝐀𝐓 𝐏𝐀𝐑𝐓𝐈𝐂𝐈𝐏𝐀𝐓𝐄𝐃 - 𝐂𝐎𝐌𝐏𝐈𝐋𝐄𝐃 𝐁𝐘 𝐋𝐈𝐋𝐀 𝐄𝐃𝐔𝐂𝐀𝐓𝐈𝐎𝐍𝐀𝐋 𝐒𝐄𝐑𝐕𝐈𝐂𝐄𝐒 𝟎𝟖𝟏𝟑𝟏𝟔𝟏𝟐𝟗𝟐𝟒
* The basic economic problem common to all societies is:
A. Inflation
B. Unemployment
C. Scarcity
D. Poverty
* The opportunity cost of a measure is:
A. The money price paid for it
B. The alternative sacrificed
C. The utility gained
D. The marginal cost
* In a market economy, the "invisible hand" refers to:
A. Government intervention
B. The price mechanism
C. Central planning
D. Foreign aid
* Which of the following is a factor of production?
A. Money
B. Entrepreneurship
C. Consumer goods
D. Stocks and bonds
* If the demand for a good increases as income increases, the good is:
A. An inferior good
B. A normal good
C. A Giffen good
D. A Veblen good
* The law of diminishing marginal utility states that as more of a product is consumed:
A. Total utility decreases
B. Marginal utility eventually decreases
C. Price must fall
D. Satisfaction becomes infinite
* A shift in the supply curve to the right indicates:
A. A decrease in supply
B. An increase in supply
C. A change in quantity supplied
D. A rise in price
* Equilibrium price is the price at which:
A. Demand exceeds supply
B. Supply exceeds demand
C. Quantity demanded equals quantity supplied
D. The government sets the limit
* Elasticity of demand is "perfectly inelastic" when the coefficient is:
A. 1
B. 0
C. Infinity
D. Greater than 1
* A firm’s average cost is calculated by:
A. Total Cost / Quantity
B. Marginal Cost + Fixed Cost
C. Price × Quantity
D. Total Revenue - Total Cost
* In the long run, all factors of production are:
A. Fixed
B. Variable
C. Diminishing
D. Expensive
* A market structure with a single seller and no close substitutes is:
A. Perfect competition
B. Oligopoly
C. Monopoly
D. Monopolistic competition
* The main aim of a private firm is:
A. Social welfare
B. Profit maximization
C. Employment generation
D. Price stability
* The reward for land as a factor of production is:
A. Wages
B. Interest
C. Profit
D. Rent
* Division of labor often leads to:
A. Monotony
B. Decreased productivity
C. Higher prices
D. Generalization
* Which of the following is a direct tax?
A. Value Added Tax (VAT)
B. Excise duty
C. Personal Income Tax
D. Customs duty
* A budget deficit occurs when:
A. Revenue exceeds expenditure
B. Expenditure exceeds revenue
C. Revenue equals expenditure
D. Imports exceed exports
* The Central Bank’s function as a "lender of last resort" applies to:
A. The government
B. Commercial banks
C. The public
D. International organizations
* Inflation caused by an increase in the cost of production is:
A. Demand-pull inflation
B. Cost-push inflation
C. Hyperinflation
D. Structural inflation
* The "Production Possibility Curve" (PPC) illustrates:
A. Demand and supply
B. Choice and opportunity cost
C. Profit and loss
D. Inflation and unemployment
* Gross Domestic Product (GDP) measures:
A. Total wealth of citizens
B. Value of goods produced within a country
C. Total exports
D. Net income from abroad
* A middleman who buys in bulk from producers and sells to retailers is:
A. An agent
B. A wholesaler
C. A consumer
D. A broker
* The Malthusian theory of population suggests that population grows:
A. Arithmetically
B. Geometrically
C. Linearly
D. Slowly
* A trade surplus means:
A. Exports are greater than imports
B. Imports are greater than exports
C. Exports equal imports
D. No trade is occurring
* The main disadvantage of a sole proprietorship is:
A. Quick decision making
B. Unlimited liability
C. Privacy
D. Easy setup
* Which of the following is a function of money?
A. Increasing inflation
B. Store of value
C. Limiting trade
D. Measuring utility
* A "price floor" is usually set:
A. Below equilibrium to help consumers
B. Above equilibrium to help producers
C. At equilibrium to stop changes
D. By the consumers
* The primary sector of an economy includes:
A. Manufacturing
B. Banking
C. Agriculture
D. Education
* Economic growth is best measured by an increase in:
A. Nominal GDP
B. Real GDP
C. Population
D. Money supply
* The "Law of Diminishing Returns" applies mainly in the:
A. Long run
B. Short run
C. Market period
D. International trade
* A debenture holder is a:
A. Part-owner of a company
B. Creditor to a company
C. Director of a company
D. Manager of a company
* Devaluation of a currency is intended to:
A. Make imports cheaper
B. Make exports cheaper
C. Discourage local production
D. Increase the value of money
* The formula for calculating Price Elasticity of Demand (PED) is:
A. % Change in Price / % Change in Q.D.
B. % Change in Q.D. / % Change in Price
C. Total Revenue / Price
D. Change in Q.D. × Price
* A regressive tax is one where:
A. The rate increases as income increases
B. The rate remains constant
C. The rate decreases as income increases
D. Only the poor pay
* Utility is defined as:
A. The price of a commodity
B. The satisfaction derived from consumption
C. The usefulness of a product
D. The cost of production
* An example of a joint-stock company is:
A. A partnership
B. A PLC (Public Limited Company)
C. A petty trader
D. A cooperative society
* The "Balance of Payments" is a record of:
A. Government tax revenue
B. International economic transactions
C. Bank deposits
D. Agricultural output
* Which organization is responsible for global trade rules?
A. IMF
B. World Bank
C. WTO
D. OPEC
* Perfect competition is characterized by:
A. Many buyers and one seller
B. Large number of buyers and sellers
C. Product differentiation
D. High barriers to entry
* Fixed cost is also known as:
A. Variable cost
B. Overhead cost
C. Marginal cost
D. Average cost
* In Economics, "Capital" refers to:
A. Physical cash only
B. Human-made tools used for production
C. The city where the government is
D. Natural resources
* "Terms of Trade" refers to the ratio of:
A. Import prices to export prices
B. Export prices to import prices
C. Total exports to total imports
D. Birth rate to death rate
* An "infant industry" is one that:
A. Produces baby food
B. Is newly established and needs protection
C. Is owned by children
D. Has gone bankrupt
* The theory of "Comparative Advantage" was propounded by:
A. Adam Smith
B. David Ricardo
C. John Maynard Keynes
D. Alfred Marshall
* Privatization means:
A. Government taking over private firms
B. Selling government-owned firms to individuals
C. Banning private businesses
D. Reducing taxes
* "Liquidity preference" means the desire to:
A. Invest in stocks
B. Hold wealth in the form of cash
C. Buy real estate
D. Spend all income
* The "labor force" includes:
A. Everyone in the country
B. Children and the elderly
C. People of working age who are willing and able to work
D. Only those currently employed
* A decrease in the value of a fixed asset over time is:
A. Inflation
B. Appreciation
C. Depreciation
D. Deflation
* Underdevelopment is characterized by:
A. High per capita income
B. Low level of technology
C. Low birth rate
D. High literacy rate
* The "Real Sector" of the Nigerian economy is dominated by:
A. Telecommunications
B. Agriculture
C. Banking
D. Entertainment
Answers and Brief Explanations
* C – Scarcity (limited resources vs. unlimited wants) is the root of all economic study.
* B – It is the next best alternative given up.
* B – Adam Smith used this to describe how prices guide the market without government.
* B – Land, Labor, Capital, and Entrepreneurship are the four factors.
* B – Normal goods see higher demand as consumers' wallets grow.
* B – The more you have of something, the less "extra" joy the next unit gives you.
* B – Rightward shift = Increase; Leftward shift = Decrease.
* C – This is the point where the market "clears."
* B – Zero means quantity doesn't change regardless of price.
* A – Total cost divided by the number of units produced.
* B – In the long run, a firm can change everything (size of factory, etc.).
* C – Mono = One; Poly = Seller.
* B – Private businesses exist to make money.
* D – Rent is paid for the use of land.
* A – Doing the same small task repeatedly can be boring (monotonous).
* C – It is paid directly from your income to the government.
* B – The government is spending more than it earns.
* B – The Central Bank saves commercial banks during financial crises.
* B – Costs (like wages or fuel) "push" prices up.
* B – The PPC shows the trade-offs between producing two different goods.
* B – It focuses on location (within the borders).
* B – Wholesalers are the link between producer and retailer.
* B – 2, 4, 8, 16... (it doubles/multiplies rapidly).
* A – Surplus = Selling more than you buy.
* B – The owner is personally responsible for all debts.
* B – You can keep it and use it later to buy things.
* B – Minimum wage is a common price floor.
* C – Primary = Extraction of natural resources (farming, mining).
* B – "Real" means it has been adjusted for inflation.
* B – It happens when at least one factor (like land) is fixed.
* B – They have lent money to the company and earn interest.
* B – By lowering the currency value, your goods become cheaper for foreigners.
* B – Measures how sensitive quantity is to price changes.
* C – High earners pay a lower percentage of their income.
* B – It's a measure of "happiness" or satisfaction.
* B – PLCs sell shares to the public to raise capital.
* B – It tracks all money flowing in and out of a country.
* C – World Trade Organization.
* B – No single person can influence the market price.
* B – These costs (rent, insurance) must be paid even if production is zero.
* B – In economics, capital is "produced means of production."
* B – It measures the purchasing power of exports.
* B – Protecting them allows them to grow before facing global competition.
* B – Ricardo argued countries should specialize in what they do most efficiently.
* B – Shifting from public sector to private sector.
* B – Keynes’ term for why people want to hold cash.
* C – Usually defined as those aged 15–64 looking for work.
* C – Wear and tear over time.
* B – Reliance on old methods and low industrialization.
* B – Agriculture remains the largest employer and a massive part of Nigeria's GDP.
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