1.Government’s involvement in
agricultural business in Nigeria is most
manifested in the
a. formation of farmers’s cooperative
b. establishment of farm settlements in
each state of the federation
c. procurement and distribution of
d. establishment of credit guarantee
schemes for small-scale farmers
2. The European union was formed to
a. assist countries to achieve their
economic goals
b. promote free trade within member
c. finance development projects in
member nations
d. promote economic integration in non-
member countries
3. A black market can occur when
a. prices are set by government below the
b. supply in excess demand
c. consumption of the commodity is
d. prices are set by government above the
4. In a textile factory, the cost of cotton
used is a typical example of
a. total cost
b. a variable cost
c. an average cost
d. a fixed cost
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5. Given a base year and price index of
175% the following year Which of the
following will arise.
a. the value of money falls by 75%
b. the value of money rise by 75%
c. the cost of living decreass in that year
d. the cost leaving remains unchanged
6. The choice of how to produce in a
command economy is determined by
a. labour uniouns
b. industrialists
c. government
d. consumers
7. An inflation that co-exists with high rate
of unemployment is
a. cost-push inflation
b. demand-pull inflation
c. hyperinflation
d. stagflation
8. Given that Qd =40-2p and Qs=6p+24,
Calculate the equilibrium price.
a. #16
9. One of the characteristics of a
monopolist is that, he can influence?
A. price or quantity
b. both price and quantity
c. quantity produced by other producers
d. prices charged by other producers
10. The main objective of WTO is to
a. assist developing countries to execute
developmental project
b. assist countries with chronic balance of
payments problem
c. ensure adequate protection for infant
d. provide a mechanism for tariff
11. A monopolist can bloat revenue by
a. reducing price
b. increasing price
c. adjusting both price and output upward
d. reducing total output to march the price
12. A perfect competitor will continue to
expand output up to the point where?
a. MC>MR
b. MC
c. TC>TR
d. MR=AR
13. If the importation of a commodity is
limited to a definite quantity, the trade
control measure imposed is?
a. tariff
b. quotas
c. excise duties
d. import duties
14. The best measure of dispersion to
determine the tallest tree in a forest is
a. mean deviation
b. standard deviation
c. range
d. variance
15.Firms embark on vertical integration
inorder to?
a. enjoy economies of large scale
b. reduce advertisement and marketing
c. takeover markets formally controlled by
other firms
d. prevent other firm from entry the
16. A change in demand for a normal good
implies that, there is a?
a. change in the price elasticity of demand
b. movement along a given demand curve
c. change in the quantity demanded as
price change
d. shift in the demand curve.
17. Given the supply function P=1/4 [Qs
+10] and P=#10. What is Qs?
a. 30
18. Short terms loans for investment are
usually obtained through the
a. capital market
b. money market
c. stock market
d. development bank
19. The major determination of a floating
exchange rate is
a. the forces of demand and supply
b. the system of government
c. the highest denomination of a currency
d. an act of the parliament.
20. If MPC=2/3 and investments is #100
million. The level of national income is
a. #100 million
b. #10 million
c. #303 million
d. #300 million
21. The voting power in co-operative
societies is vested on?
a. the management
b. member with loan
c. the shareholders
d. members with the highest contribution.
22. A major obstacle for the development
of Nigerian economy is
a. low capital formation
b. rural-urban migration
c. over dependence on oil
d. poor developmental policies
23. An advantage of large-scale farming
over peasant farming is in the area of?
a. providing research and massive
employment of labour
b. re-distribution mational income to
various regions of the country
c. encouraging the use of traditional
d. encouraging urban rural migration.
24. An accurate population census is
important inorder to?
a. produce more food for growing
b. provide employment oppurtunities for
the people
c. estimate a countrys’s per capita income
d. fast tract industrial development.
25. An important role of agriculture in
Nigeria’s economy development is the
a. processing of raw materials for
b. regulation of price system
c. provision of infratruction
d. provision of employment
26. If a 10% rise in price causes a 5%
decrease in the quantity demanded of a
commodity, the elasticity of demand is
a. unitary elastic
b. zero elastic
c. elastic
d. inelastic
27. Rent and administrative expenses are
example of
a. average fixed cost
b. average variable cost
c. fixed cost
d. variable cost
28. When price is set below equilibrium
this will lead to
a. an increase in the quantity supplied
b. a new equilibrium
c. a decrease in the quantity supplied
d. a fall in price
29. Given that FC=N500, and Q=50 units,
find the average cost of the product.
a. N30
B. N40
C. N10
D. 20
30. Which of the following can be used to
measure the Gross National Production in
an open economy ?
A. c+I+G+[X+]
B. C+I+G+X
C. C+I+G
D. C+I+G+[X-M]