UNIZIK Economics 2014/2015 Day 1 Past Questions

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

Question 1

All these are direct taxes except

A.Company income tax
B.capital tax
C.purchase tax
D.personal income tax
E.capital gains tax

Objective

Question 2

One of these is not an indirect tax

A.exercise duty
B.company tax
C.import tax
D.export tax
E.sales tax

Objective

Question 3

A limited liability company is owned by

A.an individual
B.two or more partners
C.shareholders
D.government
E.bank

Objective

Question 4

The rationing of scarce goods in a free-market economy is done principally by

A.the government
B.business organizations
C.the price mechanism
D.consumers
E.both A and B

Objective

Question 5

The main economic goal of ECOWAS is to attain

A.rational free trade
B.multilateral trade
C.bilateral trade
D.economic self-reliance
E.the economic emancipation of Africa

Objective

Question 6

Supply of loanable funds is significantly influenced by

A.Commercial banks
B.mortgage banks
C.financial intermediaries
D.the central bank
E.insurance companies

Objective

Question 7

The most important characteristics of money is

A.portability
B.intrinsic value
C.acceptability
D.usefulness
E.beauty

Objective

Question 8

The purchasing power of Naira will fall when

A.the naira is devalued
B.there is inflation
C.government cuts all salaries and wages
D.the colour of naira is changed
E.workers are retrenched

Objective

Question 9

The most important advantage of cooperative society is

A.their high degree of democracy
B.the increase in the cost of marketing
C.that members are encouraged to save money
D.the possibility of raising loans for others
E.they give loans without caring how members will repay

Objective

Question 10

For normal goods, the income elasticity of demand is

A.Positive
B.negative
C.zero
D.infinite
E.in between

Objective

Question 11

An increase in supply will lower price except

A.supply is perfectly inelastic
B.demand is perfectly inelastic
C.it is followed by increase in demand
D.demand is highly inelastic
E.A and C

Objective

Question 12

The law of diminishing returns begins to operate when:

A.total product begins to rise
B.total product begins
C.marginal product begins to fall
D.marginal product begins to rise
E.both total and marginal product rise

Objective

Question 13

To increase its profit margin, the monopolist can manipulate

A.both pice and output
B.either price or output
C.only its price
D.only its output
E.neither price nor output

Objective

Question 14

A perfect example of a public good is

A.air
B.education
C.defence
D.transport
E.church

Objective

Question 15

Commercial bank reserves at the central bank have the effect of

A.controlling credit and money supply
B.discouraging banking operations
C.Advancing trade prospects
D.reducing bank frauds
E.C and D.

Objective