1. Economic activities are untaken to solve the problem of

A. Consumption

B. Opportunity cost

C. production

D. Scarcity

2. Farming, Mining and fishing are

A. Primary production

B. Secondary production

C. tertiary production

D. intermediate production


3. A list of consumers’ wants arranged in order of priority is known as

A. a budget

B an opportunity cost

C. a scale of preference

D .a choice


4. The 150.00 Naira which Olu would have used to purchase a textbook was used to buy a T-Shirt. This implies that

A. Olu’s real cost is 150.00 Naira

B. Olu’s opportunity cost is T-shirt he brought

C. Olu’s opportunity cost is the textbook

D.Olu’s money cost is also the real cost


5. The remuneration of the entrepreneur as a factor of production is called

A. Wages

B. Salary

C. Interest

D. profit


6. The production factor whose entire world supply is fixed is

A. land

B. skilled labour

C. capital goods

D. entrepreneurship


7. When all factor inputs are reduced by half, the production possibility curve wlll shift

A. outwards

B. inwards

C. downwards

D. upwards


8. When a worker changes from one type of job to another, it is called

A. geographical mobility of labour

B. occupational mobility of labour

C. immobility of labour

D. rural –urban migration


9. Which of the following determines the sizes of a country’s population

I. Birth rate

II. Death rate

III. Migration rate

IV. Unemployment rate

A. I, II and IV

B. II and IV

C. I, II and III 

D. I and IV


10. Age distribution is important because it helps the government to

A. check rural-urban drift

B. determine the number of foreigners

C. determine the number of factories

D. undertake effective planning


11. A group of firm producing similar commodities for the same market constitute

A. a cartel

B. an industry

C. a co-operative

D. wholesalers


12. A factor that has slowed down the rate of industrial development in West Africa

A. inadequate technology

B. increasing rate of manpower production

C. increasing demand for local goods

D. intervention of the government in business activities


13.  To achieve an equilibrium position, the consumer must buy so much of each commodity whose price is equal to its

A. marginal utility

B. total utility

C. average utility

D. variable utility


14. Price control refers to

A. the ways of making more goods available in the market

B. a policy of ensuring stable price in the market

C. a general reduction in the price level

D. effective working of the forces of demand and supply


15. The desire for goods without ability to pay is called

A. choice

B. effective demand

C. joint demand

D. wants


16. Amount of goods offered ti the market at respective prices and presented in a table is called

A. price schedule

B. supply schedule

C. scale of preference

D. demand schedule


17.At the equilibrium price, quantity demand is a

A. greater that quantity supplied

B. equal to quantity supplied

C. less than the quantity supplied

D. equal to excess supply


18.If the government fixed a price of a commodity above the equilibrium price, the quantity supplied  will be

A. less than quantity demanded

B. equal to the quantity demanded

C. greater than quantity demanded

D. equal to zero


19. One of the factors determining price elasticity of demand for a commodity is the

A. availability of close substitute

B. number of producers

C. government policy

D. price of other commodities


20.If the elasticity of demand for a commodity is less than one, demand is

A. unitary elastic

B. inelastic

C. infinitely elastic

D. zero elastic


21. The transfer of ownership of a public enterprise to individual and firms is called

A. commercialization

B. nationalization

C. privatization

D. restructuring


22.One-man businesses are popular in West Afric because of all the following except

A. ease of entry

B small capital required

C. limited entrepreneur skill needed

D. tendency to become joint stock companies


23.Wholesalers are often criticised because they

A. help to break the bulk

B. finance producers

C. increase prices

D. provide after sale services


24. In which of the following business units are the owners mostly the customers?

A. co-operatives

B. Limited liability companies

C. Partnerships

D. Public corporations


25.Information about new goods is passed on to buys through

A. advertising

B. retail trade

C. the manufacturer

D. the wholesale trade


26. In the figure in the graph PN equals average revenue or the marginal revenue curve of

A. An imperfect competitive firm

B. a monopoly

C. a perfectly competitive firm

D. a monopolistic competitive firm


27. The profit of the producer can be calculated as

A. total cost less cost revenue

B. average revenue less average cost

C. total revenue less total cost

D. marginal revenue less marginal cost


28. The direct exchange of one good for another without the use of money is known as

A. foreign exchange




B. exchange money from people

C. desire of an individual to invest all his money in project

D. willingness of people to hold money

D  willingness of people to keep all their resources in asset




31. A persistent and appreciable rise in the general level of price is known as

A. depreciation

B. inflation

C. deflation

D. production



32. To a commercial bank, deposit are

A. liabilities

B. assets

C. capital

D. cash at hand


33. The lender of last resort in the banking system is the

A. Industrial bank

B. mortgage bank

C. commercial bank

D. central bank


34. Discount a bill of exchange mean the bill is

A, cashed over the counter

B. sold on the stock exchange

C. brought for less than its face value


35. The central bank control credit in the economy through the use of

A. legal tender

B. traveller cheque

C. foreign exchange instruments

 D. open market operations


36. Among the principles of taxation propounded by Adam Smith was that

A. a tax should be impossible to evade

B. a tax should be convenient to pay

C. no tax should be levied on food

D. there should be no taxation without representation


37. Mr Bala’s income is $800 per month while that of Mr Jatau is $1,200If Messrs Bala and Jatau pay $80.00and $120.00 respectively as taxes, the tax system is

A. progressive

B. regressive

C. proportional

D. ad-valorem


38. Government revenue from groundnut industry is from

A. license

B. rents

C. royalties

D. taxes

39. The theory of comparative cost advantage is associated with

A. Alfred Marshall

B. Adam Smith

C. David Ricardo

B. J.B. say

40. When the value of a nation’s export is greater than its imports

A. a favourable balance of trade exist

B. an unfavourable balance of payment exists

C. The net foreign trade is zero

D. inflation occurs

41. To improve the balance of payments position of West African countries, there must be

A. a favourable balance of trade exists

B. an unfavourable balance of payment exists

C. the net foreign trade is zero

D. inflation occurs


42. The Economic Community of West Africa States (ECOWAS) is an example of

A. bilateral trade

B. economic integration

C. regional marketing board

D. international competition


43. One reason for the low agricultural production in West African Countries is that

A. agriculture employs the highest percentage of the labour force

B. too much money is invested in agriculture

C. farmers lack the finance and technology required

D. the farms are too large


44. Mono-product economies are those that

A. produce one main commodity

B. produce one raw material

C. depend on the export on their raw materials

D. specialize in agricultural industries


45. An essential characteristics of a market economy is

A. government control

B. producer surplus

C. consumer surplus

D. consumer sovereignty


46. In a capitalist system, goods are produced for those who

A. wants them most but cannot pay for them

B. can pay for them but do not want them

C. want them and can also pay for them

D. are dependent on the labour force



47.  An economy which exhibit features of both private and state enterprises is known as

A. capitalist economy

B. mixed economy

C. communist economy

D. socialist economy


48.In calculating the national income of a country X, the cost of both raw material and the finished products were included . This is case of

A. double counting

B. price fluctuations

C. price differentiation

D. price discrimination


49. Economic development is defined as

A. outward shift of the production possibility curve

B. availability of more goods and services

C. growth accompanied by qualitative change in living standards

D. growth in the national income


50. Which of the following is not an objective of the Organization of petroleum Exporting Countries (OPEC)?

A. Stabilization of oil prices

B. co-ordinating oil prices

C. harmonizing oil price

D. stagnation of developed economies