UTME 2017 Economics | Objective

Are you preparing for UTME exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
The most popular sizes of dresses and shoes are determined by the
A. Range
B. Mean
Correct C. Mode
D. Median

Correct Answer: C

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Question 2
The necessity of choice is due to the fact that
Correct A. human wants are insatiable
B. consumers like to maximize satisfaction
C. resources are abundant
D. consumers are selective

Correct Answer: A

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Question 3
The labour force in Nigeria falls between the ages of
A. 4, 18 and 45
B. 18 and 55
Correct C. 18 and 60
D. 18 and 30

Correct Answer: C

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Question 4
Ike's scale of preference reveals that he prefers bananas to pawpaw, pawpaw to oranges and oranges to bananas. Ike's preference are therefore
Correct A. Inconsistent
B. Consistent
C. Transitive
D. Rational

Correct Answer: A

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Question 5
Personal income tax as a source of government revenue is increased when
A. Tax base is contracted
Correct B. Tax rate is raised
C. Tax system is proportional
D. Retirement age is reduced

Correct Answer: B

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Question 6
The law of diminishing returns begins to operate when
Correct A. marginal product begins to fall
B. total product begins to rise
C. marginal product begins to rise
D. total product begins to fall

Correct Answer: A

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Question 7
The speculative demand for money is inversely related to the
A. inflation rate
Correct B. interest rate
C. level of income
D. exchange rate

Correct Answer: B

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Question 8
One of the characteristics of an imperfect market is the
Correct A. availability of substitutes
B. large number of buyers and sellers in the market
C. free entry of producers
D. awareness of market conditions by buyers

Correct Answer: A

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Question 9
For a good, the income elasticity of demand is negative, the good is
A. Normal
B. Negative
Correct C. Inferior
D. Zero

Correct Answer: C

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Question 10
An economic system in which the producer and the consumer are the same is referred to as
Correct A. Subsistence economy
B. Socialist economy
C. Mixed economy
D. Capitalist economy

Correct Answer: A

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Question 11
Given that the total cost is ₦1,000, total variable cost is ₦250 and output is 100 units. Find the average total cost of producing one unit
A. ₦45
Correct B. ₦35
C. ₦30
D. ₦60

Correct Answer: B

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Question 12
Cost-push inflation is caused by
A. growth of government expenditures
B. increase in money supply
C. hoarding
Correct D. increase in factor price

Correct Answer: D

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Question 13
When workers have a share in the supply of labour it is to be
A. Oligopolistic
B. Competitive
C. Monopolistic
Correct D. Monopsonistic

Correct Answer: D

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Question 14
A circumstance in which a person of the rank of a principal. This is an example of
A. lateral mobility
Correct B. vertical mobility
C. horizontal mobility
D. social mobility

Correct Answer: B

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Question 15
The type of cost which has to be covered to earn from continued production in the short-run is the
A. fixed cost
B. social cost
Correct C. average variable cost
D. marginal cost

Correct Answer: C

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Question 16
The price index is calculated as
A. \( \frac{\text{current price}}{\text{weighted price}} \times \frac{100}{1} \)
B. \( \frac{\text{base year price}}{\text{current price}} \times \frac{100}{1} \)
Correct C. \( \frac{\text{current price}}{\text{base year price} } \times \frac{100}{1} \)
D. \( \frac{\text{weighted price}}{\text{current price} } \times \frac{100}{1} \)

Correct Answer: C

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Question 17
A deficit budget can be used to
Correct A. stimulate recovery from a trade depression
B. provide measures to remedy the balance of payments
C. protect the economy from inflation
D. starve the economy of funds for economic development

Correct Answer: A

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Question 18
A profit-maximizing monopolist should produce within the range where, his demand is
Correct A. elastic
B. unitarily elastic
C. inelastic
D. infinitely elastic

Correct Answer: A

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Question 19
Economics is often described as a science because
A. it makes use of field work
Correct B. it uses scientific methods to explain observed phenomena and predict future events
C. laboratory experiments are performed
D. it makes use of controlled experiments

Correct Answer: B

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Question 20
An effective way of controlling inflation in a mixed economy is to
A. reduce income tax
B. ration available output
C. increase import duties
Correct D. increase productivity

Correct Answer: D

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Question 21
In a free market economy, the price system allocates resources
A. under government direction
B. to increase consumer welfare
C. to reduce poverty
Correct D. by their best alternative uses

Correct Answer: D

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Question 22
Comparison of interpersonal utility is impossible because
Correct A. utility is subjective
B. utility is measured in utils
C. individual incomes differ
D. marginal utility is not observable

Correct Answer: A

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Question 23
Which of these is the real cost of satisfying any want in the sense of the alternative that has to be foregone?
Correct A. Opportunity cost
B. Total cost
C. Variable cost
D. Unit cost

Correct Answer: A

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Question 24
The main source of government revenue in Nigeria is
A. import duties
B. company income tax
C. capital gains tax
Correct D. rent and royalties

Correct Answer: D

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Question 25
A good is said to be inferior if demand
A. is perfectly inelastic
B. rises as its price falls
C. falls as income rises
Correct D. rises as income falls

Correct Answer: D

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