UNN Economics 2010/2011 DAY 1 Past Questions

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

Economic goods are termed scarce goods when

A.not available in sufficient quantities to satisfy all wants for them
B.not produced in sufficient quantities to satisfy the effective demand for them
C.of high quality
D.of primary importance in satisfying needs of a society

The demand of a commodity is affected by

A.the consumer of the commodity
B.the price of the commodity alone
C.the price of the commodity, income of the consumer, prices of other commodities and preferences of the consumer
D.government policy

The demand curve can be derived from

A.the total utility curve
B.the cardinal utility theory
C.the marginal utility curve
D.all of the above

Which of the following statements is true of the effect of changes in demand and supply on price?

A.A decrease in supply will lead to the fall in price and a fall in th quantity bought and sold
B.An increase in demand will lead to a fall in price and in the quantity bought and sold
C.A decrease in demand will lead to a rise in price and in the quantity bought and sold
D.An increase in supply will lead to a fall in price and a rise in the quantity bought and sold

The basic idea behind the brand differentiation under an imperfect market arrangement is to

A.stimulate demand for rival product
B.create demand for the particular product
C.enable the product to penetrate the market
D.enable the product to compete with other products

It is important to measure the national income of a country because

A.it is a major determinant of the standard of living
B.it reveals hazards of development like pollution and congestion
C.it reveals the distribution of the citizens saving in foreign bank
D.its size determine the extent of political stability

Adding government and foreign sector to the circular flow of income and product

A.does not disturb the basic qualities of the circular flow
B.does alter the basic qualities of the cirular flow
C.is the basis for understanding the circular flow
D.disturbs the understanding of the circular flow

Consumption plus investment plus government purchases plus net exports make up

A.national income
B.net national income
C.net national product
D.national product

The role of the Central Bank in the economic development of Nigeria is to

A.use cheques and bank drafts to facilitate business transactions
B.maintain a stable price system
C.give short-and-medium-term loans to the public
D.give financial and technical advice to customers

The average tax rate is defined as

A.total tax rate less the marginal tax rate
B.the tax rate which applies to additional value of income
C.the ratio of the total taxes paid to total income
D.give financial and technical advice to customers

Which of the following is a good example of invisible item on balance of payments account?

A.shipping and aviation
B.exports and imports
C.merchandise
D.bullion

Economic decisions are taken

A.at the margin
B.at once as consumption goes on
C.at the beginning of events
D.at the level of the household

If units of a variable factor are increasingly added to a fixed factor and the marginal physical product keeps increasing, production is said to be taking place under conditions of

A.increasing returns to the variable factor
B.fixed cost less its variable cost
C.constant returns to the variable factor
D.external economies of scale

Short run period in production is a period too short for a firm to be able to change its

A.scale of operation
B.total revenue
C.variable inputs
D.total outputs

A firm's shut-down in production is a period too short for a firm to be able to cover the

A.marginal cost
B.average fixed cost
C.average total cost
D.average variable cost