UTME 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
To perform its function as a store of wealth and standard for deferred payment, money must be
A. portable
B. in attractive form
C. spent more on capital goods than consumers good
D. stable in value
Question 2
If high unemployment goes hand in hand with rising prices, the situation created is
A. galloping price
B. moderate inflation
C. stagflation
D. hyper inflation
Question 3
Population growth can be calculated as
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
Question 4
The fundamental problem of economics is
A. money
B. poverty
C. the scarcity of resources relative to wants
D. inflation
Question 5
If the marginal utility of good X exceeds that of good Y, this implies that
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
Question 6
In the graph above, F.G indicates [See diagram]
A. excess demand
B. excess supply
C. equilibrium price
D. equilibrium quantity demanded
Question 7
An economy in which both the public and private sectors contribute to economic growth is
A. a socialist economy
B. mixed economy
C. feudal economy
D. capitalist economy
Question 8
The advantages which firms obtain from expanding their operations are referred to as
A. external economies of scale
B. economies of localization
C. internal economies of scale
D. economies of resources allocation
Question 9
The monetary control instrument most effectively used by the Central Bank of Nigeria is the
A. reserve ratio
B. discount rate
C. open market operation
D. merging requirement
Question 10
A country is said to have absolute advantage when she
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
Question 11
When demand is elastic, it means that consumers
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
Question 12
One of the following is an advantage of sole proprietorship
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
Question 13
Optimum population is desirable because it enables an economy to attain maximum
A. per capital income
B. per capital output
C. per capital real income
D. per capital revenue
Question 14
Life insurance companies contribute to economic development by holding a part of their assets in
A. cash and near money
B. short-term financial instrument
C. long-term financial instrument
D. money market instrument
Question 15
Choice in economic life is necessitated by
A. the need to construct a scale of preference
B. the opportunity cost of consumption
C. unlimited wants
D. scarcity of resources

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