ECONOMICS 2021 UTME PAST QUESTION

1. The major implication of high dependency ratio on an economy is

A. high capital formation
B. vicious cycle of poverty
C. low cost of living
D. high standard of living.

2. One of the major problems of agricultural sector in Nigeria is

A. low literacy level of farmers
B. small size of farms
C. pest attack on crops
D. inadequate modem farm implements.

3. Cooperative societies are characterized with

A. divergent interest of members
B. limited liability
C. free entry and exit
D. unlimited size of membership.

4. The marginal propensity to save measures the

A. ratio of change in saving
B. change in supply as a result of a change in consumption
C. ratio of change in consumption to a change in the level of income
D. average propensity to consume.

5. Structural unemployment is mainly caused by

A. a change in the consumption pattern
B. a change in the business cycle
C. decrease in the output level
D. Seasonal variation.

6. One of the major problems of census in Nigeria is

A. inadequate skilled personnel
B. high dependency ratio
C. distortion of census figures
D. High cost of conducting census.

7. A decrease in government expenditure in an economy will cause general price level to

A. remain constant
B. fluctuate
C. fall
D. Rise.

8.From the table above, find the values of K and F respectively

A. 13 and 27
B. 27 and 13
C. 10 and 27
D. 27 and 10.

9. In the theory of consumer behaviour, the sum of all marginal utilities is

A. average marginal utility
B. the initial marginal utility
C. total utility
D. diminishing marginal utility.

10. In a pure capitalist economy, the means and forces of production are owned and controlled by the

A. public and private sectors
B. feudal lords
C. public sector
D. private sector.

11. A factor earning which is paid out as unemployment benefit is referred to as

A. interest rate
B. direct rate
C. eco
D. Indirect rate

12. From the graph above, FG indicates

A. equilibrium quantity demanded
B. excess supply
C. equilibrium quantity supplied
D. Excess demand.

13. The demand for money is referred to as the

A. amount of money in fixed deposit
B. desire to hold money intangible assets
C. need for money to invest
D. Desire to hold money in liquid form rather than investing it.

14. In the theory of production, a producer is at equilibrium at a point where

A. isocost is above the isoquant curve
B. isoquant is below the isocost curve
C. isocost is tangent to the marginal revenue
D. isoquant is tangent to the isocost curve.

15. Balance of trade shows the relationship between the

A. internal and external trade
B. total value visible import and Export
C. deficit and surplus balance of payments
D. total value of invisible import and export.

16. If the cash reserve ratio is 30%, a new deposit of ₦20 million will increase supply by

A. ₦57.8m
B. ₦47.9m
C. ₦69.78m
D. ₦66.7m.

17. A fall in the price c f ostentatious goods will

A. increase the quantity demanded
B. decrease the quantity demanded
C. decrease demand
D. increase demand.

18. Payment of interests on loans and the repayment of capital sum at a future date is

A. balance debt
B. debt servicing
C. debt relief
D. debt retaking.

19. The most difficult measure of central tendency to determine in a grouped data is

A. range
B. variance
C. mean
D. mode.

20. Localization of industry is mainly determined by

A. diseconomies of scale
B. population growth
C. division of labour
D. access to raw materials.

21. Geographical distribution of a population is affected by

A. low birth rate
B. the availability of skilled manpower
C. the availability of agricultural land
D. high birth ratenomic rent

22. A tax burden on a commodity will be shared equally if the demand is

A. fairly elastic
B. perfectly inelastic
C. fairly inelastic
D. unitary elastic.

23. Higher income taxes can be used to control

A. demand-pull inflation
B. high interest rates
C. cost- push inflation
D. hyperinflation.

24. From the graph above, a shift of the Supply curve from S0S0, to S1S1 will lead to

A. a decrease in price and quantity
B. no change in price and quantity
C. an increase in price and quantity
D. a decrease in price and an increase in quantity.

25. An indifference map is made up of a set of

A. consumers' total utility
B. consumer surplus
C. budget lines
D. indifference curves.

26. Recapitalization policy will enable commercial banks to

A. employ more qualified workers
B. open more branches
C. reduce interest rate
D. have a very strong capital base

27. The number of persons required to form a private company ranges from

A. ten to twenty
B. two to fifty
C. two to seven
D. seven to ten.

28. The major function of international monetary funds is the

A. provision of short-run loans to medium scale industries
B. provision of long-term loans for infrastructure
C. development of agriculture in member countries
D. maintenance of stable exchange rates

29. One of the major activities in the upstream sector of the Nigeria petroleum industry includes

A. transportation of finished products
B. refining of crude oil
C. marketing of refined petrol
D. exploration of crude oil.

30. The law of supply states that the

A. higher the price the higher the quantity supplied
B. quantity supplied is always equal to the quantity demanded
C. lower the price the higher the quantity supplied
D. higher the price the lower the quantity supplied.

31. One of the features of a perfect competitive firm is

A. restrictions to entry and exit
B. price discrimination
C. absence of transportation cost
D. product differentiation.

32. The basis for international trade is the

A. differences in natural resources endowment
B. differences in the population size
C. prevailing interest rate on multilateral loans
D. economic system in practice.

33. Training farmers on the improved farming techniques is the major activity of

A. intermediate workers
B. middlemen
C. extension workers
D. creditors.

34. In a free market economy, prices are determined by

A. consumers
B. producers
C. the central government
D. the forces of demand and supply.

35. The basic economic problem of what to produce in an economy is determined by

A. the availability of labour
B. the means of distribution
C. the availability of resources
D. technological know-how.

In Nigeria, a fall in the supply of petrol would generally affect the

A. import of goods and services
B. export of goods and services
C. general price level in the country
D. exchange rate of the Naira.

37. The short-run equilibrium point of a perfectly competitive firm is attained at a point where

A. is equal to total cost
B. the demand curve is tangential to the marginal cost
C. the marginal cost curve is equal to the marginal revenue curve
D. the marginal cost is equal to the price of the firm.

38. Government can protect consumers from exploitative prices by introducing

A. minimum price
B. price differentiation
C. price floor
D. maximum price.

39. If a fall in the price of commodity K brought about an increase in the demand for commodity Y, the two commodities are

A. composites
B. derived in nature
C. substitutes
D. c implements.

40. In the theory of production, the price of a factor input is determined by

A. the prevailing exchange rates
B. its elasticity of demand
C. the existence of large market
the prevailing interest rates.