NDA Past Questions - Economics (2009 - 2020)

Examsguru.Net – Nigerian Defence Academy, Kaduna, PAST QUESTIONS WITH SOLU.
SOLUTIONS 2009-2020
NIGERIAN DEFENCE ACADEMY (2009 - 2020)

Past Questions with Solutions
2020 Economics
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1. Utility is best measured by the application of 12. If the supply curve of labour in the labour market
A. Demand curve analysis is given by S=4L + 8, what is L when S = 20
B. Supply curve analysis A. = 2 B. = 3 C. = 4 D. = 5
C. Indifference curve analysis
D. Marginal costcurve analysis 13. The maximum number of shareholders in a
private limited liability company is
2. Production can be defined as A. 22 B. 20 C. 70 D. No limit
A. The creation of goods C. All of the above
B. Creation of services D. None of the above 14. The two major near-monies in WestAfrica are
A. Current accounts and time deposits
3. Efficiency of about is enhanced by B. Time deposits and government bonds
A. Caring for each household B. Improved C. Savings accounts and corporate securities
working condition and training opportunities D. Demand deposits and corporate securities
C. War against indiscipline D. All of the above
15. Which of these is not an evil of barter
4. In a purely competitive market under the point of A. Double coincidence of wants
equilibrium one of these conditions prevails: B. Restricts division of labour and specialization
A. FC=VC B. MCMR=AC=P=AR C. Time saving mode of exchange
C. BR P D. MC=PMR D. Very inconveniencing
5. Usually is most English speaking countries of 16. Which of these is not characteristics of good
West Africa census is conducted every money A. Durability B. Divisibility C. Portability
A. 5 years B. 4 years C. 20 years D. 10 years D. Storability
6. Channel of distribution starts with 17. Which of these is not inflationary

A. Wholesalers B. Retailers C. Producers A. Once and for all rise in price B. A naira buying
D. Market less goods and services now than before
C. The cost of labour on products D. Too much
7. The final link in the distributive chain is the demand pressure on products ready for sale
A. Factor B. Broker C. Agent D. Retailer
18. Factors that retard agricultural outfit in West
8. The major advantage of public corporation is African exclude
A. Stability B. lnability to easily raised fund A. The addiction to subsistence agriculture
C. Service oriented policy B. The hectarage is very small
D. Its ability Co monopolise production C. The tools are modern for they use tractors now
D. The methodology has not changed since
9. One of the following classical economists Adam’s time
propounded the theory of population
A. Thomas Robert Malthus C. Alfred Marshall 19. An external economies of scale involves
B. Adam Smith D. All of the above A. The downward shift of firms average cost curve
B. The movement from a high to a low unit cost
10. In a free market economy, wage is determined by position on given average cost curve
mostly C. Some benefits which accrue to consumers
A. The trade Unions without charge D. Rising production cost due to
B. The interplay of demand and supply the over concentration of industry and population
C. The Government D. None of the above
20. Which of these is not necessary in industrial
11. One of the disadvantages of division of labour is:- location
A. It has also encouraged inventions A. Availability of raw materials B. Transport
B. lt saves times C. lt makes workers less tired C. Availability of specialized labour
D. It tends to make work uninteresting D. None of the above
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21. Which of these does not apply as a determinant in

foot lose location of industries 32. The measure of the effect of a unit change of
A. Irrelevant transport cost B. Perish ability and some component aggregate demand on National
fragility C. Sheer accident D. Other firms Income is known as
A. The multiplier B. The Accelerator
22. The size of the firm depends on all but C. Aggregate Demand D. Aggregate Income
A. Market size B. Mature of product C. Lack of 33. The traditional basis for international trade is
favourable business conditions D. Risk and known as
uncertainty A. Comparative Advantage B. Basis of trade
C. International trade D. All trade
23. The advantage of direct tax is 34. The relationship between receipts and payments
A. It is economical to collect B. They reach a of all kinds, made by countries in international
wider section of the society C. They have greater trade is called
yield with less cost collecting D. They can be used A. Balanced of trade B. Balanced of payment
to protect local industries C. Balance of accounts D. Balance of relationship
35. All except one is not a measure of dispersion,
24. The tax system where the rich and the poor pay which one is it
the same amount of tax is called A. The range B. The variance C. The standard
A. Proportional tax C. Regressive tax derivation D. The mode
B. Progressive tax D. Community tax 36. A rise in Gross National Product (GN P) is known
as A. Economic Development B. Economicgrowth
25. The bodycharged with the formulation of monetary C. Economic growth and development
policies in Nigeria is D. Economic balance
A. Senate B. Commercial Banks C. Federal 37. The Organization of Petroleum Exporting
Ministryof Finance D. Central Bank of Nigeria Countries (OPEC) is a good example of a
A. Regional grouping B. Social organization
26. The instrument of withdrawing money for C. Economic grouping D. Cartel
operators of CurrentAccounts is 38. Reduction in the value of the home currency in
A. A simple telephone call B. By use of cheque terms of foreign currency is known as
C. Bank draft D. By use of passbook A. Currency reduction B. Devaluation
C. Inflation D. Revaluation
27. A one year budget is called 39. Currents accounts are classified as money
A. Short term budget B. Consolidation budget because
C. Quick budget D. Government budget A. They earn interest income to the depositor
B. They are ultimately the obligations of the
28. The basic problem with the Nigerian budget is that treasury C. Banks hold currency equal to the
A. They lack World Bank inputs value of their outstanding deposits D. They can be
B. They are not well implemented readily used in the making of purchase and
C. They are tod defailed payment of debts.
D. They are prepared purely by economists
40. Which of the following statement is not true
29. Budgeting is an activity surely carried out by A. Afirm consists of one or more plants
A. Federal and State Government B. Private B. Few large firms may control about 80% of
owned companies C. Businesses and production in agriculture C. Afirm is larger than an
Governments D. None of the above industry D. A plant is a unit in the production
process
30. A perfect market is called a free market because
A. It allows free entrance and free exit YEAR 2020
B. Competition is allowed C. Goods are sold freely
D. A and B 1. C 2. C 3. B 4. B 5. D 6. C 7. D
8. C 9. A 10. A 11. B 12. B 13. D 14. B
31. A change in consumption that is brought about by 15. C 16. D 17. A 18. D 19. D 20. D 21. C
a unit change in income is known as 22.B 23. A 24.D 25.D 26.B 27.A 28. B
A. Income effect B. Consumption income 29. A 30.A 31. C 32. A 33. A 34. A 35. A
relationship C. Marginal propensity to consume 36. C 37. D 38. B 39.C 40.C
(MPC) D. Average propensity to consume (APC)

2019 Economics
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1. These are some of the incentives to A. Partnership B. Ordinary partnership

manufacturers except one. C. Sole trader or sole proprietor
A. Industrial development B. Income-tax relief D. Holding companies
C. Import duties relief on industrial inputs 10. The following types of firms are found in the
D. Accelerated depreciation allowance private sector except
A. The sole trade or the sole proprietor
2. These are some of the advantages of foreign B. Partnership and holding companies
trade: C. Private limited companies
i. Specialization
ii. Variety of goods 11. All the following are some of the major obstacles
iii. Supply of essential commodities in times of to industrialization in Nigeria except
need A. The poor quality of industrial labour
iv. Development of industries B. Entrepreneurial shortage C. Lack of capital
v. Economic development D. Incentives to manufacturer
A. I and iv B. iii and v C. None of the above
D. All of the above 12. How many major agricultural zones do we have in
Nigeria? A.9 B. 15 C. 5 D. 2
3. Which of the following encourages internal and
external trades? 13. A Business Unit which hires productive resources
A. Factors of production B. Imports and exports in order to produce goods and services is called
C. Trade by barter D. Division of labour A. Privatesector B. Firm
C. Publicsector D. Industry
4. Trade is divided into:
A. Barterand trade B. Internal and international 14. All of the following are the advantages of
trade C. Bilateral trade D. Multilateral trade partnership except one
A. It provides continuity in that if one partner dies
5. What is multilateral trade agreements? or retires, the other carry on with the business.
A. Trade relationship between one country and B. Partnerships decision takings are often more
two or more other countries delayed than some proprietorships, because
B. Production of certain goods C. Internaltrade business decisions are often taken collectively.
D. Balance of trade C. It enables the expansion of business through
increased capital
6. Government industrial policy is motivated by the D. Partnership enable the introduction of new
desire to ensure that certain economic and social blood into the business, hence greater managerial
goals are achieved. These goals include: activities
A. Scarcity of foreign technicians 15. Which of the following is the minimum of
B. Efficiency in the production and distribution of maximum number of a private limited company?
goods and services C. Narrowness of market A. 4 and 10 B. 10 and 100 C. 2 and 50
opportunities D. High degree of foreign investment D. 7 and 50
7. Which of the following fall into the Nigeria’s 16. Which of the following type of partnership does
agricultural products the partners have equal powers?
A. Domestically consumed food crops A. Proprietorship B. Partnership
B. Farm–settlements C. Degradation of the farmer C. Ordinary partnership D. Sole trader
D. Plantation agriculture
17. What is the main objective of the firms in the
8. The bulk of Nigeria’s palm oiland palm camel private, sector?
comes from: A. To make profit B. To pay taxes
A. Kaduna and Niger State B. Kaduna and C. To provide transport D. To direct the economy
Gombe C. Cross River, Akwa-lbom and Rivers
States D. Sokoto and Imo
9. hich of the following is the simplest, oldest and
most common type of business organization.
18. What can enable the country to have favourable 27. Which of these is not included in the five
terms in international trade? fundamental questions facing the producer?
A. Consumer and buyer B. Rapid industrialization A. What to produce B. What to distribute
C. Low per capital output C. How much resources to use in production?
D. Majority of the people engaging in agriculture D. All of the above
19. Why is agriculture important? 28. Which of these is not a function of wholesale
A. It constitutes a major source of employment dealer?
B. Buying and selling C. Groundnut and palm oil A. Gives no credit to retailers B. Buys in bulk,
D. Export and import breaks it and sells in bits to retailer C. Provides
warehouse facilities D. Helps to stabilize the
20. The important groundnut producing areas in prices of the product
Nigeria are:
A. Rivers State, Bayelsa State and Imo State 29. Which of these is not a characteristics of good
B. Ibadan, Oyo and Lagos C. Benue, Jigawa and money? A. Durability B. Divisibility C. Totability
Abia D. Kano, Bauchi, Borno, Kaduna and D. None of the above
Sokoto States.
30. Which of these is not problem of barter?
21. The optimum population: A. Double coincidence of wants B. Timesaving
A. Is that population which entails the largest real mode of exchange C. Very inconveniencing
GNP B. Is that population which entails the D. Restricts division of labour and specialization
largest money GNP C. Is directly related in size
to the quantity and quality of property resource 31. The major near-monies in WestAfrica are:-
D. Is realized when real GNP and population are A. Current account and time deposit
growing at the same annual rate B. Time deposit and government bonds
C. Saving account and corporate securities
22. Population density refers to:- D. Demand deposit and corporate securities
A. Density populated urban centres
B. The total area divides by the total population 32. Money supply is made up of
C. Densely populated rural areas A. Paper, coins, gold and time deposit
D. The total population divided by the total area. B. Bonds, coins, paper and current account
C. Coins, papercurrency and demand deposit
23. People in a nation are regarded as an asset D. Preferred stock, current account, currency
because
A. They make machinery of the economic system 33. The major component of money supply is
to work inefficiently B. They buy goods and A. Coins B. Currency in circulation
services they produce C. They make the C. Current account D. Govemment bond
machinery of the economic system to work
efficiently D. Theypaytaxestothegovernment 34. The control of inflation requires
A. lncreasing government spending B. Raising
24. Which of these factors affects changes in birth taxes C. Increased money supply D. None of the
rate? above
A. Early marriages B. Desire to have children
C. Knowledge and practice of birth control 35. Which of these suffer during inflation?
D. All of the above A. Debtors B. Creditors C. Bond holders
D. Bankers
25. Which of these will not reduce the death rate?
A. Improved medical facilities B. Unforeseen 36. A producer sustains a loss in the short-run if;
disaster C. Reduced political bugling D. Improved A. Marginal revenue is less than price
sanitation B. Price is less than average cost
C. Average variable cost is less than average cost
26. In normal channels of distribution the breaking of D. Marginal cost is less than marginal revenue
bulk is usually carried out by:
A. The producer B. The retailer C. The whole 37. Economic profit on a unit basis is the difference
seller D. The consumer between;
A. Average fixed cost and product price
B. Marginal revenue and marginal cost
C. Profit and average total cost C. Ofunitelasticity throughout

D. Marginal revenue and profit D. None of the above
38. Which of the following is not a fixed cost? YEAR 2019

A. Rent B. Salary C. Commission D. Insurance 1. D 2. D 3. B 4. B 5. A 6. B 7. A
8. C 9. B 10. D 11. A 12. D 13. B 14. B
39. Which of the following is a variable cost? 15. B 16. B 17. A 18. B 19. A 20. B 21. C
A. Totalcost B. Salary C. Transportation/cost 22. D 23. C 24. C 25. B 26. C 27. B 28. D
D. Rent 29. D 30. B 31. B 32. C 33. B 34. B 35. B
36. C 37. B 38. C 39. C 40. B
40. The monopolist demand curve is
A. Perfectly elastic B. Perfectly inelastic

2018 Economics
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1. Economic deals with all except ONE of the 9. Statistics is used to interpret
following: A. Geometric events B. Algebraic events
A. Comparison of standard of living of people C. Harmonic events D. Economic events
B. Free and fair elections in each country
C. Allocation of scarce resources among 10. In calculating the average age of cadets in the
competing alternative D. Maximization of utilities Nigerian Defence Academy, we make use of:
among consumers. A. Total population B. Sample population
C. All of the above D. None of the above
2. The need to study Economics arose because of:
A. Unlimited human needs and very limited 11. Mean, median, mode, variance and standard
resources to satisfy human wants B. Abundant variation belong to the domain of:
human resources being wasted all over the world A. Inferential statistics B. Random sampling
C. Population and food supply relationship was statistics C. Descriptive statistics D. Variance of
even D. Students were ignorant as what grouped data
economics was about
12. The importance of Bar Chart in statistics is that:
3. By standard of living, we mean: A. It makes comparison of events very clear
A. The quality of food each individual eats B. ltistooeasytoconstruct C. It is used to represent
B. The number of cars a person has a distribution that has so many frequencies
C. The degree to which we satisfy human wants D. It is used to show various segments of a
D. The per capita income of a country component bar chart
4. All except ONE is not an economic indicator 13. The form ula for obtaining the medi an of a
A. The quality of food people eat B. The type of distribution is:
house people live in C. The level of A. Md L ± ( - )I B. Md L ± ( - )i
industrialization D. The degree of freedom of
speech C. –1 D. L = md ( - )i
5. Economics is Science which deals with:
A. The factors of production C. Allocation of
scarce resources B. Oil exploration D. The Gross 14. In the formula N stands for
Domestic Product (GDP) A. The number of occurrences B. The number of
frequencies C. The summation of the frequencies
6. The basic problems of economics include: D. The summation of occurrences
A. Production of goods and services
B. Production, consumption and distribution 15. The economics, the concept of utility means:
C. Raising the level of National Income A. The monetary value of the goods we consume
D. All of the above B. The total value of all the goods and services
7. The concept of opportunity cost is important consumed C. The amount of satisfaction we
because: derive from the consumption of goods and
A. Scale of preference has been drawn services D. The utilization of goods and services
B. Choice is made because resources are limited
C. All human wants must be satisfied to a 16. The concept of utility is highly emphasized in the
reasonable extent D. Scarcity and choice theory of:
determine the degree of opportunity cost involved A. Demand B. Production C. Demand and supply
together D. Distribution
8. The basic Economic problems of the society are:
A. What and how to produce and the efficiency of 17. Price can be defined as:
resources used in production B. Money which is A. A rate of exchange B. A medium of exchange
fast losing value C. The steady fall in standard of C. The cost of production D. The unit of Account
living D. Importation of foreign goods in the
country and the neglect of Agriculture
18. Elasticity of demand can be defined as; produced by only the citizens of the country who
A. An increase in demand as a result of are living in abroad.
proportionate fall in price B. An increase in B. GDP is the monetary value of the commodities
demand due to a small fall in price C. An increase produced by both the citizens and foreigners in a
in demand due to an increase in supply D. An country while GNP is the monetary values of the
increase in demand due to a decrease in supply commodities produced by all the citizens of a
country at home and in abroad
19. The equilibrium market price is determined at a C. GDP means monetary values of the goods
point where produced by the foreigners in a country, but GNP
A. Both what are supplied and demanded are is he monetary values of goods and services
equal B. The price is moderate C. Sellers can produced by the citizens at home
sell all their commodifies D. Consumers can buy D. None of the above
all they desire
28. Gross National Product at factor cost plus taxes
20. Full equilibrium requires that: less subsidies on expenditure is equal to:
A. MRMC B. TR>TC C. MC=MR and AC=AR A. Gross National Income at market prices
D. MR=MC=AR=AC B. Net National income at factor cost
C. Net national income at factor cost
21. One of the functions of the Central Bank of D. Gross national product net of transfer
Nigeria (CBN) is: payments
A. Lendersoflastresort B. Acceptance of deposits
C. Floor for capital market stocks D. Long term 29. One reason why total consumption sometimes
loan syndication equals to total income is that:
A. People can save more than their income
22. One of the following is a capital market instrument B. In times of relative depression firms covers
in Nigeria prices to get rid of stocks of unsold goods
A. Government Bonds B. Commercial Paper C. People can consume goods on credit
C. BankersAcceptance D. Treasury BiBs D. In times of boom people loose their incentive to
save
23. The velocity of money is most affected in the short
run by: 30. The multiplier is the factor by which
A. The interest Rate B. Techhological changes A. An increase in expenditure raises investment
C. Near monies available D. Payments schedule B. A change in autonomous expenditure changes
income C. An increase in investment lowers
24. Given the following formula, obtain the velocity of income D. A change in income changes savings
money; M V = PT; where M is money, V is v elocity
of money
, P is pric VT
e &is tra action
ns 31. Equilibrium income is that level atwhich
A.V = B.V = C.V D.V = A. There is full employment B. The community is
spending exactly all of its income on consumption
C. The amount which society wishes to spend on
25. The Federal Mortgage Bank of Nigeria (FMBN)
investment is equal to the amount of its income
was established in
which it does not wish to spend on consumption
A. 1960 B. 1970 C. 1977 D. 1980
D. Actual saving is equal to actual investment
26. In a closed economy without a government Sector
32. If planned savings exceeds planned investment
the national income is the same as:-
the result will be
A. National expenditure on goods and services
A. An unplanned rise in stock B. Arise in the
B. National product C. Total value added to the
national income C. Arise in the general level of
economy D. All of the above
prices D. A fall in planned investment
27. The difference between Gross Domestic Product
33. International trade is regarded as being distinct
(GDP) and Gross National Product (GNP) is that:
from interregional trade because:
A. GDP refers to the monetary values of the
A. Of the existence of different natural resources
goods and services produced in a country by the
B. Of the existence of different natural abilities
residents in the country while GNP is the
C. Of the existence of tastes D. Factor mobilities
monetary value of the goods and services
differ between and with countries
34. In its trade with the rest of the world a country will 38. Which of the following is a liability of commercial
tend to specialize in the production of goods in banks?
which; A. Current account deposit B. Government
A. It’s labour productivity is higher securities C. Treasury Bills D. Money lent at short
B. It’s cost of production are lowest notice
C. It has the greatest comparative advantage
D. World demand is greatest relative to supply 39. Which is the least liquid of the following assets of
a commercial bank?
35. There is unlikely to be a gin from international A. Treasury Bills B. Securities C. Loans made on
trade if: overdraft D. Special deposits
A. One country can produce some goods more
efficiently than other countries B. One country can 40. Commercial banks rank as the largest type of
produce all goods more efficiently than other financial institutions, the second largest financial
countries C. All countries have precisely the same institutions consist of:-
taste and are ready to make exchange A. Mutual savings bank B. Savings and loan
D. The domestic price ratios of the countries are Associations C. Credit Unions D. Life Insurance
higher than the international price ratio. Companies
36. The terms of trade is the name given to the

A. Conditions under which trade is carried on
B. Relationship between the price of imports and YEAR 2018
the price of exports C. Proportion of a country’s
national income which is spent on imports 1. B 2. A 3. D 4. D 5. C 6. B 7. A
D. Difference between the value of export and the 8. A 9. D 10. D 11. C 12. B 13. B 14. B
value of imports 15. C 16. B 17. C 18. A 19. A 20. A 21. A
22. A 23. A 24 B 25. B 26. A 27. A 28. -
37. Which of the following tends most to break the link 29. B 30. A 31. C 32. D 33. D 34. C 35. D
between international prices? 36. B 37. A 38. D 39. C 40. B
A. lmportduties B. lmport quotas
C. Export subsidies D. Devaluation

2017 Economics
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1. Which of the following is the most accurate 11. The Acronym UNCTAD stands for:
statement about the retailer A. The United Nations Conference on Trade and
A. Selling goods in small quantities B. Packaging Development B. The United National Committee
goods C. Providing personal services on Trade and C. The Unified Nations Committee
D. Providing creditfacilitites for Trade ar Development D. The Union of
Conference on Trade and Development
2. Which of the following cannot affect the supply of
12. The function of International Monetary Fund to:
a commodity
A. Stabilize exchange rate among mernebr
A. Policy of government B. Size of the population
nations B. Promote free trade among member
of consumers C. Changes in income D. Increase
nations C. Encouragebalanceofpaymentsamong
in the house rent
membernations D. Assist in supplying foreign
exchan
ge to member nations
3. Usually in most English speaking countries of

West Africa census is conducted every 13. is th e formula for calculating

A. 10years B. 5years C. 1year D. 15years
A. Consumption function B. Disposal income
C. Marginal propensity to consume D. Average
4. In a perfect market, the perfect competitor
propensity to consume
A. Isa pricetaker B. Determines the price at which
his goods sell C. Determines both price and 14. The rate at which a country’s export is exchanged
quantities D. tan sell above the ruling market price for its imports is caiiea
A. Terms of trade B. Balance of payments
5. Money becomes a very poor store of value in a C. Balance of trade D. International trade
period of
A. Delfation B. Stable prices C. Inflation 15. The Second Tier Foreign Exchange Market
D. Recession (SFEM) was introduced to:
A. Source raw material locally B. Diversify the
6. The perfect competitor starts maximizing profit at nation’s production base C. To find the true
the point where the marginal revenue curve cuts competitive value of the Naira
the marginal cost curve and at this point D. ResourceAllocation
A. MR>MC B. MC=AC C. MC=AR D. MR=MC
16. Agriculture is important in Nigeria because it
7. ECOWAS treaty was signed in provides food, shelter and;
A. January 1975 B. March 1975 C. May 1975 A. Income B. Recreation C. Safety
D. February 1975 D. Social status
8. A market structure with two firms or sellers is 17. The economists sees cost in terms of:
called A. Money spent in production B. The cost of
A. Monopolistic competition B. Monopoly M goods produced to satisfy human wants
C. Monopsony D. Duopoly C. Maximization of profits by producers
D. The opportunity cost of producing one
9. National income is commodity instead of the others
A. The value of economic goods consumed in a
18. Division of labour is limited by;
country at a particular time B. Total output of all
A. The federal government policy B. The cost of
firms in a country at a particular time C. Total
production C. The seize of the market D. The
current account balance D. Total output of all
productive factors
firms in a country at a particular time
19. The average revenue curve of a firm is
10. The relationship between receipts and payments A. The same as the demand curve of consumers
made by countries in international trade is called: for the firm’s product B. Total receipts realized by
A. Terms of trade B. Current account balance the firm C. Profit from current production
C, Balance of payments D. Imports and Exports D. Income
20. Statistics is used to interpret; 31. When demand is graphed, price is placed on axis
A. Geometric events B. Harmonic events and quantity on the axis
C. Economic events D. Algebraic events A. Indirect, direct B. Vertical, horizontal
C. Quantity demanded D. Product decrease
21. Utility is measure in;
A. Calories B. Utils C. The joy derivable from 32. The principle national macro-economic goods
consuming goods D. The production capability of include the following, except
producers A. National goods and priorities
22. Elasticity of demand can be defined as B. Full employment of the nation’s productive
A. An increased in demand as a result of a inputs C. Acceptable levels of economic growth
proportionate fall in price B. An increase in D. Maximum levels of economic stability
demand due to a small fall in price C. An increase
in demand due to an increase in money supply 33. Which of the following is one variable that cause
D. An increase in demand due to decrease in the demand curve to
supply A. Demand and supply B. Quantity supplied
23. Cocoa, groundnuts, cotton, coffee and kola nuts C. Prices substitute goods D. Marginal cost
are;
A. Permanent crops B. Tree crops 34. Two commodities are considered to be perfect
C. Food crops D. Cash crops substitutes for each other if the elasticity of
substitution is
24. The need to study economics arose because of; A. Infinite B. Positive C. Negative D. Zero
A. Unlimited human needs and very limited
resources to satisfy human wants B. Abundant 35. The total of all income payment which land,
human resources being wasted all over the world labour, and capital as well as entrepreneurs
C. Population and food supply relationship was receive in 3 years is known as
even D. It was important to produce teachers of A. Gross national product B. Net National Product
Economics C. National income D. None of the above
25. Economics is a social Sciences because;
A. It studies social behaviour B. It studies human 36. Labour productivity is defined as;
being who are special C. ltisoneoftheSocial A. Total level of output B. Average output
Science subjects D. The principles and law of C. Output per manlhour D. Marginal output of
economics relate to human behaviour which labour
cannot be predicted with the same accuracy like
that of physical Sciences. 37. A marketing board is;
A. Joint Stock Company B. Public Corporation
26. The basic concern of economics is to: C. Cooperative Society D. Private Limited Liability
A. Create wants B. Satisfy human wants Company
C. Redistribute income so that it is used correctly
D. Create perfect competition and eliminate 38. All but one are barriers to International Trade
monopoly A. Checking atcountrys boarders B. Differences in
27. The branch of statistics used by a person who currency C. Geographical barriers D. High
throws dice is: A. Mean B. Probability theory standard of living
C. Mode D. Standard variation
39. All but one are advantages of monopoly;
28. The concept of utility is highly emphasized in the A. Planned production B. Reduction in waste of
theory of: output C. Efficiency in production D. Eliminates
A. Supply B. Demand and supply together wasteful competition
C. Production D. Demand
29. The first commercial discovery of crude oil in YEAR 2017
Nigeria was in
A. l959 by SheIl B. 1959 by NNPC 1. A 2. D 3. A 4. A 5. C 6. A 7. A
C. 1960 by Mobil D. 1962 by Chevron 8. C 9. D 10. A 11. C 12. B 13. D 14. C
30. If quantity demanded exceeds quantity supplied, 15. B 16. C 17. A 18. A 19. C 20. A 21. C
price is ............than the equilibrium price 22. B 23. A 24. D 25. A 26. C 27. B 28. B
A. Less B. Constant C. Equal D. Indicate 29. C 30. A 31. A 32. B 33. B 34. A 35. B
36. D 37. C 38. C 39. D 40. A

2016 Economics
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1. A consumer’ scale of preference is an A. Anetgain B. Anetloss C. An increase in profit by

arrangement of his 43 0/0 D. A decease in profit by 430/0
A. Requirementsandhowtosatisfythem
B. Sources of income and their importance 11. Total Utility
C. Needs in order of importance The diagram above shows the total utility curve At
D. Increase consumption of imported goods the point M, marginal utility
A. Diminishes B. Increase C. lszero D. Isunity
2. A major problem facing all economies is how to
A. Transform from a developing to a developed 12. At consumer equilibrium, the slope of the
economy B. Allocate scarce resources indifference curve is
C. Improve trade among nations A. Equalto the slope of the budget constraint line
D. Increase consumption of imported goods B. Less than the slope of the budget constraint
line C. Half the slope of the budget constraint line
3. Economics is regarded as a social science D. Greaterthantheslopeofthe budget constraint
because it line
A. Itan agentof socialization B. Dealswith social
problems C. Adopts the scientific methods in 13. A change in supply is best described as a
production D. Adopts the scientific method in the A. Shift of the supply curve to the left orto the right
study of human behaviour B. Shift of the supply curve to the left
C. Shift of the supply curve to the right
4. If the arithmetic mean of 1 2,5,6, x 16 and 18 is D. Move along the supply curve
8.0. find the value of x
A. 6.0 B. 7.0 C. 8.0 D. 8.5 14. For a supply curve, an increase in the price of a
commodity will result in
5. When a generalization is made based on A. An increase in supply B. An increased in
observed facts, it is known as quantity supply C. A decrease in supply
A. Inductive reasoning B. Deductive reasoning D. A decrease in the quantity supplied
C. Normative reasoning D. Theoretical reasoning
15. A vertical supply curve indicates that
6. The fixing of an item above or below the A. There is fixed price for the commodity below
equilibrium price is most likely to take place in which no supply will be made B. An increase in
A. Mixed economy B. Centrally planned economy price will result in an increase in the quantity
C. Free market economy D. Developed economy supplied C. The same fixed quantity will be
supplied no matterthe price
7. In a free market economy, the price system D. The quantity supplied is responsive to price
allocates resources
A. To their best alternative B. To reduce poverty 16. The table below shows a demand schedule for
C. Under government’s directives D. To ensure eggs. What is the equilibrium price?
general welfare A. N110 B. N=100 C. N80 D. N=60
8. In a demand curve, the relationship between price 17. If government fixes price below the equilibrium
and quantity is price, what effect will it have on demand?
A. Inverse B. Nil C. Indeterminate D. Direct A. Quantitydemandedwillincrease B. Quantity
demanded will decrease C. Quantity demanded
9. A normal good with close substitutes is likely to and supplied will be equal D. Quantity supplies
have its price elasticity of demand will be greatertan quantity demanded
A. Greater than unity B. Less than unity
C. Equal to unity D. Between zero an done 18. A major advantage of specialization and division
of labour is that
10. If the elasticity of demand for a good is 0.43, an A. Workers will be adequately rewarded
increase in the price of the good will result B There will be a ready market for labour
C. Trade unions will be encouraged A. Loan financing B. Debt financing

D. Time wastage will be minimized C. Equity financing D. Stock financing
19. Internal economies of scale are expected to bring 29. In agricultural sector, improved extension services
about facilities
A. An increase in long-run average cost A. Mobility of labour B. Livestock production
B. An increase in short-run average cost C. Acquisition of techniques D. Arable crop
C. Adecrease in short-run average cost production
D. A decrease in long-run average cost
30. An industry is a
20. A production functions relates A. Group of firms producing related commodities
A. Costto input B. Cost to output B. Company producing unrelated commodities
C. Outputto input D. Wage to profit C. Firm producing differentiated commodities
D. Group of firms producing distinct commodities
21. Which of the following is an example of a fixed
cost? 31. To facilitate the exportation of crude oil from
A. Electricity bill B. Transportation Nigeria, special
C. Fuel cost D. Rent on building A. Roads were built to connect the major oil wells
to port B. Pipelines were laid to connect the
22. The long-run is a period during which a firm majoroil wells to the ports C. Railway lines were
A. Varies all its inputs B. Sources all it inputs from constructed to connect the majoroil wells to the
within C. Replaces all its input D. Sells inputs to ports D. Airstrips were constructed for jets to
purchase fixe assets evacuate the oil
23. A firm’s shut-down point is reached when the 32. In orderto accelerate economic development, a
average revenue fails to cover the country must
A. Average total cost B. Average variable cost A. Pursue a rational population policy
C. Average fixed cost D. Prices are centrally B. Pursue an incremental population policy
administered C. Stimulate her population growth rate
D. Pursue a herpopulation growth rate
24. A important feature of perfect competition is that
A. There is adequate knowledge of existing price 33. The reduction of high fertility is a measure in
B. Individual economic units can influence price population control designed to make the
C. The movement of goods and service is A. Female population high than the male B. Male
restricted D. Prices are centrally administered population high than the female C. Female and
male population equal D. Growth in population
25. In the long-run, a monopolist maximizes his more sustainable
profitwhen the marginal cost equals
A. Price B. Average cost C. Marginal revenue 34. The efficiency of labourcan be increased by
D. Total revenue A. Placing an embargo on recruitment
B. Constanttraining of workers C. Retirement of
26. An important market exists where workers on a regular basis D. Engaging expatriate
A. Both buyers and sellers have free entry into only
and free exist from the market B. The location of
some sellers gives them an advantage over 35. If the labour force in a given community is
others C. The product is homogenous D. There is 2,000,000, in the wage employment 2000,000 and
perfect information among the few buyers and the unemployed are 80,000, what is the
sellers unemployment rate in the community?
A. 40.00/0 B. 10.00/0 C. 4.00/0 D. 0.40/0
27. The losses suffered by a sole proprietor are
A. Limited to the amount invested 36. The price for labour service is the
B. Not limited to the amount invested A. Incomerate B. Salaryrate C. Wagerate
C. Usually equal to the amount invested D. Commission rate
D. Usually less than the amount invested
37. The distribution channel that contributes most to
28. The raising of funds by selling stocks to the public the cost of production is
is called A. Producer-wholesale-retailer-consumer
B. Producer-retailer-whoIesaler-consumer A. Balanced budget B. Deficit budget

C. Producer-retailer-consumer D. Producer- C. Surplus budget D. Consolidated budget
wholesaler-consumer
46. Economic growth can be accelerated through
38. GNP is not a good measure of social welfare A. Postponementofcurrentconsumption
because there are unrecorded B. Planned currentconsumption
A. Government subsidies B. Transfer payments C. Increased current consumption
C. lndirect taxes D. Social costs D. Balancing saving and consumption
39. In national income accounting, NNP is derived by 47. The major reason why nations engage in
subtracting from the GNP international trade is that
A. lndirect taxes B. Capital consumption A. It makes possible the use a capital-intensive
C. Transferpayments D. Allowanceforwastage method of production B. It allows free movement
of factors of production C. It afford the trading
40. Money may not be accepted as a store of value if nations the opportunity to earn high profit
A. Its value is stable B. It is easily divisible D. Have increased demand for her exports
C. It is easily transferable D. Its value is unstable
48. A country with over-valued currency will
41. An increase in the discount rate in an indication of A. Increase her foreign reserve
a central bank’s intension to pursue B. Decrease her foreign reserve
A. A dynamic monetary policy B. An expansionary C. Expect balance of payments surplus
monetary policy C. Acontractionary monetary D. Have increased demand for her exports
policy D. Adisciplined monetary policy
49. The loans from the World Bank to developing
42. The capital market is a market fortrading of countries are mainly to support
financial assets such as A. Their low leverof consumption B. Infrastructural
A. Commercial papers B. Long-term securities investment C. Capital-intensive technology D. The
C. Treasury bills D. Banke acceptances establishment of more universities
43. In Nigeria, revenue sharing from the Federation

account is between the YEAR 2016
A. Federal and state government and the
parastatals B. Executive, the judiciary and the 1.C 2.B 3.D 4.C 5.A 6.C 7.A
legislature C. Federal, state and local 8. A 9. A 10. C 11.A 12.A 13. A 14. B
governments 15.C 16. C 17.A 18. D 19. C 20. C 21.A
D. Federal and state government and the senate 22. A 23.A 24. A 25. C 26. A 27. A 28. D
29. C 30. A 31.B 32. B 33. C 34. D 35. B
44. A tax that increases at higher percentage as 36. C 37. C 38.A 39. C 40. C 41.A 42. C
income increases is called 43. B 44. C 45.B 46. B 47. D 48. C 49. C
A. A regressive tax B. A progressive tax 50. B
C. An income tax D. A proportional tax
45. National debt is an expected outcome of a

2015 Economics
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1. The history of development planning in Nigeria 10. A system which allows cultivation of crops as well
stated in as raising of livestock is known as
A. 1960 B. 1962 C. 1970 D. 1968 A. Pastoral farming B. Mixed grapping
C. Mixed cropping D. Mixed farming
2. The StructuralAdjustment Programme was aimed
at: 11. The supply and demand for goods and services
A. Encouraging capital flight B. Discouraging are influenced by the:
capital inflow C. Getting are a listic value of the A. Supermarket B. Entrepreneur
Naira D. Encouraging C. Price mechanism D. Equilibrium mechanism
3. If supply and demand established a price fora 12. Elasticity of demand depends on
good such that there is no shortage or surplus of A. Income elasticity of demand B. Cost the good
good then price is successfully performing its on market C. the elasticity of substitution
function. A. Constant B. Non price C. Rationing D. A and C
D. Probability
13. 030, 15,26,81, 12, 100, 18, 20,69,32. The above
4. To assure that the non price determinant of distribution is called
demand and supply do not employ the A. Rawdata B. Representative sample
…………………….assumption C. Random sample D. Measure of dispersion
A. Demand and supply B. Equilibrium price
C. Constant supply D. Other thing being equal 14. Utility is best measured by the use of:
A. Indifference curve B. Demand curve analysis
5. The basic determinant of the level of employment C. Supply curve analysis D. Ricardian theory
and output and of the price level is the volume or
level of in the 15. A pertectly inelastic demand curve is
A. Total spending B. Surplus money A. A rectangular in shape B. A horizontal line
C. Circulation D. None of the above C. A vertical line with elasticity of demand equals
zero D. Slanting straight line
6. The primary measure of National Output of goods
and services during a giving period of time is 16. One of the following is not an advantage of large
A. Great depression B. Comparison C. The gross scale production:
national product D. Gross domestic product A. Small size marked B. Economy of bulk
purchase C. Creditfacilities D. Advertisement
7. Giving two factors of production, X and Y, and “X-
saving” technological change refers to the case 17. The Nigeria Enterprises promote degree of 1972
where the new Y/Z ratio and is usually called
A. Negative B. Less than the original A. Enterprises use Degree B. Nationalization
C. Equal to the original D. Graterthan original Degree C. Indigenization Degree D. None of the
above
8. An increase in consumer spending leads to a
proportionally larger increase in capital 18. Economy is a Science which deals with
expenditure. This is an example of which of the A. The factors of production B. Oil exploration
following? A. Multiplier B. Deflation C. Accelerator C. The gross domestic product (GDP)
D. Inflation D. Allocation of scarce resources
9. Production is said to be capital intensive when 19. Opportunity cost as used by economist refers to
A. The producer uses on capital A. Costs of production B. The price of alternative
B. The producer uses more land than capital forgone C. The price foragoodorservice
C. The producer uses more capital than land D.Alternative wants forgone
D. The producer uses more machines than human
labour
20. In the capital economy, production decisions are B. Goodsareintheretailers C. Goods with retailers
impose by D. Goods are with the final consumers
A. The entrepreneur B. The government
C. The economist D. The efficiency of resources 32. Channel of distribution start with
use A. Wholesalers B. Retailers
C. Consumers D. Producers
21. Price can be defined as
A. A rate of exchange B. A medium of exchange 33. Efficiency of labour is enhancing by
C. The cost of production D. The unit of account A. Caring foreach B. Mechanization of production
processes C. Waragainstindiscipline
22. The difference between visible exports and D. Improved working condition and training
invisible import of a country, in money is known as opportunities
the:
A. Balance of trade B. Balance of payment 34. By labour force we mean
C. Terms of trade D. Foreign reserves A. The total population of a country
B. Those already in employment plus the
23. Which is not characteristic of a perfect market? proportion of the population that is available for
A. Large number of buyers and sever employment C. The able-bodied adult men within
B. Free entry and exit population D. The young graduates whom are
C. mmobility of factors of production looking forjob
D. Existence of homogenous production
35. By trade by barter, we mean
24. The headquarters of theAfrican Development A. Trade done by people in village B. Exchange of
Bank is situated in: goods for money C. The trade of the ages
A. Abuja, Nigeria B. Abidjan, Cote D’ ivory D. Exchange ofgoodsforgoods
C. Cairo, Egypt D. Johannesburg, South Africa
36. PT = MV is an equation for
25. National income figures are important because A. Price index B. National income
A. It help in census B. It helps to measure C. Velocity of production D. None the above
standard of living C. It helps in inventory
revaluation D. It help to reduce cost of living 37. If a person is allowed to money in the bank in
excess of what he has in his current account, the
26. An appropriate increase in the output of goods per excess amount drawn is called
head is known as: A. Loan B. Premium C. Overdraft D. Cheque
A. Economic Development B. Economic Growth exchange
C. Economy of production D. Human growth
38. One of the following classical economists
27. The profit maximizing firm is in EquBibrium when propounded the theory of population
A. MC=MR B. AC=MC C. MC=AC D. AR=MR A. Adam smith B. David Ricardo
C. Thomas Robert Maithus D. Alfred Marshall
28. The price at which one currency is exchange
foranother is caked A. Sterlingrate B. Nairarate 39. One of the following does not promote the scale of
C. Exchange rate D. Monetary rate production:
A. Skilled labour B. Mechanized production
29. The foreign exchange market is the market for C. Entrepreneurship
buying and selling of D. Large number of unskilled labour
A. Dollar B. Pounds sterling
C. Foreign exchange D. Dutch Mark
YEAR 2015
30. Importance of agriculture to your country does not
include 1. B 2. C 3. C 4. D 5. A 6. C 7. A
A. Provision of food B. Provision of raw materials 8. A 9. C 10. C 11.C 12.D 13. A 14. A
for industries C. None of the above D. Provision of 15.C 16. A 17.C 18. D 19. B 20. A 21.C
cash 22. B 23.C 24.C 25. B 26. B 27. A 28. C
29. C 30. C 31.D 32. D 33. C 34. D 35. B
31. Production is said to be complete when 36. D 37. D 38.C 39. C 40. D
A. Goods are completely manufactured

2014 Economics
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1. Production in Economics can be defined as the: C. P16,Q=12 D. P=16Q=12

A. Totality of producing, buying and consuming.
B. Transformation for raw materials for service in 9. Industries tend to be located closer to market
order to provide ultimate utility C. Transformation centres than the sources of major raw materials if
of raw materials and services in order to make the
maximum profit D. Production of goods and A. Products are relatively cheap to transport to
services for consumption market centres B. Products are relatively more
expensive to transport than the major raw
2. If a person receives a higher wage than would be materials C. Rawmaterialsarebulky
necessary to induce him to work, he is said to be D. Raw materials can also can be imported
receiving
A. Rent B. Profit C. Interest D. Period training 10. One disadvantage of trade by barter is that:
A. People are happier when that exchange the
3. Population density refers to same quantities of goods through the medium of
A. Density populated urban centre money rather than by barter
B. Thetotalareadivided bythetotal population B. What the other person wants
C. Density populated rural areas C. One person must always be cheated when
D. The total population divided by the total areas trade takes place by barter
D. It increases the initial cost of producing goods
4. In drawing an individual’s demand curve for a
commodity which of the following is NOT kept 11. The term Stock of capital means
constant? A. Amount of money necessary to start a business
A. Individual’s money income B. Price for B. Total amount receivable by all and inventory
substitutes C. Price of complementary goods existing at a time
D. Price of the commodity underconsideration C. Amount of equipment plant and inventory
existing atatime
5. Air is essential to life but commands no price! D. Total amount available for economic
Diamond is not essential to life but commands a development
high price! This is the paradox of:
A. Thrift B. Value C. Abundance D. Scarcity 12. One of the advantages of international trade is
that it
6. The average product of labour in a given period is A. Increase world output B. Encourages economic
obtained by dividing the independence among nations C. Restricts spread
A. Numberofworkersbythetotalproduct of technical knowledge D. Produced internally.
B. Total product by the total of hours actually
worked C. Change in total product by the change 13. Every economic requires an accurate census
in the total number of workers D. Total product by because it assists in
the number of workers. A. Solving inflation problem
B. Providing a sound framework for policy
7. The Law of Diminishing Return begins to operate formulation
when C. Stimulating economic activities in the national
A. Total product begins to rise B. Total product economy
begins to fall C. Marginal product begins to fall D. Solving unemployment problem
D. Margins product begins to rise
14. Unemployment can be reduced by
8. The demand and supply equations for a A. Restricting the productive base of the economy
commodity are given respectively as B. Adopting capital-intensive techniques of
D=20-1/2p S=8-114p production C. Adopting a mixture of labour and
Recalling that at equilibrium price (P) and quantity capital intensive techniques of production
(Q) can be obtained As D. Adopting our-intensivetechniquesof production
A. P=12.,Q=16 B. P=14,Q=10
15. A firm determines its profit when it studies its B. Rivers, Imo and States C. Kaduna, Delta and
A. Marginal Cost B. Average Cost C. Total Cost Abia State D. Kaduna, Rivers and Delta State
D.Average Cost relative to price in the market
25. By open market operations we mean the
16. An increase in the supply of labour in a factory procedure by which
while other things remain equal will lead to A. The commercial bank rate is determined in the
A. An increase in the wage and an increase in the open market B. People buy and sell goods in the
number of people employed B. decrease ri the open market C. The commercial bank intervene
wage rate and a decrease n employment C. An in the open market to buy and sell D. The Central
increasd in the wage rate and decrease in Bank intervenes in the open market to sell or buy
employment D. Adecrease in the wage rate and securities
an increase in employment
26. We can define the production possibility curve as
17. In a free market economy the price system A. The curve that is used in production in advance
allocates resources economies
A. Under government’s directives B. To ensure B. The curve used by the third world countries in
general welfare C. To their best alternative uses production
D. To reduce poverty C. The geometrical representation of the possible
area within which production is possible using the
18. At consumer equilibrium, the slope of the limited resources
indifference curve is D. An abnormal demand curve shows the
A. Half the slope of budget constraint line irresponsiveness of consumer to change in price
B. Equal to the slope of the budget constraint line
C. Greaterthan slope of the budget constraint line 27. Which of the following is a correct description of
D. Less than the slope of the budget constraint capital income of a country?
line A. National income/population
B. The ration between the per population and the
19. Internal economies of scale are expected to bring capita assets of the country
about C. Income generated per capital used in
A. An increase in short-run average cost production
B. An increase in long-run average cost D. National income/working population
C. A decrease in long-run average cost
D. A decrease in short-run average cost 28. Economic growth of a country could be narrowed
to
20. If government fixes price below the equilibrium A. Increase in a country’s GDP. B. Increase in the
price, effect will it have on demand economic well-being of the citizens C. Increase in
A. Quantity demanded and supplied will equal the sizes of a country’s population.
B. Quantity supplied will be greater than quantity D. lncreaseinworkerswages
demanded C. Quantity demanded will increase
D. Quantity demanded will decrease 29. A major factorthat has threatened the Nigerian
development process remains
21. The following except on is not a known practiced A. Inadequate capital B. Debt burden
economic system C. Corruption
A. Capitalism B. Socialism C. Mixed economy D. Relationshipwith otherdeveloping nations
D. Monopoly
30. When a country acquires loansfrom outside its
22. What is the median of thefollowing distribution: economy it is said to be
1,2,3,4,5,6,? A. 2. B. 3.5 C. 3 D. 4. A. Long term loans B. Short term loan
C. Internal debt D. External debt
23. Labour productivity is defined as:
A. Total level of output 31. One of the major reasons for the present
B. The maximum numberof hours work monetization policy in the public sector is that
C. Averageoutput D. Output per man/hour A. It will empower public servants’ purchasing
power of goods and services
24. Nigeria has Petroleum Refineries in B. It will increase the well-being of the National
A. Rivers, Cross River and Kaduna States assembly members
C. It will reduce government overhead cost
D. Itwellreducecorruption 43. A budget where current receipts are lea than

current expenditure is called
32. One of the functions of International Bank for
Reconstruction and Development (IBRD) is: 44. The market form in which is only producer is
A. The provision of foreign investment called
B. The provision of technical assistance A. Balance budget B. Monopoly
C. The provision of long term loans C. Oligopoly D. Imperfect competition
D. To maintain stability of foreign exchange
45. One of the reasons why barter system was
33. The price index number is equal to abandoned was because
A. Current Price/base period X 100 A. Of double coincidence of wants B. It was too
B. Current Price/price period X 100 simple C. It was not reasonable D. All of the
C. Base period price current price x 100 above
D. Price period/current price X 100
46. Inflation can be defined as
34. An inflationary pressure that is about 90/is said to A. When the economy becomes inflated
be B. A persistent rise in the general price level
A. Creeping inflation B. Trotting inflation overtime C. When there is too much money in
C. Running inflation D. Hyperinflation circulation
D. When there is shortage of goods
35. Is the formula for
A. Mean deviation B. Variance C. Standard 47. Given that Mr. Eze consumes Gari and Sugar and
deviation D. Coefficientof determination his income is N500 while the prices of Gari and
Sugar are N200 and N50 respectively. What is the
36. Of the range, variance and standard deviation, quantity of Gari consumed?
which is the most reliable? A. 25-48. National income is
A. Range B. Variance C. Standard Deviation A. The value of economic goods consumed in a
D. None of the above country at a particular time
B. Total money in circulation in a country at a
37. What is the value of S if L=3 in the below equation particulartime
S=4L+8. A.3 B. 20 C. 4 D. 12 C. Total current account balances
D. Total output of all firms in a country at a
38. Which of these is not a characteristic of the mode particulartime
A. Very easy to compute B. Ignores other values
C. Suitable for further statistical work 48. The rate at which a country’s export is exchanged
D. Very cumber some to handle for its imports is called?
A. Terms of Trade B. Balance of Trade
39. The following are different types of barharts C. Balance of Payments D. International Trade
except one
A. Simple barcharts B. Pie bar.charts 49. The economist sees cost in terms of
C. Component barcharts D. Multiple barchart A. Money spent in production
B. The cost of goods produced to satisfy human
40 ......................... definition of economics is universally wants
accepted as the most comprehensive because it C. Maximization of profits by producers
embraces almost all aspects of economics D. The opportunity cost of producing one
A. Professor L. Robbins B. Karl Max commodity instead of the others.
C. Adams Smith D. Mills
41. Economics as a science is concerned with 2014 YEAR

A. Factors of production B. Manufacturing
activities C. National income 1.B 2. A 3.D 4.B 5.B 6.B 7.C
D. Allocation of scarcere sources 8. A 9.B 10.B 11.B 12. A 13.B 14.D
15.D 16. A 17.A 18.A 19.C 20.C 21.D
42. Statistic is used in economics to interpret 22.D 23.C 24.D 25.D 26.C 27.A 28.A
A. Geometric events B. Economic events 29.C 30.D 31.A 32.C 33. A 34. A 35. C
C. Harmonic events D. Algebraic events 36.C 37.B 38.D 39.B 40.A

2013 Economics
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1. Statistics is used in Economics to interpret: B. The degree to which human wants are
A. geometric events, B. economic events, satisfied.
C. harmonize events D. algebraic event. C. The quality of food each individual eat.
D. The numberof cars and property a person has.
2. Opportunity cost to:
A. Another name for a forgone alternative. 10. Economics isascience which deals with:
B. Maximization of utilities. A. The Gross domestic Product (GDP)
C. Another name for the cost of production. B. Allocation of scare resources,
D. The equivalent of scale of preference. C. The factors of production.
D. The production of goods and services.
3. A budget where currentexpenditureiscalied:
A. balanced budget B. deficit budget, 11. The concept of opportunity cost is important
C. surplus budget D. unbalanced budget. because:
A. Scaleofpreferencehasbeen drawn.
4. Expenditure on capital goods is called: B. Choice is madebecauseresourcesare limited
A. large expenditure B. accelerator, C. A human wants must be satisfied to a
C. Investment. D. Multiplier reasonable extent.
D. Scarcity and Choice determine the degree of
5. Which of the following statement is not true? opportunity cost involved.
A. A firm consists of one or more plants.
B. A firm is larger than an industry. 12. In economics, the concept of utility means:
C. A plantis a unit in a production process. A. The monetary value of the goods we
D. Few large firms may control about 80% of consumed. B. Thetotal valueofall goods and
production in agriculture. services C. The utilization of goods and services.
D. The amount of satisfaction we derive from the
6. Current accounts are classified as money consumption of goods and services,
because
A. They earn interest income to the depositor. 13. Elasticity of demand can be defined at a point
B. They can be readily used in the making of the where:
purchases and payments of debts. A. An increase in demand as a result of a
C. The are ultimately the obligations of the proportionate fall in price.
treasury. B. An increase in demanddueto a decrease in
D. Banks hold currently equal to the value of their supply.
outstanding deposits. C. An increase in demand duetoslightfall in price.
D. An increase in demanddue to an increase in
7. Reduction in the value of the home currency in supply.
terms of foreign currency is Known as:
A. Currency reduction. B. Devaluation. 14. The equilibrium market price is determined at
C. Revaluation. D. Inflation, appoint where:
A. Consumers can buy all that they desire.
8. Economics deals with all except one of the B. Both what is supplied and demanded are
following; equal. C. The price is moderate.
A. Comparison of the standardof livingof people. D. Sellers can sell or their commodities.
B. Free and fair elections in a country,
C. Allocation of scare resources among 15. A consumer’s scale of preference is an
competing alternatives. arrangement of his/her.
D. Maximization of utilities among consumers A requirements and how to satisfy them
B. needs in orderof importance.
9. Standard of living means: C. sources of income and their importance.
A. Percapitaincomeofacountry. D. Scarce resources in order of importance.
16. When a generalization is made based on A. Large numberof unskilled labour.

observed facts,itisknownas: B. Entrepreneurship. C. Mechanized production.
A. theoretical reasoning. B. normative reasoning. D. Skilled labour.
C. deductive reasoning D. inductive reasoning.
26. In the capitalist economy, production decisions
17. If the price elasticity of demand for a good is 0.43, are imposed by:
an increase in the price of the good will result in: A. The Economist. B. The Entrepreneur.
A. anetgain. B. a decrease in profit by C. The Government.
C. a net loss, D. an increase in profit by D. The efficiency of resources used.
18. In a free market economy, the price system 27. The difference between visible exports and
allocates resources: invisible import of a country, in money is known
A. to their best alternative uses B. to ensure as:
general welfare C. under govrnment’s directive A. Balance of trade. B. Terms of trade.
D. to reduce poverty C. Balance of payment. D. External reserves.
19. A normal goods with close substitutes is likely to 28. Which of the following is not a characteristic of a
have its price elasticity of demand perfect market?
A. greater than unity. B. less than unity. A. Large numberof buyers and sellers.
C. between zero an done. D. equal to unity B. Existence of homogenous production.
C. Immobility of factors of production.
20. A major advantage of specialization and division D. Free entry and exit.
of labour is that:
A. workers will be adequately rewarded. 29. Upstream oil activities involve the
B. trade unionism will be encouraged. A. exploration of crude oil
C. time wastage will be minimized. B. refining of crude oil
D. there will be ready market for labour. C. marketing of finished products.
D. management of pollution
21. An increase in consumer spending leads to a
proportionally larger increase in capital 30. The Malthusian theory of population
expenditure. This is an example of: A. government policies. B. natural disasters
A. Accelerator. B. Inflation. C. Deflation. C. birth control measures.
D. Multiplier. D. management of pollution
22. Production is said to be capital intensive when: 31. The movement of people from rural to urban
A. the producer uses only capital. areas affects the
B. the producer uses more land than capital. A. occupational distribution of population.
C. the producer uses more capital than land. B. sex distribution of population.
D. the producer uses more machines than human C. geographical distribution of population
labour. D. age distribution of population.
23. One of the following is not an advatange of large 32. An upward review of the retirement age will affect
scale production: the
A. Small size of the market. A. demandforlabour. B. supply of labour
B. advertisement C. wagerate. D. tax rate
C. Creditfacilities.
D. Economy of bulk purchase. 33. The survival of a partnership depends on
A. the managerial ability of the partners.
24. An appropriate increase in the output of goods per B. access to finance
head is known as: C. the goodwill of the partners.
A. Human Capital development. D. political stability
B. Economy of production.
C. Economic Growth. 34. A major objective of the Federal Government’s
D. Economic Development. initiative on cassava production in Nigeria is to
A. diversify the export base of the economy.
25. One of the following does not promote the scales B. ensure the availability of cassava.
of production: C. make cassava a stable food in the country.
D. provide raw materials for industries. C. formulation of appropriate government policies.

D. attraction of foreign aids and grants.
35. A country would develop its agricultural sectorfirst
so as to 39. Which of the following classes of goods accounts
A. stabilize the prices of agricultural products. for the largest proportion of Niger imports?
B. stabilize the prices of industrial products. A. Food and animal products. B. Consumer
C. create a marketfor the agricultural sector goods. C. Chemicals. D. Machinery and transport
D. create a market for the industrial sector. equipment.
36. 36. The GDP of Nigeria Will be greaterthan her 40. The organization wnich provides credit to help
ONP if countries achieves short-term balance in their
A. the value of goods and services to Nigeria is balance of payments is the:
greater than the value of those from Nigeria. A. Economic Community of West African States.
B. consumption is greater than investment. B. International Monetary Fund.
C. government expenditures are greater than the C. International bank for Reconstruction and
foreign aid received. Development.
D. thevalue of goods and services produced by D. African Development Bank.
Nigerian businesses abroad is less than that of
foreign businesses in Nigeria.
37. The major determinant of the total volume of YEAR 2013

output in an economy is the
A. level of whole sale prices. B. size of the labour 1.A 2. A 3. D 4. C 5. B 6. B 7. B
force. C. Level of total expenditure. 8. B 9. A 10. B 11. B 12. D 13 A 14. B
D. composition of consumer spending. 15. B 16.D 17.D 18.A 19.C 20.C 21.D
22.D 23.A 24.C 25.A 26.B 27.C 28.C
38. The most important factor in ensuring economic 29. A 30. C 31. C 32. A 33. A 34.A 35.D
development is the 36. D 37. B 38. C 39. D 40. B
A. effective mobilization of domestic savings.
B. Presence of foreign capital.

2012 Economics
========================================================================================
1. Changes in the quantities of a product purchased 10. Money can serve these functions:
by an individual are caused by the following A. Measure of deferred payment.
except B. Store of value. C. Aonly. D. A and B only.
A. The price of the product, B. income of the
consumer. C. the supply price. D. the price of 11. One of the major reasons for the present
competing product. monetization policy in the public sector is that:
A. It will empower public servants purchasing
2. The quantity of a product sellers are willing to sell powerof goods and services. B. It will increase the
is affected by well-being of the National Assembly members.
A. The price of the product. C. It will reduce government overhead cost.
B. the quantity of the product avaialbe D. It will reduce corruption.
C. the quantity produced.
D. the demand schedule. 12. One of the functions of International Bank for
Reconstruction and Development (IBRD) is:
3. Economics of Scale described A. The provision of foreign investment.
A. The shape of the long run average cost curve. B. The provision of technical assistance.
B. an input-output space. C. A, long run situation. C. The provision of long tern loans,
D. A state of production efficiency. D. To maintain stability of foreign exchange.
4. A free market economy operates when 13. The price index number is equal to;
A. The forces of supply and demand apply A. Current Price/base periodX 100.
B. there is free entry and exit B. Current Price/price period X 100
C. there is government intervention C. Base Period Price/Current price X 100.
D. a capitalist economy is operated. D. Price Period/Current price X 100
5. What is economics 14. An inflationary pressure that is about 9% is said to

A. Ascience. B. An Art. be:
C. Mathematical techniques, A. Creeping inflation. B. Trotting inflation
D. Theoretical constructs of behavioUral science. C. Running inflation. D. Hyperinflation.
6. Aggregate demand is composed of 15. N ?(x?x)2 is the formula for?

A. Consumption, B. Savings. A. Mean deviation. B. Variance. C. Standard
C. Consumption and investment. deviation. D. Coefficientof determination
D. Consumption investment and Government
expenditures. 16. Of the range, variance and which is the most
reliable?
7. The economics of aggregates is referred to as A. Range. B. Variance. C. Standard Deviation.
A. Income Theory. B. Macro-Economics. D. None of the above.
C. National Income. D. Income Determination.
17. What is the value of S if I = 3 in the below
8. A monopoly market structure is used to describe equation. S = 41+ 8:
A. Asingle seller. B. Asingle buyer A. 3 B. 20 C. 4 D. 12
C. Avery high price.
D. Acollusion between buyers or sellers. 18. Which of these is not a characteristic of the mode:
A. Very easy to Compute. B. Ignores other values.
9. A market structure is characterized by C. Suitable for further statistical work.
A. The ruling price in the market. D. Very cumber some to handle.
B. The number of sellers in the market.
C. The size of the buyers in the market. 19. The following are different types of barcharts
D. The quantity of product available for sale in the except one:
market. A. Simple bar charts. B. Pie bar charts.
C. Components bar charts. D. Multiple bar charts. 31. The system of agricultural practice which involves
hunting, gathering and growing of food crops
20. definition of economics is most forfamilyconsumption only isdescribed as
universally accepted as the most comprehensive A. peasant agriculture B. plantation agriculture
because it embraces almost all aspects of C. co-operative farming D. subsistence farming
economics.
A. Professor L Robbins. B. Karl Max. 32. What is the term used to production of goods
C. AdamsSmith. D. J.S.Mills. which, describe a policy aimed at promoting the
local are usually imported?
21. Utility is best measured by the application of A. Deregulation B. Import substitution
A. Demand curve analysis. B. Supply curve C. Tariff reduction D. Backward integration
analysis. C. Indifference curve analysis.
D. Marginal cost curve analysis. 33. Labour-intensive strategy of industrialization
emphasizes the use of
22. Prodduction can be defined as A. steam energy in the process of production
A. The creation of goods. B. Creation of services. B. manual method of production C. synthetic raw
C. All of the above. D. None of the above. materials D. hydro-electric power
23. Efficiency of labour is enhanced by 34. Petroleum is the mainstay of the Nigerian
A. Caring for each household. economy because it is the A. main foreign
B. Improved working condition opportunities. exchange earner B. greatest employerof labour
C. War against indiscipline. D. All of the above. C. greatest contributor to the growth of agriculture
D. sourceof high income for its workers
24. Q In a purely competitive market under the point
of equilibrium of these conditions prevails: 35. An indigenous company wholly owned by the
A. FC=VC. B. MC=MR=AC=P=AR federal government of Nigeria which currently
C. BR=>P D. MCZP<MR engages in prospecting for oil is
A. the Nigerian National oil Company
25. Usually in most English speaking countries of B. Peak Petroleum Industries Nigeria Lihiited
West African census is conducted every C. Nigeria Exploration and Production Company
A. 5 years. B. 4 years- C. 20years. D. 10years. D. the Nigerian National Petroleum Corporation
26. Channel of distribution starts with 36. An increase in both the legal reserve ratio and
A. Wholesalers B. retailers. C. producers. discount rate has the effect of
D. market A. increasingthe quantity of money in circulation
B. decreasing the quantity of money in circulation
27. The final link in the distributive chain is the C. increasing the value of money
A. factor B. brother. C. agent. D. retailer. D. decreasing the value of money
28. The major advantage of public corporation is 37. Inflation in the Nigerian economy may be fueled
A. stability. B. Inabilityto easilyraisedfund by increase in
C. service, oriented policy A. the dollar price of crude oil C. government
D. its ability to monopolize production. expenditure B. the sale of company shares
D. sale of government bonds
29. One of the following classical economists
propounded the theory of population. 38. Gresham’s law in economics shows that
A. Thomas Robbert Malthus. B. Adam Smith A. good money drives out bad money
C. Alfred Marshall. D. All of the above. B. bad moneydrivesoutgood money
C. the value of money varies inversely with the
30. In a free market economy, wage is determined by price level D. gold must be available to maintain
mostly the value of paper money
A. The trade union.
B. The interplay of demand and supply. 39. Monetary policy aimed at reducing demand-pull
C. The Government. D. None of the above. inflation in the country may be carried out through
A. increase in taxation of private companies,
public corporations and private individuals
B. increase in cash reserve ratio of commercial

banks and the sale of government securities YEAR 2012
C. decrease in government expenditure on
education D. direct price come market place, 1. C 2. A 3. D 4. A 5. A 6. D 7. B
8. A 9. A 10.D 11.C 12.C 13.C 14. A
40. Progressive tax structure is designed to 15.- 16.C 17.B 18.D 19.B 20.A 21.A
A. take more from the income of the poor 22.C 23.B 24.B 25.D 26.A 27.D 28.C
B. take more from the income of the rich 29. A 30. B 31. D 32. B 33. B 34. A 35. D
C. take equal proportion of income from both the 36. A 37. C 38. C 39. B 40. B
rich and the poor D. reduce the problems
emanating from tax imposition

2011 Economics
========================================================================================
1. NON-Specific factor of production is: B. financial viable projects in member countries.

A. machine B. factory building C. provision of technical assistance needed for
C. unskilled labour D.farm land the execution of development projects
D. Encourage member countries to revolt against
2. Which of the following is another expression for formercolonial masters.
opportunity cost?
A. money cost B. real cost 9. One of the following is a correct characteristic of
C. artificial cost D. None of the above the advanced market capitalist economy
A. properdistribution of income. B. a greater
3. Which of the following definition of Economics is standard by the generality of the citizens
the most generally accepted? C. it is not proned to economic uncertainties and
A. Science that deals with production political upheavals D. the rich getting richer and
B. science that deals with distribution the poor getting poorer
C. science that studies mankind
D. science which studies human behaviour as a 10. The other appropriate name forthe Third World
relationship between ends and scare means Nations is?
which have alternative uses. A. Nigeria B. Bangladesh C. Underdeveloped
D. India
4. Factors of Production are said to be specified
when, 11. Which of the following is a leakage out of a
A. they can be putto all uses in production circular flow:
B. they can be put to only one use in production A. saving B. investment C. consumption
C. they are used to analyse cost effect D. Expenditure
D. None of the above
12. Which of the following is notgain from petroleum
5. Total product refers to: in the Nigerian economy;
A. Total amount of goods produce over a period of A. ruralurbanmigration B. creationofemployment
time by all factors of production B. Total amount of C. source of foreign exchange
goods produce over a period of time by non- D. source of energy
specific factor of production C. Total amount of
food produce over a period of time by specific 13. A development plan covering a period of fifteen
factor of production D. None of the above. years is:
A. perspective plan B. short term plan
6. One of the aims of Economic Community of West C. mediumtermplan D. combinedplan
African Stales (ECOWAS) is the
A. Liberalization of trade among memberstates. 14. A foreign exchange market where there is the
B. Establishment of its headquarters in each of official operating side by side with the
the member states. C. Discouragement of trade autonomous market is called:
among member countries. D. Take over of A. thesecondtier B. co-operation C. foreign
business in member states. exchange market D. foreign exchange currency
7. The theoretical basis for international trade is the 15. The theoretical basis for international trade is:
principle of A. international co-opration B. exchange between
A. comparative advantage B. differentcurrencies countries C. absolute advantage D. comparative
C. international co-operation advantage
D. exchange between countries
16. Which of the following is not a characteristic of
8. Which of the following is not an objective of the good money
African Development Bank {ADB) A. Divisibility B. Inflation C. portability D. durability
A. promotion of private and public investment in
member slates.
17. Trade by barter means: 26. The price paid fur labour services is the A. income
A. borrowing money from CBN B. selling on credit rate B. salary rate C. wage rate D. commission
C. exchange of goods for other goods D. None of rate
the above
27. The distribution channel that contributes mostto
18. Factors militating against improved agriculture in the cost production is
Nigeri are: A. producer- wholesale-retailer-consumer
A. land tenure B. lack of proper storage facilities B. producerretailer-wholesaler-consumer
C. A and B above D. None of the above C. producer-retailer-consumer
D. producer-wholesaler-consumer
19. Which of these will cause population to increase
A. 5% increase in both birth and death rate 28. GNP is not a good measure of social welfare
B. 5% increase in death rate with 4% increase m because there are unrecorded
birth rate. C. 10% decrease in both birth and A. government subsidies B. transfer payments
death rate D. 4% increase in death rate with 5% C. indirecttaxes D. social costs
increase in birth rate,
29. In national income accounting. NNP is derived by
20. Which of the following will you recommend to a subtracting from the GNP
country lacing inflation A. indirecttaxes B. capital consumption
A. surplusbudgeting B. deficitbudgeting C. transfer payments D. allowance for wastage
C. rise in interest rate D. reduction income tax
30. Money may not be accepted as a store of value if
21. To facilitate the exportation of crude oil from A. its value is stable B. it is easily divisible
Nigeria, special C. it is easily transfer able D. its value is unstable
A. roads were built to connect the major oil wells
to the port B. pipelines were laid Ic connect the 31. Which of the following is the major function of the
major oil wells to the ports C. railway lines were wholesaler?
constructed to connect the major oil wells to the A. Bulk breaking
puns D. airstrips were constructed forjets to B. Provision of useful information to the
evacuate the oil manufacturer on products
C. Provision of after sales service to consumers
22. In order to accelerate economic development, a D. Provision of warehousing facility.
country must
A. pursue a rational population policy 32. In the distribution channels for goods and
B. pursue an incremental population policy services, the middleman’s mark-up margin
C. stimulate her population growth rate provides a rough measure for the
D. pursue a high population growth rate A. quantity discounts allowed final consumers
B. reward for business entrepreneurship
23. The reduction of high fertility rate is a measure in C. effectiveness of government control overthe
population control designed to make the economy’s marketing channels
A. female population higherthan the male D. extend of exploitation of the final consumer
B. male population higherthan the female
C. female and male population equal 33. Which of the following reasons could induce a
D. growth in population more sustainable manufacturer to bypass the wholesaler in the
distribution chain
24. The efficiencyof labourcan be increased by: A. To provide the quantity needed by retailers
A. placing an embargo on recruitment B. To collect useful information on his product
B. constant training of workers C. To provide warehousing facilities D. To violate
C. retirementof workers on a regular basis government regulation on distribution
D. engaging expatriate only
34. A major difference between a state-owned
25. If the labour force in a given community is enterprise and a private enterprise is that the
2,000.000. in the wage employment 20001)0 and former
the unemployed are 80.000. What is the A. is not expected to cover its costs of production
unemployment rate in the community’” while the latter is B. is not always expected to
A. 40.0% B. 10.0% C. 4.0% D. 0.4% maximize profits while the latter is
C. has shareholders while the latterdoes not
D. Has a board of directors while the latterdocs C. The less developed parts of the country will be
not able to attract more industries D. Only the
government will be able to finance the
35. Divorce of ownership from control is a establishment of industries
characteristic of
A. sole proprietorship B. a limited liability company 39. If the same basket of goods which cost £412.00 in
C. Partnership D. a private limited company 1985 cost $415.00 in 19K7, the price index for
1987 is
36. Capital provided by individuals to the Firm by A. 25 B. 80 C. 10 D. 125
purchasing stocks is called
A. debtcapital B. fixed capital 40. Which of the following is likely to be inflationary?
C. circulating capital D. equitycapital A. Tax increase B. Increase in unemployment
C. Budget surplus D. Wages increase
37. Which of the following factors is the most
important in siting a petro-chemical plant?
A. Nearness to the source of raw materials YEAR 2011
B. Nearness to the source of power
C. Availability of labour 1. C 2. B 3. D 4. B 5. A 6. A 7. A
D. Proximity to financial institutions 8. D 9. B 10. C 11. A 12. A 13. A 14. A
15. D 16. B 17.B 18.C 19.D 20.C 21.D
38. Which of the following will be the effect of allowing 22.C 23.B 24.A 25.- 26.B 27.C 28.C
only economic factors to dictate the location of 29. B 30. D 31. A 32. D 33. A 34. B 35. B
industries in Nigeria? 36. D 37. A 38. B 39. B 40.D
A. A more even development of the different put is
of the country will be assured B. There will he an
unbalanced spread in the distribution of industries

2010 Economics
========================================================================================
1. Mean, median, mode, variance and standard A. Both what are supplied and demanded arc
variation belong to the domain of: equal B. The price is moderate
A. Inferential statistics B. Random sampling C. Sellers can sell all their commodities
statistics C. Descriptive statistics D. Variance of D. Consumers can buy all they desire
grouped data
10. Full equilibrium requires that:
2. The importance of Bar Chart in statistics is that: A. MR=MC B. TR>TC
A. It makes comparison of events very clear C. MC= MRR and AC - AR D. MR = MC AR AC
B. It is too easy to construct C. It is used to
represent a distribution that has so many 11. The history of development planning in Nigeria
frequencies D. It is used to show various started in:
segments of acomponent bar chart A. 1960 B. 1962 C. 1970 D. 1968
3. The formula for ob

taining the median of a 12. The Structural Adjustment Programme was aimed
distribution is: at:
A. M d = L± (nb – )i B. Md = L ± ( - - nb)i A. Encouraging capital flight B. Discouraging
capital inflow C. Getting a realistic value of the
Naira D. Encouraging
C. D. L = md ( b ) -i n
13. If supply and demand established a price for a

4. In the formula? 2 N stands for: good .such that there is no shortage or surplus of
good then price is successfully performing
A. The number f ooccurrences B. The number of
its functions.
frequencies C. The summation of the frequencies
A. Constant B. Non price C. Rationing
D. The summation of occurrences
D. Probability
5. In economics, the concept of utility means:
14. To assure that the non price determinant of
A. The monetary value of the goods we consume
demand and supply do not employ the
B. The total value of all the goods and services
assumption
consumed C. The amount of satisfaction we
A. Demand and supply B. 1-quilibrium price
derive from the consumption of goods and
C. Constant supply D. Other thing being equal
services D. The utilization of goods and services.
15. The basic determinant of the level of employment

6. The concept of utility is highly emphasized in the
and output and of the price level is the volume or
theory of:
level of in the
A. Demand B. Production
A. Total spending B. Surplus money
C. Demand and supply together D. Distribution.
C. Circulation D.None of the above
7. Price can be defined as:
16. The primary measure of National Output of goods
A. A rate of exchange B. A medium of exchange
and services during a given period of time is
C. The cost of production D.The unit of Account
A. Great depression B. Comparison
C. The gross national product
8. Elasticity of demand can be defined as:
D. Gross Domestic Product
A. An increase in demand as a result of a
proportionate fall in price B. An increase in
17. Giving two factors of production. X and Y. and ‘X-
demand due to a small fall in price C. An increase
saving’ technological change refers to the case
in demand due to an increase in suppi.
where the new Y’X ratio
D. An increase in demand due to a decrease in
A. Negative B. Lessthantheoriginal
supply
C. Equal to the original D. Greaterthan the original
9. The equilibrium market price is determined at a
point where:
18. An increase in consumer spending leads to a C. Cooperative Society

proportionally larger increase in capital D. Private Limited Liability Company
expenditure
A. Multiplier B. Deflation C. Accelerator D. Inflaton 29. All but one are barriers to International Trade
A. Checking at country’s boarders B. Differences
19. Production is said to be capital intensive when: in currency C. Geographical barriers
A. The producer uses on capital D. High standard of living
B. The producer uses more land than capital
C. The producer uses more capital than land 30. All but one are advantages of monopoly:
D. The producer uses more machines than human A. Planned production B. Reduction in waste of
labour output C. Efficiency in production D. Eliminates
wasteful competition
20. A system which allows cultivation of crops as well
as raising of livestock is known as Use the information below to answerquestions
A. Pastoral B. Mixed grazing C. Mixed cropping 31 and 32
D. Mixed farminm Year 1 Year 2
GNP at current prices (Nm) 20.000 27,000
21. If quantity demanded exceeds quantity supplied, Population (million) 20 24
price is than the equilibrium price
A. Less B. Constant C. Equal D. Indicate 31. What is the percentage increase in GNP between
year 1 and year 2?
22. When demand is graphed, price is placed A. 3.5% B. 14.0% C. 20.0% D. 35.0%
on axis and quantity on the
axis 32. Calculate the GNP per head of the population in
A. Indirect, direct B. Vertical, horizontal year 1 and year 2
C. Quantity demanded D. Product decrease A. N2000.00:M000.00 B. N1 125.00: N2000.00
C. N1000.00: N2000.00 D. N1000.00; N1125.00
23. The Principal national macro-economics goals
include the following: 33. In national income accounting, aggregate saving
A. National goods and priorities in any year is defined as
B. Full employment of the nation’s productive A. All disposable income not spent on
inputs C. Acceptable levels of economics growth consumption B. All savings deposits in all banks
D. Maximum levels of economic stability during the year C. All savings and time deposits in
all banks during the year D. the value of inventory
24. Which of the following is one variable that cause change forthe year
the demand curve to
A. demand and supply B. quantity supplied 34. Which of the following combinations is a veritable
C. prices substitute goods D. marginal cost set of development indicators?
A. Growth of government expenditure and imports
25. Two commodities are considered to be perfect B. Growth of population and national income
substitutes for each other if the elasticity of C. High fertility, literacy and school enrolment
substitution is rates D. Low infant mortality and high per capital
A. Infinite B. Positive C. Negative D. zero income and literacy rates.
26. The total of all income payment which land, 35. If an economy grows at an annual rate of 5% of
labour, and capital as well as entrepreneurs which 3% is deemed to be due to improvement in
receive in a year is known as the productivity of labour and capital combined,
A. Gross National Product B. Net Nat Product the remaining 2% is general attributed to
C. National income D. None of the above A. the size of the population B. technical progress
C. the environment
27. Labour productivity is defined as: D. The amount of natural resources
A. total level of output B. average output
C. output per man/hour 36. If a country has a balance of payment crises,
D. marginal output of labour which of the following measures can best bring
about an improvement in the short run?
28. A marketing board is: A. Large scale importation of foreign goods
A. Joint Stock Company B. Public Corporation B. Investment in capital market abroad
C. Large-scale export of locally made goods

D. Repaymentfdebtto hercreditors 39. The Nigerian Trust Fund is managed on behalf of
Nigeria by the
37. Th etermsoftradeofacountryisdefined as A. World Bank B. International Monetary Fund
A. x 100 C. African Development Bank
D. Economic Commission for Africa
B. x 100
40. One of the gains by member states of the
x 100 Economic community of West African States is
C.
.
D. x 100
YEAR 2010
38. When a foreigner on a visit to Nigeria, pays for 1. A. 2. A 3. D 4. A 5. C 6. A 7. A

hotel accommodation and meals with some 8. A 9. A 10. D 11. B 12. B 13. C 14. D
foreign currency, the amount paid should be 15. A 16. C 17.A 18.C 19.C 20.B 21.C
recorded in Nigeria’s balance of payments as an 22.D 23.D 24.A 25.A 26.D 27.D 28.B
item of 29.D 30. B 31. D 32. D 33. A 34. D 35. B
A. Nigeria’s invisible export trade B. Nigeria’s 36. D 37. D 38. A 39. C 40. B
import trade C. Nigeria’s visible trade D. foreign
capital inflow into Nigeria

2009 Economics
========================================================================================
1. Economics can be defined as: 6. The marginal product X is:

A. Reduction in spending in the face of competing A. 18 B. 20 C.24 D.25
Alternatives B. Allocation of resources to 7. The total product Z is:
alternative uses C. Economic behavior of small A. 73 B. 75 C. 45 D. 118
units like the household and the firm
D. The study of economic aggregates like inflation 8. The average product Y is:
and National income A. 8.6 B. 12.0 C. 14.6 D. 15.5
2. I. What and how much will be produced? 9. A country exporting mainly primary products and
II. How will it be produced? with a high percentage of her labourforce in
Ill. For whom will it be produced? agriculture is said to be:
IV. How much will be exported and consumed? A. Developing B. Developed C. Poor
D. Underdeveloped
From the above, identify the combination of basic
resource allocation questions in economic 10. Being a memberof the OPEC, Nigeria is in a
analysis. favourable position to:
A. I, Il and Ill B. l,ll and lV C. I, Ill and IV A. export her crude oil B. control world crude oil
D. II, Ill and IV price C. reap the benefit of a cartel
D. borrow money from members
3. In a capitalist economy, the economic problem of
what goods to produce is decided mainly by: 11. When generalization is made based on observed
A. shadow prices B. profit level facts, it is known as
C. relative prices D. a central planner A. deductive reasoning B. inductive reasoning
C. theoretical reasoning D. normative reasoning
4. When a commodity X sold for N25 per unit, 50
units of commodity Y were purchased. With an 12. A vertical supply curve indicates that
increase in the price of commodity X to N50 per A. the quantity supplied is responsive to price
unit, the demand for commodityY fell to 20 units. B. the same fixed quantity will be supplied no
The two commodities can be classified as: matter the price C. an increase in price will
A. substitutes B. durable and non-durable result in an increase in the quantity supplied
C. intermediate and final D. Complements D. there is a fixed price for the commodity below
which no supply will be made
5. In a free market system, trading can only take
place when the market is not working efficiently. 13. A firm’s shut-down point is reached when the
Equilibrium price and quantity under perfect average revenue fails to cover the
competition is: A. average variable cost B. marginal cost
A. MC=ARZTR B. TC=AR=P C. MC=AR=P C. average total cost D. average fixed cost
D. MC=ARTC
14. The long run is a period during which a firm
Use the table below to answer Questions 6, 7 A. sells input to purchase fixed assets
and 8. B. varies all its inputs
C. sources all its inputs from within
Variable Total Marginal Average D. replaces all its inputs
Factor Product Product Product
1 1 1 1 15. An important feature of perfect competition is that
2 6 5 3 A. the movement of goods and services is
3 24 18 8 restricted B. there is adequate information on
4 48 X 12 the existing prices C. prices are centrally
5 Z 25 14.6 administered D. individual economic units can
6 93 20 Y influence prices
16. A tax that increases at a higher percentage as

income increases is called 25. The major purpose of African Development Bank
A. a proportional tax B. a regressive tax is to
C. a progressive tax D. an income tax A. provide loans for trade development
B. provide loans for infrastructural development
17. Economic growth can be accelerated through C. provide loans for development bank in distress
A. balancing of savings and consumption D. educate peasant farmers in new techniques
B. postponement of current consumption
C. planned current consumption 26. Which of the following is not a characteristic of
D. increased current consumption good money?
A. Divisibility B. Inflation C. Portability
18. National debt is an expected outcome of D. Durability
A. deficit budget B. consolidated budget
C. balanced budget D. surplus budget 27. Trade by barter means:
A. borrowing money from CBN
19. The major reason why nations engage in B. selling on credit C. exchange of goods for
international trade is that other goods D. None of the above
A. it allows free movement of factors of production
B. it makes possible the use of capital-intensive 28. Factors militating against improved agriculture in
method of production Nigeria
C. nations are substantially different in their A. Land tenure B. lack of proper facilities
endowments of economic resources C.Aand B above D. None of the above
D. it affords the trading nations the opportunity to
earn high profit 29. Which of these will cause population to increase?
A. 5% increase in both birth and death rate
20. National income estimates can be used to B. 5% increase in death rate and 4% increase in
A. differentiate between the rich and the poor in a birth rate C. 10% increase in both birth and death
country B. prepare a country’s annual budget rate D. 4% increase in death rate with 5%
C. project the level of a country’s economic increase in birth rate
development D. compare a country growth rate
with that of another over a period of time 30. Which of the following will you recommend to a
country facing inflation?
21. Import substitution aims at A. surplus budgeting B. deficit budgeting
A. substituting agricultural products with industrial C. rise in interest rate D. reduction income tax
ones B.substituting imports with agricultural
exports C. devalue the currency 31. The technical name for idleness of labour is
D. de-emphasize import-substitution industries A. Unemployment B. mobility of labour
C. efficiency of labour D. All of the above
22. ECOWAS has taken a giant step towards
economic integration by 32. The following are reasons for low agricultural yield
A. presenting a united front againstforeign in Nigeria except lack of fertilizer lack of high-
economic exploiters B. introducing common yielding seeds lack of sufficient farm land lack of
currency for travellers C. holding frequent extension services
meetings at various state capitals D. increasing A. lack of fertilizer B. lack of high-yuekdin seeds
economic stability among member states C. lack of sufficient farm land
D. lack of extension seices
23. The types, sources and uses of government
income aremainlyconcerned with 33. All the following but one factor affects the location
A. public expenditure B. public revenue of industry
C. public budget D. public finance A. nearness to raw material
B. availability of foreign exchange
24. One of the problems arising from localization of C. availability of infrastructure
industries is D. nearness to market
A. high prices of output
B. the exportation of output 34. The indifference curve indicates:
C. the scarcity of foreign exchange A. the locus of the consumer’s utility of two given
D. structural unemployment goods consumed
B. level of production where the firms are C. A consumer co-operative

indifferent C. curves of equal demand D. A public limited liability company
D. points of equal demand
39. The sector that employs the largest proportion of
35. A seller of goods whose demand is elastic will the active labour force in Nigeria is the
increase his revenue if A. oil sector B. federal civil service
A. he reduces the prices B. he increase the price C. financial sector D. agricultural sector
C. he increase his output D. he gives discount
40. An entirely domestic effort directed at improving
36. Liquidation of a limited liability company implies agricultural production in Nigeria is the
that the A. Agricultural Development Programme
A. company may not pay its debt B. Agro-industrial Development Scheme
B. debts of the company can only be paid from its C. Food and Agricultural Organization
own assets C. debts of the company are paid D. National Land Development Authority.
from both business and private funds of the
owners D. debts of the company must be paid
from public funds only YEAR 2009 (NDA)
37. One form of business organization which is not 1. B 2. A 3. B 4. A 5. C 6. D 7. A

motivated solely by profit objective is the 8. D 9. D 10.- 11.- 12.C 13.C 14.C
A. joint stock company B. private limited company 15.C 16.A 17.A 18.D 19.- 20.A 21.A
C. cooperative society D. ordinary partnership 22.D 23.D 24.C 25.B 26.C 27.D 28.-
29.B 30.C 31.C 32.D 33.D 34.A 35.C
38. Which of the following can have theirshares 36.D 37.B 38.B 39.- 40.B
quoted on the stock exchange?
A. public corporations B. A partnership

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Examsguru.Net – Nigerian Defence Academy, Kaduna, PAST QUESTIONS WITH SOLU.

NIGERIAN DEFENCE ACADEMY (2009 - 2020)

6. Channel of distribution starts with 17. Which of these is not inflationary

21. Which of these does not apply as a determinant in

NIGERIAN DEFENCE ACADEMY (2009 - 2020)

1. These are some of the incentives to A. Partnership B. Ordinary partnership

C. Profit and average total cost C. Ofunitelasticity throughout

38. Which of the following is not a fixed cost? YEAR 2019

NIGERIAN DEFENCE ACADEMY (2009 - 2020)

36. The terms of trade is the name given to the

NIGERIAN DEFENCE ACADEMY (2009 - 2020)

NIGERIAN DEFENCE ACADEMY (2009 - 2020)

1. A consumer’ scale of preference is an A. Anetgain B. Anetloss C. An increase in profit by

C. Trade unions will be encouraged A. Loan financing B. Debt financing

B. Producer-retailer-whoIesaler-consumer A. Balanced budget B. Deficit budget

43. In Nigeria, revenue sharing from the Federation

45. National debt is an expected outcome of a

NIGERIAN DEFENCE ACADEMY (2009 - 2020)

NIGERIAN DEFENCE ACADEMY (2009 - 2020)

1. Production in Economics can be defined as the: C. P16,Q=12 D. P=16Q=12

D. Itwellreducecorruption 43. A budget where current receipts are lea than

41. Economics as a science is concerned with 2014 YEAR

NIGERIAN DEFENCE ACADEMY (2009 - 2020)

16. When a generalization is made based on A. Large numberof unskilled labour.

D. provide raw materials for industries. C. formulation of appropriate government policies.

37. The major determinant of the total volume of YEAR 2013

NIGERIAN DEFENCE ACADEMY (2009 - 2020)

5. What is economics 14. An inflationary pressure that is about 9% is said to

6. Aggregate demand is composed of 15. N ?(x?x)2 is the formula for?

B. increase in cash reserve ratio of commercial

NIGERIAN DEFENCE ACADEMY (2009 - 2020)

1. NON-Specific factor of production is: B. financial viable projects in member countries.

NIGERIAN DEFENCE ACADEMY (2009 - 2020)

3. The formula for ob

13. If supply and demand established a price for a

15. The basic determinant of the level of employment

18. An increase in consumer spending leads to a C. Cooperative Society

C. Large-scale export of locally made goods

38. When a foreigner on a visit to Nigeria, pays for 1. A. 2. A 3. D 4. A 5. C 6. A 7. A

NIGERIAN DEFENCE ACADEMY (2009 - 2020)

1. Economics can be defined as: 6. The marginal product X is:

16. A tax that increases at a higher percentage as

B. level of production where the firms are C. A consumer co-operative

37. One form of business organization which is not 1. B 2. A 3. B 4. A 5. C 6. D 7. A

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