NESA CBT MOCK EXAM

ECN 101
There are 40 objective questions which are to be answered in 18 minutes

1. All goods that has no value and can be obtained for free is
⚪ Material goods
⚫ Economic goods
⚪ None material goods
⚪ None economic goods
2. Which of the following is Normative statement?
⚪ The higher the price,the lower the demand
⚪ All other things being equal,the higher the price,the lower the quantity demanded
⚫ Money supply should be reduced to lower the inflation rate
⚪ If consumer income increase,there should be increase in consumption
3. Which of the following is the formula to calculate Per Capita income
⚪ GNP/total population
⚪ None of the above
⚫ NNP/Total population
⚪ GDP/Total population
4. When AP and MP and increasing
⚪ AP is above MP
⚪ MP=AP
⚪ All of the above
⚫ MP is above AP
5. The graphical presentation that shows two combinations of goods and services a nation
can produce at a point in time is
⚪ Production Possibility Curve
⚪ Production Possibility Frontier
⚪ Transformation Curve
⚫ All of the above
6. An introduction of specific tax will_______and burden share in_______manner for an
inelastic demand goods

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 ⚪ Reduce price,more burden on producer
⚫ Increase price,less burden on consumer
⚪ Reduce price,burden shared equally between producer and consumer
⚪ Increase price,more burden fall on producer
7. Which of the following statements is correct. I.increase in price will increase quantity
supply II.when TP is reducing AP is negative III.when MP and TP, MP>AP IV. demand
for necessity good is inelastic
⚪ II and III
⚪ I and III
⚪ II and IV
⚫ I and IV
8. Ceiling price refer to as
⚪ Maximum price of goods fixed by government
⚪ Minimum price of goods fixed by government
⚪ Minimum price of goods fixed by monopoly
⚫ Maximum price of goods fixed by monopoly
9. Which of the following is not a factor of production?
⚪ Entrepreneur
⚫ None of the above
⚪ Land
⚪ Capital
10. For a firm AR=P
⚪ True
⚪ Not certain
⚪ False
⚫ Not always
11. What is the reward for capital
⚫ Wages
⚪ None of the above
⚪ Interest
⚪ Profit
12. Who defines economics as the study of cause and nature of wealth among the nation
⚪ David Ricardo
⚪ David Ricard

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 ⚫ Adam Smith
⚪ Adams Smith
13. A is equal to B, B is equal to C, by implication C is equal to A” The above statement
best explains which of the economic term
⚪ Inductive Reasoning
⚪ Abstract Reasoning
⚪ Normative Reasoning
⚫ Deductive Reasoning
14. Mariana, has a good taste for plantain,this will cause
⚪ An increase in quantity demanded
⚫ An increase in demand
⚪ A change in quantity demanded
⚪ A change in demand
15. If good Y and X are said to be competitive
⚪ An increase in the price of good X,will increase the quantity of good Y
⚫ Increase in the price of good Y,will increase the quantity demand of good X
⚪ None of the above
⚪ An increase in the price of good Y, will reduce the quantity demanded of good X
16. Economics is
⚪ Science
⚪ Art and Science
⚪ Art
⚫ All of the above
17. Demand for necessity goods
⚪ Elastic
⚫ inelastic
⚪ Fairly elastic
⚪ Fairly inelastic
18. What is the degree of responsiveness of changes in factors affecting demand to change to
change in demand
⚪ Cross elasticity
⚪ Price elasticity
⚪ None of the above
⚫ Elasticity

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19. A decrease in supply and a decrease in demand will
⚫ Price constant and decrease quantity demand
⚪ Decrease price and increase quantity demanded
⚪ Price constant and decrease quantity
⚪ Price constant and quantity demand constant
20. As a change in quantity demanded is regarded as movement along the demand, change in
demand also refers to
⚪ Increase in demand
⚫ Shift in demand
⚪ Opposite demand
⚪ Decrease in demand
21. All constitute the scope of macroeconomics except
⚪ Theory of money
⚪ Theory of consumption
⚫ Theory of price
⚪ Theory of employment
22. Economics students are tall, Spechy is tall. The above statement best explains which of
the economic term
⚪ Normative Reasoning
⚪ Positive Reasoning
⚫ Deductive Reasoning
⚪ Inductive Reasoning
23. An excess will cause__________in the long run
⚫ Increase the price
⚪ Reduce the supply curve
⚪ Decrease the price
⚪ Shift the supply curve
24. An increase in demand with a decrease in supply will
⚪ Decrease price and increase quantity
⚫ Increase price and quantity demand is constant
⚪ Increase price and increase quantity
⚪ Increase price and decrease quantity

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25. When a 20% decrease in input leads to more than a 30% decrease in output
⚪ None of the above
⚪ Increasing return to scale
⚫ Decreasing return to scale
⚪ Constant return to scale
26. They are_______period of production
⚪3
⚪4
⚫2
⚪1
27. GDP at factor is?
⚪ None of the above
⚫ The GDP after deducting indirect tax and adding subsiding to GDP at market cost
⚪ Nominal GDP
⚪ Real GDP
28. When the demand for a product is perfectly inelastic,a producer might have a loss if
⚪ None of the above
⚪ Make the price constant
⚫ Increases price
⚪ Reduces price
29. If good A and B are said to be complementary
⚪ None of the above
⚪ An increase in the price of B, will increase the quantity demanded of good A
⚪ A decrease in the price of good A, will reduce the quantity demanded of good B
⚫ Increase in the price of good B, will reduce the quantity demanded of good A
30. The price above the equilibrium is called
⚪ Market price
⚪ None of the above
⚫ Price floor
⚪ Price ceiling

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31. Habeeb bought a plantain for 200 naira,the price is said to be
⚫ All of the above
⚪ Market price
⚪ Equilibrium price
⚪ Market clearing price
32. Which of the following statements is wrong? I.The Nigeria economy is a mixed
economy II.All other factors affecting demand are called shift factor III.The lower the
price, the higher the quantity supply
⚫ III
⚪ I and II
⚪ II only
⚪ II and III
33. The general price level in a country is #100 and #105 in 2019 and 2020 respectively, while
the output of it's product is 10000 and 12000 respectively. Which of the following is
wrong
⚪ The GDP deflator in the base year equals 100%
⚫ None of the above
⚪ Nominal and real GNP is equal in the base year
⚪ The inflation rate is 26%
34. Demand for Oil is?
⚫ Composite demand
⚪ Competition demand
⚪ Derived demand
⚪ Joint demand
35. All constitute Microeconomics except
⚪ Theory of demand
⚫ None of the above
⚪ Consumer behavior
⚪ Price theory
36. Who is the leader of Neo classical economists?
⚪ Milton Friedman
⚫ Alfred Marshall
⚪ A.C Pigou
⚪ Lionel Robbinson

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37. _________is the monetary value of goods produced by the national of a country
⚪ NI
⚪ GDP
⚪ NNP
⚫ GNP
38. Which of the following can be termed a centrally planned economy
⚫ Socialist
⚪ None of the above
⚪ Mixed economy
⚪ Capitalist
39. ________believes that supply creates demand
⚪ None of the above
⚪ J.B Say
⚫ All of the above
⚪ Classical economists
40. Demand for kerosene is an example of
⚪ Intermediate goods
⚪ Compliment goods
⚫ Derived demand
⚪ Consumable goods

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