ECN 101 BY BALOGUN M.A.

O (PLATO)

1. _____ is a derived demand A. Demand for transport B. Demand for

electricity C. Demand for fees and rent D. Demand for hospitality bills
2. ____ defined Economics as the science that treats phenomena in the
stand point of price A. Prof. Lionel Robbins B. A.C Pigou C. Adams
Smith D. H.J Davenport
3. Human wants are ____ A. infinite B. finite C. infinitesimal D.
insatiable
4. The following are the features of an homoeconomicus except _____
A. He is selfish B. He prefer pleasures to pain C. He chooses
dependently D. He has a free will
5. ____ has the telescopic view of the economy A. Micro Economics B.
Macro Economics C. Intermediate Economics D. A and C only
6. A situation is an economic situation if it satisfies the following
conditions except ____ A. the use of scarce resources is involved B.
scarce resources have alternative uses C. ends and wants meets
demand D. the alternative uses can be ranked in a defined order of
importance
7. Price ceiling is the ____ price A. minimum B. maximum C. standard
D. fixed
8. Adams Smith defined Economics as an inquiry into the nature and
causes of wealth of the nation in ____ A. 1774 B. 1775 C. 1776 D. 1784
9. In the short run, input ____ A is fixed B. varies C. tarries D. tallies
10. Micro-Economics is the study of all the following except _____
A. frontiers B. consumers C. individuals D. firm
11. Production possibility curve arises from ____ A. opportunity cost
and scarcity B. scarcity and choice C. choice and opportunity cost D.
wants and ends
12. ____ is a consumer goods A. kerosene B. rice C. beans D, water
13. ____ economics defines what ought to be A. normative B. positive C.
zero D. marginal
14. ____ is not a natural resources. A. Water B. Land C. Air D. Coal
15. An increase in tax rates untimately results in a decrease in total tax
revenue. This is an example of ____ economics A. Positive
Economics B. Normative Economics D. Fiscal Economics D.
Monetary Economics
16. Price floor is the ____ price A. standard B. per C. minimum D.
maximum
17. In the market system, the sellers are the ____ A. Price taker B. Price
maker C. Price regulator D, Price shift
18. MP will be equal to AP when ____ A. AP is maximum B. MP is
minimum C. AP is minimum D. MP is maximum
19. Any price above the equillibrum price will lead to ____ A. demand
B. excess supply C. excess demand D. shortage demand
20. ____ is when the market demand curve intercept the market
supply curve A. market equilibrium B. equilibrium point C.
equilibrium demand D. equilibrium curve
21. In the long run, inputs ___ A. is fixed B. varies C. tallies D. equals
22. Any point outside the PPC is ____ A. the optimal level B.
underutilized C. fully utilized D. unattained output level
23. ___ is not a natural and economic resources A. Land B. Water
C. Air D. Soil
24. Production Possibility Curve can otherwise be called ____ A.
Production Possibility Boundary B. Production Possibility Frontier C.
Production Possibility Line D. A and B only
25. When TP is at minimum, MP is ___ A. constant B. zero C.
falling D. rising
26. Ends in economics means ____ A. wants B. choices C. scarcity
D. demand
27. The alternative forgone is the ____ A. money cost B. relative
cost C. opportunity cost D. consumer cost
28. Economics is a social science that uses ____ methods A.
inductive only B. deductive only C. inductive and deductive D. A only
29. ____ economics deals with the aggregation of the Economy A.
micro economics B. macro economics C. intermediate economics D. a
and b only
30. ____ is a wealth used for the creation of further wealth A. Land
B. Labour C. Capital D. Entrepreneur
31. All the following are true about the features of Land as a factor of
production A. it is subject to law of diminishing returns B. it rewards
is rent C. it does not varies with output D. it is permanent in nature
32. The major problem of barter system is the _____ A. non-
intrinsic B. extrinsic C. indivisibility D. double coincidence of wants
33. Optimality is _____ A. rationality of consumer B. consumer
maximum satisfaction C. balance of payment D. equilibrium
34. The effect of a change in price on quantity demanded arising
from the consumer becoming worse off as a result of change in price
is _____ A. Income effect B. Veblen effect C. Substitution effect D.
Giffen effect
35. The techniques used by Economist in the application and
construction of economic principles and theories are called ____ A.
Equation B. Algebra C. Methodology D. Model
36. To be consistent with the law of demand, a graph depicting
price and quantity demanded will be ____ A. horizontal B. vertical C.
positively sloped D. negatively sloped
37. Economics is social science because it ____ A. adopts scientific
methods B. adopts scientific methods in studying human behaviors C.
involves application of scarce resources D. object of study is man
38. Choice is necessary because ____ A. Goods and services are
produced abundantly B. economic resources are usually insufficiently
relative to the amount required C. wants are limited and resources
are unlimited D. man always prefer one thing to another
39. The main source of economic problem is ___ A. money B.
poverty C. resource scarcity D. greed
40. Homo Islamicus means the Islamic man while Homo
Economicus means the ____ A. cultural man B. social man C.
political man D. the rationale man
41. The analysis of microeconomics issues is known as microscopic
analysis while the macroscopic analysis referred to as ____ A.
Platonic B. Microbic C. Periodic D. Telescopic
42. The distinction between Positive and Normative Economics is
that A. Positive economics assumes abstract principles whereas
Normative economics studies the normal functioning of the economy
B. Positive economics is not objective and Normative economics
studies how the economy works C. Positive economics studies how
the economic does in fact work and Normative economics studies
 what the goals of an economy should be D. Positive economics studies
what should make society better off and Normative economics studies
what will make the normal individual better off
43. The most important assumption behind the invisible hand
theory is that A. market forces are constrained by political or social
forces B. market forces produce efficient outcomes C. the price
mechanism is not constrained by political or social forces D. people
bahaved rationally
44. Production resources includes the following except ____ A.
Land B. Ends C. Capital D. Managerial skills
45. ____ involves the logical derivation of principles and
conclusions from a set of assumption about human behavior A.
Historical method B. Deductive method C. Inductive method D.
Normative method
46. In a market economy, the allocation of scarce resources is the
outcome of the independent decisions made by _____ A. All
economic units B. government and firms C. Households and
government D. Household and firms
47. In the circular flow of income, the payment of factors of
production includes all the following except ____ A. rents B. wages
C. profit D. transfer payments
48. Economics problems arise if resources are scarce and have
____ A. alternative uses B. no alternative uses C. limited use D. only
one important use
49. An economic system in which the allocation of resources is the
outcome of decisions made by both the government and private A.
mixed economy B. capitalist C. socialist D. traditional system
50. TP continues to rise when ____ A. MP > 0 B. MP< 0 C. MP = 0
D. MP=AP
51. ____ laws explains the relationship between the inputs and outputs
in a short run A. Law of variable proportion B. law of constant returns
to scale C. law of proportionality D. law of diminishing marginal
utility
52. A variable input is the one whose supply is ____ in the short
run A. elastic B. inelastic C. fair D. unitary
53. In the long run, all inputs are ____ A. variable B. fixed C. static
D. station
54. A product resulting from a one or more unit of a variable input
is the ____ A. MP B. TP C. FP D. VP
55. MP and AP are equal at ___ A. the maximum point of AP B. the
maximum point of TP C. the minimum point of AP D. the minimum
point of TP
56. Another name for Inductive method is the ____ method A.
Historical B. Logical C. Phenomenological D. Abstract
57. All but one is not a distinguishing features of the free market
system A. regulatory agent B. self interest C. private ownership of
property D. free enterprise
58. The Islamic Economic System is the ____ A. mixed economy
B. capitalist C. socialist D. a and b only
59. MPC+MPS is ___ A. equal to one B. greater than one C. equal
to one D. less than one
60. Demand for money is a ____ demand A. composite demand B.
competitive demand C. derived demand D. joint demand
61. MP is ____ when TP is ___ A. zero, highest B. negative, increasing
C. constant, falling D. positive, falling
62. Normative economics forms ____ based on ____ A. positive
statements, values B. positive statements, facts C. opinions, personal
values D. opinions, facts
63. When the market is in equilibrium ____ A. quantity demanded
equals quantity supplied B. excess demand and excess supply are zero
C. the market is cleared by the equilibrium price D. all of the above
64. Demand for factors of production is ____ A. derived demand
B. joint demand C. composite demand D. none of the above
65. ____ is not an economic agents A. thresholds B. households C.
firms D. business
66. Which of the following is true about a fixed inputs A. the
quantity of it that a firm can use in the long run is fixed B. the price is
fixed C. the quantity of it that a firm can use in the short run is fixed
D. the quantity of output that the firm can produce
67. In the short run, when the output a firm increases, its average
fixed cost ____ A. increases B. decreases C. remains constant D. first
decreases and then rises
68. The National Income of a country over its total population is the
____ A. Per capita income B. GDP C. GNP D. NNP
69. The sum of individual income of a year minus personal taxes A.
disposable income B. national income C. personal income D. savings
70. Economics is the study of ____ A. how society manages its
scarce resources B. how the society manages its unlimited resources
C. how the society manages its wants and ends D. how to fully satisfy
our unlimited wants
71. At any given level of output, a firm’s total variable cost is ____ A. TC
less FC B. TC less AC C. TC less MC D. TC less FV
72. All but one is not a method of calculating National Income A.
Income method B. Expenditure method C. Product method D. Output
method
73. The concentration of a group of similar firms in a particular
area is called ____ A. location of industry B. localization of industry
C. industralization D. commercialization
74. The reward for capital is ____ A. wages B. salary C. profit D.
wealth E. none of the above
75. ____ is the list of individual wants in the order of preference A.
choice B. scale of preference C. opportunity cost D. money cost
76. Cost can be the following except ____ A. Implicit and Explicit
B. Fixed and Variable C. Static and Stable
77. A market comprises of three economic agents which include the
following except ____ A. threshold B. household C. firm D.
government
78. NI = C=I=G (X-M). M in this analysis means ____ A.
Manufacture B. Mining C. Member D. Import
79. In Nigeria, ____ method is the method used in calculating
National Income A. output B. input C. expenditure D. value added
80. A depletion of the flow of income within a system is called
____ A. leakages B. injection C. externalities D. boom
81. _____ are the introduction of income into the flow such as
additions to investment, government expenditure and exports. A.
injections B. leakages C. externalities D. boom
82. C = 620+0.72Y where Yd (Y-T) T=120, I=300 and government
required. What is the level of income A. Y= 3799 B. Y= 4000 C. Y=
3999 D. Y= 3989
83. Demand is a ____ function A. multivariate B. inverse C. direct
D. indirectly
84. Qd = 150-3P. Calculate the Qd when P is 20. A. 90 B. 75 C. 80
D. 95
85. The goods whose demand varies inversely with changes in
income A. inferior goods B. superior goods C. substitution goods D.
rational goods
86. All the following except ___ is not an implicit cost. A. cost of
raw materials B. wages and salaries C. rent D. dividend
87. ___ is the estimate of the total value of the total value of all the
final products and services turned out in a given period by the means
of production owned by a country’s residents A. GNP B. GDP C. NNP
D. Domestic Products
88. NNP is ____ A. GNP – Depreciation B. GDP – Depreciation C.
NNP – Net Products D. GDP-GNP
89. GNP = A. GDP + Net income from abroad B. GDP – Net income
from abroad C. GDP – Depreciation D. NNP – Depreciation
90. Disposable Income = A. Personal Income – Personal direct
taxes B. Personal Income + Direct taxes C. Personal Income –
Disposability D. Personal Income + Disposability
91. Y = C+I+G (X-M) is an example of a ____ economy A. open
economy B. closed economy C. aggregate economy D. proved
economy
92. In a closed economy, the following factors are considered except
____ A. Business B. Firms C. Households D. Government
93. The transformation of raw materials or semi-finished goods
into finished goods A. manufacturing B. exchange C. distribution D.
production
94. ___ are goods meant for the production of further goods A.
Durable goods B. Capital goods C. Market goods D. Producer goods
95. ____ is the setting up of industry in a particular area A.
Localization of industry B. Location of industry C. Citing of industry
D. mobility of industry
96. Mr Adamu wants to cite a coal industry. What factor will be the
first to be put into consideration. A. available of raw materials B.
available of power supply C. Presence of gold D. availability of mines
97. Net income from abroad is ____ A. total money received from
abroad B. nation’s currency used in abroad C. net difference of export
and import D. none of the above
98. ____ is the estimation of the value of current GDP with current
price A. nominal GDP B. real GDP C. actual GDP D. bank GDP
99. The interaction of the forces of demand and supply to fix a price
of a commodity is called _____ A. regulated price B. market price C.
price mechanism D. market price
100. BEST WISHES