1. The three principal economic units in any systems are

A. trade, industry and banking

B. workers, consumers and shareholders

C. households, firms and governments

D. companies, industry and plants


2. The satisfaction derived from the use of a commodity is it’s

A. demand

B. elasticity

C. wealth

D. Utility


3. The reward which accrues to labour for participating in production is

A. interest

B. wage

C. bonus

D. profit


4.The Malthusian theory of population does not concern itself

A. growth of food production in arithmetical progression

B. growth of population in geometrical progression

C. positive checks to population growth

D. development and growth of manpower


5. One characteristics of labour is that it is

A. fixed in demand

B. fixed in supply

C. mobile

D. untrainable


6. A country where labour is not sufficient to make prosper use of natural resources is said to have an

A. active population

B. Optimum population

C. Over-population

D. under-population


7. When population is classified according to professions, it is called

A. geographical distribution of population

B. age distribution of population

C. sex distribution

D. occupational distribution of population


8. What must be added to variable cost to give total cost

A. Average total cost

B. Average variable cost

C. Fixed cost

D. Marginal cost


9. Revenue is the

A. total profit made after sales

B. amount spent on purchases

C. amount of goods produced

D. total money realized from sales


10. Given that TR is total revenue the TRnTR(n – 1)  can be used to find the

A.  marginal revenue

B marginal cost

C. average cost

D. average revenue


11. The lower the price of a commodity, the greater the quantity demanded . This is based on the assumption that consumers’

A. Income is diminished

B. income remains the same

C. utility is diminished

D. population is high


12. The demand for beans in bags is given by the function Q – 36 + 0.4P = 0, where P is the price in Naira and Q is quantity, find Q when P =20.

A. 12 bags

B.24 bags

C. 28 bags

D. 30 bags


13.If the price of goods X rises and the quantity demanded of goods Y increases then the two goods X and Y must be

A. Inferior goods

B. Substitutes

C. complements

D. free goods


14.Use the following demand schedule to answer question 14


Quantity Demanded






The percentage change in quantity demanded is

A. 112.7%

B. 15.7%

C. 16.7%

D. 19.7%


15. In a situation where demand is perfectly elastic, imposition of a tax on a commodity to raise will result in

A. consumer increasing their demand for the product

B. consumers demand for the product remaining unchanged

C. consumer shifting completely to substitute produces

D. Suppliers increasing the supply of the product


16. Patents are examples of

A. natural barrier to entry

B. legal barrier to entry

C. illegal barriers to entry

D. unnatural barrier to entry


17.Which of the following is a characteristics of monopoly

A. Many sellers

B. Homogeneous commodity

C. A single seller

D. Perfect knowledge


18. When a firm is nationalized

A. Former owners are removed without compensation

B. It has the right to draw on state venture

C.it must break even within a specified period

D, Workers take control of the firm


19. The practice whereby a business is owned by two or more independent firms is termed

A. Indigenization

B.  joint venture

C. commercialization

D. foreign investment


20. The main objective of privatizing a government business is to

A. create additional employment

B. Increase expenditure

C . source for new funds

D. increase the level of efficiency


21. The return on investment that is just sufficient to satisfy the owner of a business is

A. economic profit

B. business profit

C. normal profit

D. excess profit


22. Which of the following is a middleman in the chain of distribution?

A. An entrepreneur

B. A producer

C.  A banker

D.A retailer


23. A negative effect of the presence of a large number of middlemen in the distributive network is

A. greater variety of goods

B. greater quality of goods

C. a lower of goods

D. higher price of goods


24. An example of a producer goods is

A. A tin of milk

B. hammer

C.lof of bread



25.To promote development of the agricultural sector, government of West Africa countries should

A. encourage rural-urban drift

B. discourage foreign investment in agriculture

C. support the marketing of farm produce

D. reduce tariff on food import


26.The most important quality of money  is that is must be

A. relatively scarce

B. generally acceptable

C. portable

D. durable


27.  A certain amount of money is needed for everyday expenditure like buying of goods, transportation and others. This is

A. transaction demand for money

B. Precautionary demand for money

C. derived demand for money

D. speculative demand for money


28. Long term loan can be secured from

A. commercial banks

B discount houses

C. development banks

D. acceptance houses


29. The value of money is generally measured in relation to the

A. Interest rate charged on bank loans

B. general prices level

C. size of a country’s gold stock

D. volume imports


30. Which of the following is true under rapid inflation? People

A. demand less foreign exchange

B. set up businesses

C. rush to pay their taxes

D. hardly wants to lend money


31.Which of the following financial institutions was originally known as Building Society

A. Development Bank

B. Insurance company

C. Mortgage bank

D. Post office


32. A Non-banks financial intermediary which is regarded as a pool  of risk is the

A. co-operative society

B. Stock exchange

C. Insurance company

D. Post office


33.A foreign exchange market deals in

A. treasury bills

B. Currencies

C. government bonds

D. commodities


34. Which of the following  institutions assists the government in managing the nation debt

A. Commercial banks

B. The central bank

C. The capital market

D.The world bank


35. If tax takes a larger proportion of the income of people with lower income, the tax is

A. progressive

B. proportional

C. regressive

D. ad-valorem


36.Which of the following is an example is an example of direct tax?

A. Import duties

B. Income duties

C. Export duties

D. Purchase tax


37. Monetary control measures are coordinated by

A. development banks

B.merchant bank

C. commercial bank

D. the central bank


38. A country whose economy is buoyant is likely to have

A. a weak currency

B. devaluation from time to time

C. A strong currency

D. balance of payment problems


39. The Net National Product (NNP) is Gross National Product (GNP) less

A. domestic product

B. foreign product

C. depreciation

D. Investment


40. If the population of a country is low and the Gross National Product is high, the per capita income will be

A. High

B. low

C. average

D. Unitary


41.The population of a country in a certain year was fifty million  and the per capita income was $2050, what was the national income

A. $750, 000 million

B. $100,250 million

C. $102,500 million

D. $125,050 million


42. One of the advantages of capitalism is that

A. consumer are exploited

B. private initiative is discourage

C. efficient allocation of resources is assured

D. Job security is assured


43.  Which of the following contributes the highest amount of foreign exchange to the economy of West African nations

A. Construction, manufacturing and banking

B Shipping, trading and fishing

C. Power telecommunications and sports

D. Extraction, farming and tourism


44. International trade depends on the concept

A. marginal cost advantage

B. comparative cost advantage disadvantage

C. comparative cost advantage

D. absolute cost

45.One advantage of international trade is that

A. countries depend on each other

B. it introduces variation in prices

C. it increases demand for foreign trade

D. it makes variety of goods available


46. The practice of selling goods overseas  and often below the cost of production is known as

A. retailing

B. dumping

C. internal trade

D. advertising

47.  A summary of all the receipts and payment of a country in international transaction is called

A. terms of trade

B. balance of payment

C. balance of payment adjustment

D. Capital account


48. Which of the following countries export cocoa?

A. Liberia and the Gambia

B Ghana and Sierra leone

C. Nigeria and Ghana

D. Sierra Leone and Nigeria

49.  Which of the following are examples of transfer payment

A. Gifts and donations

B Rents and rates

C. Profits and dividends

D. Internal and External debts

50.ECA means

A. Economic Commission for Africa

B. Economic Community of Africa

C. Exporting Countries of Africa

D. Economic Conference of Africa











Economic 2006

1. The study of Economics enables individual to

A. Change jobs

B. evades taxes

C. accumulate huge wealth

D. make ration decisions


2. Most of the problems of economics arises as a result of

A. competing demands for scarce resources

B. Increase in the demand for more goods and services

C. the desire of producers to supply more goods and services

D. the need to reduce the level of poverty


3. Which of the following tools of economic analysis is used when data contains more than one category?

A. Bar charts

B. Component bar charts

C. graphs

D. symbolic statement


4. The reward to capital as a factor of production is

A. Rent


C. interest

D. commission


5. Mining is an example of

A. tertiary production

B. Primary production

C. secondary production

D. advanced production


6. An owner-manager of a firm can also be called

A. a shareholder

B. an entrepreneur

C. an employer

D. a chairman


7. If the fixed cost of a firm is 800Naira and its variable cost 2,700Naira, while its total output is 100 units. What is the average cost of the firm?

A. 25Naira

B. 35Naira

C. 45naira

D. 50 Naira


8. Distribution of goods and services is hindered by

A. good road network

B. efficient storage facilities

C. too many middlemen

D. adequate market information


9. A movement along the same demand curve either upward or downwards as a result of changes in prices implies

A. A change in demand

B. a change in quantity demanded

C. an increase in demand

D. a shift in the demand


10. Middlemen in an economy perform the function of

A. distribution

B. exchange

C. hoarding

D. protection


11. One of the factors affecting geographical distribution of population is

A. high birth rate

B. high death rate

C. encouragement of early marriages in the rural areas

D. Climatic conditions of the different parts of the country


12. Standardization of products or services is a feature of

A. large firms

B. retailers

C. small firms

D. wholesalers


13.The amount of satisfaction obtained from the consumption of a commodity at a particular time is called

A. Marginal utility

B. diminishing utility

C.  average utility

D. fixed utility



14. What are inferior good? These are goods

A. that are generally in short supply

B. that are no longer in demand

C. whose demand falls as  income increases

D. whose price falls as demand increases


15. In the analysis of utility theory, the basis of demand is

A. marginal utility

B. average utility

C. fixed utility

D. Diminishing utility


16. In the normal market situation, when the price of a commodity rises, the

A. demand for the commodity will rise

B. demand for the commodity will fall

C. supply of the commodity will be constant

D. supply of the commodity will fall


18. When the quantity of a commodity supplied is normally determined by the

A. law of demand

B. interaction of the forces of demand and supply

C. total number in the market

D. total quantity of the commodity in the market


19.  The mechanism which allows price of a commodity to be fixed either above or below the equilibrium is known as

A. Monopolistic competition 

B. price discrimination

C. perfect competitive market

D. price control


20. A debenture holder is entitled to payment in the form of

A. allowance

B. Interest

C. salary

D. donation


21. The main difference a private and public enterprise is

A. Amount of profit realized

B. Mode of operation

C. Objective of the business

D. ownership structure


22. The total amount of money raised by a company through issuance of shares to the public is

A. debentures

B. nominal capital

C. ordinary shares

D. paid up capital


23. Buying and selling

48.Which of the following is an objective economics integration ?

A. harmonization of cultural practices

B. free movement of persons, goods and services

C. payment of high tariffs

D. dumping of goods in less developed countries


24. Which of the following is not reason for establishing public enteprises?

A. Discouraging investors

B. Opening up neglected parts of the country

C. effective control of a natural monopoly

D. rapid economic development


25. For a monopolist, the average (AR) curve is

A. above the total cost curve

B. the same as the marginal cost curve

C. above the marginal revenue curve

D. the same as that of the perfect competitor


26. Advertising expenses would not be necessary under perfect competition because

A. consumer would have complete knowledge of goods


40. In a rapidly growing economy a change in technology which is labour saving is likely to cause


41.  Which of the following is a form of tax evasion

A. Wrong declaration of earnings

B. payment of flat rate tax

C. constant change of employment

D. low capacity utilization


42. Where the burden of a tax finally rest is called

A. tax object

B. tax rate

C. incidence of taxation

D. system if taxation


43. An increase in the quantity of goods and services produced in a country which raises her national income is known as

A. economic development

B. economic growth

C. domestic investment

D. productivity

44.The formula  is used to measure the

A. volume of trade between countries

B. direction of international trade

C. commodity terms of trade

D. volume of imports


Use the table below to answer question 45



Sierra Leone


8 tonnes

2 tonnes


7 tonnes

5 tonnes

 45.  If specialization should take place, then

A. Ghana should produce coffee and cocoa

B.  Ghana would benefit by producing cocoa only

C. Sierra Leone should produce not produce any of the products

D.. Sierra Leone should produce cocoa and Ghana coffee

 46. Which of the following is an invisible item?

A. Banking services

B. Petroleum products

C. processed rice

D. processed milk


47. In an attempt to correct a deficit balance of payments, acountry may decide to increase

A. domestic production

B. imports

C. domestic expenditure

D. tax on infant industry


48. Which of the following is an objective of economic integration?

A, Harmonization of cultural practices

B. free movement of persons, goods and services

C. payment of high tariffs

D. Dumping of goods and services in less developed countries

49. One of the functions of the international Monetary Fund IMF  is to

A. devalue the currency of member countries

B. reduce drastically the size of deficit financing of member states

C. give financial assistance to member states that have temporary balance of payment

D.  Discourage the rapid industrialization process in the less developed nations of the world


50.The full of meaning of OPEC is

A. Oil and Petroleum Exporting Countries

B. Original Petroleum Exporting Companies

C.. Organization of Petrol Exporting Countries

D.   Organization of Petroleum Exporting Countries