BUK Economics 2008/2009 Past Questions

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

The price system refers to the system by which

A. the government controls prices in the economy
B. prices tend to rise to a general level
C. price allocates resources between consumers and producers

The monetary system that requires a double coincidence of wants is known as the

A. gold standard
B. barter system
C. commodity system
D. gold exchange standard

Open market operations are the process by which

A. central bank purchases and sells securities
B. commercial banks purchases and sells securities
C. business firms buy raw materials freely
D. households buy consumer goods openly

If an economy is growing at an unusual rate of 7%, and 4% of it is known to be due to the improvement in labour and capital combined, the balance of 3% is usually attributed to

A. land and entrepreneur
B. abundance of natural resources
C. level of human capital
D. technical progress and related factors

Dumping in economics means the selling of goods in foreign market

A. at a price below that received in the home market
B. at a price above that received in the home market
C. at a price equal to the cost price in the home market
D. in order to encourage indigenous producers

The natural growth rate of a population is the

A. sum of birth rate and death rate
B. sum of birth rate and net immigrant rate
C. birth rate minus death rate
D. death rate minus immigration

The primary objective of Agricultural Credit Guarantee Scheme is the provision of

A. guarantee of loans granted by banks for agricultural purposes
B. agricultural inputs to facilitate credit from banks
C. loans for every farmer
D. agricultural products for farmers

Tax evasion in economics means

A.false declaration
B. paying tax only as at when due
C. declaration of assets
D. tax payment according to income received

The magnitude of the national income of a country depends on all the following except the

A. quantity of natural resources available
B. level of technical know-how
C. mobility of labour
D. level of productivity

The quantity theory of money states that an increase the quantity of the money would bring about

A. geometrical rise in prices
B. unequal rise in prices
C. a proportionate rise in prices

Oil was first discovered iin commercial quantities in Nigeria in

A. Oloibiri
B. Warri
C. Onitsha
D. Port harcourt

The headquarters of the African Development Bank is located in

A. Accra
B. Lagos
C. Abidjan
D. Addis Ababa