1. Economics is regarded as a science because it?

A. studies laws that govern human behaviour

B. uses scientific method to explain human behaviour

C. makes use of controlled experiments to explain human behaviour

D. makes use of machines to study human behaviour


2. Which of the following can be described as land?

A. forest

B. diamond

C. roads

D. crude oil


3. An outward shift of the production possibility curve shows that?

A. production is shifting to the left

B. resources are under-utilized

C. economic growth has taken place

D. factors of production are moving outward


4. The following constitute the criteria for identifying an economic system except?

A. ownership of resources

B. scarcity of resources

C. method of decision making

D. motivation for production


5. A disadvantage of the mean as measure of central tendency is that?

A. is affected by extreme values

B. can only be used for continuous data

C. cannot be used to measure the qualities of a population

D. cannot be determined in group data


6. Which of the following is not an effect of many middlemen in the chain of production

A. shortage of commodities

B. low retail prices

C. hoarding of goods

D. high retail prices


7.  If the price of floor rises, then bread


A. demand curve will shift to the left while supply curve will shift to the right

B. supply curve will shift to the left

C. supply curve will shift to the right

D. demand curve will shift to the right while supply curve remains unchanged


8. Which of the following is not a reason for abnormal demand

A. price of the commodity

B. goods of ostentation

C. giffen goods

D. rare commodity


9. Increase in production subsidies will shift

A. the demand curve to the left

B. the supply curve to the right

C. both the supply demand curves to the left

D. supply curve to the left and demand curve to the right


10. The market supply curve slopes upward from left to right indicating that?

A. producers pay high taxes

B. two commodities can be supplied at the same time

C. at a lower price, less is supplied

D. at a lower price, more is supplied and demanded


11. Government revenue will increase if taxes are levied on goods with?

A. be perfectly elastic demand

B. fairly elastic demand

C. perfectly inelastic demand

D. unitary elastic demand


12. If a given change in price brings a proportionately larger change in quantity demanded, the

A. demand is relatively price elastic

B. demand is relatively price inelastic

C. price elasticity of demand is unitary

D. price elasticity of demand is constant



13. If the price of a commodity Z falls and a consumer buys less of it, then commodity Z is a


A. necessity

B. good of ostentation

C. normal good

D. giffen good


14. In order to calculate total utility (TU) from given levels of marginal utility (MU), one has to?

A. subtract MU from TU

B. Add MU from the various levels

C. multiply MU by the initial TU

D. Divide current MU by previous MU


15. Which of the following will not affect the market price of a commodity

A. increase in demand

B. change in taste

C. intersection of demand and supply

D. increase in supply


16. All the following are methods of determining prices except?

A. maximum pricing

B. rationing

C. minimum pricing

D. auctioning


17. The law of diminishing marginal returns relate to?

A. total utility

B. average utility

C. total product

D. marginal utility

18. By adding all the marginal products at each level of employment of the variable input, we obtain a value equal to

A. average product

B. total product

C. average variable cost

D. total cost


19. Total cost is obtain by?

A. adding up the marginal cost at each level

B. dividing the total cost of output at each level

C. adding up the average variable cost at each level

D. adding up the total variable cost and total fixed cost


20. Which of the following curves is not U shaped

A. marginal cost curve

B. average fixed cost curve

C. average total cost curve

D. average variable cost


21. Which of the following business organisations is likely to experience disagreements between management and shareholders

A. co-operative society

B. sole trader

C. partnership

D. joint-stock company


22. Which of the following is not a method of controlling monopoly

A. preventing mergers

B. indigenization

C. privatization

D. imposing high profit tax


23. Which of the following features distinguishes a public limited company from a private limited company

A. perpetual existence

B. limited liability

C. legal entity

D. sales of shares to the public


24. Inflation may occur if there is?

A. excess supply over demand

B. increase in productivity

C. excessive demand with limited supply

D. increased government spending in a depressed economy


25. Frictional unemployment occurs when?

A. there is a change in the technique of production

B. job seekers lack information where jobs exist

C. bad weather prevents work from progressing

D. job seekers have disabilities



26. Which of the following will increase the demand for labour

A. Increase wage rate

B. labour's demand for output

C. low wage rate

D. low marginal productivity


27. One reason for low agricultural productivity in most West African countries is that?

A. farmers are not capable of producing cash crops

B. it does not provide income to farmers with large families

C. farmers find it difficult getting help from financial institutions

D. it is not the only source of raw materials for agro-based industries


28. The movement of labour from one grade to an entirely different grade is an example of?

A. industrial labour mobility

B. horizontal occupational mobility

C. vertical occupational mobility

D. geographical mobility


29. Which of the following is not a strong basis for trade unions demand for higher wages

A. company is making higher profit

B. productivity of workers has increased

C. members of the union have high qualifications

D. commodity produced by the workers is very essential


30. The difference between the gross domestic product (GDP) and gross national product (GNP) IS?

A. depreciation

B. transfer payment

C. net income from abroad

D. direct taxes


31. The difference between the gross domestic product (GDP) and gross national product (GNP) is

A. depreciation

B. transfer payment

C. net income from abroad

D. direct taxes


32. Location of firms of an industry is not influenced by?

A. availability of raw material

B. existence of other firms

C. nearness to the source of money supply

D. government policy


33. In national income accounting, the term net is used to indicate that a value

A. includes income of foreigners

B. includes income of citizens

C. includes depreciation

D. excludes depreciation


34. Which of the following best describes token money?

A. money in the vaults of commercial banks

B. currency and coins in circulation

C. money with face value higher than its material content

D. coins and notes made of poor quality material


35. An industry is best described as

A. firm that sells a set of closely related commodities

A. industrial concern that is into production and selling of goods

B. a factory that produces different lines of product

C. a group of firms that sells a closely related set of products

D.  industry concern that is into production and selling of goods


36. In developing countries, a larger percentage of the labour force is employed in the

A. trade sector

B. tertiary sector

C. primary sector

D. secondary sector


37. The main item traded on a stock exchange market is

A. treasury bills

B. travellers’ cheque

C. foreign currencies

D. new shares


38. The proportion of commercial banks' total assets kept in the form of highly liquid assets is known as

A. demand deposit

B. fixed deposit

C. cash ratio

D. moral suasion



Amount ($m)

Rents and royalties


Company income tax


Custom and excise duties


personal income tax


Fees and fines


value added tax


Use the information to answer the following question 39 and 40


39. What is the total revenue from indirect tax?

A. $686.0 m

B. $400.20 m

C. $135.80 m

D. $100.00 m


40. What is the total revenue from non-tax sources?

A. $400.20 m

B. $375.20 m

C. $135.80 m

D. $75.00 m


41. Which of the following is not an objective of economic planning

A. need to direct economic development of the country towards the desired direction

B. desire to ensure a sustained cultural development of the country

C. desire to widen the gap between developing countries and the developed world

D. management of scarce resources in the face of unlimited wants of the citizens


42. In order to control inflation, the government should

A. reduce the cost of borrowing

B. buy securities in the open market

C. adopt restrictive monetary policy

D. discourage savings


43. When the demand for foreign exchange exceeds its supply, the value of the domestic currency

A. appreciates

B. depreciates

C. remains unchanged

D. expands


44. The export of West African countries are mostly composed of

A. service

B. raw materials

C. manufactured goods

D. consumer goods


45. A conscious effort of government to achieve a specific set of goals is?

A. economic planning

B. economic development

C. economic growth

D. economic target


46. A country has favourable terms of trade when the prices of her

A. exports rises relative to the price of her imports

B. exports falls relative to the price of her imports

C. imports rise faster than the prices of imports

D. imports and exports move in the same direction


47. The abolition of all forms of trade barriers among member countries while maintaining common external tariffs against non-members is a feature of a

A. free trade

B. custom union

C. common market

D. economic union


48. In order to correct adverse balance of payments problem, government should?

A. reduce tariffs

B. increase subsidies on exports

C. increase tax on local industries

D. reduce personal income tax


49. Which of the following is a benefit to a member country of World Bank?

A. easy access to long term loans

B. management of foreign exchange

C. mediating in labour dispute

D. financing balance of payment deficit


50.  Which of the following is an objective of OPEC? To

A. prevent fluctuation in prices of all commodities

B. protect the economic interest of all countries

C. control the level of output of oil

D. discover oil in all countries