Hello and Welcome to UTME CBT FREE Practice Test - Economics You are to attempt 40 Random Objectives Questions ONLY for 30 minutes. Supply Your Full Name in the text box below and begin immediately. Your time starts NOW! Full Name (Surname First): Location (City/State): An increase in the circulation of money without a corresponding increase in output will lead to _____ A. a rise in income levels B. stagflation C. deflation D. inflation.ABCD The lowering of the exchange rate between a country’s currency and other currencies is known as _____ A. the foreign exchange rateB. deflationC. exchange controlD. none of the above.ABCD As a country gets more developed, the percentage of labour engaged in agriculture tends to ____ (A) remain constant (B) decrease steadily (C) switch over to trading (D) increase steadily.ABCD An advantage of large-scale farming over peasant farming is in the area of ______ A. providing research and massive employment of labourB. redistributing national income to various regions of the countryC. encouraging the use of traditional implementsD. encouraging urban-rural migration.ABCD One of the reasons why the conditions of supply of a commodity may change is _______ A. a change in real incomeB. changes in the technique of productionC. a change of fashion or tasteD. changes in the price of the commodity itselfABCD From the graph above, the consumer will attain equilibrium at point _____ A. J B. K C. L D. MABCD The commercial banks differ from non-bank financial institutions because they ______ A. contribute to economic developmentB. accept deposits withdrawable by chequeC. mobilize savingsD. invest surplus fundsABCD As a firm increases its output, the average fixed cost _______ (A) tends to rise continuously(B) remains constant(C) rises and then falls(D) tends to decrease continuously.ABCDSuppose that the equilibrium price of an article is N 5.00 but the government fixes the price by law at N 4.00, the supply will be _____ A. the same as the equilibrium supply B. greater than the equilibrium supply C. less than the equilibrium supply D. determined later by governmentABCD Upstream oil activities involve the ______ A. management of pollutionB. marketing of refined productsC. exploration of crude oilD. refining of crude oil.ABCD A typical corporate form of business organization is owned by _________ A. presidents of the countryB. shareholdersC. the general manager and the executives of the business concernD. a local governmentABCDAn increase in liquid reserve requirements by the Central Rank of Nigeria will result in _______ A. a reduction in commercial banks’ excess reserves B. more commercial bank loans to members of the public C. an increase in commercial banks’ excess reserves D. no change in commercial banks’ excess reserves E. a reduction in Central Bank's gold reserves.ABCD One of the characteristics of a monopolist is that, he can influence ______ A. quantity produced by other producersB. prices charged by other producersC. both price and quantityD. price or quantityABCDWhich of the following items In the Balance of Payments Account is an invisible transaction? A. Import of cars B. Export of cocoa C. Export of crude petroleum D. TourismABCD In economic analysis, a statement is said to be normative if it _______ A. relates to value judgment B. is incorrect C. can be tested scientifically D. is contradictoryABCD Trade takes place because of ______ A. marginal utility B. inefficiency in production C. opportunity cost D. comparative advantageABCD The labour force of a country is determined by the ______ A. age structure of the populationB. geographical distribution of the populationC. sex distribution of the populationD. number of people available for work.ABCD Ranking is the method used in measuring _____ A. marginal utility B. ordinal utility C. cardinal utility D. total utility.ABCD The major purpose of African Development Bank is to ______ A. provide loans for trade developmentB. provide loans for infrastructural developmentC. provide loans for development banks in distressD. educate peasant farmers in new techniques.ABCD Import substitution aims at ______ (A) substituting agricultural products with industrial ones(B) substituting imports with agricultural exports(C) the diversification of industries(D) improving the balance of payments.ABCD The deflationary gap is defined by _____ A. X B. K C. X + K D. X - KABCD Which is the most liquid of the following financial assets held by an individual? A Outstanding balance on the current account of a commercial bankB. A credit balance on a savings accountC. A crossed postal orderD. An insurance policyABCD One major factor that determines the location of an industry is _______ A. tax exemption grant B. its proximity to the market C. the capital base D. the social responsibility of the firm.ABCD Given a base year and the price index of 175% the following year, which of the following will arise? A. The cost of living decreases in that yearB. The cost of living remains unchangedC. The value of money rises by 75%D. The value of money falls by 75%.ABCDThe expression ‘Terms of Trade' is used to describe ______ A. the quality of exports B. the direction of foreign trade C. terms of purchase on deferred payment basis D. the rate at which exports exchange for importsABCD A combination of factors responsible for a shift from D0D0 to D1D1 are ______ A. consumers income and change in technologyB. price of the commodity and weather conditionsC. consumers income and population sizeD. consumers taste and change in price.ABCDWhich of the following sectors of the economy is estimated to be the largest employer of labour in the country? A. Construction B. Agriculture C. Distribution D. Mining and petroleumABCD The equilibrium wage in an economy is determined by the ______ (A) public service (B) workers’ union (C) rate of inflation (D) supply and demand for labour.ABCDThe advantage of the sole proprietorship is as follows: A. it is always successful B. continuity is no problem C. control and supervision is under one man D. funds are easy to obtainABCD An accurate population census is important in order to ________ A. produce more food for the growing populationB. provide employment opportunities for the peopleC. estimate a country's per capita incomeD. fast track industrial development.ABCD The major determinant of the total volume of output in an economy is the ______ A. level of total expenditureB. composition of consumer spendingC. number of farmersD. size of the labour force.ABCD Two basic features common to an industry are A. production processes and source of capitalB. source of capital and labour supplyC. similarity of products and source of raw materialsD. similarity of products and production processes.ABCD When marginal cost equals marginal revenue product _______ A. the firm is producing at a lossB. the firm is at a break-even pointC. the firm is making the least profitD. the firm has maximum profit.ABCD One of the problems arising from the localization of industries is _______ A. high prices of outputB. the exportation of outputC. the scarcity of foreign exchangeD. structural unemployment.ABCDThe numerical measure of elasticity is ______ A. B. C. D. ABCD What is the percentage contribution of services to the national income? A. 15% B. 10% C. 54% D. 24%ABCD Rent and administrative expenses are examples of ______ A. average fixed costs B. average variable costs C. fixed costs D. variable costs.ABCD When two variables are positively related, the graph of the relationship A. is a downward-sloping curveB. has a negative interceptC. is a straight lineD. is an upward-sloping curveABCD The long-run average cost curve is called a planning curve because it shows what happens to cost when _____ A. a bigger size of plant is builtB. different sizes of plant builtC. variable inputs are increasedD. fixed factors are increasedABCD In the short run, a firm’s marginal cost curve above the point of shut-down is its _______ (A) demand curve (B) revenue curve (C) cost curve (D) supply curve.ABCD1 out of GREAT! You finished before the expiration of the 30 minutes allotted to you. 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