UI Economics 2017/2018 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

Which of the following is used to describe a payment representing a surplus in excess of transfer earnings?

A.interest rates
B.opportunity costs
C.economic rent
D.indirect costs
E.wages

A perfectly competitive firm produces the most profitable output where its

A.marginal revenue equals average cost
B.price equals average cost
C.price equals marginal cost
D.marginal cost equals marginal revenue
E.average revenue equals average cost

Advertising is the main technique used for effecting ...... in a monopolistic competition

A.market segmentation
B.product differentiation
C.price
D.profit
E.supply

Output of a monopolist is usually determined at a point where

A.P = MC
B.MR = MC
C.AR = AC
D.marginal cost is rising
E.marginal revenue is rising

The main function of price mechanism is to

A.limit consumer demand
B.enable producers make profits
C.allocate scarce resources among competing ends
D.ensure consumer sovereignty
E.achieve excess capacity

When government intervenes in price-setting, the regulated price is usually

A.higher than the last price
B.lower than the last price
C.higher than the equilibrium price
D.lower than the equilibrium price
E.higher than the ceiling price

A firm achieves least cost in production by substituting factors until

A.their factor prices are equal
B.their marginal products are equal to the factor prices
C.their marginal products are each equal to zero
D.the ratios of their marginal product equals the ratio of their prices
E.none of the above

A production possibility curve shows

A.how much of resources a society uses to produce a particular commodity
B.the rate of inflation
C.the rate of unemployment in an economy
D.the various combinations of the commodities that can be produced
E.all of the above

A rightward shift in the production possibility frontier may be due to

A.use of inferior inputs
B.inefficiency
C.improvement in production techniques and practices
D.changes in the product mix
E.changes in consumer taste

........... is the term that describes the cost of one product in terms of forgone production/acquisition of others.

A.Marginal cost
B.Production/acquisition cost
C.Optimum cost
D.Opportunity cost
E.Implicit cost

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

Choices arise on account of ...........

A.numerous wants
B.enough money to undertake effective demand
C.scale of preference
D.human wants being numerous but the time, money and influence to satisfy them are limited.
E.needs

ECONOMICS is best defined as

A.the study of allocation of resources to satisfy human wants
B.the study of human behaviour in the process of buying and selling
C.study of how nations grow and improve their welfare
D.the study of how to allocate scarce resources to satisfy human wants
E.all of the above

ECONOMICS may be described as

A.the study of demand and supply of things in our environment
B.the study of production and distribution
C.the study of human behaviour in the allocation of scarce resources
D.the study of the employment of labour, capital, land and capital
E.the study of money and banking

Infant industries are

A.Baby food and baby clothing factories
B.Those which are introducing new products
C.Cases of arrested development
D.Industries temporarily protected by tariffs barriers until mature enough to compete on world markets
E.Industries that are allowed to remain permanent cases of adolescence

The export-promotion strategy is aimed at producing

A.Consumer goods originally imported
B.Machinery for industries
C.More goods for exports
D.More goods for domestic consumption
E.Increasing export of goods needed in developed countries

Which of the following is NOT an advantage of localization of industries?

A.Reaping of external economies
B.Development of a pool of skilled labour for the industry
C.Development of subsidiary industries
D.Development of organized markets
E.Growth of conurbations

The crucial factors which determines the location of petroleum refineries in Nigeria are availability of raw materials and

A.Capital
B.Political consideration
C.Nearness to source of power
D.Labour
E.Availability of seaports

The petroleum industry in Nigeria is

A.The sole source of the nation's revenue
B.The oldest industry in the country
C.The mainstay of the economy
D.A factor in the decline in the nation's foreign reserves
E.In the hand of NNPC

Product homogeneity is one of the characteristics of

A.perfect competition
B.monopoly
C.monopolistic competition
D.oligopoly
E.competition

Which of the following is compatible with a firm in a purely competitive market?

A.demand is inelastic
B.demand is infinitely elastic
C.marginal cost is falling
D.price is greater than marginal cost
E.price is less than marginal cost

The difference between gross national product and net national product is equal to

A.Gross investment
B.Net investment
C.Net foreign income
D.Capital depreciation
E.Net and gross

The difference between the Gross Domestic Product and the Gross National Product is the

A.Allowance for total depreciation
B.Total interest payments
C.Total tax and interest payments
D.Net income from abroad
E.none of the above

The multiplier is defined as

A.The ratio of the change in income to the change in investment
B.The change in investment divided by the change in income
C.1/(MPC)
D.1/(1-MPS)
E.Process of multiplying initial increase in income