1. Scarcity in economics means?
- A. human wants are limitless
- B. the economy has very few resources
- C. the economy can scarcely produce anything
- D. resources are limited in relation to wants
2. Economics is often described as a social science because?
- A. laboratory experiments are performed
- B. It makes use of controlled experiments
- C. It uses scientific methods to explain an observed phenomenon and predict future events
- D. It makes use of fieldwork
3. Which of the following is an example of an invisible item on the balance of payments account?
- A. shipping and aviation
- B. exports and imports
- C. merchandise
- D. Bullion
4. A major factor affecting the value of money is the?
- A. price level
- B. banking habits
- C. transaction motive
- D. divisible nature of money
5. The Nigerian bank for commerce and industry is?
- A. a commercial bank
- B. a development bank
- C. an industrial bank
- D. a merchant bank
6. To control inflation, the monetary authorities of a country can
- A. reduce taxes
- B. advise the government to increase its expenditure
- C. engage in expansive monetary policies
- D. engage in restrictive monetary policies
7. Which of the following is used by the central bank to control the rate of interest?
- A. bill of exchange
- B. banker’s order
- C. fixed deposit account
- D. open market operation
8. What form of market is found in an imperfect competition where there are few buyers and many sellers
- A. monopoly
- B. oligopoly
- C. duopoly
- D. oligopsony
9. A budget with a projected revenue in excess of its expenditure is said to be?
- A. balanced
- B. surplus
- C. deficit
- D. inflationary
10. In order to raise more revenue for a certain period, the government should impose higher taxes on goods whose demand
- A. elastic
- B. inelastic
- C. perfectly elastic
- D. unitary elastic
11. If aggregate income is N500.00 and aggregate consumption is N400.00, this means that the average propensity to consume is?
- A. 0.20
- B. 0.80
- C. 1.25
- D. 2.00
12. The group of unemployed members of a community who are physically handicapped or disable, is generally classified under unemployment as?
- A. frictional
- B. cyclical
- C. residual
- D. hidden
13. Collectivism refers to the management of state enterprises in a?
- A. mixed economy
- B. co-operative organizations
- C. capitalist economic system
- D. socialist economy
14. Efficiency in production means?
- A. reducing the size of the work force
- B. producing a given output with the lowest cost of combination of factors of production
- C. adoption of capital-intensive technology
- D. increasing the quantity of the fixed factors of production
15. In economic life, the choice among alternatives depends on the?
- A. income of the decision maker
- B. scarcity of resources
- C. the scale of preference of the decision-maker
- D. status of the decision maker
