UNIZIK Economics 2007/2008 Day 1 Past Questions

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

In which of the following economic systems is the consumer referred to as "The King"

A.planned economy
B.Mixed economy
C.traditional economy
D.free market economy
E.Socialist economy

A normal demand curve

A.is concave to the point of origin
B.is convex to the point of origin
C.is parallel to x-axis
D.is parallel to y-axis
E.slopes upwards from left to right

The price of a commodity is determined by

A.the supplier
B.the consumer
C.the quantity of goods demanded
D.the quality of goods supplied
E.the quantity of goods Supplied

The International Bank for Reconstruction and Development (IBRD) is important to the developing nations because it

A.gives loans to members for legal proceedings
B.offers grants and aids for defence
C.offers soft loans for educational and health services
D.offers grants and aids to finance private projects.

In any economic system, which of the following is not an economic problem?

A.What goods and services to provide
B.for whom to produce goods and services
C.what techniques of production to be adopted
D.equal distribution of goods and services
E.how to ensure the economy grows over time

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

A. money at call and short notice
B.treasury bills
C.commercial bills
D.stock and shares
E.cash

The drawer of a cheque is

A.the person who are to be paid the sum of money as written in the cheque
B.the person who takes the cheque to the bank
C.the bank on which the cheque is drawn
D.the person who wires out the cheque
E.the bank officer who certified the cheque

All these are sources of finance to a joint stock company except

A.bank loans
B.equity share
C.debentures
D.preference shares
E.cooperate thrift

Scarcity in economics means that resources

A.are not enough to share among the products of goods and services
B.needed to satisfy human wants are limited
C.are never enough t share among consumers of goods and services
D.required to meet our essential wants are unlimited
E.can be managed if those who use them behave rationally

Demand in Economics is synonymous to

A.needs
B.wants of the consumers
C.all goods ability to pay
D.wants supported with ability to pay
E.all consumer goods

An inferior goods is one

A.that is not bad for consumption
B.whose price is lower than the pieces of the other goods
C.that is easily perishable
D.whose demand falls when the income of the consumers increases
E.that is not durable

One major functions of the central bank is to

A.mint money
B.hold demand deposits and honour cheque
C.acts as medium of exchange
D.create money
E.control and regulate

Money becomes a very poor store of value in a period of

A.deflection
B.stable prices
C.recession
D.inflation
E.harvest

The real value of money is

A.its face value
B.what it can buy at a particular time
C.its rate of exchange with other currencies
D.its intrinsic worth
E.its rate of circulation

Which of the following explains marginal cost?

A.overhead cost plus variable cost resulting from production
B.the average cost of producing more units of the production
C.the extra cost minus variable cost
D.Overhead cost minus variable cost
E.the addition of the total cost resulting from the production of an additional unit

which of the following is a feature of a perfect market?

A.large number of buyers and sellers
B.homogeneity of products
C.preferential treatment
D.absence of transport cost
E.perfect knowledge of market situation

A stock exchange is a market that

A.deals with the exchange of commodities
B.deals with the purchase and sale of securities
C.exchange treasury bills and bill of exchange
D.sells foreign exchange
E.exchange goods and services

Which of the following is used to measure inflation?

A.open market operation
B.cash deposit ratio
C.price index
D.multiplier
E.fiscal policy

Income elasticity of demand is the measure of the responsiveness of

A.price to changes in income
B.quantity demanded to change in income
C.changes in expenditure to changes in income
D.changes in expenditure to changes in price of the commodities

Budget deficit can be financed by

A.reducing the level of taxation
B.printing more money
C.lending to financial institution
D.employing more workers