Economics Questions and Answers
1. “Scarce means” in the definition of economics refers to:
Answer: D. economic resources
2. Geographical mobility of labour is limited by:
Answer: C. trade union restrictions
3. The minimum amount of capital permitted by law to begin a public limited company is
called:
Answer: A. nominal capital
4. When TEXACO petrol filling station takes over SONARA petrol refinery company, the
merger is known as:
Answer: D. horizontal integration
5. If a rise in the price of a bucket of yams from 5,000 FCFA to 10,000 FCFA causes an
increase in the quantity supplied of yams by 50%, the numerical value of price elasticity of
supply is:
Answer: A. 0.5
6. An example of a preventive check on population growth is:
Answer: D. family planning
7. The central bank can increase the amount of money in circulation by:
Answer: C. reducing bank rate
8. How would you describe a government financial policy in which proposed government
expenditure is 60 billion FCFA and proposed government revenue is 25 billion FCFA?
Answer: B. Budget deficit
9. When the value of a country’s currency is officially reduced, it is known as:
Answer: D. devaluation of the currency
10. The practice of mono-cropping over a large piece of land is known as:
Answer: A. plantation agriculture
11. A method of measuring national income by summing up wages, rent, interest and profits
is known as:
Answer: B. income method
12. The continuing reduction in the share of manufacturing sector in national output is
known as:
Answer: C. de-industrialisation
13. When diseconomies of scale occur:
Answer: D. average total costs rise
14. What is the value of the bank’s cash ratio?
Answer: B. 40%
15. If income increases from 100,000 FCFA to 300,000 FCFA per month and income tax
increases from 10,000 FCFA to 30,000 FCFA, the tax system would be termed:
Answer: B. progressive
16. Active balance is money held for:
Answer: C. precautionary and transaction motives
17. When a 60% rise in price leads to a 40% increase in quantity supplied, the price
elasticity of supply is:
Answer: A. fairly inelastic
18. Who among the following stands to benefit during an inflationary period?
Answer: A. Debtors
19. Seas and rivers are appropriate examples of:
Answer: B. land
