UTME 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A change in demand for a normal good implies that there is
A. a change in the quantity demanded as price changes
B. a shift in the demand curve
C. change in the price elasticity of demand
D. movement along a given demand curve
Question 2
The law of diminishing returns begins to operate when
A. marginal product begins to fall
B. total product begins to rise
C. marginal product begins to rise
D. total product begins to fall
Question 3
When workers have a share in the supply of labour it is to be
A. Oligopolistic
B. Competitive
C. Monopolistic
D. Monopsonistic
Question 4
The expression 'Terms of trade' is used to describe
A. import licensing
B. the quality of exports
C. the direction of foreign trade
D. Terms of purchases on deferred payment basis
Question 5
For a good, the income elasticity of demand is negative, the good is
A. Normal
B. Negative
C. Inferior
D. Zero
Question 6
The speculative demand for money is inversely related to the
A. inflation rate
B. interest rate
C. level of income
D. exchange rate
Question 7
Idle cash balances are held for all unplanned purchases
A. the purchase of shares
B. the purchase of bonds
C. the purchase of goods
D. planned expenditure
Question 8
The necessity of choice is due to the fact that
A. human wants are insatiable
B. consumers like to maximize satisfaction
C. resources are abundant
D. consumers are selective
Question 9
If the active population is 150 million and unemployed is 5 million, what is the unemployment rate?
A. 90%
B. 5%
C. 45%
D. 55%
Question 10
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
C. average variable cost
D. marginal cost
Question 11
The best method of production in an under populated country is
A. labour intensive
B. capital intensive
C. labour extensive
D. capital extensive
Question 12
Personal income tax as a source of government revenue is increased when
A. Tax base is contracted
B. Tax rate is raised
C. Tax system is proportional
D. Retirement age is reduced
Question 13
An effective way of controlling inflation in a mixed economy is to
A. reduce income tax
B. ration available output
C. increase import duties
D. increase productivity
Question 14
Comparison of interpersonal utility is impossible because
A. utility is subjective
B. utility is measured in utils
C. individual incomes differ
D. marginal utility is not observable
Question 15
Division of labour is limited by
A. cost of production
B. government policy
C. capital
D. productivity

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