1. Leadway Insurance Company in Nigeria is an example of _________ industry. A.

construction B. manufacturing C. mining D. service.

2. Which of the following is a function of commercial banks? A. Acceptance of deposit b.
acting as a banker’s bank C. Banker to the government D. Lender of last resort.
3. The Central Bank is commonly known for A. long-term loans B. medium term loans C.
monetary policy control D. property development control.
4. The consolidation of financial institutions is one of the economic reform programmes
initiated by the __________ bank. A. central B. commercial C. development D. merchant
5. The activities which involve the extraction of valuable minerals from the earth is A.
construction B. drilling C. mining D. cultivation.
6. The amount of money available for use in the economy at a given period of time is A.
demand for money B. liquidity preference C. supply of money D. value of money.
7. Which of the following is not a reason for speculative demand for money? A. Buying
goods and services at lower prices B. Its usage to meet contingencies C. Loaning out the
money at high interest rate D. Reselling of goods bought at higher prices.
8. Which of the following is a problem is a problem associated with barter system? A. Ease
in storing wealth B. Encourage borrowing and lending C. Indivisibility of goods D.
Allows for deferred payment.
9. Inflation is said to have occurred when there is A. available goods and services in the
economy B. increase in price of essential goods C. increase in the volume of money in
circulation D. sustained downward movement of the general price level.
10. Middlemen are criticized because they A. collect useful information for manufacturers
and retailers B. grant loans to manufacturers C. hoard goods in order to raise their prices
D. unite consumers and other agents.
11. A market where several producers produce similar goods is A. monopolistic competition
B. monopoly C. oligopoly D. perfect competition.
12. In monopolistic competition, marginal revenue is always lower thatn A. average cost B.
average revenue C. fixed cost D. marginal cost.
13. Industrialization in Nigeria can be encouraged through the following except A. high
import duties on industrial inputs B. increase in manpower training C. provision of credit
facilities D. reduction in company tax.
14. Which of the following is an economic activity? A. Attending a town’s meeting B. A
visit to the stadium C. Payment of school fees D. Arresting a petty thief.
15. Frictional unemployment occurs when A. there is a change in the techniques of
production B. job seekers lack information where job exists C. bad weather prevents
workers from progressing D. job seekers have disabilities.
16. Which of the following will increase the demand for labour? A. Increase wage rate B.
Labour demand for output C. Low wage rate D. Low marginal productivity.
17. Production of firms and industries is not influenced by A. availability of raw materials B.
existence of other firms C. nearness to the source of money supply D. government policy.
18. The profit of a producer is the difference between A. total cost and marginal cost B. total
revenue and total cost C. average cost and total cost D. price and total cost.
19. Cyclical unemployment is the one associated with A. inadequate information B. trade
fluctuations C. structural changes D. seasonal changes.
20. Which of the following measures will not encourage industrialization in West Africa? A
Taking over of all forms of industries by the government b. Provision of social
infrastructure C. giving tax incentives especially to infant industries D. Using triffs to
discourage the use of imported items.
21. In Economics, a market is defined as any A. agreement made for consumers to buy all
they need B. agreement to sell commodities at low prices C. arrangement made for
producers to sell all their goods D. arrangement whereby buyers and sellers are in close
contact.
22. The movement of labour from one grade to an entirely different grade is an example of
A. industrial labour mobility B. horizontal occupational mobility C. vertical occupational
mobility D. geographical mobility.
23. An industry is best described as A. firms that sell a set of closely related commodities B.
a factory that produces different lines of products C. a group of companies that sell
closely related products D. industrial concern that is into production and selling goods.
24. A market structure where profit is maximized when marginal revenue, marginal cost and
price are equal is known as A. perfect competition B. monopoly C. oligopoly D.
imperfect competition.
25. Which of the following statements is not a feature of monopoly? A. Seller is allowed to
fix his own price B. Buyers and sellers are price takers C. New entrances are restricted D.
there is only one seller of the commodity.
26. Economics is regarded as a science because it A. studies laws that governs human
behaviours B. uses scientific method to explain human behaviour C. makes use of
controlled experiments to explain human behaviour D. makes use of machines to study
human behaviour.
27. The value of money is affected by A. speculative motive B. price level C. precautionary
motive D. intervention of development banks.
28. Precautionary motive for holding money is to A. meet daily and regular transactions B.
take advantage of changes in the prices of goods and services C. cover unforeseen events
D. cover expenses on house rent.
29. Which of the following describes inflation? A. Cyclical increase in prices B. periodic
increase in prices C, Persistent increase in prices D. occasional increase in prices.
30. Which of the following cannot be described as land? A. Forest B. Diamond C. Roads D.
Crude oil.
31. The most acceptable definition of Economics was given by A. A.C. Pigou B. Adam
Smith C. Lionel Robbins D. J.S. Mill.
32. In Economics, resources are said to be _______ in supply. A. adequate B. constant C.
scarce D. unlimited
33. Determine the median from the following numbers: 4, 14, 20, 5, 16, 30 and 38. A. 14 B.
15 C.16 D. 20
34. Which of the following factors of production is fixed in supply? A. Capital B.
Entrepreneur C. Labour D. Land
 35. The most mobile factor of production is A. capital B. entrepreneur C. Labour d. Land
36. Which of the following is not among the basic economic problems of a society? A.
allocation of wealth B. For whom to produce C. How to produce D. What to produce
37. The following are sources of funds for businesses except A. credit B. donations C.
savings d. taxes.
38. Efficiency of labour can be improved through A. education and training B. harsh weather
condition C. non application of division of labour D. promotion of illiteracy.
39. The factor of production which has absolute control and bears the risk of the business is
A. entrepreneur B. land C. labour D. capital.
40. What is Average Cost? A. TC/MC B. MC X AC C. TC/Q D. TC X Q.
SECTION B (THEORY): Answer Question One and any Two other questions
1. a. What is meant by Demand for money? b. Explain three (3) motives behind “Liquidity
preference” c. What is meant by the Value of money? d. Assuming the price of sugar was #20.00
in 2012 but rose to #30.00 in 2013, calculate the index number.
2. a. Explain Supply of money. b. What is inflation? And how does it affect the value of money?
c. What is unemployment? d. State four (4) causes and solutions EACH to unemployment in
Nigeria.
3. a. What is market in Economics? b. Explain four (4) types of market according to
commodities sold in them. c. List four (4) conditions necessary for a perfect market. d. Write
short notes on: i. Monopoly ii. Duopoly iii. Oligopoly iv. Monopsony v. Perfect competition.
4. a. What is money? b. Define Trade by barter and explain at least four (4) problems associated
with the barter system of trade. c. Enumerate five (5) factors affecting localization of industries
in Nigeria. d. Write short notes on the following: i. Firm ii. Industry iii. Plant iv. Location of
industry v. Localisation of industry.