NDA PAST QUESTIONS AND ANSWERS ON ECONOMICS 2015
1. Which of the following does not cause an increase in supply?
A. an increase in the commodity's priceB. an improvement in technologyC. a reduction in factor priceD. a decrease in the cost of material
2. Which of the following statements is not true when the price is above the equilibrium price?A. there is a shortage of the commodityB. the quantity supplied exceeds the quantity demanded of the commodityC. the pressure on the commodity price is downwardD. there is a surplus of the commodity3. A specific argument advanced for protection is?A. to protect domestic labour against cheap foreign labourB. to reduce unemploymentC. to protect infant industries and industries important for national defenceD. all of the above
4. The interest rate is?A. the price of using money or loanable fundsB. expressed in percentage termsC. determined by demand and supply of loanable fundsD. all of the above
5. In order to maximize profits, a firm borrows until the return on investmentA. equals the rate of interestB. exceeds the rate of interestC. is smaller than the rate of interestD. none of the above
6. The market supply of labour depends onA. the population sizeB. the proportion of the population in the labour forceC. the state of the economyD. all of the above
7. Which of the following are leakages from the circular flow?A. consumption and savingB. saving and importsC. imports and exportsD. exports and saving
8. Which of the following cost items refers to price?A. variable costB. average costC. opportunity costD. fixed cost
9. The basis for all economic activities isA. scarcityB. povertyC. industrial expansionD. economic development
10. Which of these factors does not determine the level of aggregate savings?A. the level of incomeB. the size of the populationC. income distributionD. the rate of interest
11. In the theory of the firm, the curve used in the determination of profit level is?A. the average fixed costB. the marginal costC. the average variable costD. the average cost
12. If the supply of a commodity is perfectly inelastic the market price is determined by?A. demandB. supplyC. the cost of productionD. quantity supplied.
13. One of the economic problems of Nigeria today arises from?A. the overutilization of human resourcesB. inadequate manpower resourcesC. overutilization of manpower resourcesD. the underutilization of manpower resources.
14. International trade is necessary because?A. different countries arc differently endowed in natural and human resourcesB. no country is an autarkyC. some countries have a comparative advantage in the production of particular commodities over other countries.D. countries are determined to increase their gold.
15. The monetary system that relates to the double coincidence of wants is referred to as?A. the gold standardB. the cheque systemC. barterD. the commodity system
16. The World Trade Organization is responsible for?A. stabilizing and harmonizing oil priceB. ensuring equal participation of countries in tradeC. minimizing obstacles to international trade and investmentD. modernizing world economics
17. The money paid per hour for work done isA. salaryB. costC. bonusD. wage rate
18. In modern economies, the Malthusian theory of population is ineffective because ofA. technical progressB. government policiesC. birth control measuresD. natural disaster
19. During the era of barter, money was generally in the form ofA. coinsB. notesC. commoditiesD. precious metals
20. The downturn in the prices of shares on stock markets is a highlight ofA. Invisible handB. efficient allocation of resourcesC. consumer rationalityD. the regulatory nature of the market
21. If x̄ = 6 and N = 6, determine the value of ΣfxA. 72B. 12C. 36D. 1
22 A typical feature of a market economy is thatA. there is equality of economic agentsB. full employment existsC. consumer sovereigntyD. all producers make a profit
23. In long-run, one of the characteristics of monopolistic competitive firms is that they?A. suffer lossesB. collude with each otherC. make abnormal profitsD. make normal profits
24. Per Capita Income in any African country is measured byA. adding total investment to the GNPB. adding total saving to the GNPC. dividing the GNP by the total populationD. adding total saving to the GDP
25. The income-consumption relationship indicates that the marginal propensity to consume?A. is greater than zero and greater than oneB. equals to zeroC. equal to oneD. lies between zero and one
26. What is the equilibrium price? A. 4B. 10C. 6D. 7
27. What is the equilibrium quantityA. 4B. 10C. 7D. 6
28. what is the excess supply at the price of ₦5.00?A. -7B. 7C. 8D. 6
29. What is excess supply at the equilibrium price?A. 1B. 2C. 3D. 0
30. The additional revenue obtained by using one more unit of a factor is called its?A. Marginal productB. additional productC. marginal revenue productD. average product
31. In the operation of market forces, the market is in equilibrium at the point where?A. demand and supply curves intersect in more than one point provided the market is cleared.B. the excess in the market can be conveniently storedC. excess demand is negativeD. demand and supply curves intersect.
32. In the diagram above, PS is the supply curve for a particular commodity, while OP is the price. Which of the following statements is correct?A. The quantity is infinitely elasticB. When the price is zero, the quantity supplied infinitelyC. When the price is infinite, the quantity supplied zeroD. The quantity supplied in indefinite
In which of the diagram below is the consumer surplus correctly shaded?A. IB. IIC. IllD. IV
34. A budget with projected revenue in excess of its expenditure is said to be?A. balancedB. surplusC. deficitD. Inflationary
35. Frictional unemployment?A. is total unemployment minus structural unemploymentB. occurs when the unemployed are persons with specific training.C. occurs when the number of job seekers exceeds the number of vacanciesD. occurs when people are changing jobs.
From the diagram above, a shift in the demand curve from D0 D0 to D1 D1 implies?A. a rise in the demand for the commodityB. a fluctuation in the demand for the commodityC. a fall in the demand for the commodityD. an equilibrium in the demand for the commodity
37. If the equilibrium price of a certain commodity is ₦120.00 and the government fixed its price at ₦110.00, the supply will be?A. greater than the equilibrium supplyB. smaller than the equilibrium supplyC. the same as the equilibrium supplyD. a determinant of the market forces of equilibrium
38. Economic development is distinguishable from economic growth because the former?A. is not concerned with growth parametersB. affects only poor peopleC. also includes an efficient distribution of economic growthD. is an increase in the production of goods and services.
39. The joint ventures operating in the Nigerian oil industry are between?A. the NNPC and independent marketersB. the NNPC and multinational marketersC. the NNPC and producer/marketersD. multinational corporations and independent marketers.
40. Comparative advantage implies that a country will specialize in producing the Commodity?A. with the highest opportunity costB. for which output per worker is lower than in other countriesC. with the lowest opportunity costD. for which output per worker is the same with those of other countries.
26. What is the equilibrium price?
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