OAU Economics 2009/2010 Past Questions

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

Which of the following statements is false?

A.Ends in economics are the resources with which it can attain our goals
B.tables and graphs are focus of arithmetic technique used in economics to present ideas pictorially
C.three basic questions every economy must answer are what to produce, how to produce and for whom to produce
D.A and B are substitutes if the supply of a increases, the price of B will tend to increase

Which of the following best describes a perfectly inelastic demand function?

A.The quantity demanded is insensitive to changes in price
B.price is insensitive to change in quantity demanded
C.price and quantity demanded changes by some percentage
D.the demand function is horizontal

Which of the following is true?

A.If the price of elasticity of demand between two goods A and
B.is negative we conclude that A and B are substitutes
C.The co-efficient of the elasticity of demand is measured as a ratio of change in quantity demanded to change in price
D.A market will be in disequilibrium when demand is not equal to supply

The reason for the law of demand can best be explained in terms of

A.supply
B.complementary goods
C.the rationing function of prices
D.diminishing marginal unity

Which of the following is not a basic assumption underling the theory of consumer behaviour.

A.consumers prefer more to less
B.consumers are rational
C.consumers are willing to make choices
D.consumers make consistent choices

A production possibility curve shows

A.how much of the resources of society are used to produce a particular commodity
B.the rate of inflation
C.the rate of unemployment in the economy
D.the various combinations of two commodities that can be produced.

Age Distribution Table 10-15 years = 10000, 16-35 years = 3000, 36-50 years = 5000, 61 years and above = 2000 The table above shows the age distribution of a town in Nigeria. What is the dependency ratio of the town?

A.3 : 2
B.2 : 1
C.5 : 2
D.4 : 3

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

A.income
B.population
C.price of other commodities
D.price of the commodity itself

When the demand for a commodity is inelastic, total revenue will fall if

A.price is increased
B.price remains constant
C.price is reduced
D.the commodity is a luxury

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

A.planned economy
B.capitalist economy
C.mixed economy
D.socialist economy

Which of the following is the most liquid asset to a commercial bank?

A.cash
B.money at call
C.stocks and shares
D.treasury bills

At every point on an indifference curve, the

A.total utility is decreasing
B.level of utility is constant
C.level of utility is increasing
D.consumer is satisfied

Which of the following does not hinder the efficient distribution of goods in West Africa?

A.Government participation in the distributive trade
B.inadequate storage facilities for agricultural goods
C.inadequate credit facilities for potential distributors
D.the tendency to hoard and smuggle.

Which of the following is the most important reason why wages differ among occupations?

A.length and cost of training
B.supply of labour
C.attractiveness of the job
D.how a tax is collected

Tax incidence is the analysis of

A.how progressive a tax is
B.how distorting a tax is
C.who ultimately pays the tax
D.how a tax is collected.

A monopolist will practice price discrimination in two markets if

A.there is a patent of the commodity
B.there is free flow of information in the two markets
C.the markets have different elasticities of demand
D.the cost of separating the markets is low

Which of the following is regarded as fixed cost?

A.Cost of raw materials
B.labour wages
C.rent on land
D.cost of light

Given that fixed cost is N500.00, variable cost is N1,500.00 and output is 40 units, what will be the average cost of producing one unit?

A.N12.50
B.N37.50
C.N50.00
D.N500.00