Exam Body

Year

Subject

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UTME 2018 Economics | Objective

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Question 1

The privatisation of public enterprises will lead to efficient management of resources in the economy. This statement can best be described as

A. deductive reasoning

B. positive reasoning

Correct C. normative reasoning

D. inductive reasoning

Correct Answer: C

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Question 2

The type of business finance that entitles the holder to a fixed rate of dividend is

A. bank loan

B. debenture

Correct C. preferred stock

D. common stock

Correct Answer: C

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Question 3

In the long-run, all production factors are

Correct A. variable

B. fixed

C. semi-variable

D. semi-fixed

Correct Answer: A

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Question 4

Commercial bank reserves at the Central Bank have the effect of

A. advancing trade, prospects

Correct B. controlling credit and money supply

C. reducing bank frauds

D. discouraging banking operations

Correct Answer: B

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Question 5

If the standard deviation of a given data is 8.2, find its variance

A. 82.0

B. 91.8

Correct C. 67.2

D. 41.0

Correct Answer: C

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Question 6

The ultimate objectives of economics is to

A. decides under what circumstances that government should intervene in the economy

B. Organize production at the lowest cost

Correct C. Make the best use of scarce resources

D. make efforts to understands how the economy works

Correct Answer: C

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Question 7

The savings deposit in a commercial bank is called

Correct A. near money

B. call money

C. capital

D. fund

Correct Answer: A

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Question 8

A major determinant of the demand for a luxury good is

A. the price of other goods

B. the price of the good

C. tastes and fashion

Correct D. the income of consumers

Correct Answer: D

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Question 9

When a variable is associated with time period, it is

A. circular

Correct B. flow

C. static

D. stock

Correct Answer: B

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Question 10

The factor of production that has the highest degree of mobility is

A. entrepreneurship

B. land

Correct C. labour

D. capital

Correct Answer: C

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Question 11

The minimum number of share holders for joint stock companies is

A. 4

B. 2

Correct C. 7

D. 3

Correct Answer: C

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Question 12

If a demand curve that intersects a perfectly inelastic supply curve shift its rightward, then

A. only the quantity will increase

B. The prices will remain constant

C. The equilibrium price and quantity will increase

Correct D. only the price will increase

Correct Answer: D

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Question 13

The basic economic problems of society include

A. scarcity; for whom to produce and where

B. scarcity; when to produce and how

Correct C. what to produce, how and for whom

D. how to produce and sell

Correct Answer: C

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Question 14

In an open economy, the GNP is measured as

A. C + I + G (X - M)

B. C + I + G + M

C. C + I + G + X

Correct D. C + I + G + X - M

Correct Answer: D

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Question 15

In a developing economy, productivity is measured by the

Correct A. output - labour ratio

B. capital - output ratio

C. output growth rate

D. Output per capital

Correct Answer: A

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Question 16

The need to construct a scale of preference is necessitated by

Correct A. Scarcity and the need for choice

B. The needs to satisfy wants

C. Non - availability of factors of production

D. Scarcity of resources

Correct Answer: A

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Question 17

The privatization exercise in Nigeria is a move towards a

A. command economy

B. mixed economy

C. subsistence economy

Correct D. market economy

Correct Answer: D

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Question 18

The mean is the best measure of central tendency because it

A. can be calculated from incomplete data

Correct B. is a balancing point in an observation

C. is a midpoint value in an array of data

D. is not affected by extreme values in data

Correct Answer: B

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Question 19

TABLE - Table 1

\( \begin{array}{|l|c|c|c|c|c|c|c|c|}
\hline
\begin{array}{l} \text{Number of} \\ \text{Men} \end{array} & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 \\ \hline
\begin{array}{l} \text{Total product} \\ \text{(unit)} \end{array} & 200 & 440 & 540 & 600 & 640 & 660 & 660 & 640 \\ \hline
\end{array} \)

If the price per unit is N2. What is the average revenue when 6 men are employed? [See table above]

A. N110

Correct B. N120

C. N220

D. N330

Correct Answer: B

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Question 20

The current stage of the economy is depicted in curve I. The movement of curve I to II suggests

Correct A. an improvement in capital goods technology but not in consumer goods technology.

B. a movement from unemployment to full employment.

C. that the output for the society has declined.

D. a gain in consumer goods technique and not in capital goods technique.

Correct Answer: A

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Question 21

When elasticity is zero, the demand curve is

A. circular

B. downward sloping

Correct C. perfectly inelastic

D. concave

Correct Answer: C

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Question 22

Which of the following is not a direct tax?

A. capital gains tax

Correct B. purchase tax

C. personal income tax

D. capital tax

Correct Answer: B

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Question 23

A limited liability company is owned by more than

A. a bank

B. an individual

C. two or more partners

Correct D. share holders

Correct Answer: D

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Question 24

If the price of a ballpoint pen falls from N1.00 to N0.60 and the quantity demanded increases from 200 to 300, the point elasticity of demand is equal to

A. 0.50

B. 0.40

Correct C. 1.25

D. 0.80

Correct Answer: C

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Question 25

If the price elasticity of demand for a good is 0.43, an increase in the price of the good will result in

A. A decrease in profit by 43%

B. An increase in profit by 43%

C. A net loss

Correct D. A net gain

Correct Answer: D

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