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Economics 1 QUIZ STUDY
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The advantage of sole proprietorship is as follow
A. It is always successful
B. Continuity is no problem
C. Control and supervision is under one man
D. Inter-generational equity is assured

In economics production is complete when
A. Goods are produced in the factory
B. Goods are sold to the wholesalers
C. Prices are fixed for goods and services
D. Goods and services finally reach the consumer

A rational consumer will adjust his spending pattern so that
A. He buys only the one item that gives him most total satisfaction
B. The marginal utility he gets from the last unit of item is the same
C. The marginal utility he gets from the last naira spent on each item is the same
D. The total amount of money he spends on each item is the same

which of these alternative is wrong? central banks are
A. bankers to the government
B. bankers to commercial banks
C. merchant banks
D. controllers and regulators of money supply

The proportion of currency in the money supply
A. is higher in developing countries than advanced countries
B. is lower in developing countries than advanced countries
C. is the same in both developing and advanced countries
D. grows as the economy develop

Pure monopoly describes market where
A. there are many sellers and a few buyers
B. goods are sold at different price
C. entry is not blocked, but no one cares to enter
D. None of the above

which of the financial institutions cannot direct tax loans to individuals?
A. The agricultural bank
B. The Industrial bank
C. The central bank
D. The Co-operative bank

Which is NOT a cause of high population growth in Nigeria?
A. Family planing Unit of Nigeria
B. Improve medical facilities
C. Reduction in death rate
D. Increased birth rate

Commercial banks can create money in the following ways?
A. by using coins and paper money
B. by borrowing money from banks abroad
C. by receiving deposit from individuals
D. by printing money on the instruction of the central bank

Utility of a commodity means?
A. its usefulness
B. power to satisfy a want
C. price of the commodity
D. its adaptability

A limited liability company is owned by?
A. an individual
B. two or more partners
C. shareholders
D. a bank

The fundamental problem of Economics is?
A. money
B. poverty
C. unemployment
D. inflation

Which of the following is the standard concept for measuring and analyzing population growth?
A. The rate of natural increase
B. The net migrate
C. The fertility rate
D. All of the above

When we draw a market demand curve, we?
A. ignore tastes, incomes and other prices
B. assumes that tastes, income and prices do not matter
C. assumes that taste, income and all other prices change in same direction as prices
D. assume that tastes, incomes and all other prices remain constant

Which of the following is NOT one of the balance of payment entries?
A. the current account
B. foreign exchange
C. Short-term capital
D. Long-term capital

In a subsistence economy?
A. there is no shortage of goods and services
B. the state is the sole owner of resources
C. production is largely oriented towards consumption in the rular sector
D. women predominate in all economic activities

Invisible trade refers to trade in?
A. services
B. goods and services
C. short-term and long-term capital
D. goods that cannot be seen

Surplus in balance of payment leads to?
A. inflation or increasing prices generally
B. increases in foreign reserves
C. decreases in foreign reserves
D. Government budget surplus

Prohibiting the sale of lace materials in Nigeria would probably lead to?
A. Increase supply of lace material in Nigeria
B. Production of better quality lace abroad
C. Lower price of lace material in Nigeria
D. Higher price of lace material in Nigeria

An equilibrium price?
A. keeps excess demand within limits
B. keeps excess supply within limits
C. generates the greatest possible profits
D. equates the quantity supplied to be equal to the quantity demanded

A firm whose cost of product decrease as it continues to increase its output is said to be enjoying?
A. profit maximization
B. a wind fall
C. government subsidies
D. economics of scale

Who controls a limited liability company ?
A. The general manager
B. The managing director
C. The owner of 51% of shares
D. The board of directors


if AC = Average Cost of production , TC = Total Cost of production, VC = Variable Cost of production FC = Fixed Cost of production Q = Quantity of goods produced



AC = TC; TC = VC + FC


AC = (TC) Q; TC = VC + FC


AC = TC; TC = (VC)(FC) Q


AC = TC- FC; VC = TC- AC

Population growth can be calculated as ?
A. Birth rate + death rate + migration rate + immigration rate
B. Birth rate – death rate + migration rate -immigration rate
C. Birth rate + death rate – migration rate + immigration rate
D. Birth rate – death rate – emigration rate + immigration rate

Retailers are greater in numbers than wholesalers because?
A. retail business may not be registered or incorporated
B. retail business requires less expertise
C. retailers deal with final consumers
D. all retail businesses are large enterprises

Monetary policy does NOT involve
A. increasing the import duties
B. buying or selling treasury bills by the Central Bank
C. printing of more currency note
D. raising the level of interest

A good measure of the standard of living usually used for international comparison is
A. gross national income (GNI)
B. net national income (NNI)
C. gross domestic product (GDP)
D. per capital income (PCI)

A commodity can be sold for two or more different prices if it is?
A. produced or sold by oligopoly
B. sold in perfect market
C. produce or sold by monopsony
D. produced or sold by monopoly

If income rises from N200.00 to N250.00 and the amount spent on good X falls from N300.00 to N28.00, then good X is?
A. an income elastic good
B. a normal good
C. an inferior good
D. an abnormal good

Oligopoly means
A. large number of sellers in the markets
B. single seller in the market
C. few sellers in the markets
D. single buyer in the market

When the import of a commodity is limited to a definite quantity by using a trade control method, this is known as
A. tariffs
B. quotas
C. devaluation
D. revaluation

In Nigeria, a balance of payments deficit can be solved by all of the following EXCEPT?
A. imposing import bans on some commodity
B. imposing import duties
C. purchasing foreign exchanges from foreign countries
D. drawing down on external reserves

Which of the following is NOT include in measuring national income by the income approach?
A. Wages and salaries of public servant
B. student grants and scholarship
C. Profit of companies
D. Rents on property

A downward sloping demand curve intersect a fixed supply curve, A shift of this demand curve to the right implies that?
A. both and quantity will increased
B. only quantity increases
C. the price remains constant
D. the price falls

The natural rate of growth of a population is the
A. sum of the birth rate and the death rate
B. sum of the birth rate and the net migrate rate
C. birth rate minus death rate
D. death rate minus the net immigration

Which of the following sets fully represents factors of production?
A. Sunlight, machinery, man , land
B. Land, labour, capital, enterprise, technology
C. Capital, technology, ideas, markets, land
D. Land, water, weather

The concept of economic efficiency primary refers to?
A. obtaining the maximum output from available resources at the lowest cost
B. equity in the distribution of the national's wealth
C. producing without waste
D. the limited wants-unlimited resources dilemma

If successive units of labour are added to a piece of land while capital and technology remain constant, a point will be reached in the level of production when each added unit of labour will added less to the output than previous units of the labour. This concept is known as?
A. the productivity of labour
B. the law of diminishing marginal utility
C. the law diminishing returns
D. the concept of factor intensity

Marginal cost curve intersects average cost curve ?
A. from above at its lowest point
B. from below before the lowest point
C. from below at its lowest point
D. at zero point

The meaning of 'wage-price spiral' is?
A. demand pull and cost push inflation pulling each other in different director
B. demand pull and cost push inflation intensifying each other
C. that demand pull and cost push inflation increases employment
D. that wages and prices are rising at a proportional rate

In an inflationary period which of the following statements is NOT true?
A. Wages rise simultaneously with prices
B. The purchasing power of money diminishes
C. More money runs after a limited quantity of goods
D. Money supply increases

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. board of directors
B. management
C. shareholders' conference
D. owner

The maintenance of general economic stability in the country necessarily relies heavily on?
A. federal fiscal policy
B. coordinated federal, state and local fiscal policies
C. tax and revenue policies of state governments
D. federal grants to state and local government

In the event of a limited liability company going into liquidation each
A. shareholder may lose the maximum of the amount he has invested
B. shareholder loses nothing
C. shareholders loses everything including his house
D. shareholder's liability becomes unlimited

A greater burden of the taxes on essential goods is borne by the?
A. middle income group
B. higher income group
C. lower income group
D. top few richest people of the country

Comparative cost doctrine of international trade means specialization in production
A. according to absolute cost disadvantage
B. according to absolute cost disadvantage
C. according to comparative cost disadvantage
D. according to comparative cost advantage

The meaning of 'Dumping' is selling goods in a foreign market
A. at a low price that received in the home market
B. in order to encourage indigenous producer
C. at a a price higher than that received in the foreign market
D. at a price equal to the cost price in the home market

Petroleum 'glut' in international trade means
A. a fall in petroleum production
B. an over supply of petroleum
C. a higher petroleum price offered by the buyer
D. a higher petroleum price demanded by the seller

International trade is necessary because?
A. no country can live in economic isolation
B. different countries are differently endowed in natural and man-made resources
C. the word demand for and supply of various categories of commodities is expanding very fast
D. countries want to build up their foreign exchange reserves

Mono production economies are those that?
A. have a rich cultural heritage
B. produces only raw materials
C. live from the export of their raw product
D. produce one main commodities

The quickies way of achieving an economic union on regional basis is to remove all?
A. currency barriers
B. language barriers
C. political barriers
D. customs barriers

Which of the following is NOT an advantage of localization of industries?
A. Reaping of external economies
B. Development of a pool or skilled labour for industry
C. Development of subsidiary industries
D. Growth of conurbations

The monetary system that requires double coincidence of want is known as?
A. the gold standard
B. barter
C. the commodity system
D. the cheque system

The effect of emigration on a country's population, all other things remaining equal, is to
A. increase its size
B. cause overpopulation
C. increase its growth rate
D. reduce its size

Money performs a number of function, ONE of these functions makes is possible for any person to provide for old age?
A. money is regarded as a medium of exchange
B. measure for value
C. unit of account
D. store of value

Which of the following defines Economics most comprehensively?
A. Buying and selling
B. Organization and Industries
C. study of human behaviour in the allocation of scarce resources
D. Banking and Insurance

Age-structure in Nigeria is such that the working age-group is in the years
A. 1- 15
B. 15- 65
C. 30 - 40
D. 40 - 65

When demand is elastic, it means that consumers
A. react more proportionately to price change
B. will stop buying when price increases
C. react less proportionately to price change
D. react equally to price change

Full employment is a situation in which?
A. every adult is employed
B. all adults who can work are employed
C. only the disabled are not employed
D. all those who are able and eligible can find employment

Demand for a factor of production is?
A. a composite demand
B. a joint demand
C. a derived demand
D. an elastic demand

Differentiated product is the characteristic feature of?
A. perfect competition
B. pure competition
C. monopolistic competition
D. oligopoly

The main economic objective behind the product of goods and services in any economy is to?
A. maximize profits
B. satisfy human wants
C. become self reliant
D. make people wealthy

Demand for a commodity by a consumer is the quantity of that commodity that the consumer
A. demands at a given price at a point in time
B. demand at a given price
C. actually digests
D. produces, given its price

Division of labour is limited by?
A. the size of market
B. cost of production
C. the factors of production
D. government policy

The production within the domestic territory of a country is called the
A. net national product
B. gross domestic product
C. disposable income
D. gross national product

The advantages that accrue to a firm as the size of the firm increases are known as
A. external dis economies
B. internal returns to scale
C. internal economies
D. constant returns to scale

Which Of the following is NOT an obstacle to economic development?
A. lack of modern technology
B. High rate of population growth
C. Low productivity
D. Dedicated leadership

An aging population refers to the preponderance of?
A. middle-aged people in the population
B. young people in the population
C. old men in the population
D. old people in the population

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