OAU Economics 2021/2022 Past Questions

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

Which of the following is NOT part of the fixed cost of a firm

A.interest on loans
B.rent on buildings
C.depreciation reserves
D.management expenditure
E.wages

A decrease in aggregate spending in an economy will ultimately lead to

A.Boom
B.Deflation
C.Inflation
D.Recession
E.stagnation

Diseconomies of scale operates when

A.doubling inputs brings about more than proportionate increase in output
B.doubling inputs leads to a doubling of output
C.doubling input brings about less than proportionate increase in output
D.decrease in profit
E.increase in revenue

An activity does not have a cost when

A.the activity does not require the giving up of any other activity or thing
B.the government pays for it
C.it is carried out by a nongovernmental organisation
D.it is not priced
E.it is easy to undertake

Who among the following will benefit from inflation?

A.pensioners
B.savers
C.Debtors
D.Creditors

Disequilibrium in the balance of payment means

A.Imports of the Country excedding its export
B.Overall deficit or surplus in the current account and capital account of the balance payment
C.Capital flowing out of the Country exceeds the capital flowing into the Country
D.Exports earnings exceed cost of imports

A commercial bank is able to create money

A.by printing
B.by maintaining reserves
C.by creating demand deposit as it gives a new loan
D.by issuing cheques to depositors

An economic problem arises when

A.Manufactured goods are in short supply
B.money is in short supply
C.Buyers are many
D.Sellers are few
E.scarcity and choice are involved