OAU Economics 2017/2018 Past Questions

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

The Consumer Price Index (CPI) measures the prices paid:

A.for farm tractors
B.for goods and services purchased by a typical household
C.for Good and Services bought by companies
D.none of the above

If the real market price of a product is N20 per unit and in this market the government places a price ceiling at N30 per unit, what will happen?

A.People will buy the product at N30
B.There will be surplus of the product in the market
C.Government price ceiling will not be effective
D.Government can put price ceiling below or above equilibrium price

Objective

Question 3

A rational consumer, does not:

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

Objective

Question 4

The participation rate is the

A.ratio of those working to those looking for work
B.ratio of the unemployed to the labour force
C.ratio of the labour force to the population
D.ratio of the employed to the labour force

Objective

Question 5

A utility function is homothetic if

A.the marginal utility depends on the average of the goods
B.the total utility depends on the sum of the goods
C.the marginal rate substitution for the function depends only on the ratio of the amount of the two goods
D.the MRS for the function depends on the total quantities of the two goods

Objective

Question 6

A pricing behaviour in which a firm charges different prices to different consumers for the same good or service is known as:

A.uniform pricing behaviour
B.price discrimination
C.market separability
D.price differentiation

Objective

Question 7

............ is a market for the sale and purchase of existing securities

A.Primary market
B.Money market
C.Secondary market
D.Capital market

Objective

Question 8

The demand curve for a commodity is more elastic

A.the greater the number of good substitute available
B.the greater the proportion of income spent on the commodity
C.the longer the period of time considered
D.all of the above

Objective

Question 9

The velocity of money measures

A.the use of each unit of money in purchasing final output
B.the average use of money in purchasing final output
C.the average use of money by consumers in purchasing consumer goods
D.the average use of money by the business sector

Objective

Question 10

In computation of GDP, the following are not included except

A.all final goods produced and sold within the country
B.all used goods or goods sold outside of traditional market
C.all produce from i home gardens that is grown and consumed by household
D.all the farm products that farmers exchange among themselves without ever being sold

Objective

Question 11

The short-run equilibrium for a monopolist is achieved when

A.price equals MC
B.price equals MR
C.MR equal MC
D.MR equal AR

Objective

Question 12

When excess production results in loss leading to retrenchment of workers in a particular firm, we have unemployment

A.structural
B.Residual
C.voluntary
D.cyclical

Objective

Question 13

Which of the following determines price in a capitalist economy?

A.Government
B.Invisible
C.Producer
D.Consumer

Objective

Question 14

Which approach do economists use to compute national output by adding up all the final goods and revenues produced in a country during a year calculated as a market price

A.Value Added Approach
B.Expenditure Approach
C.Product Approach
D.National Savings Approach

Objective

Question 15

Microeconomics is concerned with

A.the aggregate or total levels of income, employment and output
B.a detailed examination of specific economic units that make up the economic system
C.positive economics, but not normative economics
D.the establishing of an overall view of the operation of the economic system.

Objective

Question 16

A budget line describes

A.a person's production possibilities
B.a person's production opportunities
C.the shape of the person's demand curve
D.the limits to a person's consumption possibilities

Objective

Question 17

Marginal Utility is the

A.pleasure or satisfaction from consuming a particular quantity of a good
B.average utility per unit consumed
C.change in total utility that results from a one unit change in the quantity of a good consumed
D.quantity of goods that a consumer prefers

Objective

Question 18

In the short-run, firms increase output by:

A.increasing the amount of labour used
B.decreasing the size of their plant
C.increasing the size of their plant
D.decreasing the amount of labour used

Objective

Question 19

Which of the following leads to an initial increase in the aggregate demand of an economy?

A.An increase in the price of energy
B.A decrease in consumer wealth
C.An increase in investment
D.An increase in the wage rate

Objective

Question 20

Equilibrium in the financial market requires that

A.money supply equals money demand
B.money supply equals reserves demand
C.checkable deposits equal overall supply of money
D.Money supply equals overall demand for money

Objective

Question 21

Which of the following will cause a decrease in market equilibrium price and increase in market equilibrium quantity?

A.An increase in supply
B.An increase in demand
C.A decrease in demand
D.A decrease in supply

Objective

Question 22

A consumer has N100 of income to spend on goods X and Y. The price of good Xis N10, and the price of good Y is N2. Which of the following combinations of X and Y are not affordable?

A.10X and 0Y
B.6X and 25Y
C.4X and 20Y
D.5X and 25Y

Objective

Question 23

As percentage of labour force, the unemployment rate measures:

A.the number of people in an economy who do not have jobs
B.the number of people in an economy who have jobs
C.The number of people who are out of work and actively looking for work
D.the number of people who are looking for work

Objective

Question 24

Which of the following statement is true of a monopoly markets?

A.Barrier to entry exists in the short-run, but not in the long-run
B.Price is greater than marginal revenue but less than marginal cost
C.Demand is more elastic than the demand for a perfectly competitive firm's output
D.Demand for the firm's product is also the market demand for the product

Objective

Question 25

Which of these will not be a typical consequence of an import tariff?

A.Producer surplus increases in the domestic market
B.Consumer surplus increases in the domestic market
C.Deadweight loss is created
D.Government revenue is created

Objective