UI Post-UTME Economics 2021 (Model questions) past questions and answers

Which of the following is not a requirement for economic development?

1. A.a temperate climate
2. B.natural resources
3. C.an adequate capital base
4. D.technological advancement

The common index for measuring inflation in an economy is......

1. A.wholesale price
2. B.consumer price
3. C.retail price
4. D.producer price

If an economy is moving from socialism to capitalism, which of the following would they reduce?

1. A.Individual ownership of land
2. B.private industry
3. C.the Profit motive
4. D.price control

Which of the following is a merit of a market economic system?

1. A.It aims for equality of income distribution
2. B.It reduces pollution and congestion
3. C.It ensures the provision of basic amenities and maintenance of law and order
4. D.It gives incentives to produce

Bursary and pension payment in the national accounts are referred to as.....

1. A.Income
2. B.salaries
3. C.Transfer payment
4. D.wages

Given a Production Possibility Curve, if an economy is producing at a point on the curve, then all the resources are being used.......

1. A.Efficiently
2. B.to produce the goods that the society wants
3. C.inefficiently
4. D.in a manner that production would be more than consumption

...............will occur in an economy if the government mistakenly increase the price of goods.

1. A.Surpluses
2. B.Shortages
3. C.Equilibrium
4. D.None of the above

A public good is.........

1. A.A good that the public must pay for
2. B.paid for by the government
3. C.more costly than a private good
4. D.non-rival in consumption

In economic theory,.........refers to the principal owners of factor inputs?

1. A.Landlords
2. B.Government
3. C.Households
4. D.Firms

.......... is the appeal to facts, rather than reasoning and an attempt is made to arrive at conclusions from the known facts of actual life.

1. A.Deductive method
2. B.Economic method
3. C.scientific method
4. D.Inductive method

Crude oil is said to be scarce because............

1. A.OPEC will not sell all that it can
2. B.Oil is so expensive that we cannot afford to buy much of it
3. C.At any moment, there are more uses for oil than there is oil available for our use
4. D.both B and C

One of the following has been identified as a solution to inflation in an economy.

1. A.Reduction in production
2. B.Minimum wage legislation
3. C.Increased money supply
4. D.Maximum wage legislation

Increase in labour cost results to.....

1. A.Hyper inflation
2. B.Stagflation
3. C.Cost push inflation
4. D.Demand pull inflation.

A person is classified as unemployed when.......

1. A.he could no longer receive full salary
2. B.he is being paid half of his salary
3. C.he is unable to find the type of job he trained for
4. D.he has searched for job but could not be hired

Which of the following statements is not correct?

1. A.Inflation reduces the purchasing power of nominal income
2. B.Inflation increases the cost of living in an economy
3. C.Inflation acts just like a tax
4. D.Inflation improves the welfare of people in an economy.

In the circular flow of income chat of an open economy, items that enter and exit the economy are respectively.......

1. A.Receipts from exports and payments for imports
2. B.Payments for inputs and payments for output
3. C.Taxes paid to government and investment by firms
4. D.payment for goods and services and provision of social amenities..

Equilibrium level of income is...........

1. A.The maximum level of income the economy can produce
2. B.The level of income that fully employs the economy's resources
3. C.The level of income equalling the aggregate spending of the economy
4. D.The level of income that satisfies the preferences of all households in the economy

Private property rights and decentralized decision making are primary characteristics of which type of economy?

1. A.pure democratic economy
2. B.pure command economy
3. C.pure market economy
4. D.pure mixed Economy

The law of demand implies that .......

1. A.consumers do not respond to changes in the price of products
2. B.sellers will offer more of their products for sale at lower prices, ceteris paribus
3. C.consumers will buy more of a product at higher prices, ceteris paribus
4. D.consumers will buy less of a product at higher prices, ceteris paribus

Which of the following would NOT be true in a world without scarcity?

1. A.There would be no need for the science of economics
2. B.Everyone would have all the goods and services they wanted
3. C.There would have to be an infinite supply of every resource
4. D.There would be opportunity costs

In labour market, .........and .............perform the roles of buyers and sellers respectively.

1. A.Government and firms
2. B.Households and enterprises
3. C.Firms and Households
4. D.Households and government

Which of the following is not an economic good?

1. A.Economics text book
2. B.Today's newspaper
3. C.Sunlight
4. D.Irrigation water from a dam

Tracing out points of consumer equilibria when the income the consumer changes, ceteris paribus gives us the........

1. A.Income consumption curve
2. B.Price consumption curve
3. C.demand curve
4. D.Demand function

Which of the following will shift the demand curve for Bournvita to the right?

1. A.a rise in the price of Bournvita
2. B.a tax on cocoa product
3. C.a fall in price of Bournvita
4. D.an increase in income

When money supply increases in the economy, value of money......... and price.........respectively.

1. A.increases, increases
2. B.decreases, increases
3. C.both remain constant
4. D.falls, falls