UNICAL Economics 2020/2021 Past Questions

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

A commodity is said to have a derived demand when the commodity

A.And another have joint demand
B.Is demanded because of what it can help to produce
C.Is demanded for different purposes
D.Has inelastic demand

Deflation is a persistent fall in the general price level and is usually caused by

A.Reduction in total demand
B.An increase in government spending
C.An increase in the money supply
D.An increase in aggregate demand

The value of the total output produced within Nigeria by all residents (citizens and non - citizens) is referred to as the

A.Gross national product
B.Disposable income
C.National income
D.Gross domestic product

The Malthusian theory of population growth is often said to be

A.oversimplified
B.ambiguous
C.optimistic
D.pessimistic

Given an original price of #400 per kilogram of rice and a change in price of #20, and given the quantity purchased at the old price as 10kg and a change in quantity as 5kg after the price changed the elesticity is equal to

A.5
B.10.8
C.10
D.0.80

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

The main reason for charging interest is to

A.Reward entrepreneurial effort
B.Redistributes profits
C.Reward investors for present use of capital
D.Mobilize more funds for development

Liquidation of a limited liability company implies that the

A.Company may not pay its debt
B.debts of the company can only be paid from its own asset
C.debts of the company are paid from both business and private funds of the owners
D.debts of the company must be paid from public funds only

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

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