UTME 2020 Economics | Objective

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Question 1 View Details
The term "ceteris paribus" in economics means
Correct A. human beings are unpredictable
B. all factors are fully utilized
C. resources are scarce
D. human problem can be solved

Correct Answer: A

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Question 2 View Details
The voting power in cooperative societies are vested on
Correct A. members without loan
B. members with the highest contributions
C. the shareholders
D. the management

Correct Answer: A

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Question 3 View Details
Economics is the study of human behaviour as it relates to the
Correct A. efficient allocation of scarce resources
B. operation of companies
C. production of goods
D. generation of income

Correct Answer: A

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Question 4 View Details
In the production process, total output is at maximum when
Correct A. AP=0
B. MP=0
C. MP=0
D. AP=0

Correct Answer: A

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Question 5 View Details
DIAGRAM - diagram_1
Output per head vs Population diagram
From the shaded area of the diagram above, an appropriate population policy will be to: [See diagram]
Correct A. discourage immigration
B. encourage the use of contraceptives
C. discourage polygamy
D. encourage early marriage

Correct Answer: A

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Question 6 View Details
In a capitalist economic system, the problem of what to produce is decided mainly by
Correct A. relative prices
B. central planner
C. shadow prices
D. profit level

Correct Answer: A

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Question 7 View Details
By definition, variable cost (VC) is related to total cost (TC) and fixed cost (FC) by the equation
Correct A. VC=TC+FC
B. VC=TC-FC
C. VC=TC-FC
D. VC=(TC) (FC)

Correct Answer: A

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Question 8 View Details
Scarcity in economies implies that
Correct A. the economy has very few resources
B. human wants are limitless
C. the economy can scarcely produce anything
D. resources are limited in relation to wants

Correct Answer: A

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Question 9 View Details
Choice in economic life is necessitated by
Correct A. the need to construct a scale of preference
B. the opportunity cost of consumption
C. unlimited wants
D. scarcity of resources

Correct Answer: A

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Question 10 View Details
The fundamental problem of economics is
Correct A. money
B. poverty
C. the scarcity of resources relative to wants
D. inflation

Correct Answer: A

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Question 11 View Details
One of the following is an advantage of sole proprietorship
Correct A. control and supervision is under one man
B. inter-generational equity is assured
C. continuity is no problem
D. funds are easy to obtain

Correct Answer: A

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Question 12 View Details
The advantages which firms obtain from expanding their operations are referred to as
Correct A. external economies of scale
B. economies of localization
C. internal economies of scale
D. economies of resources allocation

Correct Answer: A

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Question 13 View Details
A country is said to have absolute advantage when she
Correct A. has a higher opportunity-cost in the production of goods
B. can sell to other countries without buying from them
C. has a low opportunity cost in the production of goods
D. can produce more of any good with fewer resources

Correct Answer: A

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Question 14 View Details
An economy in which both the public and private sectors contribute to economic growth is
Correct A. a socialist economy
B. mixed economy
C. feudal economy
D. capitalist economy

Correct Answer: A

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Question 15 View Details
If the marginal utility of good X exceeds that of good Y, this implies that
Correct A. consuming more of X will increase total utility
B. Y is an inferior good
C. X will be cheaper than Y
D. a rational consumer will buy less of X

Correct Answer: A

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Question 16 View Details
Population growth can be calculated as
Correct A. birth rate + death rate + migration + immigration rate
B. birth rate - death rate + migration rate - immigration rate
C. birth rate + death rate - emigration + immigration rate
D. birth rate + death rate = migration + immigration rate

Correct Answer: A

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Question 17 View Details
An imperfect market in which there is only one buyer of a commodity is
Correct A. duopoly
B. monopoly
C. oligopoly
D. monopsony

Correct Answer: A

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Question 18 View Details
DIAGRAM - diagram_2
Pie chart showing percentage distribution
In the pie chart above, the percentage for children is equivalent to: [See diagram]
Correct A. 144°
B. 90°
C. 288°
D. 72°

Correct Answer: A

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Question 19 View Details
Life insurance companies contribute to economic development by holding a part of their assets in
Correct A. cash and near money
B. short-term financial instrument
C. long-term financial instrument
D. money market instrument

Correct Answer: A

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Question 20 View Details
When demand is elastic, it means that consumers
Correct A. react equally to price change
B. are not sensitive to price change
C. will stop buying when price increases
D. react less proportionately to the price change

Correct Answer: A

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Question 21 View Details
Which of these alternatives is wrong? Central banks are:
Correct A. issuers of bank rates
B. bankers to commercial banks
C. merchant banks
D. bankers to the government

Correct Answer: A

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Question 22 View Details
Optimum population is desirable because it enables an economy to attain maximum
Correct A. per capital income
B. per capital output
C. per capital real income
D. per capital revenue

Correct Answer: A

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Question 23 View Details
DIAGRAM - diagram_3
Price control diagram
In the diagram above, the price P1 in price control situation is referred to as: [See diagram]
Correct A. minimum price
B. maximum price
C. mark-up price
D. mark-down price

Correct Answer: A

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Question 24 View Details
In Nigeria, revenue sharing from the federation account is between the
Correct A. legislature, executive and judiciary
B. federal, state government and parastatals
C. federal, state and local governments
D. federal, state governments and the senate

Correct Answer: A

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Question 25 View Details
An advantage of electronic banking is that it
Correct A. enables many customers to operate joint accounts
B. reduces the risk of bank fraud
C. enables customers to operate many accounts
D. enables a customer to operate his account from different locations

Correct Answer: A

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