RSUT Economics 2011/2012 Past Questions

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

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 retums 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 point is reached when the average revenue fails to cover the

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

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 hazard of development like pollution and congestion
C.It reveals the distribution of the citizen's saving in foreign bank
D.its size determines 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 altar the basic qualities of the circular 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-term 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 than 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.marginal tax rate for being progressive