UI Economics 2018/2019 Past Questions

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

Direct payment incurred for producing a commodity is called

A.implicit cost
B.real cost
C.opportunity cost
D.due cost
E.explicit cost

Diseconomies of scale can be caused by the following EXCEPT

A.managerial inefficiency
B.increased resource-cost
C.large market
D.inefficient business environment
E.technology

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

Economic efficiency means

A.obtaining maximum output from available resources
B.equitable distribution of nation's resources
C.carrying out production without any waste
D.producing the maximum output from available resources at the lowest possible cost
E.efficient utilisation of the nation's resources

External economies are

A.the advantages accruing to firm as a result of its expansion
B.the advantages accruing to one firm as a result of the existence of other firms in the same locality
C.benefits derived by a firm as a result of its own external economies policy
D.economies reaped only by firms that are externally focused
E.bound to increase the cost of production

From an ECONOMICS point of view, an activity does not have cost when

A.someone else pays for it
B.the returns are greater than costs
C.the choice involves giving up nothing
D.government pays for it
E.it is paid for from gift

Opportunity cost is a term which describes

A.initial cost of setting up a business venture
B.a study of the ways man devices to satisfy his unlimited wants from limited resources
C.cost of one product in terms of forgone production of others
D.the mandatory equivalent of the utility of a commodity
E.cost related to an optimum level of production

Scarcity in ECONOMICS means

A.a period of scarce things
B.when things are costly to acquire
C.monopolisation of available resources by a few
D.nationalisation of natural resources such as petroleum in Venezuela
E.none of the above

Which of these is the real cost of satisfying any want in the sense of the alternative that has to be forgone

A.variable cost
B.opportunity cost
C.total cost
D.prime cost
E.marginal cost

Economic analyses and conclusions can be divided into

A.consumption and production
B.positive and normative
C.micro ECONOMICS and macro ECONOMICS
D.demand and supply
E.none of the above

In a limited liability company, the greatest risk is borne by

A.Shareholders debentures
B.Company executives
C.Ordinary shareholders
D.Preference shareholders
E.Board of directors

In a public company, shares are

A.Sold to one person only
B.Distributed freely
C.Advertised to members of the public for subscription
D.Disposed off by the Chief Executive
E.none of the above

The advantage of the sole proprietorship is as follows:

A.It is always successful
B.Continuity is no problem
C.Control and supervision is under one man
D.Funds are easy to obtain
E.Inter-generational equity is assured

The maximum number of shareholders for a limited liability company is

A.Twenty
B.Seven
C.Five
D.Infinite
E.Limited to the number of individuals that are interested

Population density refers to

A.Densely populated urban centres
B.The total area divided by the total population
C.Densely populated rural areas
D.The total population divided by the total area
E.All of the above

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

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

Money serves well as a store of value in an environment devoid of

A.unemployment
B.bank robbery
C.development-oriented central/reserve bank
D.inflationary pressure
E.substitutes like ATMs, cheques and bank draft

The ability of deposit money banks to create money is mainly affected by

A.reserve ratio
B.liquidity ratio
C.capital base
D.monetary policy rate
E.all of the above

A document that shows the details of government revenue and expenditure in a year is called

A.budget
B.development plan
C.rolling plan
D.perspective plan
E.financial plan

The basic fiscal relation that exists among the three tiers of government in Nigeria is

A.national budget appropriation
B.State-Local Government joint account
C.revenue allocation from the federation account
D.federal road projects
E.federal character principle

If a firm doubles its output and its costs increase by 60%, the firm is experiencing

A.increasing costs
B.economies of scale
C.decreasing returns
D.decreasing costs
E.none of the above

In economics, production is complete when

A.Goods are produced in the factories
B.Goods are sold to the wholesaler
C.Goods and services are produced by the government
D.Prices are fixed for goods and services
E.Goods and services finally reach the consumer

In the study of economics, land, labour, capital and entrepreneur are referred to as factors of production. These factors produce commodities only if they are .........

A.profitable to the production process
B.purchased for the purpose of production
C.combined in the production process
D.produced adequately for the production process
E.brought into factory

Production that takes place within the production possibility curve is said to be

A.inefficient
B.possible
C.with increased output
D.x-efficient
E.pareto-compliant

The act of combining factor inputs in order to obtain specific output is known as

A.factor procurement
B.manufacturing
C.investment
D.industrialisation
E.production