ECONOMICS 2020 UTME PAST QUESTION

1. Which question paper type of Economics is given to you?

A. Type F
B. Type E
C. Type L
D. Type S

2. The choice of how to produce in a command economy is determined by

A. government
B. consumer
C. industrialists
D. labour unions

3. In capitalist economies, questions about what to produce are ultimately answered by

A. income level of households
B. available technical skills in the economy
C. output decisions of firms
D. holding decision of households

4. The best measure of dispersion to determine the tallest tree in a forest is

A. range
B. variance
C. standard deviation
D. mean deviation

5. What is the percentage contribution of services to the national income?

A. 15%
B. 10%
C. 54%
D. 24%

6. If the national income is 360m, the contribution of the manufacturing sector is

A. 312m
B. 39m
C. 318m
D. 317m

7. A combination of factors responsible for a shift from D0D0to D1D1 are

A. consumers income and change in technology
B. price of the commodity and weather conditions consumers income and population size
C. consumers taste and change in price
D. price of the commodity and weather

8. Given that Qd = 40-2P and Qs = 6P+24. Calculate the equilibrium price.

A. ₦34
B. ₦32
C. ₦36
D. ₦16

9. A change in demand for a normal goods implies that, there is a

A. change in the quantity demanded as price changes
B. shift in the demand curve
C. movement along a given demand curve
D. change in the price elasticity of demand

10. If a 10% rise in price causes a 5% decrease in the quantity demanded of a commodity, the elasticity demand is

A. unitary elastic
B. Perfect elastic
C. Union elastic
D. Demand elastic

11. From the graph above, the consumer will attain equilibrium at point

A. J
B. K
C. L
D. M

12. A rightward shift of the budget line is caused by a

A. fall in consumer income
B. change in consumer taste
C. fall in the commodity relative price
D. rise in the commodity relative price

13. Given the supply function P = 1/4(Qs+10) when P = N10, what is Qs?

A. 20
B. 15
C. 50
D. 30

14Price(₦) 8, 10 Quantity Supplied: 20, 24. Calculate the price elasticity of supply

A. 0.50
B. 0.80
C. 2.00
D. 1.25

15. 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

16. Price mechanism determines the prices of commodities through

A. auctioning
B. market forces
C. the sales of treasury bills
government legislation

17.From the table above, find the values of E and F respectively

A. 27 and 1
B. 68 and 12
C. 28 and 5
D. 12 and 19

18. If the production of a large firm is higher than that of a small firm, it is experiencing.

A. external economies of scale
B. external diseconomies of scale
C. internal economies of scale
D. internal diseconomies of scale

19. Division of labour requires that, the tasks in a production line be performed

A. by specialists
B. in stages
C. by all workers
D. by unskilled labourers

20. Given that FC = ₦500, VC = ₦1,500, and Q = 50 units. Find the average cost of the product.

A. ₦30
B. ₦40
C. ₦10
D. ₦20

21. Rent and administrative expenses are examples of

A. average fixed costs
B. average variable costs
C. fixed costs
D. variable costs

22. A perfect competitor will continue to expand output up to the point where

A. TC>TR
B. MR=AR
C. MC greater than MR
D. MC>MR

23. One of the characteristics of a monopolist is that, he can influence

A. quantity produced by other producers
B. prices charged by other producers
C. both price and quantity
D. price or quantity

24. A monopolist can boost up his revenue by

A. adjusting both price and output upward
B. reducing total output to match price
C. increasing price
D. reducing price

25. Which of the following can be used to measure the Gross National product in an open economy?

A. C+I+G+(X+M)
B. C+I+G+X
C. C+I+G
D. C+I+G+(X-M)

26. If MPC = 2/3 and investment is ₦100 million, the level of national income is

A. ₦100 million
B. ₦10 million
C. ₦303 million
D. ₦300 million

27. The precautionary demand for money is determined by

A. the rate of interest
B. the level of savings
C. the level of income
D. general price level

28. An inflation that co-exists with high rate of unemployment is

A. hyperinflation
B. stagflation
C. demand-pull inflation
D. cost-push inflation

29. One of the challenges facing the banking industry in Nigeria is

A. ensuring technological security
B. providing employment
C. providing loans for investment
D. creating more money

30. Short-term loans for investment are usually obtained through the

A. stock market
B. development banks
C. money market
D. capital market

31. Given a base year and the price index of 175% the following year, which of the following year will arise?

A. The cost of living decreases of that year
B. The cost of living remains unchanged
C. The value of money rises by 75%
D. The value of money falls by 75%

32. Wage freeze is a policy measure aimed at

A. encouraging investors
B. curbing inflation
C. regulating standard of living
D. curbing deflation

33. A major obstacle to the development of Nigeria economy is

A. low capital formation
B. rural-urban migration
C. over dependence on oil
D. poor developmental policies

34. A major feature of an underdeveloped economy is

A. excess capacity utilization
B. low rate of population growth
C. low level of standard of living
D. low level of unemployment

35. An important role of agriculture in Nigeria's economic development is the

A. processing of raw materials for industries
B. regulation of price system
C. provision of infrastructure
D. provision of employment

36. An advantage of large-scale farming over peasant farming is in the area of

A. providing research and massive employment of labour
B. redistributing national income to various regions of the country
C. encouraging the use of traditional implements
D. encouraging urban-rural migration

37. A major disadvantage of localization of industry is

A. the risk of structural unemployment
B. over-utilization of installed industrial capacity
C. the risk of seasonal unemployment
D. under-utilization of installed industrial capacity

38. One major factor that determines the location of an industry is

A. tax exemption grant
B. its proximity to the market
C. the capital base
D. the social responsibility of the firm

39. The major contribution of OPEC to the Nigerian economy is the

A. provision of social infrastructures
B. granting of subsidies on petroleum products
C. stabilization of oil prices
D. building of refineries

40. The loading of crude oil at the terminal is an activity in the

A. downstream sector of the oil industry
B. upstream and downstream sector of the oil industry
C. upstream sector of the oil industry
D. midstream and upstream sectors of the oil industry