UNN Economics 2011/2012 DAY 2 Past Questions

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

Suppose that the equilibrium price of an article is N500 but the government fixes the price by law at N400, the supply will be

A.the same as the equilibrium supply
B.greater than the equilibrium supply
C.less than the equilibrium supply
D.determined later by the government
E.none of the above

Objective

Question 2

Which of the following is not a direct tax?

A.Company income tax
B.Capital tax
C.Purchase tax
D.Personal income tax
E.Capital gains tax

Objective

Question 3

The process by which West African countries attempt to reduce the import of manufactured goods by encouraging firms to produce these at home is known as

A.Industrialization
B.Export promotion
C.Import substitution
D.Export substitution
E.Import expansion

Objective

Question 4

The basic principles of co-operative societies are those of

A.active participation of capitalists in the affairs of co-operative societies
B.worker ownership and owner control
C.sole proprietorship
D.partnership
E.denying of credit facilities to members

Objective

Question 5

Foreign exchange control in Nigeria is administered by the

A.United Bank for Africa
B.Union Bank of Nigeria
C.First Bank of Nigeria
D.Central Bank of Nigeria
E.National Bank of Nigeria

Objective

Question 6

The rate of exchange between a domestic and a foreign currency is defined as

A.Terms of trade
B.Domestic currency price of a unit of the foreign currency
C.Foreign currency price of gold
D.Domestic currency price of gold
E.None of the above

Objective

Question 7

A perfect example of a public good is

A.Air
B.Education
C.Defense
D.Transport
E.All of the above

Objective

Question 8

A school girl who needs a book and a mirror, each costing five naira, decides to purchase the book instead of the mirror since she cannot pay for the two at the same time. Determine the real cost of the book.

A.the five naira she spent on the book
B.five naira real cash value
C.the mirror
D.the book
E.none of the above

Objective

Question 9

A system in which the means of production is held in trust for the people by government is known as

A.social economy
B.capitalist economy
C.subsistence economy
D.mixed economy
E.open economy

Objective

Question 10

A firm determines its profits when it studies the

A.marginal cost
B.average cost
C.total cost
D.average cost relative to price in the market
E.average variable cost

Objective

Question 11

Given that the elasticity of demand for a commodity is 2.5, the percentage change in the quantity demanded as a result of 10% change in its price is

A.0.25
B.0.40
C.4.00
D.25.00
E.10.00

Objective

Question 12

One of the major consequences of urban-based development programs in Nigeria is that they

A.led to rapid rural-urban migration
B.led to unprecedented urban-wealth
C.transformed rural areas into urban areas
D.increased the level of specialized manpower in the cities
E.led to increase in number of schools

Objective

Question 13

An increase in discount rate is an indication of a central bank's intention to pursue

A.an expansionary monetary policy
B.a disciplined monetary policy
C.a dynamic monetary policy
D.a contractionary monetary policy
E.none of the above

Objective

Question 14

One of the problems arising from the localization of industries is

A.high prices of output
B.the exportation of output
C.the scarcity of foreign exchange
D.structural unemployment
E.cyclical unemployment

Objective

Question 15

An important factor hindering the rapid development of the industrial sector in Nigeria is

A.rural-urban migration
B.excessive demand for finished products
C.inadequate infrastructural facility
D.the dominance of the oil sector
E.all of the above

Objective