BEST TUTORIAL CENTER

PRINCIPLE OF ECONOMICS

1. Goods are said to have competitive demand when they are _____________

(a) substitute (ANS)

(b) complements to each other

(c) jointly demanded

(d) identical

2. A commodity whose quantity consumed fall as income increase is an example of ___________

(a) complementary goods

(b) competitive goods

(c) inferior goods

(d) normal goods (ANS)

3. A shift in the supply curve to right illustrates ____________

(a) a decrease in supply

(b) a decrease in quantity supply

(c) a price elasticity supply

(d) an increase in supply (ANS)

4. supply means the _________

(a) quantity of goods sold at a particular price and time (ANS)

(b) quantity of goods produced

(c) quantity of goods which a producer is willing to offer for sales at a particular price and time

(d) quantity of goods sold at a particular price

5. A normal supply curve slopes ________________

(b) upward from left to the right

(c) upward from the right to the left (ANS)

(d) parallel to the vertical axis

6. Economics problems arises because _______________

(a) human wants are insatiable (ANS)

(b) human wants are limited

(c) available resources are unlimited

(d) human being are greedy

7. The study of the entire system of economics is ____________

(a) microeconomics

(b) applied economics

(c) macroeconomics (ANS)

(d) economics theory

8. This is an important part of economics that helps to ensure needs and wants are met

(a) scarcity

(b) advertising

(c) scale of preference

(d) distribution (ANS)

9. The production possibility curve (PPC) illustrate the _____________

(a) limits to people’s wants

(b) goods and services that people want

(c) maximum combination of goods and services that can be produced (ANS)

(d) all of the above

(a) scare

(b) limited

(c) unlimited (ANS)

(d) necessary

11. Which one of the following concept was not directly mentioned in the definition offered by Lionel
Robbins?

(a) social science

(b) ends

(c) human behavior

(d) alternative forgone (ANS)

12. The logical sequence of basic concepts in economics is __________

(a) wants, choice, scarcity and opportunity cost

(b) want, scarcity, choice and opportunity cost (ANS)

(c) scarcity, wants, choice and scale of preference

(d) wants, scarcity and real cost

13. (1) what and how much will be produced? (2) how will it be produced? (3) for whom will it be
produced? (4) how much will be exported and consumed?

From the above, identify the combination of basic resources allocation questions in economic analysis

(a) 1,2 and 4

(b) 1,3 and 4

(c) 1 and 3

(d) 1,2 and 3 (ANS)

14. The following are example of economic goods except ____________

(a) bottled water

(c) shelter

(d) household utensils

15. The main concern of economist is to _______________

(a) satisfy human wants

(b) allocate scarce resources to satisfy human wants (ANS)

(c) control the growth of population

(d) redistribute income between the rich and the poor

16 Equilibrium of the monopolistic firm

(a) occurs where P= MC

(b) occurs where MR= MC (ANS)

(c) occurs where P= MR

(d) occurs where MC= AC

17. __________ is the graphical presentation of supply schedule

(a) supply graph

(b) indifference curve

(c) supply curve (ANS)

(d) indifference graph

18. __________ shows the horizontal summation of two various in supplies in a market

(a) market supply curve

(b) supply curve market

(c) market supplied schedule (ANS)

(d) individual supplied schedule

19. Factors affecting quantity supplied

(b) innovation changes

(c) technological changes

(d) all of the above (ANS)

20. A market situation where there are many buyers and many sellers with homogenous product is
called______________

(a) oligopoly

(b) monopoly

(c) monopsony

(d) perfect competition (ANS)

21. A market where there is large numbers of firms selling closely related but differentiated product is
_____________

(a) monopoly

(b) monopsony

(c) monopolistic competition (ANS)

(d) perfect competition

22. At a maximum point of the the total product curve of a firm, marginal revenue is _____________

(a) decreasing (ANS)

(b) increasing

(c) constant

(d) zero

PROMISE, the sole producer of Gracesoap has the following total revenue (TR) and total cost (TC)
function: TR = 100q – 4q2, TC = 50 + 20q

Where q = Output level

23. Derive the marginal cost (MC) function

(a) 10
(b) 20 (ANS)

(c) 30

(d) 40

24. Derive the marginal revenue (MR) function

(a) 120 + 8q

(b) 100 + 8q

(c) 120 – 8q

(d) 100 – 8q (ANS)

25. Calculate the profit maximizing output level

(a) 20

(b) 50

(c) 10 (ANS)

(d) 5

26. Determine the profit maximizing selling price

(a) 40

(b) 60 (ANS)

(c) 80

(d) 100

27. Which of this occurs when the market is unstable?

(a) prices will fluctuate (ANS)

(b) demand will remain static

(c) prices will remain static

(d) supply will remain static

(a) Lionel Robbins

(b) Adams smith

(c) J B SON

(d) Alfred Marshal (ANS)

30. Giving that Y = C + I, where C = 50 + 0.75Y and I = $45m. what is the equilibrium level of income?

(a) $380m (ANS)

(b) $200m

(c) $180m

(d) $220m

31. Which of the following economic system is the consumer regarded as king?

(a) socialist economy

(b) capitalism economy (ANS)

(c) mixed economy

(d) communist economy

32. Who decides what to produce in a socialist economy?

(a) businessman

(b) government (ANS)

(c) consumers

(d) price mechanism

33. ____________ is the satisfaction derived from a unit commodity

(a) total utility

(b) marginal utility

(c) average utility (ANS)

34. A central argument of cardinal utility is that utility is ______________

(a) psychological

(b) measurable (ANS)

(c) ranked

(d) immeasurable

35. If a consumer plans to spend 120K on four oranges but spend 80k, his consumption surplus
_________

(a) N1.50

(b) N1.00

(c) N3.00

(d) 2.00 (ANS)

36. Goods and services that are necessary for living such as food, shelter and clothing are
_____________

(a) wants

(b) needs (ANS)

(c) choice

(d) opportunity cost

37. _____________ is the fundamental problem of an economy

(a) how to make choice

(b) how to distribute our resources

(c) scarcity (ANS)

(d) opportunity cost

38. For a monopolistic, the demand curve is _______________

(b) inelastic (ANS)

(c) perfectly elastic

(d) perfectly inelastic

39. Market is a __________________ in which the buyers and sellers get in contact to transact business

(a) geographical location

(b) point (ANS)

(c) place

(d) location