Given the figures below :
Price of commodity A in January = N5.00
Price of commodity A in February = N7.00
Quantity of A bought in January = 20 kg
Quantity of A bought in February = 16 kg (a) Calculate:
(i) Percentage change in quantity bought (% )
(ii) Percentage change in price of A (% )
(iii) Coefficient of price elasticity of demand (e)

(b) From your answer:
(i) is the demand elastic or inelastic?
(ii) How do you know this?

Theory

Question 6

In which of the following economics system is the consumer referred to as ‘The King’?

A.Planned economy
B.Mixed economy
C.Traditional economy
D.Free Market economy
E.Socialist economy

Objective

Question 6

Write short notes on
(a) Liquidity Ratio.
(b) Fixed Deposits.
(c) Money Market.

Theory

Question 7

Into which of these organization would you classify the International Monetary Fund (IMF) ?

A.Political organization
B.Trade organization
C.Financial organization
D.Social organization
E.Commercial organization

Objective

Question 7

The bulk of West African foreign trade is directed away from Africa to Europe and America. What are the reasons for this?

Theory

Question 8

A normal demand curve is

A.Is concave to the point of origin
B.Is convex to the point of origin
C.Is parallel to X axis
D.Is parallel to Y axis
E.Slopes upwards from left to right

Objective

Question 8

Discuss the important role played by agriculture in the economy of your country.

Theory

Question 9

A demand schedule is

A.A table containing the price of goods
B.A table showing the relationship between price and quantity demanded of a commodity
C.A table showing the consumer demand on order of importance
D.The quantity of goods the consumer is prepared to buy
E.The market demand

Objective

Question 9

(a) What are the objectives of the Organisation of Petroleum Exporting Countries (OPEC) ?
(b) What are the problems of the OPEC?
(c) What remedies have been adopted to curtail them?

Theory

Question 10

Which of the following is not an advantage of price control?

A.Control of inflation
B.Distortion of price mechanism
C.Prevention of exploitation
D.Control of producer’s profit
E.Helping low income earners

Objective

Question 11

Which of these factors does not cause a change in demand?

A.Income
B.Taste and fashion
C.Population
D.Price of other commodities
E.Price of the commodity concerned

Objective

Question 12

Price control can be defined as the fixing by Government of maximum or minimum price of

A.Luxury goods
B.Inferior goods
C.Imported capital goods
D.Certain selected goods
E.Goods consumed by low income earners

Objective

Question 13

When the price of commodity A increases, the demand for commodity B decreases, then A and B are

A.Close substitutes
B.Complementary goods
C.Supplementary goods
D.Gifted goods
E.Luxurious goods

Objective

Question 14

When the demand for a commodity is inelastic, total revenue will fall if

A.Price is increased
B.Price is reduced
C.Price remains constant
D.Price is not given
E.The commodity is a luxury

Objective

Question 15

The major currency used for granting credits to member countries of the International Monetary Fund (IMF) is the

A.US dollars .
B.Canadian dollars
C.Pounds sterling
D.Deutschemark
E.Belgian franc

Objective

Question 16

The two largest producers of crude oil in Nigeria are

A.Borno and Ondo States
B.Oyo and Bendel States
C.Kwara and Benue States
D.Rivers and Bendel States
E.Niger and Rivers States

Objective

Question 17

If a producer sells 1kg of rice for N20 and his marginal products is 100kg, what is the highest wage he can pay the marginal labourer?

A.N 20.00
B.N 30.00
C.N 50.00
D.N 100.00
E.N 200.00

Objective

Question 18

Nigerian indigenization decree was promulgated in order to

A.Allow indigenes to have the full participation in the economic activities of the country
B.Drive away foreigners
C.Give equal chances to indigenes and foreigners in making economic decisions in the country
D.Give industrial training to indigenes
E.Indigenes expose the economic activities of the country

Objective

Question 19

An economic system in which most capital goods are owned by individuals and private firms is known as

A.Mixed economy
B.Planned economy
C.Capitalist economy
D.Traditional economy
E.Civilized economy

Objective

Question 20

Which of the following is not a feature of Sole Proprietorship?

A.The Sole Proprietor provides the capital to start the business
B.The Sole Proprietor is the boss of his business
C.There is unlimited liability
D.Continuity is doubtful at the death of the proprietor
E.Decision can be taken only by ten people

Objective

Question 21

The International Bank of Reconstruction and Development (IBRD) is important to the developing nations because it

A.Gives loans to member s for legal proceedings
B.Offer grants and aids for defense
C.Enhances financial relationship among countries
D.Offer soft loans for educational and health services
E.Offer grants and aid to finance private projects

Objective

Question 22

Which of these best explains Malthusians theory of population?

A.Increase in population cause hunger and death
B.The population increase faster than food supply
C.The population grows at arithmetic progression while food production grows at geometric progression
D.People could be sent to ‘No man’s land’ when the population increases
E.People should produce as many children as they could to because passion cannot be controlled