ECONOMIC

S2010-20
18
JAMB
Questions
And Answers

1
 UTME 2010 ECONOMICS QUESTIONS

1. Which Economics question paper type is 8. If the demand for a good is more elastic
given to you? than its supply, the tax burden is borne
A. Type A A. equally by consumers and producers
B. Type B B. more by producers
C. Type C C. more by consumers
D. Type D D. more by retailers and producers

2. Economics is the study of human 9. If the price of a commodity with elastic

behaviour as it relates to the demand increases, the revenue accruing
A. efficient allocation of resources to the producer will

m
B. production of goods A. double
C. operation of companies B. increase
D. generation of income C. be constant

t.co
D. decrease
3. The downturn in the prices of shares on
stock markets is a highlight of 10. An excess demand for beans will result
A. efficient allocation of resources from
B. the invisible hand A. an increase in the price of beans

gis
C. the regulatory nature of the market B. a decrease in the price of beans
D. consumer rationality C. an increase in the supply of beans
D. a decrease in the supply of beans
4. If = 6 and N = 6, determine the value of
ol
∑fx 11. Consumer surplus tends to be
A. 36 higher when demand is
B. 12 A. inelastic
ho
C. 1 B. perfectly elastic
D. 72 C. elastic
D. unitarily elastic
5. The standard deviation of a set of data is
ysc

A. always measured from the mode 12. One of the assumptions of ordinal utility
B. the most representative of averages theory is that
C. always measured from the median A. choice is not consistent
D. a measure of dispersion B. utility can be ranked
w.m

C. total utility is a function of price

6. The mean is the best measure of central D. satisfaction is measurable
tendency because it
A. is not affected by extreme values in 13. The law of diminishing marginal utility
a data explains why
B. is a midpoint value in an array of data A. the slope of a normal demand curve
C. is a balancing point in an observation is negative
ww

D. can be calculated from incomplete data B. an abnormal demand curve slopes

upwards
7. The most popular sizes of dresses and C. the slope of a normal demand curve
shoes are determined by the is positive
A. range D. the consumption of inferior goods
B. mean increases with income
C. mode
D. median 14. If a consumer plans to spend 120k on
four oranges but spent 80k, his
consumer surplus is
A. ₦1.50

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 B. ₦0.40 A. reducing average cost as
C. ₦1.00 production increases
D. ₦2.00 B. benefiting from the activities of other
firms
15. A set of factors that can shift the supply C. maximizing profits as
curve are changes in production increases
A. weather, price and technology D. having an upward-sloping average cost
B. technology, weather and population curve
C. technology, price and taste
D. population, price and taste 22. The rising portion of the long-run
average cost curve of a firm is an
16. If the coefficient of price elasticity of indication that it is experiencing
supply is greater than one, the supply is A. increasing efficiency
said to be B. economies of scale
A. perfectly elastic C. diseconomies of scale
B. fairly inelastic D. increasing marginal returns
C. infinitely inelastic
D. fairly elastic 23. An industry's supply curve is more likely
to be elastic when firms are
17. If commodity X is a by-product of A. enjoying free entry and exit
commodity Y, this implies that both B. operating at full capacity
commodities are C. operating below capacity
A. in competitive supply D. maximizing profits
B. in composite supply
C. jointly supplied 24. One of the characteristics of monopolistic
D. in excess supply competition is that
A. there is mobility of factors
18. In perfect competition, price of production
is determined by the B. no single seller dominates the market
A. government C. the firms are price-takers
B. sellers D. consumers have perfect knowledge of
C. buyers price
D. market
25. The demand curve for factors of
19. In order to reduce hardship faced by production
consumers due to high prices A. is perfect elastic
government can introduce B. slopes upwards
A. maximum prices C. slopes of downwards
B. commodity boards D. is perfectly inelastic
C. minimum prices
D. price control boards 26. An agreement among firms on price and
segmentation is termed
20. Average product is less than marginal A. cartel
product when B. collusion
A. there is constant returns to scale C. haggling
B. there is increasing returns to scale D. specialization
C. there is decreasing returns to scale
D. diminishing returns set in 27. In national income accounting, tax is
determined by the
21. A firm enjoying economies of scale is A. level of income
said to be B. level of consumption

3
 C. level of investment
` D. rate of savings 34. A strategy for curbing unemployment is
to
28. A decrease in aggregate spending in A. implement government
an economy will ultimately lead to stabilization policy
A. boom B. increase taxes and decrease
B. inflation government expenditure
C. deflation C. increase government expenditure
D. recession and decrease taxes
D. ensure even distribution of job
29. If MPC is 0.7 while government opportunities
expenditure increased by ₦ 150m,
the equilibrium national income is 35. In Nigeria, the distribution of
A. ₦ 214 million job opportunities
B. ₦ 45 million A. balanced budgeting
C. ₦ 105 million B. deficit budgeting
D. ₦ 500 million C. surplus budgeting
D. zero budgeting
30. The function of money which makes
division of labour possible is its
A. unit of account 36. National development plans in Nigeria
B. store of value fail mainly because of
C. medium of exchange A. overdependence on foreign aids
D. standard of deferred payment B. inadequate funding of projects
C. poor implementation strategies
31. By buying treasury bills, the D. shortage of skilled manpower
Central Bank of Nigeria intends to
A. increase money supply in the economy 37. The ultimate aim of agricultural
B. reduce the cash reserve ratio for banks policies in Nigeria is to achieve
C. reduce money supply in the economy A. food sufficiency
D. increase the capital base of commercial B. industrialization
banks C. full employment
D. industrial capacity utilization
32. The velocity of money is represented as
A. Money supply 38. Government can boost agricultural
Real GDP output in Nigeria primarily by
B. Real GDP A. embarking on buffer stock
Money supply programmes
C. Nominal GDP B. placing embargo on food importation
Money supply C. granting subsidies on farm inputs
D. Real GDP D. placing farmers on monthly income
Nominal GDP
39. Localization of industries refers to the
33.One of the functions of
A. spread of firms producing different
commercial banks is
products
A. maintaining stable price in
B. siting of industries near the market
the economy
C. concentration of firms of an industry
B. regulating monetary policies
D. siting of firms producing
C. granting loans to customers
different products
D. issuing bank notes and coins

4
40. In developing countries, governments B. 25%
influence the location of industries in C. 8%
order to D. 80%
A. spread development
B. redistribute wealth 46. One of the characteristics of free trade
C. encourage entrepreneurs zone is
D. encourage industries to earn A. common tariff against non-
high profits member countries
B. different trade policies of non-
41. A disadvantage of Nigeria's dependence member countries
on imported petroleum products is the C. free factor mobility within the zone
A. instability in the demand for D. harmonized trade among
the products member countries
B. dominance of multinational firms
C. instability in the supply of the product 47. If Nigeria imports vehicles from Japan
D. poor maintenance of the refineries the transaction will appear as a
A. debit on Japan's balance of payments
42. The maximum number of shareholders B. credit on Japan's balance of payments
for a limited liability company's is C. credit on Nigeria's balance of trade
A. twenty D. credit on Nigeria's balance of payment
B. five
C. seven 48. One of the objectives of ADB is to
D. infinite A. provide subsidies on imported goods
to member countries
43. The primary motive for an individual B. mobilize short-term loans for
engaging in production is to member countries
A. make profit C. promote economic and social
B. satisfy basic human wants development of member countries
C. redistribute wealth D. provide technical assistance to only
D. put inputs into use poor member countries

Use the table below to answer 49. The choice of the method of production
question 44 and 45. in an economy is determined by the
A. level of technical know-how
Year Population Working B. rate of population growth
(000) Population(000) C. availability of natural resources
2000 25 13 D. level of income
2001 30 19
2002 40 32 50. The amount of labour hired depends on
2003 50 49 the
A. number of skilled labour available
44. What is the population growth rate B. skill of labour
in 2003? C. marginal productivity of labour
A. 33.3% D. price of the inputs
B. 20.0%
C. 11.0%
D. 50%

45. The percentage of working population in

2002 is?
A. 50%

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 excludes another, it is said to be
economics is given to you? A. complementary demand
A. Type A B. competitive demand
B. Type B C. composite demand
C. Type C D. derived demand
D. Type D
8.
2. An effective way of controlling inflation in Price (₦) Quality (Kg)
a mixed economy is to 1 100
A. increase productivity 2 120
B. reduce income tax 3 150
C. ration available output 4 180
D. increase imports 5 200

3. One of the limitations PPC assumption is The graph of the schedule above will
that there is depict
A. no indication of A. a kinked demand curve
technological development B. a normal demand curve
B. no recognition of preferred goods C. an abnormal demand curve
for countries D. a diminishing marginal utility curve
C. technical inefficiency
D. abundant resources 9. The median of an odd-numbered set of
scores is the
4. A major disadvantage of the A. Middle value in the set
arithmetic means is that it is B. Highest value in the set
A. not useful for large data C. Arithmetic means of the set
B. not suitable for further D. Most frequent occurring score
statistical analysis
C. cumbersome to determine the actual 10.If demand increases without a change in
value supply, equilibrium price and quantity
D. affected by extreme data will
A. remain unchanged
5. Demand patterns are determined by the B. shift inward
market on the basis of C. fall
A. scale of preference D. rise
B. consumer sovereignty
C. consumer rationality 11.In the process of production, total
D. price of the commodity output is at maximum when
A. MP=0
6. A consumer surplus measures the B. MP>0
A. benefits derived from consuming C. AP=0
a cheap commodity D. AP>0
B. excess of total expenditure over total
utility 12.
C. difference between marginal utility Price (₦) Qty./ (bags)
and marginal cost 1 60
D. excess of marginal utility over price 2 120

From that table above, the price

elasticity of supply is

7
 A. 4 A. in the long-run period
B. 25 B. to large-scale enterprises
C. 1 C. to small-scale enterprises
D. 2 D. in the short-run period

13. When a consumer is at equilibrium, the 20.

MRSxy is equal to the
A. sum of the prices
B. product of the two prices
C. ratio of the two prices
D. difference of the two prices

14. Minimum price legislation by government

will
A. reduce supply
B. increase supply
C. reduce demand and create surplus
D. increase demand and create scarcity From the Diagram above, the optimal
point of production is
15. Ranking is the method use in measuring A. R
A. marginal utility B. T
B. ordinal utility C. U
C. cardinal utility D. S
D. total utility
21. If real income increases while nominal
16. If a firm is faced with an elastic supply income remains the same, it can be
curve, its revenue will inferred that
A. be supplied at a higher price A. Unemployment rate has decreased
B. double at a higher price B. General prices have fallen
C. increase by more than the C. Employment rate has risen
percentage increase in price D. General prices have risen
D. equal percentage change in price
22. One of the characteristics of oligopoly is
17. The optimal range of output for a the availability of
perfectly competitive firm is A. few sellers
A. AC is lowest B. few buyers
B. AVC is lowest C. many sellers
C. MC is rising D. a single seller
D. MC is falling
Use the diagram below to answer
18.A firm will experience diseconomies of question 23 and 24
scale when
A. there are difficulties in
coordinating production
B. there is shortage in labour supply
C. the size of market is small
D. there is an increase in the price of raw
materials

19. The law of variable proportions is

applicable only

8
 B. pension
C. scholarship
D. social welfare

29. If aggregate demand is lower than total

output in an economy national income
will
A. be constant
B. be at equilibrium
C. increase
D. fall
23. The average total cost when 20 units are
produced is 30. During the era of barter, money was
A. N20.00 generally in the form of
B. N23.00 A. notes
C. N13.00 B. precious metals
D. N15.00 C. coins
D. commodities
24. When 20 units of output is produced, TC
will be 31.A country achieves economic
A. N360 development when there is
B. N300 A. an increase in military expenditure
C. N460 B. an increase in capacity utilization
D. N400 C. a sustained increase in per capital
income
25. The profit of a monopolist can be D. an even distribution of goods and
eliminated where price equals services
A. AFC
B. MC
C. AC 32. An indicator of growth in an
D. AVC economy over a period of time is the
A. GDP gap
26. Bank consolidation policy in Nigeria is B. GDP at factor cost
a measure to increase C. GDP at market price
A. the capital base of banks D. GDP deflator
B. employment opportunities in banks
C. the number of shareholders 33.A country embarks on deficit financing in
D. the number of branches order to
A. increase revenue
27. An increase in the circulation of money B. reduce aggregate demand
without a corresponding increase in C. curb inflation
output will lead to D. stimulate investment
A. a rise in income levels
B. stagflation Use the diagram below to answer
C. inflation question 34 and 35
D. deflation

28. In national income accounts, an item

counted as part of government spending
is
A. salaries and wages

9
 40. investing heavily in the agricultural
sector will lead to
A. sufficient food production
B. a vibrant commodity market
C. capital inflow
D. stable export prices

41. Industrial development in Nigeria can be

encouraged through
A. signing WTO treaty
34. The deflationary gap is defined by B. granting subsidies
A. X C. the provision of efficient infrastructure
B. K D. direct government participation
C. X+K
D. X-K 42. The record of a country's transactions in
international trade is her
A. capital account
35. What does X represent? B. balance of payments
A. recessionary gap C. current account
B. GNP gap D. balance of trade
C. inflationary gap
D. deflationary gap 43. The transfer to public shareholding
corporations to private enterprises is
36. The import-substitution strategy of A. concession
industrialization is to encourage B. incorporation
A. domestic production C. commercialization
B. large-scale production D. privatization
C. importation
D. exportation 44.A condition in which official and
autonomous exchange rate coexist is
37. Upstream oil activities involve the A. dual exchange rate system
A. management of pollution B. managed floating rate system
B. marketing of refined products C. market determined exchange rate
C. exploration of crude oil system
D. refining of crude oil D. multiple exchange rate system

38. Agricultural production in Nigeria is 45. In modern economies, the Malthusian

constrained by theory of population is ineffective
A. ineffective use of because of
stabilization measures A. birth control measures
B. inadequate demand B. technical progress
C. poor implementation of policies C. government policies
D. balance of payments deficits D. natural disasters

39. The main function of NNPC is to

A. oversee the development of the 46.Optimum population enables an
oil sector economy to attain the highest level of
B. develop the oil producing area A. Industrial development
C. fix the price of products B. Income per head
D. ensure regular supply of products C. Revenue generation
D. Economic development

10
47.A change from one industry to another
by a worker is an example of
A. geographical mobility
B. horizontal mobility
C. professional advancement
D. vertical mobility

48.The money paid per hour for work done

is
A. salary
B. wage rate
C. cost
D. bonus

49.Trade takes place because of

A. marginal utility
B. inefficiency in production
C. opportunity cost
D. comparative advantage

50.The World Trade Organization is

responsible for
A. stabilizing and harmonization oil prices
B. ensuring equal participation of
countries in trade
C. modernising world economies
D. minimizing obstacles to international
trade and investment

11
ANSWER KEYS:
20. D
1. B
21. B
2. A
22. B
3. B
23. D
4. D
24. B
5. B
25. B
6. D
26. A
7. B
27. D
8. B
28. D
9. A
29. D
10. B
30. D
11. A
31. C
12 C
32. C
13. A
33. C
14. C
34. A
15. B
35. D
16. C
36. B
17 B
37. C
18 C
38. C
19. A
39. A

12
 UTME 2012 ECONOMICS QUESTIONS

1. Which question paper type of C. 32.4

Economics as indicated above is given D. 25.0
to you?
A. Type Green 6. If the GDP is N60 billion, what is the
B. Type Purple difference between the contributions of oil
C. Type Red and manufacturing sectors?
D. Type Yellow A. N11.7 billion
B. N13.3 billion
2. A major disadvantage of a socialist economy is C. N21.7 billion
that D. N26.6 billion
A. corruption is rampant
B. consumer's sovereignty is lost 7. If the quantity of rice bought decreases from
C. income inequality is entrenched 250 tonnes to 200 tonnes owing to a 2% rise
D. there is high level of unemployment in price, it shows that there is a change in
A. consumers' income
3. The privatization of public enterprises will lead B. demand
to efficient management of resources in the C. consumers' tastes
economy. This statement can best be D. quantity damanded
described as
A. normative reasoning 8. A rise in income will, ceteris paribus, bring about
B. inductive reasoning A. a movement along the demand curve
C. deductive reasoning B. a leftward shift of the demand curve
D. positive reasoning C. a rightward shift of the demand curve
D. no effect on the demand curve
4. The sign of the slope of a graph in
economic analysis is important because 9.
it Price (₦) Quality (Kg)
A. shows whether a good is normal or inferior
50 500
B. shows the relationship between variables
70 400
C. reveals the magnitude of the change
between variables
D. helps to determine the unit of From the above, calculate the price
measurement of variables elasticity of demand
A. 5.0
5. B. 2.0
C. 1.0
D. 0.5

10. 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
A. perfectly elastic
B. inelastic
C. elastic
D. perfectly inelastic

11. Comparison of interpersonal utility is

impossible because
A. utility is measured in utils
B. marginal utility is not observable
The percentage contribution of C. utility is subjectively determined
manufacturing sector is D. individual income differ
A. 67.5
B. 40.0

13
 A. unitary
12. When the slope of the total utility curve is B. infinity
declining, the marginal utility of a consumer C. fairly elastic
will be increasing if he D. perfectly inelastic
A. stops consuming more of the commodity
B. reduces the quantity consumed 17. The cost elasticity of supply is a useful
C. increases the quantity consumed instrument for measuring
D. consumes more of another commodity A. profit
B. productivity
Use the diagram below to answer question C. national income
13 and 14 D. price index

18. The invisible hand promotes the interests of

A. consumers
B. society
C. government
D. producers

19. Fixing price above equilibrium will cause

A. demand and supply to remain constant
B. an increase in quantity supplied
C. an increase in supply
D. a decrease in quantity supplied

20. 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
13. The consumer is at equilibrium at point
A. N 21. If all factors are variable in the long run,firms
B. P will experience
C. M A. decreasing returns to scale
D. K B. increasing returns to scale
C. diminishing returns
14. To move from point M to K, the consumer D. economies of scale
has to increase the
A. consumption of X and reduce the 22. The equilibrium point of a firm is attained at
consumption of Y the point where the isoquant is
B. expenditure on Y A. greater than the isocost
C. expenditure on X B. less than the isocost
D. consumption of Y and reduce C. tangent to the isocost
the consumption of X D. greater than the output

15. The supply of cocoa is influenced by 23. The long-run average cost curve touches
A. seasonal conditions to the short-run average cost curves at the
B. the efficacy of fertilizer used A. minimum points of all short run
C. the demand for beverages average cost curves
D. the availability of close substitutes B. declining points of all short-run average
cost curves
16. If quantity supplied is constant irrespective of
price changes, the supply elasticity is

14
 C. minimum point of only one of the short- D. fiat money
run cost curves
D. rising points of all short-run average cost 31. If a basket of commodities cost N120 in the
curves base year and N240 in the current year,
calculate the price index
24. If a firm doubles all inputs in the long run and A. 100
the total output is less than doubled, this B. 200
results in C. 240
A. diminishing returns D. 300
B. constant returns to scale
C. increasing returns to scale 32. The minimum amount which banks are
D. decreasing returns to scale required to deposit with the central bank is
determined by the
25. Patents and copyrights enable monopolists to A. liquidity ratio
A. determine the quality of their products B. cash reserve ratio
B. determine the scale of their products C. minimum lending rate
C. restrict information flow to new firms D. aggregate credit ceiling
D. restrict entry of new firms
33. The major function of money market is to
26. A discriminatory monopoly is characterized by A. provide funds for long-term financing
A. a common elasticity in different markets B. provide funds short-term financing
B. different elasticities in different markets C. stabilize the value of the local currency
C. a finite elasticity in all markets D. stabilize domestic prices
D. zero elasticity in all markets
34. An ad valorem tax is imposed on
27. Net National Product is derived by deducting A. special commodities
A. net exports from GNP B. exports
B. subsidies from GDP C. imports
C. taxes from GDP D. the value of a commodity
D. depreciation from GNP
35. A huge national debt is an indication that the
Use the information below to answer gold reserves of a nation has
question 28 29. A. appreciated
B. decreased
The investment expenditure of economy C. depreciated
changes by ₦2 Million and MPC is 0.75 D. stagnated
28. What is the change in income?
A. N0.5m 36. Rapid economic development in
B. N1.5m Nigeria is realizable by
C. N2.6m A. continuous dependence on oil
D. N8.0m B. concentrating more on agriculture
C. developing the tourism industry
29. The multiplier is D. diversifying the economy
A. 8
B. 4 37. The primary reason for desiring economic
C. 3 growth is to
D. 2 A. control inflation
B. reduce poverty
30. The money that commands a higher market C. redistribute income
value than its face value is called D. raise standard of living
A. paper money
B. standard money 38. An emerging agricultural export crop in Nigeria is
C. commodity money

15
 A. cassava C. population growth rate and natural resources
B. cotton D. age distribution of population
C. cocoa
D. soya beans 46. In a village of 50 persons, 10 immigrated, 25
died and 5 emigrated in year. Determine the
39. A strategy for improving agriculture in Nigeria total population
will involve A. 10
A. controlling the prices of agricultural products B. 20
B. ensuring self-sufficiency in food production C. 30
C. reducing agricultural exports D. 50
D. establishing commondity boards
47. A deficit balance of payments is
40. A sugar industry is best located near the measured by subtracting the debits from
source of the credits in the
A. labour A. current account
B. raw materials B. current and capital accounts
C. power C. current and escrow accounts
D. capital D. capital and escrow accounts

41. An important contribution of small-scale 48. One of the functions of ECOWAS is to

industries to the Nigerian economy is in the A. provide funds for infrastructural development
area of B. determine prices of exports
A. technological development C. redistribute income among citizens
B. foregin exchange earnings D. provide employment for citizens
C. raw materials processing of member nations
D. labour employment
49. The reward on machinery and equipment in
42. A change in the pump price of petrol in Nigeria the process of production is known as
has a direct effect on the A. profit
A. prices of consumer goods B. interest
B. prices of essential goods C. rent
C. cost of raw materials D. wage
D. cost of transportation
s 50.
43. Long-term funds for investment projects
are sourced from the
A. money market
B. commodity market
C. foreign exchange market
D. capital market

44. A policy aimed at enhancing globalization of

the Nigerian economy is
A. indigenization
B. dereglation
C. commercialization From this diagram, the minimum wage OW
D. privatization will lead to
A. full employment of resources
45. The Malthusian theory was concerned about B. unemployment
the relationship between C. inflation
A. population growth rates of the rich and D. full employment of factors of production
the poor nations
B. population density and national income

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 7. An increase in demand without a

is given to you? corresponding change in supply will lead
A. Type B to
B. Type I A. a decrease in equilibrium price and
C. Type B increase in equilibrium quantity
D. Type U B. an increase in equilibrium price
and quantity
2. An economy in which both the public and C. a decrease in equilibrium price
private sectors contribute to economic and quantity
growth is as D. an increase in equilibrium price and
A. feudal economy a decrease in equilibrium quantity
B. capitalist economy
C. socialist economy 8. An increase in the price of a commodity
D. mixed economy will result in
A. a decrease in the quantity demanded
3. If the standard deviation of a given B. an increase in demand
data is 53, what is the variance? C. an increase in quantity demanded
A. 2,082 D. a decrease in demand
B. 2,809
C. 2,808 9. If the price of a bicycle changes from
D. 2,209 N120 to N80 and quantity bought
changes from 300 to 500 units, the
4. Which of the following set of statistical elasticity of demand for bicycle is
tools is used for further economic A. 66.7
analysis? B. 0.5
A. the median and standard deviation C. 1.5
B. the mean and mode D. 2.0
C. the mean and standard deviation
D. the mode and median 10.

5. An advantage of the range as a measure

of dispersion is that it
A. can be used to calculate open-
ended distribution
B. make use of all values of
observations in a distribution
C. 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 From the graph above, the price
28 elasticity of demand is
A. 10 A. unitarily elastic
B. 38 B. perfectly elastic
C. 35 C. perfectly inelastic
D. 22 D. fairly inelastic

11. One of the assumptions of the

cardinalist approach is
A. diminishing marginal rate of
substitution

18
 B. the consistency and transitivity A. reduce the cost of production
of choice B. reduce the quantity supplied
C. that total utility depends on the quantity C. increase the quantity supplied
of the commodities consumed D. lead to no change in the quantity
D. unstable marginal utility of money supplied

12. Utility is the satisfaction derived from 17. The supply of beverages by firms in a
the monopolistic market is an example of
A. distribution of goods and services A. derived demand
B. use of goods and services B. competitive supply
C. demand of goods and services C. composite supply
D. production of goods and services D. joint demand

13. 18. If the price of a commodity is fixed

below equilibrium, this will lead to
A. excess demand
B. a decrease in price
C. an increase in price
D. excess supply

19. One of the criticisms of the price

mechanism is that
A. producers are sovereign
B. it provides low degree of freedom
C. it widens the inequitable gap
D. consumers are sovereign

20. In Nigeria, government can reduce the

From the indifference curve above,
cost of accommodation by fixing rent
consumer will prefer combination
A. at the prevailing rate
A. F
B. at the equilibrium price
B. S
C. above the equilibrium price
C. M
D. below the equilibrium price
D. K
21. If a refinery achieves a reduction in cost
14. One of the major factors that
by purchasing and transporting crude oil
brings about changes in supply is
in large quantities, it enjoys
A. market discrimination
A. economies of scale
B. availability of storage facilities
B. specialization
C. the cost of storage
C. division of labour
D. incentives granted to workers
D. diseconomies of scale
15. If P = 14 (Qs + 10). What is the quantity
22. An isoquant lying above to the right of
supplied at N14?
another represents
A. 14
A. a higher output level
B. 60
B. constant returns to scale
C. 46
C. over-capacity utilization
D. 32
D. a lower output level
16. If the supply of a product is elastic, a
23.
small reduction in price will

19
 26. A measure of national income used as
comparison of standard of living among
nations is
A. net national product
B. gross domestic product
C. gross national product
D. per capita income

27. The speculative demand for money is

inversely related to the
A. interest rate
B. level of income
From the graph above, R represents C. exchange rate
A. marginal cost D. inflation rate
B. total cost
C. variable cost 28. If Mr. K obtains a N50.000 loan from a
D. fixed cost bank for the purpose of providing
household needs, the demand for money
Use the graph below to answer is said to be
question 24 and 25 A. transactionary
B. speculative
C. precautionary and speculative
D. transactional and speculative

29. Which of the following is used by

the Central Bank of Nigeria to control
inflation?
A. Tariff on imports
B. Tax rate
C. Exchange rate
D. Discount rate

30. If CBN reduces money supply, the

interest rate will
24. The optimum level of output of the firm A. fluctuate
is B. rise
A. BC C. fall
B. OB D. remain unchanged
C. OS
D. BS 31. An example of an expansionary fiscal
policy action is
25. The total revenue of the firm is A. decrease in the corporate profit
represented by tax rates
A. GHEF B. decrease in welfare payments
B. GHJC C. purchase of government securities
C. EFJC D. decrease in the bank rate
D. GHOB
32. A tax on land will ultimately fall
A. partly on agents and users
B. entirely on users
C. entirely on owners

20
 D. partly on users and owners
39. Government participation in the oil
33. One of the goals of development plans
industry was necessitated by the
in Nigeria is to
A. annual increase in production
A. increase the profitability of
B. formation of OPEC
multinational businesses
C. high demand for crude oil
B. improve the country's GDP
D. huge investment outlay
C. achieve higher standard of living
for the citizens
40. The deregulation of the petroleum
D. deregulate the economy
sector in Nigeria will bring about
A. efficiency in pricing and distribution
34. Life insurance companies contribute to
of the products
economic development by holding a part
B. an end to the importation of fuel
of their assets in
C. an end to foreign firms' dominance
A. long-term financial instruments
D. fixing appropriate production quotas
B. money market instruments
C. cash and near money
41. A distinguishing characteristic of
D. short-term financial instruments
consumer co-operative society is that
the
35. In order to add value to Nigeria
A. the maximum number of shareholders
agricultural produce, there is need to
is 20
A. cultivate high breed crops
B. members are the owners
B. process them into finished goods
C. members are the workers
C. adopt modern storage methods
D. the minimum number of shareholders
D. advertise them in European markets
is 5
36. The main reason for low agricultural
42. A major disadvantage of partnership
produce in west Africa is need to
business is
A. the presence of large-scale agro-
A. difficulty in the transfer of shares
allied industries
B. distrust among members
B. high dependency ratio
C. limited liability
C. over dependence on agriculture
D. large capital outlay
for subsistence
D. the use of crude implements in
43. The quality of labour force in Nigeria can
farming process
be improved by
A. establishing more tertiary institutions
37. The most important determinant for the
B. creating sufficient job opportunities
location of a brick industry is the
C. encouraging the study of science and
availability of
technology
A. market
D. establishing more skills
B. power supply
acquisition centres
C. water
D. raw materials
44. The effect of emigration on a
country's population is
38. In Nigeria, efficiency in public
A. decrease in the population
corporations can be achieved through
B. decrease in job opportunities
A. public offer
C. increase in population
B. indigenization
D. increase in dependency ratio
C. privatization
D. nationalization
45. A measure for preventing the external
value of the naira from falling is for the
government to

21
 A. increase its spending with foreign
Reserve
B. sell its own currency
C. reduce interest rate
D. buy its currency with foreign reserve

46. A fiscal policy instrument that can

influence the demand pattern in an
economy is
A. government spending
B. interest rate
C. income tax
D. tariff

47. One of the main achievements of the

Economic Commission for Africa is
A. eliminating trade restrictions among
States
B. encouraging transport and
communication development
C. guaranteeing a steady flow of foreign
investment into Africa
D. providing the machinery for
collaboration on monetary issues

48. The rate of interest change on loans

depends largely on
A. the prevailing exchange rate
B. marginal efficiency of capital
C. the risk associated with the loan
D. the prevailing tax rate

49. A valid explanation for real wage growth

Is
A. an increase in the rate of productivity
B. the rising cost of capital accumulation
C. a contraction of employment in service
industries
D. an increase in the quantity of labour

50. 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
A. structurally unemployed
B. frictionally unemployed
C. seasonally unemployed
D. 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 D. 24%

is given to you?
A. Type F 6. If the national income is 360m, the
B. Type E contribution of the manufacturing sector
C. Type L is
D. Type S A. 312m
B. 39m
2. The choice of how to produce in a C. 318m
command economy is determined by D. 317m
A. government
B. consumer 7.
C. industrialists
D. labour unions

3. In capitalist economies, questions about

what to produce are ultimately answered
by
A. income level of households
B. available technical skills in
the economy
C. output decisions of firms
D. holding decision of households
A combination of factors responsible for
4. The best measure of dispersion to a shift from D0D0to D1D1 are
determine the tallest tree in a forest is A. consumers income and change in
A. range technology
B. variance B. price of the commodity and weather
C. standard deviation conditions consumers income and
D. mean deviation population size
C. consumers taste and change in price
5. What is the percentage contribution of
services to the national income? 8. Given that Qd = 40-2P and Qs = 6P+24.
A. 15% Calculate the equilibrium price.
B. 10% A. ₦34
C. 54% B. ₦32
C. ₦36
D. ₦16

9. A change in demand for a normal goods

implies that, there is a
A. change in the quantity demanded
as price changes
B. shift in the demand curve
C. movement along a given
demand curve
D. 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
 11. 15. When price is set below equilibrium, this
will lead to
A. an increase in the quantity supplied
B. a new equilibrium
C. a decrease in the quantity supplied
D. a fall in price

16. Price mechanism determines the prices

of commodities through
A. auctioning
B. market forces
From the graph above, the consumer will C. the sales of treasury bills
attain equilibrium at point D. government legislation
A. J
B. K 17.
C. L Unit Total Average Marginal
D. M of product product product
labour
12.A rightward shift of the budget line is 1 8 8 --
caused by a 2 20 10 12
A. fall in consumer income 3 E 9 7
B. change in consumer taste 4 28 7 F
C. fall in the commodity relative price 5 40 8 12
D. rise in the commodity relative price From the table above, find the values of E and
F respectively
13.Given the supply function P = A. 27 and 1
1/4(Qs+10) when P = N10, what is Qs? B. 68 and 12
A. 20 C. 28 and 5
B. 15 D. 12 and 19
C. 50
D. 30 18. If the production of a large firm is higher
than that of a small firm, it is
14. experiencing.
Price Quantity A. external economies of scale
(₦) supplied B. external diseconomies of scale
8 20 C. internal economies of scale
10 24 D. internal diseconomies of scale
From the table above, Calculate the
price elasticity of supply 19. Division of labour requires that, the
A. 0.50 tasks in a production line be performed
B. 0.80 A. by specialists
C. 2.00 B. in stages
D. 1.25 C. by all workers
D. by unskilled labourers

25
 D. C+I+G+(X-M)
20. Given that FC = ₦500, VC = ₦1,500,
and Q = 50 units. Find the average cost 26. If MPC = 2/3 and investment is ₦100
of the product. million, the level of national income is
A. ₦30 A. ₦100 million
B. ₦40 B. ₦10 million
C. ₦10 C. ₦303 million
D. ₦20 D. ₦300 million

21.Rent and administrative expenses are 27. The precautionary demand for money is
examples of determined by
A. average fixed costs A. the rate of interest
B. average variable costs B. the level of savings
C. fixed costs C. the level of income
D. variable costs D. general price level

22. A perfect competitor will continue to 28. An inflation that co-exists with high rate
expand output up to the point where of unemployment is
A. TC>TR A. hyperinflation
B. MR=AR B. stagflation
C. MC<MR C. demand-pull inflation
D. MC>MR D. cost-push inflation

23.One of the characteristics of a 29. One of the challenges facing the banking
monopolist is that, he can influence industry in Nigeria is
A. quantity produced by other producers A. ensuring technological security
B. prices charged by other producers B. providing employment
C. both price and quantity C. providing loans for investment
D. price or quantity D. creating more money

24.A monopolist can boost up his 30. Short-term loans for investment are
revenue by usually obtained through the
A. adjusting both price and A. stock market
output upward B. development banks
B. reducing total output to match price C. money market
C. increasing price D. capital market
D. reducing price
31. Given a base year and the price index of
25.Which of the following can be used to 175% the following year, which of the
measure the Gross National product in an following year will arise?
open economy? A. The cost of living decreases of that
A. C+I+G+(X+M) year
B. C+I+G+X B. The cost of living remains unchanged
C. C+I+G C. The value of money rises by 75%

26
 D. The value of money falls by 75% B. over-utilization of installed
industrial capacity
32.Wage freeze is a policy measure aimed C. the risk of seasonal unemployment
at D. under-utilization of installed
A. encouraging investors industrial capacity
B. curbing inflation
C. regulating standard of living 38. One major factor that determines the
D. curbing deflation location of an industry is
A. tax exemption grant
33.A major obstacle to the development of B. its proximity to the market
Nigeria economy is C. the capital base
A. low capital formation D. the social responsibility of the firm
B. rural-urban migration
C. over dependence on oil 39. The major contribution of OPEC to the
D. poor developmental policies Nigerian economy is the
A. provision of social infrastructures
34.A major feature of an underdeveloped B. granting of subsidies on petroleum
economy is products
A. excess capacity utilization C. stabilization of oil prices
B. low rate of population growth D. building of refineries
C. low level of standard of living
D. low level of unemployment 40. The loading of crude oil at the terminal is
an activity in the
35.An important role of agriculture in A. downstream sector of the oil industry
Nigeria's economic development is the B. upstream and downstream sector of
A. processing of raw materials the oil industry
for industries C. upstream sector of the oil industry
B. regulation of price system D. midstream and upstream sectors of
C. provision of infrastructure the oil industry
D. provision of employment 41. The short-run average variable cost of a
firm will rise owing to
36.An advantage of large-scale farming over A. the expansion of factory space
peasant farming is in the area of B. the building of new warehouse
A. providing research and C. an increase in the cost of labour
massive employment of labour D. an increase in the salaries of directors
B. redistributing national income to
various regions of the country 42. Firms embark on vertical integration in
C. encouraging the use of other to
traditional implements A. take over markets formally
D. encouraging urban-rural migration controlled by other firms
B. prevent other firms from entering
37.A major disadvantage of localization the market
of industry is C. reduce advertisement and
A. the risk of structural unemployment management cost

27
 D. enjoy economies of large- 47. If the importation of a commodity is
scale production limited to a definite quantity, the trade
control measure imposed is
43.The voting power in co-operative A. excise duties
societies is vested on B. import duties
A. management C. quotas
B. members without loan D. tariff
C. shareholders
D. members with the highest contribution 48. The main objective of WTO is to
A. ensure adequate protection of
44.An accurate census figure is an infant industries
important tool for planners in B. provide a mechanism for
A. providing employment tariff reduction
B. siting industries C. assist countries with chronic balance
C. providing social amenities of payments problem
D. allocating resources D. assist developing countries to
execute developmental projects
45.An accurate population census is
important in other to 49. The major determinant of the total
A. produce more food for the volume of output in an economy is the
growing population A. level of total expenditure
B. provide employment opportunities B. composition of consumer spending
for the people C. number of farmers
C. estimate a country's per capita income D. size of the labour force
D. fast track industrial development
50. The labour force of a country
46.A major determinant of floating exchange is determined by the
rate is A. age structure of the population
A. the highest denomination of B. geographical distribution of the
the currency population
B. an Act of the parliament C. sex distribution of the population
C. the system of government D. number of people available for work
D. the forest of demand and supply

28
 ANSWER KEYS:

1. C 9. D 17. C 25. C 33. C 41. C 49. A

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

29
 UTME 2015 ECONOMICS QUESTIONS

1. The major implication of high

dependency ratio on an economy is 8.
A. high capital formation Unit of TP AP MP
B. vicious cycle of poverty labour
C. low cost of living 1 6 6 --
D. high standard of living. 2 14 7 8
3 K 9 13
2. One of the major problems of 4 40 10 F
agricultural sector in Nigeria is From the table above, find the values
A. low literacy level of farmers of K and F respectively
B. small size of farms A. 13 and 27
C. pest attack on crops B. 27 and 13
D. inadequate modem farm implements. C. 10 and 27
D. 27 and 10.
3. Cooperative societies are
characterized with 9. In the theory of consumer behaviour,
A. divergent interest of members the sum of all marginal utilities is
B. limited liability A. average marginal utility
C. free entry and exit B. the initial marginal utility
D. unlimited size of membership. C. total utility
D. diminishing marginal utility.
4. The marginal propensity to save
measures the 10. In a pure capitalist economy, the means
A. ratio of change in saving and forces of production are owned and
B. change in supply as a result of controlled by the
a change in consumption A. public and private sectors
C. ratio of change in consumption to a B. feudal lords
change in the level of income C. public sector
D. average propensity to consume. D. private sector.

5. Structural unemployment is mainly 11. A factor earning which is paid out as

caused by unemployment benefit is referred to as
A. a change in the consumption pattern A. interest rate
B. a change in the business cycle B. direct rate
C. decrease in the output level C. eco
D. Seasonal variation.
12. From the graph above, FG indicates
6. One of the major problems of census in A. equilibrium quantity demanded
Nigeria is B. excess supply
A. inadequate skilled personnel C. equilibrium quantity supplied
B. high dependency ratio D. Excess demand.
C. distortion of census figures
D. High cost of conducting census. 13. The demand for money is referred to as
the
7. A decrease in government expenditure in A. amount of money in fixed deposit
an economy will cause general price B. desire to hold money intangible assets
level to C. need for money to invest
A. remain constant D. Desire to hold money in liquid
B. fluctuate form rather than investing it.
C. fall
D. Rise.

30
14. In the theory of production, a producer A. range
is at equilibrium at a point where B. variance
A. isocost is above the isoquant curve C. mean
B. isoquant is below the isocost curve D. mode.
C. isocost is tangent to the marginal
revenue 20. Localization of industry is mainly
D. isoquant is tangent to the determined by
isocost curve. A. diseconomies of scale
B. population growth
15. Balance of trade shows the relationship C. division of labour
between the D. access to raw materials.
A. internal and external trade
B. total value visible import and Export 21. Geographical distribution of a population
C. deficit and surplus balance is affected by
of payments A. low birth rate
D. total value of invisible import and B. the availability of skilled manpower
export. C. the availability of agricultural land
D. high birth ratenomic rent
16. If the cash reserve ratio is 30%, a new E. transfer payment.
deposit of ₦20 million will increase
supply by 22. A tax burden on a commodity will
A. ₦57.8m be shared equally if the demand is
B. ₦47.9m A. fairly elastic
C. ₦69.78m B. perfectly inelastic
D. ₦66.7m. C. fairly inelastic
D. unitary elastic.
17. A fall in the price c f ostentatious goods
will 23. Higher income taxes can be used
A. increase the quantity demanded to control
B. decrease the quantity demanded A. demand-pull inflation
C. decrease demand B. high interest rates
D. increase demand. C. cost- push inflation
D. hyperinflation.
18. Payment of interests on loans and the
repayment of capital sum at a future 24.
date is
A. balance debt
B. debt servicing
C. debt relief
D. debt retaking.

19. The most difficult measure of central

tendency to determine in a grouped data
is

31
 A. provision of short-run loans to medium
scale industries
B. provision of long-term loans
for infrastructure
C. development of agriculture in
member countries
D. maintenance of stable exchange rates

29. One of the major activities in the

upstream sector of the Nigeria
petroleum industry includes
From the graph above, a shift of the A. transportation of finished products
Supply curve from S0S0, to S1S1 will lead B. refining of crude oil
to C. marketing of refined petrol
A. a decrease in price and quantity D. exploration of crude oil.
B. no change in price and quantity
C. an increase in price and quantity 30. The law of supply states that the
D. a decrease in price and an increase A. higher the price the higher the
in quantity. quantity supplied
B. quantity supplied is always equal to
25. An indifference map is made up of a the quantity demanded
set of C. lower the price the higher the
A. consumers' total utility quantity supplied
B. consumer surplus D. higher the price the lower the
C. budget lines quantity supplied.
D. indifference curves.
31. One of the features of a
26. Recapitalization policy will enable perfect competitive firm is
commercial banks to A. restrictions to entry and exit
A. employ more qualified workers B. price discrimination
B. open more branches C. absence of transportation cost
C. reduce interest rate D. product differentiation.
D. have a very strong capital base
32. The basis for international trade is the
27. The number of persons required to form A. differences in natural resources
a private company ranges from endowment
A. ten to twenty B. differences in the population size
B. two to fifty C. prevailing interest rate on multilateral
C. two to seven loans
D. seven to ten. D. economic system in practice.

28. The major function of international 33. Training farmers on the improved
monetary funds is the farming techniques is the major
activity of

32
 A. intermediate workers 39. If a fall in the price of commodity
B. middlemen K brought about an increase in the
C. extension workers demand for commodity Y, the two
D. creditors. commodities are
A. composites
34. In a free market economy, prices are B. derived in nature
determined by C. substitutes
A. consumers D. c implements.
B. producers
C. the central government 40. In the theory of production, the price
D. the forces of demand and supply. of a factor input is determined by
A. the prevailing exchange rates
35. The basic economic problem of what to B. its elasticity of demand
produce in an economy is determined by C. the existence of large market
A. the availability of labour D. the prevailing interest rates.
B. the means of distribution
C. the availability of resources 41.
D. technological know-how.

36. In Nigeria, a fall in the supply of petrol

would generally affect the
A. import of goods and services
B. export of goods and services
C. general price level in the country
D. exchange rate of the Naira. From the graph above, find the
37. The short-run equilibrium point of a modal score
perfectly competitive firm is attained at a A. 40
point where B. 20
A. is equal to total cost C. 100
B. the demand curve is tangential to the D. 60.
marginal cost
C. the marginal cost curve is equal to the 42. When the selling price of a monopolist
marginal revenue curve is below his short-run marginal cost, he
D. the marginal cost is equal to the is said to be making
price of the firm. A. an economic profit
B. Losses
38. Government can protect consumers C. profit
from exploitative prices by introducing D. supernormal profit.
A. minimum price
B. price differentiation 43. The overall economic performance of
C. price floor a country can be assessed through
D. maximum price. A. overlooking of its agricultural sector
B. employment estimates
C. national income estimates

33
 D. balance of payment. A. lack of raw materials
B. inadequate market for industrial goods
44. The supply of agricultural products C. underdeveloped infrastructural
is mainly determined by facilities
A. consumers' taste D. inadequate capital.
B. consumers' income
C. technology 48. If Qd = 40-4P and P = N4, what is
D. consumers. the quantity demanded?
A. 30
45. Determine the median of 6 10, 5, 12, B. 32
20, 18, 20 and 4 C. 24
A. 11 D. 26.
B. 9.67
C. 12.56 49. The long-run total cost curve shows
D. 12. the cost of
A. all fixed factors of production
46. B. the average fixed cost
X 10- 21- 31- 41- 51- 61- C. all factor inputs that are employed
20 30 40 50 60 70 D. variable factors of production.
F 4 6 10 50 3 5
50. The supply of farm produce is
From the table above, find the range of mainly determined by
the distribution A. consumers’ income
A. 50 B. weather condition
B. 11 C. population
C. 70 D. consumers’ taste
D. 59.

47. The failure of the Nigeria industrial

sector is mainly associated with

34
ANSWER KEYS

35
 UTME 2016 ECONOMICS QUESTIONS

1. A country embarks on deficit financing in 8. Given: 2, 4, 6, 8, 4 and 6, the absolute

order to mean deviation is
A. reduce aggregate demand A. 6.00
B. increase revenue B. 1.67
C. stimulate investment C. 30.00
D. curb inflation D. 0.60

2. The money market provides business 9. The precautionary demand for money is
firms with the avenue to determined by
A. purchase goods and services A. the level of savings
B. purchase capital equipment’s B. the rate of interest
C. obtain short- term funds C. general price level
D. obtain long-term funds D. the level of income.

3. The optimum level of output for pure 10. If the output of a firm experiencing
monopolist occurs where economies of scale increases, the
A. P is highest average cost would
B. P=AC A. be at minimum
C. P=MC B. rise
D. MR=MC C. be at maximum
D. fall.
4. According to the demographic transition
theory, Africa can be said to be at stage 11. The demand curve for a normal good is
A. 2 and 3 negatively sloped because
B. 3 only A. price is an incentive to producers
C. 2 only B. price is an incentive to consumers
D. 1 and 3 C. demand always exceeds supply
D. price and quantity move in the same
5. The Economic Community of West direction.
African States (ECOWAS) is an
example of 12.
A. globalization
B. regional marketing board
C. economic integration
D. economic union.

6. Given: 32, 18, 24, 17, 16, 32, 28, 68, 71

and 15, the mode of the distribution is
A. 71
B. 56
C. 32
D. 15
The average total cost when 20 units are
7. The major determinant of income produced is
elasticity of demand is A. ₦45.30kg
A. government policy B. ₦50.00kg
B. the availability of substitutes C. ₦47.50kg
C. the price of the good D. ₦5.00kg
D. the level of consumer's income

36
13.The major role of multinational 18. A change in supply of a commodity
companies in the Nigerian petroleum is due to a change in the
industry is A. price of the commodity
A. oil marketing only B. cost of production
B. oil marketing and prospecting C. price of substitute
C. establishment of refineries D. population growth rate.
D. oil prospecting only.
19. In a limited liability company,
14.Life insurance companies contribute to the greatest risk is borne by the
economic development by holding a part A. preference shareholders
of their assets in B. debentures shareholders
A. long-term financial instruments C. ordinary shareholders
B. equipment D. board of directors.
C. cash and near money
D. money-market instruments. 20. A market characterized by absence of
close substitutes of goods and services is
15. The wage rate is mostly related to an example of
A. marginal productivity of labour B. A. a monopoly
average productivity of labour C. B. an oligopoly
marginal efficiency of investment D. C. a perfect competition
total productivity of Labour. D. a monopolistic competition.

16.The choice of how to produce in a 21. An inflation that co-exists with high rate
command economy is determined by of unemployment is
A. consumers A. hyperinflation
B. government B. cost-push inflation
C. industries C. stagflation
D. labour unions. D. demand-pull inflation.

17.The co-efficient of price elasticity of 22. The growth and development of small
supply is and medium scale enterprises in Nigeria
A. % change in supply is hampered by
% change in price A. poor regulatory framework
B. poor access to credit facilities
B. % change in quantity C. poor management
supplied % change in price D. the small size of the market.

D. % change in quantity 23. A major determinant of demand is

supplied %change in income A. incentives to workers
B. level of technology
D. % change in quantity demanded C. population
%change in income D. cost of production.

37
 24. Which of the following can be used to B. oversee the development of the
measure the Gross National Product oil sector
A. C+I+G-F(X+M) C. ensure regular supply of products
B. C+I+G+(X-M) D. fix the prices of petroleum products
C. C+I+G+X
D. C+I+G 29. A major feature of an underdeveloped
economy is
25. Find the median of the following set of A. low rate of population growth
data 35, 10, 14, 38, 15, 18, 22, 30 and B. excess capacity utilization
28. C. low level of unemployment
A. 10 D. low level of standard living.
B. 22
C. 38 30. A tax on land will ultimately fall
D. 35 A. partly on agents and users
B. partly on users and owners
26. C. entirely on owners
Unit of Total D. entirely on users.
Capital output(kg)
1 13 31. The deregulation on the petroleum
2 43 sector in Nigeria will bring about
3 123 A. efficiency in pricing and distribution
4 243 of the products
5 353 B. fixing appropriate production quotas
6 483 C. an end to the importation of fuel
7 563 D. an end to foreign firms' dominance.
8 663
32. One of the ways of correcting a
From the table above, determine the average deficit balance of payments is to
th A. devalue a country's currency
product of the 5 unit of capital
A. 310.5 B. predenominate a country's currency
B. 176.5 C. reduce imports
C. 70.6 D. reduce exports.
D. 62.0
33. A nation's net export is negative when
27. The problem of what to produce her
is determined by A. export is adjusted upwards
A. consumption pattern B. external reserves deplete
B. the distribution pattern C. depreciation exceeds investments
C. the state of technology D. imports exceeds exports.
D. the volume of production
34. Given: Qd = 30 — 3P and Qs = 9P —
28. The main function NNPC is to 15, determine the equilibrium price
A. develop the oil producing areas A. ₦12.00
B. ₦3.75

38
 C. ₦2.80 40.
D. ₦3.00 Unit of Total
capital output(kg)
35. The problem of economic development 1 13
in Nigeria is that of 2 43
A. poor weather conditions 3 123
B. overpopulation 4 243
C. surplus skilled manpower 5 353
D. inadequate infrastructure. 6 483
7 563
36. The combination of two commodities 8 663
that yield the same level of satisfaction
is illustrated by From the table above, the marginal
A. a budget line th
product of the 7 Unit of Capital is
B. an isocost curve A. 80kg
C. a production possibility curve B. 100kg
D. an indifference curve C. 310kg
D. 173kg
37. The demand for inferior goods is
inversely related to change in 41. Given: 32, 18, 24, 17, 16, 32, 28, 68,
A. income 71 and 15, what is the range?
B. price A. 26
C. supply B. 32
D. taste. C. 56
D. 68
38. The minimum number of shareholders
for partnership is 42.
A. 7
B. 4
C. 2
D. 3

39. When diminishing returns sets in, the

total variable cost begins to
A. rise at an increasing rate
B. fall at a decreasing rate
C. rise at a decreasing rate
D. fall at an increasing rate. From the diagram above, the consumer
is at equilibrium at point
A. G
B. F
C. K
D. M

39
43. If P = 1/4 (Qs + 30), what is the B. instability in demand for the products
quantity supplied at ₦18? C. dominance of multinationals
A. 64.5 D. declining oil reserves.
B. 42.0
C. 2.4 48. At full employment level, a
D. 30.0 contractionary monetary policy will Lead
to a
44. When a consumer is at equilibrium, The A. rise in aggregate supply
MRS x is equal to the B. rise in aggregate demand
A. product of the two prices C. rise in level of inflation rate
B. sum of the two prices D. fall in the level of inflation
C. ratio of the two prices
D. difference of the two prices. 49.A country where the available population
is unable to guarantee efficient
45. One of the major factors militating utilization of available resources is
against industrialization in Nigeria is experiencing
A. low level of foreign investment A. under population
B. frequent break-down of equipment B. over-population
C. inadequacy of infrastructural facilities C. high population density
D. government participation. D. optimum population.

46. One of the factors that is considered in 50. One of the causes of instability
the location of a cement industry is in farmers' income is
nearness to A. high level of illiteracy
A. market B. unfriendly land tenure
B. raw materials C. unfavourable weather condition
C. infrastructural facilitates D. poor management of
D. skilled manpower. extension services

47.A problem facing the development of the

Nigerian Petroleum industry in Nigeria is
A. persistent gas flaring

40
 ww
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41
ANSWER KEY

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 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? 8. The natural growth of population
A. 8 is calculated as
B. 9 A. birth rate + death rate
C. 10 B. labour force + dependant
D. 7 C. death rate - birth rate
2. The most important function of D. birth rate - death rate
agriculture to the Nigerian economy is
A. the guarantee of food security 9. The study of age structure of a
B. technical skill development

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population is important because it
C. technological development A. determine the exchange rate
D. industrial development B. provide the government with
statistics on the prevailing interest

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3. Given that Qd=15-2P and Qs=5+3P, rate
determine the equilibrium price. C. reveals the cost of living
A. N3.00 D. provides the government with
B. N5.00 statistics on present size of the labour
C. N2.00 force

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D. N6.00
10.If the demand for palm oil is for
4. Scale of preference is referred to as the the purpose of soap production and
A. choices consumers make cooking, the demand is said to be
ol
B. array of consumer's needs
C. consumer preference for
luxurious goods
A. competitive
B. complementary
C. composite
ho
D. consumer wants in order of priority D. derived

5. One of the basic assumptions of 11. The institution established to enhance

monopoly is the activities of Nigeria's exports is
ysc

A. perfect information of the A. Nigerian Export and Import Bank

market condition B. Import-substitution strategy
B. the ability to either control price or C. Nigeria Export Promotion Council
output D. Bank of Industry
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C. perfect mobility of factors of

production
D. large number of buyers and sellers

6. The major advantage of a public limited

liability company over a private limited
liability company's
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A. limited liability enjoyed by owner

B. separate legal entity
C. easy transferability of shares
D. perpetual existence
12.From the pie chart above, the
7. The main activity in the upstream oil percentage contribution of
sector in Nigeria is entrepreneur is
A. marketing of petroleum products A. 2.77%
B. distribution of petroleum products B. 33.33%
C. extraction of crude oil C. 27.70%
D. refining of crude oil D. 3.33%

42
 13. A sustained increase in per capita 19.Foreign exchange control in Nigeria is
income accompanied by an increase administered by the
in output is A. Money deposit banks
A. economies of scale B. Central Bank of Nigeria
B. economic efficiency C. Discount houses
C. economic development D. Security and Exchange Commission
D. economic growth

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14. The reward for capita as a factor of
production is
A. interest

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B. rent
C. profit
D. wage

15. The type of inflation that emanates

from excess demand over supply is

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A. galloping inflation
B. cost-push inflation 20. From the pie chart above, determine
C. demand-pull inflation the contribution of capital if the total
D. imported inflation contribution of all factors is
ol
16. Which of the following problems is
associated with national income
A. ₦12.50 million
B. ₦142.50 million
C. ₦50 million
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measurement? D. ₦7.50 million
A. High interest rate
B. Inflation and deflation 21.The volume of output in an economy
C. Overpopulation is determined by
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D. population growth A. the foreign exchange rate

B. the standard of living of citizens
17. Freedom of consumption and C. population density of a country
production are characteristics of D. efficiency in the use of factors of
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A. socialism production
B. feudalism
C. capitalism 22. Given Qd = 30 - 3P, Qs = 9P – 18.
D. communism Determine the equilibrium quantity
A. 18
18. Cost of raw materials in production B. 20
is an example of C. 25
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A. marginal cost D. 27
B. variable cost
C. total cost 23. In Nigeria, industrial development can
D. fixed cost be enhanced by

43
 A. ensuring stable prices
for manufactured goods
B. reducing government expenditure
on imported goods
C. providing efficient infrastructure
D. increasing the rate of interest

25. Capital gains tax is an example of

A. Value Added Tax

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B. purchase tax
C. sales tax
D. income tax 29. From the diagram above, the
arrow marked M indicates

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26. Which of the following is NOT a source A. payments made for foods and
of government revenue? services
A. Taxes, fees, licenses and fines B. payments made to factors of
B. Interest, dividends, profits production
and earnings C. the flow of capital goods

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C. Personal income, disposable D. the flow of economics rent
income and transfer earnings
D. Grants, aids and borrowing 30. A change in the quantity supplied of
a commodity is influenced by

money must possess is

A. heterogeneity
ol
27. One of the important qualities that A. the price of substitutes
B. the price of the commodity
C. consumer's tastes
ho
B. easy availability D. technological know-how
C. homogeneity
D. flexibility in value Price 31.
Price Quantity
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(₦) demanded
6 20
5 16
From the table above, calculate the
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elasticity of demand
A. 0.03
B. 0.30
C. 0.33
D. 0.04

32. One of the functions of money deposit

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28. The graph above represents banks in economic development is

A. a decrease in quality supplied A. that it is banker to the government
B. an increase in supply B. the provision of credits facilities
C. an increase in quantity supplied C. the formulation of monetary policies
D. a decrease in supply Wages
3

44
 D. issuing of currency notes From the table above, it can be inferred
that there is
33. One of the arguments against A. diminishing returns to scale
the practice of monopoly is B. excess of demand
A. merging of producers C. diminishing marginal utility
B. competition D. diminishing marginal productivity
C. exploitation
D. non-government ownership 37.A well conducted census is important
for
34. The main reason why countries A. economic planning
engaged in international trade is the B. providing economic opportunities in
A. opportunity to earn high profit the rural areas

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in trading C. distribution of educational
B. use of capital-intensive method of materials in the cities
productions D. revenue generation

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C. difference in their endowment of
economic resources 38. The cost-saving advantages which a
D. difference in the population structure large firm can achieve on its own is
called
35. A. internal economies of scale
Cup of Total Marginal B. diseconomies of large scale

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milk taken utility utility C. externa diseconomies of scale
1 18 18 D. external economies of scale
2 24 6
3 29 5 39.A country uses the foreign exchange
4
5
X
34
3
Z
ol control measure to eliminate balance of
payments deficit by
ho
6 35 1 A. limiting her imports to its currency
7 35 0 value of exports
From the table above, what is the value X? B. limiting her exports to its currency
A. 32 value of imports
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B. 35 C. overvaluing the country's currency

C. 34 D. reducing the nation's domestic price
D. 30 level

36. 40. The role of IBRD as an international

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Quantity Total Marginal institution is to

consumed utility utility A. improve trading among member
0 0 -- nations
1 10 10 B. finance private businesses in member
2 15 5 nations
3 17 2 C. facilitate the development of
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4 18 1 infrastructure in member nations

5 18 0
D. 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

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9. D
10. C
11. C
12. B

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13. C
14. A
15. C
16. B
17. C

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18. B
19. B
20. B
21. D
22. A
23. C
24.
ol
ho
25. D
26. C
27. C
28. C
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29. A
30. B
31. C
32. B
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33. C
34. C
35. A
36. C
37. A
38. A
39. A
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46
 UTME 2018 ECONOMICS QUESTIONS

1. Occupational distribution of population 8. The number of people who are

is mainly influenced by qualified to work and who offer
A. economic factors themselves for employment is called
B. religious factors A. migrant labour
C. geographical factors B. working population
D. social factors. C. labour turnover
D. mobility of labour.
2. The reward for capital is
A. interest 9. Which of the following is an

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B. rent advantage of localisation of industry?
C. risk A. Development of subsidiary firms
D. premium. B. creation of parallel markets
C. Development of slums

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3. The reduction in the value of a D. Attraction of foreign capital.
country's currency in relation to the
value of the currencies of other nations 10.The Economic Community of West
is known as African States (ECOWAS) has been
A. deflation slow in achieving its objectives because

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B. inflation of
C. devaluation A. the activities of multinationals
D. revaluation B. inadequate personnel at the
secretariat
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4. Mortgage banks give loans to investors
on a long- term basis to
A. finance agriculture
C. political instability
D. inadequate international support.
ho
B. establish banks 11. Joint ventures are partnership involving
C. acquire machinery A. the poor and the rich
D. build houses. B. employers and workers
C. government and private investors
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5. In a capitalist economy, factors of D. multinationals and individuals.

production are owned and controlled by
the 12. In which of the following business units
A. citizens are the owners mostly the customers?
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B. businessmen A. co-operatives
C. government B. limited liability companies
D. foreigners. C. partnership
D. public corporations.
6. The establishment of industries in rural 13. The formula index of export prices x 100, is
index of import prices
areas will help to reduce
used to measure the
A. urban-rural migration
ww

A. volume of trade between countries

B. rural-urban migration
B. direction of international trade
C. rural-rural migration
C. commodity terms of trade
D. urban-urban migration.
D. volume of imports.
7. International trade is an application
Use the table below to answer
of the principle of
question 14.
A. industrial production
Products Ghana Sierra
B. mass production
Leone
C. regional production
Coffee 8 tonnes 2 tonnes
D. comparative cost advantage.
Cocoa 7 tonnes 9 tonnes

47
 19. The study of Economics becomes
14. If specialisation should take place, necessary because of the
then A. large population size of the world
A. Ghana should produce coffee B. scarcity of resources
and cocoa C. opportunity cost of goods and
B. Ghana would benefit by producing services
cocoa only D. need to satisfy every desire of man.
C. Sierra Leone should not produce any
of the products 20. The type of demand that exists

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D. Sierra Leone should produce coca and between torchlight and battery is
Ghana coffee. A. competitive demand
B. complementary demand
15. Which of the following is an C. composite demand

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invisible item? D. independent demand.
A. Petroleum services
B. Processed rice 21. The population density of a town
C. Processed milk made up of 50 square kilometre land
D. Banking services area and 100 million people is

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A. 50,000 people per square kilometre
16. The full meaning of OPEC is B. 0.2 million people per square
A. Oil and Petroleum kilometre
Exporting Countries C. 0.5 million people per square
B. Original Petroleum
Exporting Countries
ol
C. Organisation of Petrol
kilometre
D. 20 million people per square
kilometre
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Exporting Countries
D. Organisation of Petroleum Use the table below to answer
Exporting Countries. question 22 and 23.
X 2 3 4 5
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17. The main concern of economists is to F 2 5 2 1

A. control the growth of population
B. redistribute income between the rich 22. From the table, the mean of the
and the poor distribution is
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C. satisfy all human wants A. 2.2

D. allocate scarce resources to B. 2.5
satisfy human wants. C. 3.2
D. 4.5 23.
18. Productive resources can also be called
A. principles of production 23. What is the median of the distribution?
B. factors of production
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A. 5
C. items of production B. 4
D. labour and materials resources. C. 3
D. 2

48
 24. Human wants are insatiable because A. Raw material
wants are B. Money
A. limited while means are scarce C. Fuel
B. unlimited and means are D. Machinery
also unlimited
C. limited and means are also limited 28. The principle of comparative cost
D. unlimited while means are scarce. advantage was propounded by
A. David Ricardo
A country's budget allocation to B. Alfred Marshal

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various sectors of the economy is C. J.S. Mill
shown in the pia chart below. Use it D. Adam Smith
to answer question 25 and 26
29.The rate at which a country's exports

t.co
is exchanged for her imports is
A. trade balance
B. balance of payments
C. terms of trade
D. balance of currency account.

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30. Efficiency of labour in a country is
determined by the following except the
A. social attitude to work
ol B. education and training
C. total population
D. working conditions of workers.
ho
31. The diagram below represents
25. If the budget of the country was a production function.
$7,200.00, how much is allocated to
ysc

education
A. $2,400.00
B. $2,000.00
C. $ 200.00
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D. $ 1,000.00

26. What is the ratio of expenditure on

health to Agriculture?
A. 2:3
B. 3:4
At which of the points does
C. 4:3
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diminishing returns set in?

D. 5:4
A. R
B. S
27. Which of the following items is not an
C. T
example of circulating capital?
D. V
3

49
 32. Taxes and government expenditures 36. If the pass mark was 40, how many
are instruments of students passed the examination?
A. monetary policy A. 100
B. tax policy B. 120
C. economic policy C. 160
D. fiscal policy. D. 200

33.A situation in which a commodity is 37. How many students took the

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sold abroad below its cost of production examination?
in the home country is known as A. 280
A. dumping B. 240

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B. counter trade C. 200
C. bilateral trade D. 80
D. trade liberalisation.
38. Utility is the satisfaction derived from
34. The Family Support Programme in A. production
Nigeria essentially focuses on B. distribution

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A. the generation of employment C. consumption
B. the alleviation of poverty D. demand.
C. agricultural and industrial
development 39. When a union is composed of workers
ol
D. economic emancipation of women.

35. The Economic Commission for Africa

with the same skill it is called
A. an industrial union
B. a workers' union
ho
was set up by the C. a craft union
A. UNO D. a technical union.
B. ECOWAS
C. OAU
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40. The major objective, of a revenue

D. IMF allocation formula in a country is to
A. share revenue between the public
Use the histogram below to answer and private sectors
question 36 and 37. B. ensure the financial viability of the
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country
C. share revenue between the different
tiers of government
D. divert revenue from areas of surplus
to areas of needs.
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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

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13. C
14. D
15. D

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16. D
17. D
18. B
19. B
20. B

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21. D
22. B
23. B
24. D
25. A
26. B
27. D
ol
ho
28. A
29. D
30. C
31. C
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32. B
33. A
34. D
35. A
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36. A
37. A
38. C
39. A
40. C
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51