Subject: Economics    / General Economics    

Question
MICROECONOMICS
1. A curve that shows the maximum combination of two commodities or services that can be produced
when all resources are fully utilized in an economy is called:
A. Indifference Curve.
B. Production Possibility Curve.
C. Isocost.
D. Engel Curve.
2. A decrease in demand occurs when:
A. The demand curve shifts inwards.
B. The quantity demanded falls when the price rises.
C. The demand curve shifts outwards.
D. The quantity demanded rises when the price falls. 3. “Ends” in Lord Robins definition of Economics is referred to as:
A. Resources.
B. Demands.
C. Scarcity.
D. Wants. If the quantity demanded of a commodity X fall by 20% due to a rise in the price of another commodity Y
from #9,000 to #12,000,
4. The two commodities are said to be
A. Supplementary.
B. Complementary.
C. Composite.
D. Derived. 5. What is the cross elasticity of demand of commodity X?
A. 0.6.
B. -0.6.
C.0.3.
D. -0.3.
6. In consumer theory one of the following is not a proposition of the cardinal approach
A. Utility derived from consumption is measurable.
B. Utility is additive.
C. Consumer maximizes satisfaction when indifference curve is tangential to the budget line.
D. Consumers are aware of prices in the market. 7. The consumer is said to be at point of saturation when
A. Marginal utility of a commodity is greater than th
e price of the commodity.
B. The extra amount of money a consumer is willing to pay for an additional consumption equates the
prices of each and every of the commodities consumed.
C. The total utility curve is increasing at an increasing rate.
D. The marginal utility curve cuts the average utility curve from below.
8. A type of market in which there are many sellers and each try to differentiate the products they sell is
known as
A. Perfect competition.
B. Bi-monopoly.
C. Monopolistic competition.
D. Duopoly.
9. _____ states that the more and more a variable factor of production is added to the fixed factor total
output will increase only at a decreasing rate until an additional variable factor will lead to a fall in total
output.
A. Law of diminishing marginal returns
B. Law of diminishing marginal utility
C. Returns to scale
D. Economies of scale
10. Which of the following conditions gives the most efficient use of resources?
A. P = MC = Minimum ATC
B. P = AR = MR
C. P = MR = Minimum MC
D. TR = MC = MR
11. The want satisfying power of a commodity is called?
A. Value
B. Utility
C. Wealth
D. Stocks and flows
12 ……….. Are those which have a price and their supply is less in relation to their demand or are scarce.
A. Non-Economic goods
B. Goods
C. Economics goods
D. Material goods
13. For a commodity to have value, it must possess the following characteristics except.
A. Scarcity
B. Transferability C. Price
D. Utility
14. In Economics …………. Is used to describe all things that have value.
A. Wealth
B. Stock
C. Capital
D. Money
15. Goods sold not for resale or for further production but for personal consumption or for investment
are called …………
A. Finished goods
B. Intermediate goods,
C. Final goods
D. Producers goods
16. ………… is a demand pattern which does not abide by the laws of demand and therefore give rise to
the reverse of the basic laws of demand.
A. Exceptional demand
B. Income demand
C. Changes in demand
D. Elasticity of demand
17……………. Is not the method of measuring elasticity of demand
A. The arc method
B. The point method
C. The total method
D. The percentage method
18. The price of bread in 2002 was increased from #40 to #50 and the quantity bought per week by a
consumer decreased from 160 loaves to 80. Calculate the co-efficient of price elasticity of demand.
A. ½
B. 1
C. 2.0
D. 2
19. When elasticity is less than one, elasticity of demand is?
A. Elastic
B. Inelastic
C. Unity
D. Perfectly Elastic
20. Factors affecting demand include the following except.
A. Taxation
B. Pollution
C. Price
D. Population 21. ………… is the degree of responsiveness of supply to little changes in the price of a commodity.
A. Elasticity
B. Elasticity of demand
C. Elasticity of supply
D. Elastic demand
22. All the following are factors affecting elasticity of supply except one
A. Cost of storage
B. The price of other commodities
C. Nature of commodity
D. Time
23………… Give rise to the fourth law of demand and supply?
A. The increase and decrease in demand
B. The Existence of equilibrium price
C. The increase and decrease in supply
D .The higher the price, the higher the quantity of a commodity that will be supplied or the lower the
price, the lower the quantity of commodity that will be supplied
24. The demand which occurs when commodities that are related to each other are demanded at the
same time is known as?
A. Complementary demand
B. Derived demand
C. Competitive demand
D. Composite demand
25. ……….. is the goods or services which is required for production.
A. Production theory
B. Factors of production
C. Direct production
D. Volume of production.
26. ………… is a type of production that involves the transformation or conversion of basic raw materials
or semi-finished goods into final forms that are acceptable to the consumers.
A. Primary production
B. Indirect production
C. Tertiary production
D. Secondary production
27. All the following are characteristics of entrepreneur except one?
A. Risk bearer
B. Decision making
C. Variability
D. Controls other factors
28. ………….is the causes of low capital formation in West African Countries
A. Bad road
B. High savings C. Existence of a various circle of poverty
D. Poor electricity facility
29. …………… is a type of capital that are required for the day-to-day running of productive activities.
A. Current or liquid capital
B. Fixed capital
C. Circulatory or working capital
D. Social capital
30. ………. Is refers to the using up of existing capital stock and not replacing worn-out capital goods used
in production.
A. Social capital
B. Capital consumption
C. Capital efficiency
D. Capital formation
31. In monopolistic competition one of the following is not the causes of monopoly
A. Patent law
B. Natural cause
C. Danger of exploitation
D. Effective advertising
32. One of the following is not the conditions that must be satisfied for price discrimination to exist.
A. Ignorance of buyer
B. Differentiated products
C. Market imperfection
D. Discomfort between rural sellers
33. A tool of economic analysis forged by Professor Chamberlin is known as?
A. The curve of selling cost
B. Production cost
C. The cost of production cost
D. Selling cost
34. A type of market where investors can buy and sell existing securities like, stocks, debentures, etc. is
known as?
A. Capital market
B. Stock exchange market
C. Factor market
D. Money market
35. One of the following is not the condition necessary for a perfect market.
A. Common price
B. Free entry and exist
C. Homogeneous goods
D. Preferential treatment 36. An enterprise set up by an individual or group of individual, Government or its agencies for the main
purpose of main profit and providing goods and services for the satisfaction of human wants is known
as?
A. Organization
B. Office
C. Business organization
D. Business
37. ………..defined “a shadow price as any price other than an observed market price”
A. Odufalu 2000
B. Papenek and qureshi
C. Flemming and dieldstein (1968)
D. Little and mirrless (1994)
38. All partner are agent of the firm and they all share the responsibility of running the business this is
known as?
A. Ordinary partnership
B. Active partnership
C. Quasi partnership
D. Limited partnership
39. One of the following is not the features of a mixed economy.
A. Freedom of choice
B. Checks and balances
C. Economic freedom
D. Equitable distribution of incomes
40. The type of a system in which the means production and distribution are collectively owned and
controlled by the state is refers to as?
A. Indigenisation
B. Localism
C. Socialism
D. Capitalism
41. One of the following is not a content of a prospectus.
A. The numbers of founder’s shares
B. The amount of the capital offered for subscription
C. Promoters remuneration
D. Transfer and forfeiture
42. ……… Is the document which allows the public limited company to commence business activities?
A. Certificate of incorporation
B. Certificate of trading
C. Certificate of corporation
D. Business certificate
43. The features of ordinary shares include the following except?
A. Holders receive dividends before others
B. They are the risk bearer C. They have voting rights
D. The holders are the real owners of the business
44. The type of capital which is the highest amount of capital stipulated in the memorandum? of
association considered as enough to set up and run a company is known as?
A. Reserved capital
B. Issued capital
C. Authorized capital
D. Authority capital
45. Government participate in following economics activities except?
A. Import monopoly
B. Nationalisation policy
C. Enactment of appropriate laws
D. Employment opportunities
46. A table showing the relationship between prices and the quantity of that commodity demanded is
known as?
A. Demand
B. Demand table
C. Demand curve
D. Demand schedule
47. The cost per unit of variable cost of output is regarded as
A. Average variable cost
B. Fixed cost
C. Total cost
D. Variable cost
48. The total consumption of the commodity increases as
A. The commodity diminished
B. The commodity is consumed
C .The successive units of a commodity will diminished
D. The commodity is about be consumed
49. The curve which shows the possible combination of two commodities, each yielding the same
satisfaction or utility to the consumer is known as
A. Demand curve
B. Difference curve
C. Indifference curve
D. Consumers surplus curve
50. An independently administered business units which is capable of carrying out production,
construction or distribution activities is known as?
A. Small firm
B. Large firm
C. Firm
D. industrial firm