NDA Past Questions On Economics 2016
A. Keynes Ricardo.
B. Adams Smith.
C. Alfred Marshall
D. Thomas Robert Malthus
2. In a free market economy, wage is determined by mostly
A. the trade union
B. the interplay of demand and supply
C. the government
D. none of the above
3. If the marginal propensity to consume is 0.80 and the investment expenditure changes from N100 million to ₦140 million in a given economy, find the level of equilibrium in the given economy,
using the formula:
where (K = multiplier, MPC = Marginal Propensity to Consume)
A. ₦20 million
B. ₦40 million
C. ₦28 million
D. ₦200 million
4. The population of a country X in 1990 was 35 million. The births were 450,000 while it recorded 210,000 deaths. If in the same year, its immigrants were 20,000 and 10,000 of its citizens left the country, calculate the total population of the country at the end of 1990.
A. 24,250,000
B. 25,350,000
C. 34,750,000
D. 35,250,000
From the diagram below, a shift in the demand curve from D0D0 to D1D1 implies
A. a rise in the demand for the commodity
B. a fluctuation in the demand for the commodity
C. a fall in the demand for the commodity
D. an equilibrium in the demand for the commodity
Use the table below to answer Question 6.
6. Given an output of 3 units, the average revenue is
A. ₦16,000
B. ₦18,000
C. ₦20,000
D. ₦24,000
7. The diagram below represents a production function. At which of the point does diminishing return sets in?
B. J
C. K
D. L
8. At equilibrium, one of the distinctive features of monopoly compared with perfect competition is that in the former
A. price is always equal to marginal cost
B. supply is always equal to the demand
C. price is always higher than marginal cost
D. there are always many buyers and many sellers
9. The national income of a country indicates that the Gross National Income was N17,700 million and Gross Domestic Product was N16,800. The difference of N900 million represents
A. debts repayment
B. investment abroad
C. net income from abroad
D. capital consumption
10. The cross elasticity of supply is expressed as
Use the diagram below to answer question 11. The diagram explains the effects of government imposition of indirect tax on a good characterized by zero price elasticity of demand
11. A total tax revenue is represented by
A. P1EHP0
B. P0HQ00
C. P1EQ00
D. P1ED1P012. What is the term used to describe a policy aimed at promoting the local production of goods which are usually imported?
A. Deregulation
B. Import sustainability
C. Traffic reduction
D. Backward integration
13. If a consumer plans to spend 120k on four oranges but spent 80k, his consumer surplus is
A. ₦1.50
B. ₦0.40
C. ₦1.00
D. ₦2.00
14.
In the diagram above, the price P2, in the price control situation is referred to as
A. maximum price
B. markup price
C. minimum price
D. mark-down price Liquidation of a limited liability company implies that
15. Liquidation of a limited liability company implies that
A. company may not pay its debts
B. debts of the company can only be paid from its own assets
C. debts of the company are paid from both business and private funds of the owners
D. debts of the company must be paid from public funds only
16. An increase in government expenditure will lead to
A. investment opportunities for foreign investors
B. an increase in the level of aggregate demand
C. an increase in total tax revenue
D. reduction in total tax revenue
17. If a country has a balance of payment surplus on current account, this means that
A. the total visible export is greater than invisible import
B. the value of goods exported must be greater than the value of goods imported
C. there must be a positive balance on capital account
D. the aggregate of the balance of trade and the invisible balance must be positive
18. The utility is best measured by the application of
A. Demand curve analysis
B. Supply curve analysis
C. Indifference curve analysis
D. Marginal cost curve analysis
19. The equilibrium market price is determined at a point where
A. Both are supplied and demanded are equal
B. The price is moderate
C. Sellers can sell all their commodities
D. Consumers can buy all they desire
20. Crude petroleum is a good example of a
A. lasting asset
B. wasting asset
C. synthetic product
D. costless resources
21. Full equilibrium requires that
A. MR = MC
B. TR = TC
C. MC = MR and AC = AR
D. MR = MC and AR = AC
22. To privatize an enterprise means
A. all foreigners are to take control of the business
B. transfer ownership and control of the business to the private sector
C. transfer ownership and control of the private sector
D. indigenization of the enterprise
23. The indigenization decree in Nigeria was promulgated in order to
A. allow indigenes to have full participation in the economic activities of the country
B. drive away foreigners
C. give equal chances to indigenes and foreigners in making economic decisions country
D. give industrial training to indigenes
24. Resources are scarce in relation to_______
A. choice
B. the demand for them
C. limited wants
D. their scale of preference
25. The principal national macro-economic goals include the following
A. national goods and priorities
B. full employment of the nation's productive inputs
C. acceptable levels of economic growth
D. maximum levels of economic stability
26. The greatest disadvantage of the barter system is the need for
A. durability
B. divisibility
C. homogeneity
D. double coincidence of wants
27. Two commodities are considered to be perfect substitutes for each other if the elasticity of substitution is
A. infinite
B. positive
C. negative
D. zero
28. The maintenance of an adequate level of work-in-progress, raw materials and stocks of finished goods is:
A. managerial satisfaction
B. shareholders satisfaction objective
C. profit objective
D. stock objectives
29. Business does not exist in a vacuum; it affects and is affected by
A. social, legal. economic and political frameworks
B. macro-economy and philanthropic organizations
C. multi-national corporations
D. climate change
Consider the table below and answer the question that follows
The table above illustrates the law of
A. increasing productivity
B. diminishing marginal productivity
C. diminishing marginal utility
D. increasing returns
31. Aggregate demand is composed of_______
A. Consumption
B. Savings
C. Consumption and investment
D. Consumption, investment and government expenditures
Study the diagram below and answer Questions 32 and 33.
32. In the diagram above, the equilibrium price is
A. OQ0
B. OQ2
C. P0P2
D. OP033. At price OP2,
A. demand exceeds supply
B. supply exceeds demand
C. demand equals supply
D. OQ2 is the quantity demanded
34. The diagram below illustrates:
A. perfectly elastic demand
B. inelastic demand
C. perfectly inelastic demand
D. elastic demand
35. In the diagram below. the line labelled PM is the marginal revenue curve of a
A. Monopoly.
B. Competitive firm
C. Monopsony
D. Oligopoly
36. Decreasing returns to scale implies that if all factors of production are doubled, output will be
A. more than doubled
B. less than doubled
C. doubled
D. none of the above
37. Which of the following market structures are imperfect in competition?
I. monopoly II. duopoly III. oligopoly
A. I only
B. I and II only
C. I and III only
D. I, II and III
38. For two commodities A and B, MA and MB are the respective marginal utilities while PA and PB are the respective prices. Marginal utilities of the two commodities are maximized when
39. The elasticity of supply of perishable goods is
A. zero
B. elastic
C. inelastic
D. unitary
40. Which one of the following is not an example of economic efficiency?
A. Productive efficiency
B. Resource efficiency
C. Technical efficiency
D. Programmed efficiency
ANSWERS:
1. D
2. B
3. D
4. D
5. A
6. B
7. C
8. C
9. C
10. D
11. A
12. B
13. B
14. A
15. B
16. B
17. B
18. C
19. A
20. C
21. D
22. B
23. A
24. B
25. B
26. D
27. D
28. A
29. A
30. C
31. D
32. D
33. A
34. D
35. A
36. B
37. D
38. A
39. B
40. D
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