1. Human want are unlimited because

A. production is inadequate

B. resources have alternative uses

C. new wants always rise

D. resources are limited


2. A basic economic problem of any society is

A. high level of illiteracy

B. irregular power supply

C. population growth

D. resource allocation


3. In a centrally planned economy, what to produce is

A. determined by the forces of demand and supply

B. driven by profit motive

C. determined by consumers

D. the responsibility of state's bureaucrats


4. Which of the following is related to resource allocation in an economy

A How to produce

B. What to produce

C. For whom to produce

D. Efficient use of inputs


5. Which of following is not a feature of socialism?

A. Collective ownership of productive resources

B. Freedom of enterprise

C. production is not based on the profit motive

D. Maximization of public welfare


6. Households make economic decisions because they want to

A. make more profit

B. increase their salaries and wages

C. increase their purchases

D. maximize their satisfaction


7. State owned enterprises are more common in

A. Centrally planned economies

B. mixed economies

C. capitalist economies

D. developed economies


8. A normal supply curve has a positive slope which indicates that

A. sellers are willing to sell more at a lower price

B. sellers are indifferent to prices

C. sellers are willing to sell more at a higher price

D. there is always a fixed supply


9. To control inflation, the central bank of a country may adopt

A. an expansionary monetary policy

B. a restrictive monetary policy

C. an increased wage policy

D. a deficit financing policy


10. Disposable income is the income earned

A. by the nationals of a country resident within the country

B. from productive activities of nationals of a country both at home and abroad

C. when personal income tax is deducted from personal income

D. when the gross income of an individual is added to person income tax


11. Livestock production in West Africa is hindered mainly by

A. inadequate demand

B. use of traditional implements

C. land tenure system

D. pests and diseases


12. The components of a three-sector economy are

A. banks, schools and hospitals

B. workers, producers and marketers

C. households, firms and the government

D. producers, retailers and wholesalers


13. A declining population is one in which the population is

A. experiencing a high rate of emigration

B. made up of large number of old people

C. not producing enough goods

D. not contributing enough to the national income


14. Which of the following agencies help to stabilize farmers' income?

A. Local government authorities

B. Trade unions

C. Marketing boards

D. Co-operative organizations


15. Other things being equal, an increase in supply will lead to

A. a fall in price and an increase in quantity bought and sold

B. an increase in price and increase in quantity bought and sold

C. a fall in price and a fall in quantity bought and sold

D. an increase in quantity supplied and demanded only


16. Examples of joint stock banks are

A. commercial banks

B. co-operative credit societies

C. central banks

D. development banks


17. Which of the following is not a characteristic of a developing country? High

A. real per capita income

B. level of primary production

C. population growth rate

D. level of illiteracy


18. Goods consumed out of habit have

A. elastic demand

B. perfectly elastic demand

C. inelastic demand

D. unitary elastic demand


19. Which of the following items is not a recurrent expenditure?

A. Building of schools and colleges

B. Maintenance of school buildings

C.  Payment of teachers’ salaries

D. Purchase of stationery for examination


20. If the coefficient of price elasticity of demand is 0.1, demand is

A. elastic

B. inelastic

C. zero elastic

D. unitary elastic


21. The profit of a producer is the difference between

A. total cost and marginal cost

B. total revenue and total cost

C. average cost and total cost

D. price and total cost


22. The rate of increase in utility is

A. average utility

B. increasing utility

C. total utility

D. marginal utility


23. The supply of tea is linearly presented as p = 0.2Q, where P is the price and Q is the quantity. What is P when Q = 25?

A. $ 0.08

B. $ 5.00

C. $ 25.02

D. $ 125


24. Increase in supply due to changes in plant size will take place only in the

A. normal time

B. long run

C. market period

D. short run


25. The long - run average cost curve is made up of several short-run

A. marginal and average cost curves

B. average cost curves

C. average variable cost curves

D. average variable and total cost curves


Use the table below to answer questions 26 and 27












26. From the table, the mean of the distribution os

A. 2.2

B. 2.5

C. 3.2

D. 4.5

27.  What is the median of the distribution ?

A. 5

B. 4

C.  3

D.  2


28. Co-operative societies formed to market the output of their members are called

A. Consumers' co-operative societies

B. marketing co-operative societies

C. Credit and thrift co-operative societies

D. Producers' co-operative societies


29. Money will serve as a standard of deferred payment if it is

A. homogeneous

B. durable

C. easily recognized

D. stable in value


30. Due to an increase in price, a seller increases the quantity offered for sale from 400 units. What is the percentage change in quantity supplied?

A. 1 %

B. 7.5%

C. 12.5%

D. 20%


31. Which of the following will increase the nominal value of national income?

A. High rate of inflation

B. increase in the value of money

C. Increase in import

D. High rate of subsistence production


32. Cyclical unemployment is one associated with

A. inadequate information

B. trade fluctuations

C. structural changes

D. seasonal changes


33. Which of the following best defines inflation?

A. Cyclical increase in prices

B. Periodic increase in prices

C. Persistent increase in prices

D. Occasional increase in prices


34. Perfect knowledge of events in a perfect market will be made possible by the existence of

A. many buyers and sellers

B. homogeneous products

C. means of communication

D. large number of traders


35. An increase in the price of a commodity from $10 to $ 15 leads to an increase in the quantity supplied from 10 units to 15 units. The price elasticity of supply is

A. 0.

B. 0.5.

C. 1.

D. 5.


36. Economic development may be hindered if there is

A. a high pool of skilled labour

B. a high rate of economic growth

C. political stability

D. rapid population growth


37. Which of the following types of unemployment results from changes in the pattern of aggregate demand?

A. Technological unemployment

B. Structural unemployment

C. Frictional unemployment

D. Seasonal unemployment


38. Which of the following is not a reason countries import goods?

A. Differences in natural endowments

B. the law of absolute advantage

C. Differences in tastes

D. The love for other nations


39. Provision of short-term loans to solve balance of payments problems is done by the

A. International Finance Corporation

B. International Monetary Fund

C. International Bank for Reconstruction and Development

D. African Development Bank


40. West African countries are experiencing worsening terms of trade because

A. they are primary producers

B. their currencies are overvalued

C. they import less machines

D. they are tertiary producers


41. Which of the following statements is correct?

A. As total utility increases, the marginal utility also increases

B. The marginal utility is a always zero whenever the total utility reaches the maximum

C. The total utility is at maximum whenever marginal utility is at it's maximum

D. There is no relationship between total utility and the marginal utility


42. A change in the quantity demanded of a given commodity is determined by the

A. size of the population

B. income of the consumer

C. price of the commodity

D. taste and fashion


43. The likely implication of the devaluation of a country's currency is that

A. exports of such a country become cheaper

B. importation of goods into such a country becomes cheaper

C. the value of such a country's currency rises

D. foreign goods are attracted into the country


44. International trade is desirable because it

A. may lead to overproduction

B. brings about over-dependence of countries on one another

C. provides foreign market for local goods

D. brings about unhealthy competition and rivalries


45. A financial institution established for the purpose of providing specialized services like acceptance of bills of exchange and equipment leasing is known as

A. Merchant Bank

B. Development Bank

C. Central Bank

D. Insurance Company


46. Which of the following functions of money is mostly affected during inflation?

A. Medium of exchange

B. Unit of Account

C. Store of value

D. Standard of deferred payment


47. Precautionary motive for holding money is to

A. meet daily and regular transactions

B. take advantage of changes in the prices of goods and services

C. cover unforeseen events

D. cover expenses on house rent


48. Which of the following measures will not encourage industrialization in West Africa?

A. Taking over of all forms of industries by the government

B. provision of social infrastructure

C. Giving tax incentives, especially to infant industries

D. Using tariffs to discourage the use of imported items


49. The concentration of many firms of a particular industry in a particular area is known as

A. location of industry

B. amalgamation of industries

C. localization of industries

D. nationalization of industry


50. Which of the following is not an effect of the discovery of mineral resources in an area?

A. increase in wealth

B. overcrowding

C. increase in crime rate

D. under population