RSUT Economics 2009/2010 Past Questions

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

A major liability of a commercial bank rise from ........

A.Customer's deposits.
B.Loan and advances
C.Overdrafts
D.Staff allowances

Retailers in an economy perform the function of

A.Production
B.Exchange
C.Distribution
D.Investment

In a sole proprietorship, the decisions are made by the......

A.Government
B.Board of directors
C.Owner
D.Shareholder conference

The meaning of wage-price spiral is

A.Demand pull and cost push inflation pulling each other in different direction
B.Demand pull and cost push intensify each other
C.That wages and price are rising at a proportional rate
D.That demand pull and cost push inflation increase employment

Which of the following enterprises does not pursue the sole objective of profit maximization

A.Roads Nig Ltd
B.Union Bank of Nigeria Ltd
C.Power Holding Company of Nigeria
D.Kingsway Nigeria Ltd

Palm oil industry is located in Edo State because the state

A.Imports raw material for oil industry
B.Is a palm tree growing area
C.Government does not engage land for other crops
D.Land is suitable for oil

Disequilibrium in the balance of payments means

A.Imports of the country exceeding its export
B.Deficit in the trade balance
C.Capital flowing out of the country exceeds the Capital flowing into the country
D.Overall deficit or surplus in the current account and capital account of the balance of payment.

Full employment is the condition in which virtually all who are able and willing to work are employed.

A.Every adult is employed
B.All adult who can work are employed
C.Only the disable are not employed
D.All those who are able and eligible to work can find employment.

PHCN as a public corporation is a

A.Duopoly
B.power generating industry in Nigeria
C.Monopoly
D.A monopolistically competitive industry

Demand for a factor of production is

A.A composite demand.
B.A Joint demand
C.A derived demand
D.An elasticity demand

A consumer is said to be rational if

A.He buys as many goods as his income can buy
B.He tries to maximize his utility not withstanding his limited income
C.He maximizes his utility by borrowing money after exhausting his income
D.He produces maximum commodities

For a consumer of two commodities equilibrium is attained when

A.MU₁= P¹ and MU₂ = P₂
B.MU₁/P₁ = MU₁P₁
C.MU₁/P₂= MU₂P₁
D.MU₁/P₁ X MU₂/P₂

The law of diminishing marginal utility states that

A.The total utility of a commodity increases initially and decreases later
B.The marginal utility of a commodity diminishes as the consumer takes more of it
C.The marginal utility may be positive or negative
D.Utility is a cardinal

One of the following is not a property of an indifference curve

A.Negative slope
B.non-intersection of difference curve
C.Higher indifference curve equals higher utility
D.decreasing rate of technical substitution

With a given level of money income, a consumer maximizes satisfaction from the consumption of goods and services when the

A.total utility derived from each goods or service is increasing
B.marginal utility derived from each good or service is increasing at the same rate
C.marginal utility derived per naira spend is the same for all the goods and services
D.total utility derived from all the goods and services is large

If at 20k per kg, 2000kg of yams were purchased and at 10k per kg, 3000kg were purchased, the resultant point elasticity of demand is

A.0.33
B.0.001
C.1
D.10

If as the price of a commodity rises, the quantity demanded of the commodity remains the same, then the demand for the commodity is

A.static
B.Infinitely elastic
C.externally determined
D.perfectly inelastic

Which of the following factors is an important determinant of the magnitude of price elasticity of demand?

A.the time period
B.cost of storage
C.utility of the product
D.availability of factors of production

If an increase in the price of a commodity leads to an increase in total revenue, then it means that the demand for this commodity is

A.normal
B.elastic
C.inelastic
D.abnormal

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

A.0.25
B.0.40
C.4
D.25