1. The following are examples of economic goods except

A. bottled water

B. air

C. household utensils

D. shelter


2. A tent-making factory offers

A. personal services

B. indirect services

C. social services

D. reflex services


3. In which of the following economic system do we have mostly private ownership of resources and individual decision making?

A. Capitalist system

B. Socialist system

C. Mixed system

D. Traditional system


4. The sum of items divided by the number of items is the

A. frequency

B. mean

C. median

D. mode


5. Find the median of the following set of scores 8, 9, 6, 5, 10

A. 9

B. 8

C. 6

D. 5


6. Which of the following causes the demand curve to shift to the right?

A. a reduction in size of population

B. an increase in the income of the buyer

C. the availability of substitutes

D. a decrease in price of goods


7. Goods for which demands rises as income rises are

A. complementary goods

B. inferior goods

C. normal goods

D. substitutes


8. The slope of a supply curve is

A. horizontal

B. uniform

C. positive

D. vertical


9. Equilibrium price is the price at which quantity

A. demand greater than quantity supplied

B. supplied is greater than quantity demanded

C. demand is equal to quantity supplied

D. supplied equals quantity produced


10. A decrease in supply with demand remaining unchanged will cause the equilibrium price for a good to

A. be unchanged

B. remain elastic

C. remain inelastic

D. rise


11. At the highest level of total utility, marginal utility is

A. negative

B. positive and falling

C. positive and rising

D. zero


12. The law of diminishing marginal utility state that, the more a commodity is consumed the

A. higher the satisfaction derived from an additional unit

B. higher the price to be paid

C. lower the quantity supplied

D. lower the rate of increase in the total utility derived


13. Greater inter-dependence among workers in production is associated with

A. utility

B. manufacturing

C. division of labour

D. factory workers


14. If TC, FC and VC represent total cost, fixed cost and variable cost respectively, which of the following is correct?

A. TC = FC - VC

B. FC = TC + VC

C. TC > FC + VC

D. TC = FC + VC


15. The reward to land as a factor of production is

A. profit

B. rent

C. interest

D. wage


16.  A firm is said to be a public joint stock company when it

A. is owned by the government

B. sells its shares to members of the public

C. operates as a government corporation

D. is not legally recognized as a firm


17. All the following are source of finance to a joint stock company except

A. debentures

B. cooperative loans

C. shares

D. bank loans


18.  The public sector of an economy includes

A. cooperative societies

B. nationalized industries

C. joint stock companies

D. pressure groups


19. One advantage of the Sole Proprietorship over other forms of business organization is that it can

A. make very high profits

B. employ many workers

C. keeps its affair private

D. produce on a very large high scale


20. Which of the following is obtainable in a perfect market?

A. P = MR > AR

B. MP = MC > P

C. MR < P

D. P = MR = MC


21. The wholesaler performs the following function except

A. breaking the bulk

B. offering credit facilities to the consumers

C. financing manufacturers

D. buying in bulk from manufacturers

Age Group


0 – 15


16 – 40


41 – 60


61 – above


The table above shows the age distribution of country A in 1983. Using the data in the table, calculate the percentage of working population in 1983

A. 48%

B. 52%

C. 57%

D. 70%


23. A country whose population size is too small relative to its resource is

A. over populated

B. optimally populated

C. under populated

D. producing the optimum output


24. An efficient weapon used in resolving dispute between employers and employees is

A. co-operation

B. collective bargaining

C. display of placards

D. legal action


25. Which of the following does not explain why a school principal earns more salary than a school messenger?

A. length of training

B. demand and supply

C. cost of training

D. the messenger is a non-teaching staff


26. The role of government in promoting agricultural development includes the following except

A. paying the wages of farmers

B. establishing and funding research

C. formulation of policies

D. provision of rural infrastructures


27. The following are advantages of large scale agriculture except

A. use of simple implements

B. use of sophisticated implements

C. increase in employment

D. integration of crops and animal farming


28. The following are all factors determining the location of industry except

A. minimum wage rate

B. availability of labour

C. nearness of raw materials

D. proximity to the market


29. Which of the following is not a concept in National Income Accounting?

A. Domestic National Products (DNP)

B. Gross National Product (GNP)

C. Gross Domestic Product (GDP)

D. Net Domestic Product (NDP)


30. Which of the following equation is appropriate for determining the Net Domestic Product (NDP)?

A. NDP = GNP - depreciation

B. NDP = GDP + Net Income from abroad

C. NDP = GDP - depreciation

D. NDP = GDP * Net Income from abroad


31. Which of the following over estimates the value of national income?

A. incomplete statistical data

B. Wrong timing of computation

C. changes in price of goods within the year

D. double counting

32. The total stock of money available for use in an economy is

A. a function of money

B. a characteristics of money

C. the demand for money

D. the supply of money


33. Which of the following is not a reason for holding money?

A. Ostentation

B. Speculations

C. Transactions

D. Precautionary


34. The best way of combating demand-pull inflation is to

A. increase income taxes

B. reduce income taxes

C. increase import duties

D. increase salaries and wages


35. In which of the following ways has inflation adversely affected your country’s economy?

A. increase in money supply

B. a fall in real income

C. appreciation in the value of money

D. increased employment


36. Which of the following is a legal tender?

A. bank notes

B. bank overdrafts

C. bills of exchange

D. money order


37. The Central Bank controls money supply through all the following except

A. lending to the publics

B. bank rate

C. legal reserve requirements

D. open market operation


38. One of the functions of the Central Bank is

A. production of goods

B. issuing of currency

C. presenting budgets

D. printing of cheque books


39. The function of the Central Bank as the lender of last resort means that when all other sources fail,

A. the consumer can always borrow money from the Central Bank

B. the government can ask the Central Bank to print more money

C. commercial banks can raise loans from the Central Bank

D. commercial banks can deposit money with the Central Banks


40. One disadvantages of direct taxes is that they

A. allocate scarce resources

B. are not rigid

C. can be progressive

D. can be evaded


41. Excise duty is levied on

A. the total population

B. local products

C. luxury goods

D. the working population


42. A component of the national debt of a country is

A. taxation

B. bank saving

C. the budget

D. treasury bills


43. When the demand for a good is fairly inelastic, the burden of an indirect tax falls

A. more on the consumers of the goods

B. more on the sellers of the goods

C. on sellers and consumers equally

D. completely on the capital


44. Dumping means the selling of a good in a foreign market at a price that is

A. below the home market price

B. above the home market price

C. equal to the home market price

D. able to clear the home market price

45. Which of the following group of accounts make up the balance of payments?

A. the current account multiple account and capital account

B. Monetary movement account; company account and international account

C. cash account; double entry account and current account

D. Capital account; current account and monetary movement account


46. A country's balance of payment is deficit when

A. a country's payment for imports of visible goods are greater than her receipts from exports of visible goods

B. the total receipts from her exports of visible and invisible goods are greater than her payments for visible and invisible imports

C. it can record a surplus on current account of her balance of payment accounts

D. the total payment for visible and invisible imports are greater than the total receipts from her exports of visible and invisible goods


47. In order to stabilize oil price in the world market, there is the need for OPEC members to

A. always have budget deficit

B. encourage competition among themselves

C. adhere to production quotas

D. fix the price of non-oil products


48. Which of the following is not a member of the Economic Community of West African State (ECOWAS)?

A. Cape Verde

B. Mauritania

C. Cameroon

D. Niger


49. Which of the following is not a type of economic integration

A.  Custom market

B. Common market

C. Economics Union

D. Free trade Area


50. Which of the following is not an international economic organization?

A. Economic Commission for Africa (ECA)

B. African Development Bank (ADB)

C. World Health Organization (WHO)

D. International Monetary Fund (IMF)