UNN Economics 2005/2006 DAY 1 Past Questions

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

A.human wants are limitless
B.the economy has very few resources
C.the economy can scarcely produce anything
D.resources are limited

Air is essential to life but commands no price! Diamond is not essential to life but commands a high price! This is the paradox of

A.thrift
B.value
C.abundance
D.scarcity

Objective

Question 3

Economies of scale operate only when

A.marginal cost is falling with input
B.average cost is falling with input
C.fixed cost is variable
D.variable cost is less than fixed cost

Objective

Question 4

Efficiency in production involves

A.reducing the size of workforce
B.producing a given output with the lowest cost combination of factors of production
C.adoption of capital intensive technology
D.increasing the quantity of the fixed factor of production

Objective

Question 5

An effect of inflation is that it...

A.discourages trade by barter
B.favours debtors at the expense of creditors
C.increases the real income of salary earners
D.increases the value of a country's exports

Objective

Question 6

The migration of young people from rural areas in Nigeria should help to raise the

A.standard of living in the urban areas
B.total productivity of labour in the rural areas
C.marginal productivity of labour in the rural areas
D.marginal productivity of labour in the urban areas

Objective

Question 7

A modern corporation is owned by

A.debenture holders
B.ordinary shareholders
C.preference shareholders
D.creditors

Objective

Question 8

One of the most important factors that shoud be considered in the location of an industry is

A.nearness to the financial centre
B.assured patronage by government functionaries
C.availability of inputs and market
D.availability of adequate security

Objective

Question 9

What is the term used to describe a policy aimed at promoting the local production of goods which are mostly imported

A.deregulation
B.import substitution
C.tariff reduction
D.backward integration

Objective

Question 10

Progressive tax structure is designed to

A.take more from the income of the poor
B.take more from the income of the rich
C.take equal proportion of income from both the rich and the poor
D.reduce the problems emanating from tax imposition

Objective

Question 11

The use of legally permissible means to reduce the tax liabilities is known as tax

A.evasion
B.avoidance
C.relief
D.exemption

Objective

Question 12

The greatest proportion of government revenue in Nigeria comes from

A.export of raw materials
B.income taxes on individuals and businesses
C.custom duties and excise taxes
D.loans and grants from industrially advanced countries

Objective

Question 13

Privatization of government-owned companies means the

A.relinquishing of government's equity participation to private individuals
B.recapitalization of government-owned companies
C.joint participation of government and private individuals
D.commercialization and deregulation of the economy

Objective

Question 14

Gains from tade depend on

A.comparative advantage
B.absolute advantage
C.distributive cost advantage
D.absolute cost advantage

Objective

Question 15

A country's import price index by 1997 was 50 and her index of export price was 70, calculate the index of terms of trade

A.20%
B.71%
C.120%
D.140%

Objective