Jamb 2024 Economics Likely Questions and Answers

ECONOMICS 2024 JAMB

Questions And  Answers

1 

UTME 2010 ECONOMICS QUESTIONS 

1. Which Economics question paper type is  given to you? 
2. Type A 
3. Type B 
4. Type C 
5. Type D 
6. Economics is the study of human  behaviour as it relates to the 
7. efficient allocation of resources B. production of goods 
8. operation of companies 
9. generation of income 
10. The downturn in the prices of shares on  stock markets is a highlight of 
11. efficient allocation of resources B. the invisible hand 
12. the regulatory nature of the market D. consumer rationality 
13. If = 6 and N = 6, determine the value of ∑fx 
14. 36 
15. 12 
16. 1 
17. 72 
18. The standard deviation of a set of data is A. always measured from the mode B. the most representative of averages C. always measured from the median D. a measure of dispersion 
19. The mean is the best measure of central  tendency because it 
20. is not affected by extreme values in  a data 
21. is a midpoint value in an array of data C. is a balancing point in an observation D. can be calculated from incomplete data 
22. The most popular sizes of dresses and  shoes are determined by the 
23. range 
24. mean 
25. mode 
26. median 
27. If the demand for a good is more elastic  than its supply, the tax burden is borne A. equally by consumers and producers B. more by producers 
28. more by consumers 
29. more by retailers and producers 
30. If the price of a commodity with elastic  demand increases, the revenue accruing  to the producer will 
31. double 
32. increase 
33. be constant 
34. decrease 
35. An excess demand for beans will result  from 
36. an increase in the price of beans B. a decrease in the price of beans C. an increase in the supply of beans D. a decrease in the supply of beans 

11.Consumer surplus tends to be  higher when demand is 

1. inelastic 
2. perfectly elastic 
3. elastic 
4. unitarily elastic 
5. One of the assumptions of ordinal utility  theory is that 
6. choice is not consistent 
7. utility can be ranked 
8. total utility is a function of price D. satisfaction is measurable 
9. The law of diminishing marginal utility  explains why 
10. the slope of a normal demand curve  is negative 
11. an abnormal demand curve slopes  upwards 
12. the slope of a normal demand curve  is positive 
13. the consumption of inferior goods  increases with income 
14. If a consumer plans to spend 120k on  four oranges but spent 80k, his  

consumer surplus is 

1. ₦1.50
   

2 

1. ₦0.40 
2. ₦1.00 
3. ₦2.00 

15.A set of factors that can shift the supply  curve are changes in 

1. weather, price and technology B. technology, weather and population C. technology, price and taste 
2. population, price and taste 
3. If the coefficient of price elasticity of  supply is greater than one, the supply is  said to be 
4. perfectly elastic 
5. fairly inelastic 
6. infinitely inelastic 
7. fairly elastic 
8. If commodity X is a by-product of  commodity Y, this implies that both  commodities are 
9. in competitive supply 
10. in composite supply 
11. jointly supplied 
12. in excess supply 
13. In perfect competition, price  

is determined by the 

1. government 
2. sellers 
3. buyers 
4. market 
5. In order to reduce hardship faced by  consumers due to high prices  

government can introduce 

1. maximum prices 
2. commodity boards 
3. minimum prices 
4. price control boards 

20.Average product is less than marginal  product when 

1. there is constant returns to scale B. there is increasing returns to scale C. there is decreasing returns to scale D. diminishing returns set in 

21.A firm enjoying economies of scale is  said to be 

1. reducing average cost as  

production increases 

1. benefiting from the activities of other  firms 
2. maximizing profits as  

production increases 

1. having an upward-sloping average cost  curve 
2. The rising portion of the long-run  average cost curve of a firm is an  indication that it is experiencing 
3. increasing efficiency 
4. economies of scale 
5. diseconomies of scale 
6. increasing marginal returns 
7. An industry’s supply curve is more likely  to be elastic when firms are 
8. enjoying free entry and exit 
9. operating at full capacity 
10. operating below capacity 
11. maximizing profits 
12. One of the characteristics of monopolistic  competition is that 
13. there is mobility of factors  

of production 

1. no single seller dominates the market C. the firms are price-takers 
2. consumers have perfect knowledge of  price 
3. The demand curve for factors of  production 
4. is perfect elastic 
5. slopes upwards 
6. slopes of downwards 
7. is perfectly inelastic 
8. An agreement among firms on price and  segmentation is termed 
9. cartel 
10. collusion 
11. haggling 
12. specialization 
13. In national income accounting, tax is  determined by the 
14. level of income 
15. level of consumption
    

3 

1. level of investment 

` D. rate of savings 

28.A decrease in aggregate spending in  an economy will ultimately lead to 

1. boom 
2. inflation 
3. deflation 
4. recession 
5. If MPC is 0.7 while government  expenditure increased by ₦ 150m,  the equilibrium national income is 
6. ₦ 214 million 
7. ₦ 45 million 
8. ₦ 105 million 
9. ₦ 500 million 
10. The function of money which makes  division of labour possible is its 
11. unit of account 
12. store of value 
13. medium of exchange 
14. standard of deferred payment 
15. By buying treasury bills, the  

Central Bank of Nigeria intends to 

1. increase money supply in the economy B. reduce the cash reserve ratio for banks C. reduce money supply in the economy D. increase the capital base of commercial  banks 
2. The velocity of money is represented as A. Money supply

Real GDP 

1. Real GDP

Money supply 

1. Nominal GDP

Money supply 

1. Real GDP

Nominal GDP 

33.One of the functions of  

commercial banks is 

1. maintaining stable price in  

the economy 

1. regulating monetary policies 
2. granting loans to customers 
3. issuing bank notes and coins 

34.A strategy for curbing unemployment is  to 

1. implement government  

stabilization policy 

1. increase taxes and decrease  

government expenditure 

1. increase government expenditure  and decrease taxes 
2. ensure even distribution of job  opportunities 
3. In Nigeria, the distribution of  job opportunities 
4. balanced budgeting 
5. deficit budgeting 
6. surplus budgeting 
7. zero budgeting 
8. National development plans in Nigeria  fail mainly because of 
9. overdependence on foreign aids B. inadequate funding of projects C. poor implementation strategies D. shortage of skilled manpower 
10. The ultimate aim of agricultural  policies in Nigeria is to achieve 
11. food sufficiency 
12. industrialization 
13. full employment 
14. industrial capacity utilization 
15. Government can boost agricultural  output in Nigeria primarily by 
16. embarking on buffer stock  

programmes 

1. placing embargo on food importation C. granting subsidies on farm inputs D. placing farmers on monthly income 
2. Localization of industries refers to the A. spread of firms producing different  products 
3. siting of industries near the market C. concentration of firms of an industry D. siting of firms producing  

different products

4 

40. In developing countries, governments  influence the location of industries in  order to 
41. spread development 
42. redistribute wealth 
43. encourage entrepreneurs 
44. encourage industries to earn  

high profits 

41.A disadvantage of Nigeria’s dependence  on imported petroleum products is the A. instability in the demand for  

the products 

1. dominance of multinational firms C. instability in the supply of the product D. poor maintenance of the refineries 
2. The maximum number of shareholders  for a limited liability company’s is 
3. twenty 
4. five 
5. seven 
6. infinite 
7. The primary motive for an individual  engaging in production is to 
8. make profit 
9. satisfy basic human wants 
10. redistribute wealth 
11. put inputs into use 

Use the table below to answer  question 44 and 45. 

Year	Population  (000)	Working  Population(000)
2000  2001  2002  2003	25  30  40  50	13  19  32  49

 

44. What is the population growth rate  in 2003? 
45. 33.3% 
46. 20.0% 
47. 11.0% 
48. 50% 
49. The percentage of working population in  2002 is? 
50. 50% 
51. 25% 
52. 8% 
53. 80% 
54. One of the characteristics of free trade  zone is 
55. common tariff against non 

member countries 

1. different trade policies of non member countries 
2. free factor mobility within the zone D. harmonized trade among  

member countries 

47. If Nigeria imports vehicles from Japan  the transaction will appear as a 
48. debit on Japan’s balance of payments B. credit on Japan’s balance of payments C. credit on Nigeria’s balance of trade D. credit on Nigeria’s balance of payment 
49. One of the objectives of ADB is to A. provide subsidies on imported goods  to member countries 
50. mobilize short-term loans for  member countries 
51. promote economic and social  

development of member countries 

1. provide technical assistance to only  poor member countries 
2. The choice of the method of production  in an economy is determined by the A. level of technical know-how 
3. rate of population growth 
4. availability of natural resources D. level of income 
5. The amount of labour hired depends on  the 
6. number of skilled labour available B. skill of labour 
7. marginal productivity of labour D. price of the inputs
   

5 

25. B 

ANSWER KEYS: 26. A 1. C 27. A 2. A 28. B 3. B 29. B 4. A 30. B 5. D 31. B 6. B 32. A 7. A 33. B 8. C 34. D 9. C 35. C 10. A 36. B 11. C 37. A 12. D 38. B 13. B 39. D 14. C 40. A 15. A 41. B 16. C 42. D 17. C 43. C 18. D 44. D 19. D 45. D 20. D 46. D 21. A 47. C 22. A 48. B 23. C 49. C 24. C 50. C

6 

UTME 2011 ECONOMICS QUESTIONS 7. If the demand for one commodity  

1. Which question paper type of  

economics is given to you? 

1. Type A 
2. Type B 
3. Type C 
4. Type D 
5. An effective way of controlling inflation in  a mixed economy is to 
6. increase productivity 
7. reduce income tax 
8. ration available output 
9. increase imports 
10. One of the limitations PPC assumption is  that there is 
11. no indication of  

technological development 

1. no recognition of preferred goods  for countries 
2. technical inefficiency 
3. abundant resources 
4. A major disadvantage of the  

arithmetic means is that it is 

1. not useful for large data 
2. not suitable for further  

statistical analysis 

1. cumbersome to determine the actual  value 
2. affected by extreme data 
3. Demand patterns are determined by the  market on the basis of 
4. scale of preference 
5. consumer sovereignty 
6. consumer rationality 
7. price of the commodity 
8. A consumer surplus measures the A. benefits derived from consuming  a cheap commodity 
9. excess of total expenditure over total  utility 
10. difference between marginal utility  and marginal cost 
11. excess of marginal utility over price 

excludes another, it is said to be 

1. complementary demand 
2. competitive demand 
3. composite demand 
4. derived demand  

Price (₦)	Quality (Kg)
1  2  3  4  5	100  120  150  180  200

 

The graph of the schedule above will  depict 

1. a kinked demand curve 
2. a normal demand curve 
3. an abnormal demand curve 
4. a diminishing marginal utility curve 
5. The median of an odd-numbered set of  scores is the 
6. Middle value in the set 
7. Highest value in the set 
8. Arithmetic means of the set 
9. Most frequent occurring score 

10.If demand increases without a change in  supply, equilibrium price and quantity  will 

1. remain unchanged 
2. shift inward 
3. fall 
4. rise 

11.In the process of production, total  output is at maximum when 

1. MP=0 
2. MP>0 
3. AP=0 
4. AP>0  

Price (₦)	Qty./ (bags)
1  2	60  120

 

From that table above, the price  

elasticity of supply is

7 

1. 4 
2. 25 
3. 1 
4. 2 
5. When a consumer is at equilibrium, the  MRSxy is equal to the 
6. sum of the prices 
7. product of the two prices 
8. ratio of the two prices 
9. difference of the two prices 
10. Minimum price legislation by government  will 
11. reduce supply 
12. increase supply 
13. reduce demand and create surplus D. increase demand and create scarcity 
14. Ranking is the method use in measuring A. marginal utility 
15. ordinal utility 
16. cardinal utility 
17. total utility 
18. If a firm is faced with an elastic supply  curve, its revenue will 
19. be supplied at a higher price 
20. double at a higher price 
21. increase by more than the  

percentage increase in price 

1. equal percentage change in price 
2. The optimal range of output for a  perfectly competitive firm is 
3. AC is lowest 
4. AVC is lowest 
5. MC is rising 
6. MC is falling 

18.A firm will experience diseconomies of  scale when 

1. there are difficulties in  

coordinating production 

1. there is shortage in labour supply C. the size of market is small 
2. there is an increase in the price of raw  materials 
3. The law of variable proportions is  applicable only 
4. in the long-run period 
5. to large-scale enterprises 
6. to small-scale enterprises 
7. in the short-run period  

From the Diagram above, the optimal  point of production is 

1. R 
2. T 
3. U 
4. S 
5. If real income increases while nominal  income remains the same, it can be  inferred that 
6. Unemployment rate has decreased B. General prices have fallen 
7. Employment rate has risen 
8. General prices have risen 
9. One of the characteristics of oligopoly is  the availability of 
10. few sellers 
11. few buyers 
12. many sellers 
13. a single seller 

Use the diagram below to answer  question 23 and 24

8 

23. The average total cost when 20 units are  produced is 
24. N20.00 
25. N23.00 
26. N13.00 
27. N15.00 
28. When 20 units of output is produced, TC  will be 
29. N360 
30. N300 
31. N460 
32. N400 
33. The profit of a monopolist can be  eliminated where price equals 
34. AFC 
35. MC 
36. AC 
37. AVC 
38. Bank consolidation policy in Nigeria is  a measure to increase 
39. the capital base of banks 
40. employment opportunities in banks C. the number of shareholders 
41. the number of branches 
42. An increase in the circulation of money  without a corresponding increase in  output will lead to 
43. a rise in income levels 
44. stagflation 
45. inflation 
46. deflation 
47. In national income accounts, an item  counted as part of government spending  is 
48. salaries and wages 
49. pension 
50. scholarship 
51. social welfare 
52. If aggregate demand is lower than total  output in an economy national income  will 
53. be constant 
54. be at equilibrium 
55. increase 
56. fall 
57. During the era of barter, money was  generally in the form of 
58. notes 
59. precious metals 
60. coins 
61. commodities 

31.A country achieves economic  

development when there is 

1. an increase in military expenditure B. an increase in capacity utilization C. a sustained increase in per capital  income 
2. an even distribution of goods and  services 
3. An indicator of growth in an  

economy over a period of time is the A. GDP gap 

1. GDP at factor cost 
2. GDP at market price 
3. GDP deflator 

33.A country embarks on deficit financing in  order to 

1. increase revenue 
2. reduce aggregate demand 
3. curb inflation 
4. stimulate investment 

Use the diagram below to answer  question 34 and 35

9 

34. The deflationary gap is defined by A. X 
35. K 
36. X + K 
37. X – K 
38. What does X represent? 
39. recessionary gap 
40. GNP gap 
41. inflationary gap 
42. deflationary gap 
43. The import-substitution strategy of  industrialization is to encourage A. domestic production 
44. large-scale production 
45. importation 
46. exportation 
47. Upstream oil activities involve the A. management of pollution 
48. marketing of refined products C. exploration of crude oil 
49. refining of crude oil 
50. Agricultural production in Nigeria is  constrained by 
51. ineffective use of  

stabilization measures 

1. inadequate demand 
2. poor implementation of policies D. balance of payments deficits 
3. The main function of NNPC is to A. oversee the development of the  oil sector 
4. develop the oil producing area C. fix the price of products 
5. ensure regular supply of products 

40.investing heavily in the agricultural  sector will lead to 

1. sufficient food production 
2. a vibrant commodity market 
3. capital inflow 
4. stable export prices 
5. Industrial development in Nigeria can be  encouraged through 
6. signing WTO treaty 
7. granting subsidies 
8. the provision of efficient infrastructure D. direct government participation 
9. The record of a country’s transactions in  international trade is her 
10. capital account 
11. balance of payments 
12. current account 
13. balance of trade 
14. The transfer to public shareholding  corporations to private enterprises is A. concession 
15. incorporation 
16. commercialization 
17. privatization 

44.A condition in which official and  autonomous exchange rate coexist is A. dual exchange rate system 

1. managed floating rate system 
2. market determined exchange rate  system 
3. multiple exchange rate system 
4. In modern economies, the Malthusian  theory of population is ineffective  because of 
5. birth control measures 
6. technical progress 
7. government policies 
8. natural disasters 

46.Optimum population enables an  economy to attain the highest level of A. Industrial development 

1. Income per head 
2. Revenue generation 
3. Economic development
   

10 

47.A change from one industry to another by a worker is an example of 

1. geographical mobility 
2. horizontal mobility 
3. professional advancement 
4. vertical mobility 

48.The money paid per hour for work done is 

1. salary 
2. wage rate 
3. cost 
4. bonus 

49.Trade takes place because of 

1. marginal utility 
2. inefficiency in production 
3. opportunity cost 
4. comparative advantage 

50.The World Trade Organization is responsible for 

1. stabilizing and harmonization oil prices B. ensuring equal participation of countries in trade 
2. modernising world economies 
3. minimizing obstacles to international trade and investment

11 

ANSWER KEYS: 

1. B 
2. A 
3. B 
4. D 
5. B 
6. D 
7. B 
8. B 

9.A 

10.B 

11. A  

12C 

13.A 

14.C 

15.B 

16. C  

17 B  

18C 

19. A

5 

20.D 21.B 22.B 23.D 24.B 25.B 26.A 27.D 28.D 29.D 30.D 31.C 32.C 33.C 34.A 35.D 36.B 37.C 38.C 39.A 

12 

UTME 2012 ECONOMICS QUESTIONS 

1. Which question paper type of  

Economics as indicated above is given  to you? 

1. Type Green 
2. Type Purple 
3. Type Red 
4. Type Yellow 
5. A major disadvantage of a socialist economy is that 
6. corruption is rampant 
7. consumer’s sovereignty is lost 
8. income inequality is entrenched 
9. there is high level of unemployment 
10. The privatization of public enterprises will lead  to efficient management of resources in the  economy. This statement can best be  described as 
11. normative reasoning 
12. inductive reasoning 
13. deductive reasoning 
14. positive reasoning 
15. The sign of the slope of a graph in  economic analysis is important because  it 
16. shows whether a good is normal or inferior B. shows the relationship between variables C. reveals the magnitude of the change  between variables 
17. helps to determine the unit of  

measurement of variables 

The percentage contribution of  

manufacturing sector is 

67. 67.5 
68. 40.0 
69. 32.4 
70. 25.0 
71. If the GDP is N60 billion, what is the  difference between the contributions of oil  and manufacturing sectors? 
72. N11.7 billion 
73. N13.3 billion 
74. N21.7 billion 
75. N26.6 billion 
76. If the quantity of rice bought decreases from  250 tonnes to 200 tonnes owing to a 2% rise  in price, it shows that there is a change in A. consumers’ income 
77. demand 
78. consumers’ tastes 
79. quantity damanded 
80. A rise in income will, ceteris paribus, bring about A. a movement along the demand curve B. a leftward shift of the demand curve C. a rightward shift of the demand curve D. no effect on the demand curve 

Price (₦)	Quality (Kg)
50  70	500  400

 

From the above, calculate the price  

elasticity of demand 

5. 5.0 
6. 2.0 
7. 1.0 
8. 0.5 
9. If the price of an item increases by 8% while  the quantity demanded falls from 1500 units  to 1492 units, the demand is said to be 
10. perfectly elastic 
11. inelastic 
12. elastic 
13. perfectly inelastic 
14. Comparison of interpersonal utility is  impossible because 
15. utility is measured in utils 
16. marginal utility is not observable 
17. utility is subjectively determined 
18. individual income differ
    

13 

12. When the slope of the total utility curve is  declining, the marginal utility of a consumer  will be increasing if he 
13. stops consuming more of the commodity B. reduces the quantity consumed 
14. increases the quantity consumed 
15. consumes more of another commodity 

Use the diagram below to answer question  13 and 14 

13.The consumer is at equilibrium at point A.N 

1. P 
2. M 
3. K 
4. To move from point M to K, the consumer  has to increase the 
5. consumption of X and reduce the  consumption of Y 
6. expenditure on Y 
7. expenditure on X 
8. consumption of Y and reduce  

the consumption of X 

15. The supply of cocoa is influenced by A. seasonal conditions 
16. the efficacy of fertilizer used 
17. the demand for beverages 
18. the availability of close substitutes 
19. If quantity supplied is constant irrespective of  price changes, the supply elasticity is 
20. unitary 
21. infinity 
22. fairly elastic 
23. perfectly inelastic 
24. The cost elasticity of supply is a useful  instrument for measuring 
25. profit 
26. productivity 
27. national income 
28. price index 
29. The invisible hand promotes the interests of A. consumers 
30. society 
31. government 
32. producers 
33. Fixing price above equilibrium will cause A. demand and supply to remain constant B. an increase in quantity supplied 
34. an increase in supply 
35. a decrease in quantity supplied 
36. An important function of the price system is to A. ensure that producers’ profits remain high B. guarantee full employment of resources C. allocate resources to most productive uses D. protect the economic interests of government 
37. If all factors are variable in the long run,firms  will experience 
38. decreasing returns to scale 
39. increasing returns to scale 
40. diminishing returns 
41. economies of scale 
42. The equilibrium point of a firm is attained at  the point where the isoquant is 
43. greater than the isocost 
44. less than the isocost 
45. tangent to the isocost 
46. greater than the output 
47. The long-run average cost curve touches  to the short-run average cost curves at the A. minimum points of all short run  

average cost curves 

1. declining points of all short-run average  cost curves
   

14 

1. minimum point of only one of the short run cost curves 
2. rising points of all short-run average cost curves 
3. If a firm doubles all inputs in the long run and  the total output is less than doubled, this  results in 
4. diminishing returns 
5. constant returns to scale 
6. increasing returns to scale 
7. decreasing returns to scale 
8. Patents and copyrights enable monopolists to A. determine the quality of their products B. determine the scale of their products C. restrict information flow to new firms D. restrict entry of new firms 
9. A discriminatory monopoly is characterized by A. a common elasticity in different markets B. different elasticities in different markets C. a finite elasticity in all markets 
10. zero elasticity in all markets 
11. Net National Product is derived by deducting A. net exports from GNP 
12. subsidies from GDP 
13. taxes from GDP 
14. depreciation from GNP 

Use the information below to answer  question 28 29. 

The investment expenditure of economy  changes by ₦2 Million and MPC is 0.75 28. What is the change in income? 

1. N0.5m 
2. N1.5m 
3. N2.6m 
4. N8.0m 
5. The multiplier is 
6. 8 
7. 4 
8. 3 
9. 2 
10. The money that commands a higher market  value than its face value is called 
11. paper money 
12. standard money 
13. commodity money 
14. fiat money 
15. If a basket of commodities cost N120 in the  base year and N240 in the current year,  calculate the price index 
16. 100 
17. 200 
18. 240 
19. 300 
20. The minimum amount which banks are  required to deposit with the central bank is  determined by the 
21. liquidity ratio 
22. cash reserve ratio 
23. minimum lending rate 
24. aggregate credit ceiling 
25. The major function of money market is to A. provide funds for long-term financing B. provide funds short-term financing 
26. stabilize the value of the local currency D. stabilize domestic prices 
27. An ad valorem tax is imposed on 
28. special commodities 
29. exports 
30. imports 
31. the value of a commodity 
32. A huge national debt is an indication that the  gold reserves of a nation has 
33. appreciated 
34. decreased 
35. depreciated 
36. stagnated 
37. Rapid economic development in  

Nigeria is realizable by 

1. continuous dependence on oil 
2. concentrating more on agriculture 
3. developing the tourism industry 
4. diversifying the economy 
5. The primary reason for desiring economic  growth is to 
6. control inflation 
7. reduce poverty 
8. redistribute income 
9. raise standard of living 
10. An emerging agricultural export crop in Nigeria is
    

15 

1. cassava 
2. cotton 
3. cocoa 
4. soya beans 
5. A strategy for improving agriculture in Nigeria  will involve 
6. controlling the prices of agricultural products B. ensuring self-sufficiency in food production C. reducing agricultural exports 
7. establishing commondity boards 
8. A sugar industry is best located near the  source of 
9. labour 
10. raw materials 
11. power 
12. capital 
13. An important contribution of small-scale  industries to the Nigerian economy is in the  area of 
14. technological development 
15. foregin exchange earnings 
16. raw materials processing 
17. labour employment 
18. A change in the pump price of petrol in Nigeria  has a direct effect on the 
19. prices of consumer goods 
20. prices of essential goods 
21. cost of raw materials 
22. cost of transportation 
23. Long-term funds for investment projects  are sourced from the 
24. money market 
25. commodity market 
26. foreign exchange market 
27. capital market 
28. A policy aimed at enhancing globalization of  the Nigerian economy is 
29. indigenization 
30. dereglation 
31. commercialization 
32. privatization 
33. The Malthusian theory was concerned about  the relationship between 
34. population growth rates of the rich and  the poor nations 
35. population density and national income 
36. population growth rate and natural resources D. age distribution of population 
37. In a village of 50 persons, 10 immigrated, 25  died and 5 emigrated in year. Determine the  total population 
38. 10 
39. 20 
40. 30 
41. 50 
42. A deficit balance of payments is  

measured by subtracting the debits from  

the credits in the 

1. current account 
2. current and capital accounts 
3. current and escrow accounts 
4. capital and escrow accounts 
5. One of the functions of ECOWAS is to 
6. provide funds for infrastructural development B. determine prices of exports 
7. redistribute income among citizens 
8. provide employment for citizens  

of member nations 

49. The reward on machinery and equipment in  the process of production is known as 
50. profit 
51. interest 
52. rent 
53. wage 

s 50. 

From this diagram, the minimum wage OW  will lead to 

1. full employment of resources 
2. unemployment 
3. inflation 
4. full employment of factors of production 4
   

16 

ANSWER KEYS: 

1. B 50.D 2.A 

3.B 

4.D 

5.B 

6.D 

7.B 

8.B 

9.A 

10.B 

11.A 

12.C 

13.A 

14.C 

15.B 

16.C 

17.B 

18.C 

19.A 

20.D 

21.B 

22.B 

23.D 

24.B 

25.B 

26.A 

27.D 

28.D 

29.D 

30.D 

31.C 

32.C 

33.C 

34.A 

35.D 

36.B 

37.C 

38.C 

39.A 

40.A 

41.B 

42.B 

43.D 

44.D 

45.B 

46.B 

47.D 

48.B 

49.D

17 

UTME 2013 ECONOMICS QUESTIONS 

1. Which question paper type of Economics  is given to you? 
2. Type B 
3. Type I 
4. Type B 
5. Type U 
6. An economy in which both the public and  private sectors contribute to economic  growth is as 
7. feudal economy 
8. capitalist economy 
9. socialist economy 
10. mixed economy 
11. If the standard deviation of a given  data is 53, what is the variance? 
12. 2,082 
13. 2,809 
14. 2,808 
15. 2,209 
16. Which of the following set of statistical  tools is used for further economic  analysis? 
17. the median and standard deviation B. the mean and mode 
18. the mean and standard deviation D. the mode and median 
19. An advantage of the range as a measure  of dispersion is that it 
20. can be used to calculate open ended distribution 
21. make use of all values of  

observations in a distribution 

1. takes all values into consideration D. is useful for further  

statistical calculation 

6. Find the median of the following set of  data 35, 10, 14, 38, 15, 18, 22, 30 and  28 
7. 10 
8. 38 
9. 35 
10. 22 
11. An increase in demand without a  corresponding change in supply will lead  to 
12. a decrease in equilibrium price and  increase in equilibrium quantity 
13. an increase in equilibrium price  and quantity 
14. a decrease in equilibrium price  and quantity 
15. an increase in equilibrium price and  a decrease in equilibrium quantity 
16. An increase in the price of a commodity  will result in 
17. a decrease in the quantity demanded B. an increase in demand 
18. an increase in quantity demanded D. a decrease in demand 
19. If the price of a bicycle changes from  N120 to N80 and quantity bought  changes from 300 to 500 units, the  elasticity of demand for bicycle is A. 66.7 
20. 0.5 
21. 1.5 
22. 2.0 

From the graph above, the price  

elasticity of demand is 

1. unitarily elastic 
2. perfectly elastic 
3. perfectly inelastic 
4. fairly inelastic 
5. One of the assumptions of the  cardinalist approach is 
6. diminishing marginal rate of  

substitution

18 

1. the consistency and transitivity  of choice 
2. that total utility depends on the quantity  of the commodities consumed 
3. unstable marginal utility of money 
4. Utility is the satisfaction derived from  the 
5. distribution of goods and services B. use of goods and services 
6. demand of goods and services D. production of goods and services  

From the indifference curve above,  consumer will prefer combination 

1. F 
2. S 
3. M 
4. K 
5. One of the major factors that  brings about changes in supply is 
6. market discrimination 
7. availability of storage facilities C. the cost of storage 
8. incentives granted to workers 
9. If P = 14 (Qs + 10). What is the quantity supplied at N14? 
10. 14 
11. 60 
12. 46 
13. 32 
14. If the supply of a product is elastic, a  small reduction in price will 
15. reduce the cost of production 
16. reduce the quantity supplied 
17. increase the quantity supplied 
18. lead to no change in the quantity  supplied 
19. The supply of beverages by firms in a  monopolistic market is an example of A. derived demand 
20. competitive supply 
21. composite supply 
22. joint demand 

18.If the price of a commodity is fixed  below equilibrium, this will lead to 

1. excess demand 
2. a decrease in price 
3. an increase in price 
4. excess supply 
5. One of the criticisms of the price  mechanism is that 
6. producers are sovereign 
7. it provides low degree of freedom C. it widens the inequitable gap 
8. consumers are sovereign 
9. In Nigeria, government can reduce the  cost of accommodation by fixing rent A. at the prevailing rate 
10. at the equilibrium price 
11. above the equilibrium price 
12. below the equilibrium price 
13. If a refinery achieves a reduction in cost  by purchasing and transporting crude oil  in large quantities, it enjoys 
14. economies of scale 
15. specialization 
16. division of labour 
17. diseconomies of scale 
18. An isoquant lying above to the right of  another represents 
19. a higher output level 
20. constant returns to scale 
21. over-capacity utilization 
22. a lower output level  

23.

19 

From the graph above, R represents A. marginal cost 

1. total cost 
2. variable cost 
3. fixed cost 

Use the graph below to answer  question 24 and 25

24. The optimum level of output of the firm  is 
25. BC 
26. OB 
27. OS 
28. BS 
29. The total revenue of the firm is  represented by 
30. GHEF 
31. GHJC 
32. EFJC 
33. GHOB 
34. A measure of national income used as  comparison of standard of living among  nations is 
35. net national product 
36. gross domestic product 
37. gross national product 
38. per capita income 
39. The speculative demand for money is  inversely related to the 
40. interest rate 
41. level of income 
42. exchange rate 
43. inflation rate 
44. If Mr. K obtains a N50.000 loan from a  bank for the purpose of providing  household needs, the demand for money  is said to be 
45. transactionary 
46. speculative 
47. precautionary and speculative 
48. transactional and speculative 
49. Which of the following is used by  the Central Bank of Nigeria to control  inflation? 
50. Tariff on imports 
51. Tax rate 
52. Exchange rate 
53. Discount rate 
54. If CBN reduces money supply, the  interest rate will 
55. fluctuate 
56. rise 
57. fall 
58. remain unchanged 
59. An example of an expansionary fiscal  policy action is 
60. decrease in the corporate profit  tax rates 
61. decrease in welfare payments 
62. purchase of government securities D. decrease in the bank rate 
63. A tax on land will ultimately fall A. partly on agents and users 
64. entirely on users 
65. entirely on owners 
    

20 

1. partly on users and owners 
2. One of the goals of development plans  in Nigeria is to 
3. increase the profitability of  

multinational businesses 

1. improve the country’s GDP 
2. achieve higher standard of living  for the citizens 
3. deregulate the economy 
4. Life insurance companies contribute to  economic development by holding a part  of their assets in 
5. long-term financial instruments B. money market instruments 
6. cash and near money 
7. short-term financial instruments 

35.In order to add value to Nigeria  agricultural produce, there is need to A. cultivate high breed crops 

1. process them into finished goods C. adopt modern storage methods D. advertise them in European markets 
2. The main reason for low agricultural  produce in west Africa is need to 
3. the presence of large-scale agro allied industries 
4. high dependency ratio 
5. over dependence on agriculture  for subsistence 
6. the use of crude implements in  farming process 
7. The most important determinant for the  location of a brick industry is the  

availability of 

1. market 
2. power supply 
3. water 
4. raw materials 

38.In Nigeria, efficiency in public  

corporations can be achieved through A. public offer 

1. indigenization 
2. privatization 
3. nationalization 

39.Government participation in the oil  industry was necessitated by the 

1. annual increase in production 
2. formation of OPEC 
3. high demand for crude oil 
4. huge investment outlay 
5. The deregulation of the petroleum  sector in Nigeria will bring about 
6. efficiency in pricing and distribution  of the products 
7. an end to the importation of fuel C. an end to foreign firms’ dominance D. fixing appropriate production quotas 
8. A distinguishing characteristic of  consumer co-operative society is that  the 
9. the maximum number of shareholders  is 20 
10. members are the owners 
11. members are the workers 
12. the minimum number of shareholders  is 5 
13. A major disadvantage of partnership  business is 
14. difficulty in the transfer of shares B. distrust among members 
15. limited liability 
16. large capital outlay 
17. The quality of labour force in Nigeria can  be improved by 
18. establishing more tertiary institutions B. creating sufficient job opportunities C. encouraging the study of science and  technology 
19. establishing more skills  

acquisition centres 

44. The effect of emigration on a  

country’s population is 

1. decrease in the population 
2. decrease in job opportunities 
3. increase in population 
4. increase in dependency ratio 
5. A measure for preventing the external  value of the naira from falling is for the  government to
   

21 

1. increase its spending with foreign Reserve 
2. sell its own currency 
3. reduce interest rate 
4. buy its currency with foreign reserve 
5. A fiscal policy instrument that can influence the demand pattern in an economy is 
6. government spending 
7. interest rate 
8. income tax 
9. tariff 
10. One of the main achievements of the Economic Commission for Africa is A. eliminating trade restrictions among States 
11. encouraging transport and 

communication development 

1. guaranteeing a steady flow of foreign investment into Africa 
2. providing the machinery for 

collaboration on monetary issues 

48. The rate of interest change on loans depends largely on 
49. the prevailing exchange rate 
50. marginal efficiency of capital 
51. the risk associated with the loan D. the prevailing tax rate 
52. A valid explanation for real wage growth Is 
53. an increase in the rate of productivity B. the rising cost of capital accumulation C. a contraction of employment in service industries 
54. an increase in the quantity of labour 
55. If Mr. X lost his clerical job at a store and searched for a similar job for ten months before finding one this implies that Mr. X was 
56. structurally unemployed 
57. frictionally unemployed 
58. seasonally unemployed 
59. cyclically unemployed

22 

ANSWER KEYS: 

1.D 

2.D 

3.B 

4.B 

5.A 

6.D 

7.B 

8.A 

9.D 

10.C 

11.C 

12.B 

13.B 

14.C 

15.C 

16.C 

17.C 

18.A 

19.D 

20.C 

21.A 

22.A 

23.C 

24.B 

25.D 

26.D 

27.A 

28.D 

29.B 

30.B 

31.A 

32.C 

33.C 

34.C 

35.D 

36.D 

37.A 

38.C 

39.B 

40.A 

41.B 

42.B 

43.D 

44.A 

45.B 

46.C 

47.A 

48.C 

49.A 

50.B

23 

UTME 2014 ECONOMICS QUESTIONS 

1. Which question paper type of Economics  is given to you? 
2. Type F 
3. Type E 
4. Type L 
5. Type S 
6. The choice of how to produce in a  command economy is determined by A. government 
7. consumer 
8. industrialists 
9. labour unions 
10. In capitalist economies, questions about  what to produce are ultimately answered  by 
11. income level of households 
12. available technical skills in  

the economy 

1. output decisions of firms 
2. holding decision of households 
3. The best measure of dispersion to  determine the tallest tree in a forest is A. range 
4. variance 
5. standard deviation 
6. mean deviation 

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

1. 15% 
2. 10% 
3. 54% 
4. 24% 
5. If the national income is 360m, the  contribution of the manufacturing sector  is 
6. 312m 
7. 39m 
8. 318m 
9. 317m 

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

1. consumers income and change in  technology 
2. price of the commodity and weather  conditions consumers income and  population size 
3. consumers taste and change in price 
4. Given that Qd = 40-2P and Qs = 6P+24.  Calculate the equilibrium price. 
5. ₦34 
6. ₦32 
7. ₦36 
8. ₦16 
9. A change in demand for a normal goods  implies that, there is a 
10. change in the quantity demanded  as price changes 
11. shift in the demand curve 
12. movement along a given  

demand curve 

1. change in the price elasticity  

of demand 

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

B.

2 4 

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

1. J 
2. K 
3. L 
4. M 

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

1. fall in consumer income 
2. change in consumer taste 
3. fall in the commodity relative price D. rise in the commodity relative price 

13.Given the supply function P =  

1/4(Qs+10) when P = N10, what is Qs? A. 20 

1. 15 
2. 50 
3. 30 

Price Quantity 

(₦) supplied 

8 20 

10 24 

From the table above, Calculate the  price elasticity of supply 

1. 0.50 
2. 0.80 
3. 2.00 
4. 1.25 
5. When price is set below equilibrium, this  will lead to 
6. an increase in the quantity supplied B. a new equilibrium 
7. a decrease in the quantity supplied D. a fall in price 
8. Price mechanism determines the prices  of commodities through 
9. auctioning 
10. market forces 
11. the sales of treasury bills 
12. government legislation 

Unit Total Average Marginal of product product product 

labour 

1 8 8 — 

2 20 10 12 

3 E 9 7 

4 28 7 F 

5 40 8 12 

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

1. 27 and 1 
2. 68 and 12 
3. 28 and 5 
4. 12 and 19 
5. If the production of a large firm is higher  than that of a small firm, it is  

experiencing. 

1. external economies of scale 
2. external diseconomies of scale 
3. internal economies of scale 
4. internal diseconomies of scale 
5. Division of labour requires that, the  tasks in a production line be performed A. by specialists 
6. in stages 
7. by all workers 
8. by unskilled labourers
   

25 

20. Given that FC = ₦500, VC = ₦1,500,  and Q = 50 units. Find the average cost  of the product. 
21. ₦30 
22. ₦40 
23. ₦10 
24. ₦20 

21.Rent and administrative expenses are  examples of 

1. average fixed costs 
2. average variable costs 
3. fixed costs 
4. variable costs 

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

1. MR=AR 
2. MC<MR 
3. MC>MR 

23.One of the characteristics of a  monopolist is that, he can influence A. quantity produced by other producers B. prices charged by other producers C. both price and quantity 

1. price or quantity 

24.A monopolist can boost up his  revenue by 

1. adjusting both price and  

output upward 

1. reducing total output to match price C. increasing price 
2. reducing price 

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

1. C+I+G+(X+M) 
2. C+I+G+X 
3. C+I+G 
4. C+I+G+(X-M) 
5. If MPC = 2/3 and investment is₦100  million, the level of national income is 
6. ₦100 million 
7. ₦10 million 
8. ₦303 million 
9. ₦300 million 
10. The precautionary demand for money is  determined by 
11. the rate of interest 
12. the level of savings 
13. the level of income 
14. general price level 
15. An inflation that co-exists with high rate  of unemployment is 
16. hyperinflation 
17. stagflation 
18. demand-pull inflation 
19. cost-push inflation 
20. One of the challenges facing the banking  industry in Nigeria is 
21. ensuring technological security 
22. providing employment 
23. providing loans for investment 
24. creating more money 
25. Short-term loans for investment are  usually obtained through the 
26. stock market 
27. development banks 
28. money market 
29. capital market 
30. Given a base year and the price index of  175% the following year, which of the  following year will arise? 
31. The cost of living decreases of that  year 
32. The cost of living remains unchanged C. The value of money rises by 75% 

3

26 

1. The value of money falls by 75% 

32.Wage freeze is a policy measure aimed  at 

1. encouraging investors 
2. curbing inflation 
3. regulating standard of living 
4. curbing deflation 

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

1. low capital formation 
2. rural-urban migration 
3. over dependence on oil 
4. poor developmental policies 

34.A major feature of an underdeveloped  economy is 

1. excess capacity utilization 
2. low rate of population growth 
3. low level of standard of living 
4. low level of unemployment 

35.An important role of agriculture in  Nigeria’s economic development is the A. processing of raw materials  

for industries 

1. regulation of price system 
2. provision of infrastructure 
3. provision of employment 

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

1. providing research and  

massive employment of labour 

1. redistributing national income to  various regions of the country 
2. encouraging the use of  

traditional implements 

1. encouraging urban-rural migration 

37.A major disadvantage of localization  of industry is 

1. the risk of structural unemployment 
2. over-utilization of installed  

industrial capacity 

1. the risk of seasonal unemployment D. under-utilization of installed  

industrial capacity 

38. One major factor that determines the  location of an industry is 
39. tax exemption grant 
40. its proximity to the market 
41. the capital base 
42. the social responsibility of the firm 
43. The major contribution of OPEC to the  Nigerian economy is the 
44. provision of social infrastructures B. granting of subsidies on petroleum  products 
45. stabilization of oil prices 
46. building of refineries 
47. The loading of crude oil at the terminal is  an activity in the 
48. downstream sector of the oil industry B. upstream and downstream sector of  the oil industry 
49. upstream sector of the oil industry D. midstream and upstream sectors of  the oil industry 
50. The short-run average variable cost of a  firm will rise owing to 
51. the expansion of factory space 
52. the building of new warehouse 
53. an increase in the cost of labour D. an increase in the salaries of directors 
54. Firms embark on vertical integration in  other to 
55. take over markets formally  

controlled by other firms 

1. prevent other firms from entering  the market 
2. reduce advertisement and  

management cost

27 

1. enjoy economies of large 

scale production 

43.The voting power in co-operative  societies is vested on 

1. management 
2. members without loan 
3. shareholders 
4. members with the highest contribution 

44.An accurate census figure is an  important tool for planners in 

1. providing employment 
2. siting industries 
3. providing social amenities 
4. allocating resources 

45.An accurate population census is  important in other to 

1. produce more food for the  

growing population 

1. provide employment opportunities  for the people 
2. estimate a country’s per capita income D. fast track industrial development 

46.A major determinant of floating exchange  rate is 

1. the highest denomination of  

the currency 

1. an Act of the parliament 
2. the system of government 
3. the forest of demand and supply 
4. If the importation of a commodity is  limited to a definite quantity, the trade  control measure imposed is 
5. excise duties 
6. import duties 
7. quotas 
8. tariff 
9. The main objective of WTO is to A. ensure adequate protection of  infant industries 
10. provide a mechanism for  

tariff reduction 

1. assist countries with chronic balance  of payments problem 
2. assist developing countries to  execute developmental projects 

49.The major determinant of the total  volume of output in an economy is the A. level of total expenditure 

1. composition of consumer spending C. number of farmers 
2. size of the labour force 
3. The labour force of a country  is determined by the 
4. age structure of the population B. geographical distribution of the  population 
5. sex distribution of the population D. number of people available for work
   

28 

1. C 9. D 17. C 2. A 10. C 18. C 3. C 11. B 19. B 4. B 12. D 20. D 5. C 13. A 21. D 6. C 14. B 22. C 7. D 15. D 23. C 8. D 16. B 24. B

ANSWER KEYS: 

25. C 33. C 41. C 49. A 26. D 34. C 42. D 50. B 27. A 35. D 43. C 
26. A 36. A 44. C 
27. C 37. D 45. D 
28. B 38. B 46. D 
29. A 39. C 47. A 
30. B 40. B 48. D 
    

29 

UTME 2015 ECONOMICS QUESTIONS 1. The major implication of high  

dependency ratio on an economy is A. high capital formation 

1. vicious cycle of poverty 
2. low cost of living 
3. high standard of living. 
4. One of the major problems of  

agricultural sector in Nigeria is 

1. low literacy level of farmers 
2. small size of farms 
3. pest attack on crops 
4. inadequate modem farm implements. 
5. Cooperative societies are  

characterized with 

1. divergent interest of members 
2. limited liability 
3. free entry and exit 
4. unlimited size of membership. 
5. The marginal propensity to save  measures the 
6. ratio of change in saving 
7. change in supply as a result of  a change in consumption 
8. ratio of change in consumption to a  change in the level of income 
9. average propensity to consume. 
10. Structural unemployment is mainly  caused by 
11. a change in the consumption pattern B. a change in the business cycle 
12. decrease in the output level 
13. Seasonal variation. 
14. One of the major problems of census in  Nigeria is 
15. inadequate skilled personnel 
16. high dependency ratio 
17. distortion of census figures 
18. High cost of conducting census. 
19. A decrease in government expenditure in  an economy will cause general price  level to 
20. remain constant 
21. fluctuate 
22. fall 
23. Rise. 

Unit of  labour	TP	AP	MP
1	6	6	—
2	14	7	8
3	K	9	13
4	40	10	F

 

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

1. 13 and 27 
2. 27 and 13 
3. 10 and 27 
4. 27 and 10. 
5. In the theory of consumer behaviour,  the sum of all marginal utilities is 
6. average marginal utility 
7. the initial marginal utility 
8. total utility 
9. diminishing marginal utility. 

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

1. public and private sectors 
2. feudal lords 
3. public sector 
4. private sector. 

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

1. direct rate 
2. eco 
3. From the graph above, FG indicates A. equilibrium quantity demanded 
4. excess supply 
5. equilibrium quantity supplied 
6. Excess demand. 

13.The demand for money is referred to as  the 

1. amount of money in fixed deposit B. desire to hold money intangible assets C. need for money to invest 
2. Desire to hold money in liquid  

form rather than investing it.

30 

14. In the theory of production, a producer  is at equilibrium at a point where 
15. isocost is above the isoquant curve B. isoquant is below the isocost curve C. isocost is tangent to the marginal  revenue 
16. isoquant is tangent to the  

isocost curve. 

15. Balance of trade shows the relationship  between the 
16. internal and external trade 
17. total value visible import and Export C. deficit and surplus balance  

of payments 

1. total value of invisible import and  export. 
2. If the cash reserve ratio is 30%, a new  deposit of ₦20 million will increase  supply by 
3. ₦57.8m 
4. ₦47.9m 
5. ₦69.78m 
6. ₦66.7m. 
7. A fall in the price c f ostentatious goods  will 
8. increase the quantity demanded B. decrease the quantity demanded C. decrease demand 
9. increase demand. 
10. Payment of interests on loans and the  repayment of capital sum at a future  date is 
11. balance debt 
12. debt servicing 
13. debt relief 
14. debt retaking. 
15. The most difficult measure of central  tendency to determine in a grouped data  is 
16. range 
17. variance 
18. mean 
19. mode. 

20.Localization of industry is mainly  determined by 

1. diseconomies of scale 
2. population growth 
3. division of labour 
4. access to raw materials. 

21.Geographical distribution of a population  is affected by 

1. low birth rate 
2. the availability of skilled manpower C. the availability of agricultural land D. high birth ratenomic rent 
3. transfer payment. 

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

1. perfectly inelastic 
2. fairly inelastic 
3. unitary elastic. 

23.Higher income taxes can be used  to control 

1. demand-pull inflation 
2. high interest rates 
3. cost- push inflation 
4. hyperinflation. 

24.

31 

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

1. a decrease in price and quantity B. no change in price and quantity C. an increase in price and quantity D. a decrease in price and an increase  in quantity. 
2. An indifference map is made up of a  set of 
3. consumers’ total utility 
4. consumer surplus 
5. budget lines 
6. indifference curves. 
7. Recapitalization policy will enable  commercial banks to 
8. employ more qualified workers B. open more branches 
9. reduce interest rate 
10. have a very strong capital base 
11. The number of persons required to form  a private company ranges from 
12. ten to twenty 
13. two to fifty 
14. two to seven 
15. seven to ten. 
16. The major function of international  monetary funds is the 
17. provision of short-run loans to medium  scale industries 
18. provision of long-term loans  

for infrastructure 

1. development of agriculture in  

member countries 

1. maintenance of stable exchange rates 

29.One of the major activities in the  upstream sector of the Nigeria  

petroleum industry includes 

1. transportation of finished products B. refining of crude oil 
2. marketing of refined petrol 
3. exploration of crude oil. 
4. The law of supply states that the A. higher the price the higher the  quantity supplied 
5. quantity supplied is always equal to  the quantity demanded 
6. lower the price the higher the  

quantity supplied 

1. higher the price the lower the  

quantity supplied. 

31.One of the features of a  

perfect competitive firm is 

1. restrictions to entry and exit 
2. price discrimination 
3. absence of transportation cost 
4. product differentiation. 
5. The basis for international trade is the A. differences in natural resources  endowment 
6. differences in the population size C. prevailing interest rate on multilateral  loans 
7. economic system in practice. 

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

activity of

32 

1. intermediate workers 
2. middlemen 
3. extension workers 
4. creditors. 
5. In a free market economy, prices are  determined by 
6. consumers 
7. producers 
8. the central government 
9. the forces of demand and supply. 

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

1. the means of distribution 
2. the availability of resources 
3. technological know-how. 
4. In Nigeria, a fall in the supply of petrol  would generally affect the 
5. import of goods and services 
6. export of goods and services 
7. general price level in the country D. exchange rate of the Naira. 
8. The short-run equilibrium point of a  perfectly competitive firm is attained at a  point where 
9. is equal to total cost 
10. the demand curve is tangential to the  marginal cost 
11. the marginal cost curve is equal to the  marginal revenue curve 
12. the marginal cost is equal to the  price of the firm. 
13. Government can protect consumers  from exploitative prices by introducing A. minimum price 
14. price differentiation 
15. price floor 
16. maximum price. 

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

1. composites 
2. derived in nature 
3. substitutes 
4. c implements. 

40.In the theory of production, the price  of a factor input is determined by A. the prevailing exchange rates B. its elasticity of demand 

1. the existence of large market 
2. the prevailing interest rates.  

From the graph above, find the  

modal score 

1. 40 
2. 20 
3. 100 
4. 60. 

42.When the selling price of a monopolist  is below his short-run marginal cost, he  is said to be making 

1. an economic profit 
2. Losses 
3. profit 
4. supernormal profit. 

43.The overall economic performance of  a country can be assessed through A. overlooking of its agricultural sector B. employment estimates 

1. national income estimates
   

33 

1. balance of payment. 
2. The supply of agricultural products  is mainly determined by 
3. consumers’ taste 
4. consumers’ income 
5. technology 
6. consumers. 
7. Determine the median of 6 10, 5, 12,  20, 18, 20 and 4 
8. 11 
9. 9.67 
10. 12.56 
11. 12. 

X	10-  20	21-  30	31-  40	41-  50	51-  60	61-  70
F	4	6	10	50	3	5

 

From the table above, find the range of  the distribution 

1. 50 
2. 11 
3. 70 
4. 59. 
5. The failure of the Nigeria industrial  sector is mainly associated with 
6. lack of raw materials 
7. inadequate market for industrial goods C. underdeveloped infrastructural  facilities 
8. inadequate capital. 

48.If Qd = 40-4P and P = N4, what is  the quantity demanded? 

1. 30 
2. 32 
3. 24 
4. 26. 

49.The long-run total cost curve shows  the cost of 

1. all fixed factors of production B. the average fixed cost 
2. all factor inputs that are employed D. variable factors of production. 

50.The supply of farm produce is  mainly determined by 

1. consumers’ income 
2. weather condition 
3. population 
4. consumers’ taste
   

34 

ANSWER KEYS

35 

UTME 2016 ECONOMICS QUESTIONS 

1. A country embarks on deficit financing in  order to 
2. reduce aggregate demand 
3. increase revenue 
4. stimulate investment 
5. curb inflation 
6. The money market provides business  firms with the avenue to 
7. purchase goods and services 
8. purchase capital equipment’s 
9. obtain short- term funds 
10. obtain long-term funds 
11. The optimum level of output for pure  monopolist occurs where 
12. P is highest 
13. P=AC 
14. P=MC 
15. MR=MC 
16. According to the demographic transition  theory, Africa can be said to be at stage A. 2 and 3 
17. 3 only 
18. 2 only 
19. 1 and 3 
20. The Economic Community of West  African States (ECOWAS) is an  

example of 

1. globalization 
2. regional marketing board 
3. economic integration 
4. economic union. 
5. Given: 32, 18, 24, 17, 16, 32, 28, 68, 71 and 15, the mode of the distribution is A. 71 
6. 56 
7. 32 
8. 15 
9. The major determinant of income  elasticity of demand is 
10. government policy 
11. the availability of substitutes 
12. the price of the good 
13. the level of consumer’s income 
14. Given: 2, 4, 6, 8, 4 and 6, the absolute  mean deviation is 
15. 6.00 
16. 1.67 
17. 30.00 
18. 0.60 
19. The precautionary demand for money is  determined by 
20. the level of savings 
21. the rate of interest 
22. general price level 
23. the level of income. 
24. If the output of a firm experiencing  economies of scale increases, the  average cost would 
25. be at minimum 
26. rise 
27. be at maximum 
28. fall. 
29. The demand curve for a normal good is  negatively sloped because 
30. price is an incentive to producers B. price is an incentive to consumers C. demand always exceeds supply D. price and quantity move in the same  direction. 

The average total cost when 20 units are  produced is 

45. ₦45.30kg 
46. ₦50.00kg 
47. ₦47.50kg 
48. ₦5.00kg
    

36 

13.The major role of multinational  companies in the Nigerian petroleum  industry is 

1. oil marketing only 
2. oil marketing and prospecting 
3. establishment of refineries 
4. oil prospecting only. 

14.Life insurance companies contribute to  economic development by holding a part  of their assets in 

1. long-term financial instruments B. equipment 
2. cash and near money 
3. money-market instruments. 
4. The wage rate is mostly related to A. marginal productivity of labour B.  average productivity of labour C.  marginal efficiency of investment D.  total productivity of Labour. 

16.The choice of how to produce in a  command economy is determined by A. consumers 

1. government 
2. industries 
3. labour unions. 

17.The co-efficient of price elasticity of  supply is 

1. % change in supply

% change in price 

1. % change in quantity

supplied % change in price 

1. % change in quantity

supplied %change in income 

1. % change in quantity demanded %change in income 
2. A change in supply of a commodity  is due to a change in the 
3. price of the commodity 
4. cost of production 
5. price of substitute 
6. population growth rate. 
7. In a limited liability company,  the greatest risk is borne by the 
8. preference shareholders 
9. debentures shareholders 
10. ordinary shareholders 
11. board of directors. 
12. A market characterized by absence of  close substitutes of goods and services is  an example of 
13. a monopoly 
14. an oligopoly 
15. a perfect competition 
16. a monopolistic competition. 
17. An inflation that co-exists with high rate  of unemployment is 
18. hyperinflation 
19. cost-push inflation 
20. stagflation 
21. demand-pull inflation. 
22. The growth and development of small  and medium scale enterprises in Nigeria  is hampered by 
23. poor regulatory framework 
24. poor access to credit facilities 
25. poor management 
26. the small size of the market. 
27. A major determinant of demand is A. incentives to workers 
28. level of technology 
29. population 
30. cost of production.
    

37 

24. Which of the following can be used to  measure the Gross National Product A. C+I+G-F(X+M) 
25. C+I+G+(X-M) 
26. C+I+G+X 
27. C+I+G 
28. Find the median of the following set of  data 35, 10, 14, 38, 15, 18, 22, 30 and  28. 
29. 10 
30. 22 
31. 38 
32. 35  

Unit of  Capital	Total  output(kg)
1  2  3  4  5  6  7  8	13  43  123  243  353  483  563  663

 

From the table above, determine the average  product of the 5th unit of capital 

310. 310.5 
311. 176.5 
312. 70.6 
313. 62.0 
314. The problem of what to produce  is determined by 
315. consumption pattern 
316. the distribution pattern 
317. the state of technology 
318. the volume of production 
319. The main function NNPC is to 
320. develop the oil producing areas 
321. oversee the development of the  oil sector 
322. ensure regular supply of products D. fix the prices of petroleum products 
323. A major feature of an underdeveloped  economy is 
324. low rate of population growth B. excess capacity utilization 
325. low level of unemployment 
326. low level of standard living. 
327. A tax on land will ultimately fall A. partly on agents and users 
328. partly on users and owners 
329. entirely on owners 
330. entirely on users. 
331. The deregulation on the petroleum  sector in Nigeria will bring about A. efficiency in pricing and distribution  of the products 
332. fixing appropriate production quotas C. an end to the importation of fuel D. an end to foreign firms’ dominance. 
333. One of the ways of correcting a  deficit balance of payments is to A. devalue a country’s currency 
334. predenominate a country’s currency C. reduce imports 
335. reduce exports. 
336. A nation’s net export is negative when  her 
337. export is adjusted upwards 
338. external reserves deplete 
339. depreciation exceeds investments D. imports exceeds exports. 
340. Given: Qd = 30 — 3P and Qs = 9P — 15, determine the equilibrium price A. ₦12.00 
341. ₦3.75
     

38 

2. ₦2.80 
3. ₦3.00 
4. The problem of economic development  in Nigeria is that of 
5. poor weather conditions 
6. overpopulation 
7. surplus skilled manpower 
8. inadequate infrastructure. 
9. The combination of two commodities  that yield the same level of satisfaction  is illustrated by 
10. a budget line 
11. an isocost curve 
12. a production possibility curve D. an indifference curve 
13. The demand for inferior goods is  inversely related to change in 
14. income 
15. price 
16. supply 
17. taste. 
18. The minimum number of shareholders  for partnership is 
19. 7 
20. 4 
21. 2 
22. 3 
23. When diminishing returns sets in, the  total variable cost begins to 
24. rise at an increasing rate 
25. fall at a decreasing rate 
26. rise at a decreasing rate 
27. fall at an increasing rate. 

Unit of  capital	Total  output(kg)
1  2  3  4  5  6  7  8	13  43  123  243  353  483  563  663

 

From the table above, the marginal  product of the 7th Unit of Capital is 

1. 80kg 
2. 100kg 
3. 310kg 
4. 173kg 
5. Given: 32, 18, 24, 17, 16, 32, 28, 68, 71 and 15, what is the range? 
6. 26 
7. 32 
8. 56 
9. 68  

From the diagram above, the consumer  is at equilibrium at point 

1. G 
2. F 
3. K 
4. M
   

39 

43. If P = 1/4 (Qs + 30), what is the  quantity supplied at ₦18? 
44. 64.5 
45. 42.0 
46. 2.4 
47. 30.0 
48. When a consumer is at equilibrium, The  MRS x is equal to the 
49. product of the two prices 
50. sum of the two prices 
51. ratio of the two prices 
52. difference of the two prices. 
53. One of the major factors militating  against industrialization in Nigeria is A. low level of foreign investment B. frequent break-down of equipment C. inadequacy of infrastructural facilities D. government participation. 
54. One of the factors that is considered in  the location of a cement industry is  nearness to 
55. market 
56. raw materials 
57. infrastructural facilitates 
58. skilled manpower. 

47.A problem facing the development of the Nigerian Petroleum industry in Nigeria is A. persistent gas flaring

1. instability in demand for the products C. dominance of multinationals 
2. declining oil reserves. 
3. At full employment level, a  

contractionary monetary policy will Lead  to a 

1. rise in aggregate supply 
2. rise in aggregate demand 
3. rise in level of inflation rate 
4. fall in the level of inflation 

49.A country where the available population  is unable to guarantee efficient  

utilization of available resources is  experiencing 

1. under population 
2. over-population 
3. high population density 
4. optimum population. 
5. One of the causes of instability  in farmers’ income is 
6. high level of illiteracy 
7. unfriendly land tenure 
8. unfavourable weather condition D. poor management of  

extension services 

40 

ANSWER KEY

41 

UTME 2017 ECONOMICS QUESTIONS 1. If the arithmetic mean of 2, 3, 5, 8, Z,  

10 and 12 is 7, what is the value of Z? A. 8 

1. 9 
2. 10 
3. 7 
4. The most important function of  agriculture to the Nigerian economy is A. the guarantee of food security B. technical skill development 
5. technological development 
6. industrial development 
7. Given that Qd=15-2P and Qs=5+3P,  determine the equilibrium price. 
8. N3.00 
9. N5.00 
10. N2.00 
11. N6.00 
12. Scale of preference is referred to as the A. choices consumers make 
13. array of consumer’s needs 
14. consumer preference for  

luxurious goods 

1. consumer wants in order of priority 
2. One of the basic assumptions of  monopoly is 
3. perfect information of the  

market condition 

1. the ability to either control price or  output 
2. perfect mobility of factors of  

production 

1. large number of buyers and sellers 
2. The major advantage of a public limited  liability company over a private limited  liability company’s 
3. limited liability enjoyed by owner B. separate legal entity 
4. easy transferability of shares 
5. perpetual existence 
6. The main activity in the upstream oil  sector in Nigeria is 
7. marketing of petroleum products B. distribution of petroleum products C. extraction of crude oil 
8. refining of crude oil 
9. The natural growth of population  is calculated as 
10. birth rate + death rate 
11. labour force + dependant 
12. death rate – birth rate 
13. birth rate – death rate 
14. The study of age structure of a  population is important because it A. determine the exchange rate 
15. provide the government with  

statistics on the prevailing interest  rate 

1. reveals the cost of living 
2. provides the government with  statistics on present size of the labour  force 

10.If the demand for palm oil is for  the purpose of soap production and  cooking, the demand is said to be A. competitive 

1. complementary 
2. composite 
3. derived 

11.The institution established to enhance  the activities of Nigeria’s exports is A. Nigerian Export and Import Bank B. Import-substitution strategy 

1. Nigeria Export Promotion Council D. Bank of Industry 

12.From the pie chart above, the  percentage contribution of  

entrepreneur is 

2. 2.77% 
3. 33.33% 
4. 27.70% 
5. 3.33%
   

42 

13. A sustained increase in per capita  income accompanied by an increase  in output is 
14. economies of scale 
15. economic efficiency 
16. economic development 
17. economic growth 
18. The reward for capita as a factor of  production is 
19. interest 
20. rent 
21. profit 
22. wage 

15.The type of inflation that emanates  from excess demand over supply is A. galloping inflation 

1. cost-push inflation 
2. demand-pull inflation 
3. imported inflation 
4. Which of the following problems is  associated with national income  measurement? 
5. High interest rate 
6. Inflation and deflation 
7. Overpopulation 
8. population growth 
9. Freedom of consumption and  production are characteristics of A. socialism 
10. feudalism 
11. capitalism 
12. communism 
13. Cost of raw materials in production  is an example of 
14. marginal cost 
15. variable cost 
16. total cost 
17. fixed cost 

19.Foreign exchange control in Nigeria is  administered by the 

1. Money deposit banks 
2. Central Bank of Nigeria 
3. Discount houses 
4. Security and Exchange Commission

20.From the pie chart above, determine  the contribution of capital if the total  

contribution of all factors is 

12. ₦12.50 million 
13. ₦142.50 million 
14. ₦50 million 
15. ₦7.50 million 

21.The volume of output in an economy  is determined by 

1. the foreign exchange rate 
2. the standard of living of citizens 
3. population density of a country 
4. efficiency in the use of factors of  

production 

22. Given Qd = 30 – 3P, Qs = 9P – 18.  Determine the equilibrium quantity 
23. 18 
24. 20 
25. 25 
26. 27 

23.In Nigeria, industrial development can  be enhanced by 

2

43 

1. ensuring stable prices  

for manufactured goods 

1. reducing government expenditure  on imported goods 
2. providing efficient infrastructure D. increasing the rate of interest 
3. Capital gains tax is an example of A. Value Added Tax 
4. purchase tax 
5. sales tax 
6. income tax 
7. Which of the following is NOT a source  of government revenue? 
8. Taxes, fees, licenses and fines B. Interest, dividends, profits  

and earnings 

1. Personal income, disposable  

income and transfer earnings 

1. Grants, aids and borrowing 
2. One of the important qualities that  money must possess is 
3. heterogeneity 
4. easy availability 
5. homogeneity 
6. flexibility in value Price 
7. The graph above represents 
8. a decrease in quality supplied B. an increase in supply 
9. an increase in quantity supplied D. a decrease in supply Wages 

29.From the diagram above, the  

arrow marked M indicates 

1. payments made for foods and  

services 

1. payments made to factors of  

production 

1. the flow of capital goods 
2. the flow of economics rent 

30.A change in the quantity supplied of  a commodity is influenced by 

1. the price of substitutes 
2. the price of the commodity 
3. consumer’s tastes 
4. technological know-how 

Price Quantity  

(₦) demanded  

6 20 

5 16 

From the table above, calculate the  

elasticity of demand 

1. 0.03 
2. 0.30 
3. 0.33 
4. 0.04 

32.One of the functions of money deposit  banks in economic development is 

1. that it is banker to the government B. the provision of credits facilities 
2. the formulation of monetary policies 3
   

44 

1. issuing of currency notes 
2. One of the arguments against  the practice of monopoly is 
3. merging of producers 
4. competition 
5. exploitation 
6. non-government ownership 
7. The main reason why countries  engaged in international trade is the A. opportunity to earn high profit  in trading 
8. use of capital-intensive method of  productions 
9. difference in their endowment of  economic resources 
10. difference in the population structure 

Cup of Total Marginal milk taken utility utility 

1 18 18 

2 24 6 

3 29 5 

4 X 3 

5 34 Z 

6 35 1 

7 35 0 

From the table above, what is the value X? A. 32 

1. 35 
2. 34 
3. 30  

Quantity  consumed	Total  utility	Marginal utility
0	0	—
1	10	10
2	15	5
3	17	2
4	18	1
5	18	0

 

From the table above, it can be inferred  that there is 

1. diminishing returns to scale 
2. excess of demand 
3. diminishing marginal utility 
4. diminishing marginal productivity 

37.A well conducted census is important  for 

1. economic planning 
2. providing economic opportunities in  the rural areas 
3. distribution of educational  

materials in the cities 

1. revenue generation 
2. The cost-saving advantages which a  large firm can achieve on its own is  called 
3. internal economies of scale 
4. diseconomies of large scale 
5. externa diseconomies of scale 
6. external economies of scale 

39.A country uses the foreign exchange  control measure to eliminate balance of  payments deficit by 

1. limiting her imports to its currency  value of exports 
2. limiting her exports to its currency  value of imports 
3. overvaluing the country’s currency D. reducing the nation’s domestic price  level 
4. The role of IBRD as an international  institution is to 
5. improve trading among member  nations 
6. finance private businesses in member  nations 
7. facilitate the development of  

infrastructure in member nations 

1. D. solve the problem of balance  of payments of member nations
   

45 

ANSWER KEYS: 1.B 

2.A 

3.C 

4.D 

5.B 

6.C 

7.C 

8.D 

9.D 

10.C 

11.C 

12.B 

13.C 

14.A 

15.C 

16.B 

17.C 

18.B 

19.B 

20.B 

21.D 

22.A 

23.C 

25.D 

26.C 

27.C 

28.C 

29.A 

30.B 

31.C 

32.B 

33.C 

34.C 

35.A 

36.C 

37.A 

38.A 

39.A

46 

UTME 2018 ECONOMICS QUESTIONS 

1. Occupational distribution of population  is mainly influenced by 
2. economic factors 
3. religious factors 
4. geographical factors 
5. social factors. 
6. The reward for capital is 
7. interest 
8. rent 
9. risk 
10. premium. 
11. The reduction in the value of a  country’s currency in relation to the  value of the currencies of other nations  is known as 
12. deflation 
13. inflation 
14. devaluation 
15. revaluation 
16. Mortgage banks give loans to investors  on a long- term basis to 
17. finance agriculture 
18. establish banks 
19. acquire machinery 
20. build houses. 
21. In a capitalist economy, factors of  production are owned and controlled by  the 
22. citizens 
23. businessmen 
24. government 
25. foreigners. 
26. The establishment of industries in rural  areas will help to reduce 
27. urban-rural migration 
28. rural-urban migration 
29. rural-rural migration 
30. urban-urban migration. 
31. International trade is an application  of the principle of 
32. industrial production 
33. mass production 
34. regional production 
35. comparative cost advantage. 
36. The number of people who are  qualified to work and who offer  

themselves for employment is called A. migrant labour 

1. working population 
2. labour turnover 
3. mobility of labour. 
4. Which of the following is an  

advantage of localisation of industry? A. Development of subsidiary firms B. creation of parallel markets 

1. Development of slums 
2. Attraction of foreign capital. 

10.The Economic Community of West  African States (ECOWAS) has been  slow in achieving its objectives because  of 

1. the activities of multinationals B. inadequate personnel at the  

secretariat 

1. political instability 
2. inadequate international support. 
3. Joint ventures are partnership involving A. the poor and the rich 
4. employers and workers 
5. government and private investors D. multinationals and individuals. 

12.In which of the following business units  are the owners mostly the customers? A. co-operatives 

1. limited liability companies 
2. partnership 
3. public corporations. 
4. The formula index of export prices x 100, is index of import prices 

used to measure the 

1. volume of trade between countries B. direction of international trade C. commodity terms of trade 
2. volume of imports. 

Use the table below to answer  question 14.

Products	Ghana	Sierra  Leone
Coffee  Cocoa	8 tonnes  7 tonnes	2 tonnes  9 tonnes

47 

14. If specialisation should take place,  then 
15. Ghana should produce coffee  and cocoa 
16. Ghana would benefit by producing  cocoa only 
17. Sierra Leone should not produce any  of the products 
18. Sierra Leone should produce coca and  Ghana coffee. 
19. Which of the following is an  

invisible item? 

1. Petroleum services 
2. Processed rice 
3. Processed milk 
4. Banking services 
5. The full meaning of OPEC is 
6. Oil and Petroleum  

Exporting Countries 

1. Original Petroleum  

Exporting Countries 

1. Organisation of Petrol  

Exporting Countries 

1. Organisation of Petroleum  

Exporting Countries. 

17. The main concern of economists is to A. control the growth of population B. redistribute income between the rich  and the poor 
18. satisfy all human wants 
19. allocate scarce resources to  

satisfy human wants. 

18. Productive resources can also be called A. principles of production 
19. factors of production 
20. items of production 
21. labour and materials resources. 

19.The study of Economics becomes  necessary because of the 

1. large population size of the world B. scarcity of resources 
2. opportunity cost of goods and  services 
3. need to satisfy every desire of man. 

20.The type of demand that exists  between torchlight and battery is A. competitive demand 

1. complementary demand 
2. composite demand 
3. independent demand. 

21.The population density of a town  made up of 50 square kilometre land  area and 100 million people is 

1. 50,000 people per square kilometre B. 0.2 million people per square  kilometre 
2. 0.5 million people per square  kilometre 
3. 20 million people per square  kilometre 

Use the table below to answer  question 22 and 23. 

X	2	3	4	5
F	2	5	2	1

 

22.From the table, the mean of the  distribution is 

2. 2.2 
3. 2.5 
4. 3.2 
5. 4.523. 
6. What is the median of the distribution? A. 5 
7. 4 
8. 3 
9. 2
   

48 

24. Human wants are insatiable because  wants are 
25. limited while means are scarce 
26. unlimited and means are  

also unlimited 

1. limited and means are also limited D. unlimited while means are scarce. 

A country’s budget allocation to  various sectors of the economy is  shown in the pia chart below. Use it  to answer question 25 and 26 

25. If the budget of the country was $7,200.00, how much is allocated to  education 
26. $2,400.00 
27. $2,000.00 
28. $ 200.00 
29. $ 1,000.00 
30. What is the ratio of expenditure on  health to Agriculture? 
31. 2:3 
32. 3:4 
33. 4:3 
34. 5:4 
35. Which of the following items is not an  example of circulating capital? 

3 

1. Raw material 
2. Money 
3. Fuel 
4. Machinery 
5. The principle of comparative cost  advantage was propounded by 
6. David Ricardo 
7. Alfred Marshal 
8. J.S. Mill 
9. Adam Smith 

29.The rate at which a country’s exports  is exchanged for her imports is 

1. trade balance 
2. balance of payments 
3. terms of trade 
4. balance of currency account. 
5. Efficiency of labour in a country is  determined by the following except the A. social attitude to work 
6. education and training 
7. total population 
8. working conditions of workers. 
9. The diagram below represents  a production function. 

At which of the points does  

diminishing returns set in? 

1. R 
2. S 
3. T 
4. V
   

49 

32. Taxes and government expenditures  are instruments of 
33. monetary policy 
34. tax policy 
35. economic policy 
36. fiscal policy. 

33.A situation in which a commodity is  sold abroad below its cost of production  in the home country is known as 

1. dumping 
2. counter trade 
3. bilateral trade 
4. trade liberalisation. 
5. The Family Support Programme in  Nigeria essentially focuses on 
6. the generation of employment B. the alleviation of poverty 
7. agricultural and industrial  

development 

1. economic emancipation of women. 
2. The Economic Commission for Africa  was set up by the 
3. UNO 
4. ECOWAS 
5. OAU 
6. IMF 

Use the histogram below to answer  question 36 and 37. 

36. If the pass mark was 40, how many  students passed the examination? A. 100 
37. 120 
38. 160 
39. 200 
40. How many students took the  examination? 
41. 280 
42. 240 
43. 200 
44. 80 
45. Utility is the satisfaction derived from A. production 
46. distribution 
47. consumption 
48. demand. 
49. When a union is composed of workers  with the same skill it is called 
50. an industrial union 
51. a workers’ union 
52. a craft union 
53. a technical union. 
54. The major objective, of a revenue  allocation formula in a country is to A. share revenue between the public  and private sectors 
55. ensure the financial viability of the  country 
56. share revenue between the different  tiers of government 
57. divert revenue from areas of surplus  to areas of needs.
    

50 

ANSWER KEYS: 1.A 

2.A 

3.C 

4.D 

5.B 

6.B 

7.D 

8.B 

9.A 

10.C 

11.C 

12.A 

13.C 

14.D 

15.D 

16.D 

17.D 

18.B 

19.B 

20.B 

21.D 

22.B 

23.B 

24.D 

25.A 

26.B 

27.D 

28.A 

29.D 

30.C 

31.C 

32.B 

33.A 

34.D 

35.A 

36.A 

37.A 

38.C 

39.A 

40.C

51