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): A major obstacle to the development of Nigerian economy is _______ A. low capital formation B. rural-urban migration C. over dependence on oil D. poor developmental policies.ABCD Liquidity preference refers to the ______ (A) need to borrow money for short periods to meet some temporary crises(B) wish to hold more funds for precautionary purposes(C) need to increase the money supply in order to lower the interest rate(D) demand to hold money as assets rather than as stocks.ABCDThe best measure of dispersion to determine the tallest tree in a forest is _______ A. range B. variance C. standard deviation D. mean deviation.ABCD The term ‘Near money’ is best described as _______ A. a financial instrument that is readily convertible to cashB. government financial instrument that is-convertible to cashC. time deposits with low interest ratesD. a financial asset that is convertible to cashABCD IBRD as an international monetary institution is concerned with the ______ A. improvement of trade among member nationsB. development of infrastructure in member nationsC. balance of payments problems of member nationsD. financing of private businesses in member nations.ABCD Trade takes place because of ______ A. marginal utility B. inefficiency in production C. opportunity cost D. comparative advantageABCD Which of the following yields more revenue to Nigeria? (A) value added tax (B) royalties (C) direct tax (D) indirect tax.ABCD A country embarks on deficit financing in order to ______ A. increase revenue B. reduce aggregate demand C. curb inflation D. stimulate investment.ABCD If there is an increase in demand without a corresponding increase in supply, there will be a _____ A. rise in price B. shift in demand curve to the left C. fall in price D. shift in supply curve to the rightABCD A major determinant of a floating exchange rate is ______ A. the highest denomination of the currencyB. an ACT of parliamentC. the system of governmentD. the forces of demand and supply.ABCD A perfect competitor will continue to expand output up to the point where ______ A. TC > TR B. MR = AR C. MC < MR D. MC > MRABCD From the table above, calculate the price elasticity of supply. A. 0.50 B. 0.80 C. 2.00 D. 1.25ABCD One of the major criticisms of the 1962-1968 National Development Plan was that _____ A. it failed to incorporate lessons gained from earlier plans to enhance its efficiencyB. it came too quickly after the country’s independenceC. planned expenditure was based too heavily on expected earnings from crude oilD. its execution was based largely on foreign sourced financial resources.ABCD A rightward shift of the budget line is caused by a _______ A. fall in consumer incomeB. change in consumer tasteC. fall in the commodity relative priceD. rise in the commodity relative price.ABCD If goods p and Q are purchased by a consumer, a fall in the price of P with the price of Q unchanged will cause the budget line to _____ (A) shift parallel inwards(B) rotate outwards away from the origin(C) rotate inwards towards the origin(D) shift parallel outwards.ABCD The benefits that accrue to a firm as a result of an improvement in the industry it belongs to are called _____ (A) internal economies of scale(B) economies of scale(C) market economies(D) external economies of scale.ABCD In capitalist economies, questions about what to produce are ultimately answered by ______ A. income level of householdsR. available technical skills in the economyC. output decisions of firmsD. spending decisions of households.ABCD In national income accounts, an item counted as part of government spending is ______ A. salaries and wages B. pension C. scholarship D. social welfare.ABCD An inflation that co-exists with high rate of unemployment is _______ A. hyperinflation B. stagflation C. demand pull inflation D. cost-push inflation.ABCD 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 The import-substitution strategy of industrialization is to encourage _____ A. domestic production B. large-scale production C. importation D. exportation.ABCD One of the challenges facing the banking industry in Nigeria is _______ A. ensuring technological securityB. providing employmentC. providing loans for investmentD. creating more money.ABCD Wage freeze is a policy measure aimed at _______ A. encouraging investors B. curbing inflation C. regulating standard of living D. curbing deflationABCD If real income increases while nominal income remains the same, it can be inferred that _____ A. unemployment rate has decreasedB. general prices have fallenC. employment rate has risenD. general prices have risenABCD 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.ABCD The short-run average variable cost of a firm will rise owing to ______ A. the expansion of factory spaceB. the building of new warehousesC. an increase in the cost of labourD. an increase in the salaries of directors.ABCD 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 An advantage of the sole proprietorship over the partnership form of business is that _____ A. its existence is limited by an individual’s life spanB. it relies on the decision of friends to succeedC. the possibility of conflict in management is virtually non-existentD. it enjoys limited liability for debt in the event of failureABCD The demand for labour is an example of _____ A. composite demand B. joint demand C. derived demand D. competitive demandABCD The record of a country's transaction in international trade is her _______ A. capital account B. balance of payments C. current account D. balance of trade.ABCD 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 Agricultural production in Nigeria is constrained by _____ A. ineffective use of stabilization measuresB. inadequate demandC. poor implementation of policiesD. balance of payments deficits.ABCD A country is said to be overpopulated when _____ A. the resources are more than enough to cater for the populationB. the size of the population is greater than the annual budgetC. the resources are inadequate to cater for the populationD. there are too many able-bodied men and women in the country.ABCD The distinction between capital and recurrent expenditure lies in the organization ______ A. nature of the goods and services to be providedB. time frame of the expenditureC. source of the revenue generatedD. amount of expenditure involved.ABCD One way of correcting the balance of payments problem of a country is to ______ (A) introduce import-promotion measures(B) buy investments abroad(C) devalue the currency(D) de-emphasize import-substitution industries.ABCD The profit of a monopolist can be eliminated where price equals ______ A. AFC B. MC C. AC D. AVC.ABCD Which of the following can be used to measure the Gross National Product in an open economy? A. C + l + G + (X + M) B. C + I + G + X C. C + I + G D. C + I + G + (X - M)ABCD If the country is currently producing at point Y, it can increase production of producer goods by _____ A. W B. X C. Z D. VABCD 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%.ABCD From the table above, the price elasticity of supply is _____ A. 4 B. 25 C. 1 D. 2.ABCD1 out of GREAT! You finished before the expiration of the 30 minutes allotted to you. You may want to preview before submission, else, Click the submit button below to see your score To submit your quiz and see your score/performance report; Make sure you supply your Full Name in the form above. Unable to submit your quiz? 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