ABU Economics 2018/2019 Past Questions

Practice each question, then open it to see the full details.

Suppose a consumer's income increases from N30,000 to N36,000. As a result, the consumer increases her purchase of compact discs (CDS) from 25 CDS to 30 CDS. What is consumer's income elasticity of demand for CDS?

A.0.5
B.1.0
C.1.0
D.1.5

The following are features of a free market economy except

A.Private ownership of properties
B.Existence of competition
C.High level of profit maximization by private investors
D.Joint decision making by the citizens in a society

A rational consumer, does not:

A.think marginally
B.Intentionally make himself or herself worse off
C.try to maximize net benefit from consuming goods and services
D.ever consume the wrong amount

The wages of a group of workers in dollars are stated below: 40, 30, 70, 20, 60, 10, 10, 80, 30 and 10. What is the mean wage?

A.$35
B.$36
C.$37
D.$38

An outward shift of the production possibility curve shows that

A.Production is shifting to the right
B.resources are underutilized
C. economic growth has taken place
D.factors of production and moving outward

Which of following causes the demand curve to shift to the right?

A.A reduction in the size of population
B.an increase in the income of the buyer
C.the availability of substitutes
D.a decrease in the price of the good

Land is a most significant factor in terms of contribution to the economy because

A.it enables us to build industries
B.we build house on it
C.all our highways are constructed on it
D.vital resources it enrich economy

In perfect competition, the marginal cost curve intersects the average cost curve

A.from below at its lowest point
B.from above at its lowest point
C.from below before the lowest point
D.at the zero point

The greatest disadvantage of the barter system is the need for

A.durability
B.divisibility
C.homogeneity
D.double coincidence of wants

Who bears the greater burden of the indirect tax when the demand for a commodity is inelastic? The

A.wholesaler
B.shareholder
C.retailer
D.consumer