UTME 2013 ECONOMICS QUESTIONS

1. Which question paper type of Economics 7. An increase in demand without a

is given to you? corresponding change in supply will lead
A. Type B to
B. Type I A. a decrease in equilibrium price and
C. Type B increase in equilibrium quantity
D. Type U B. an increase in equilibrium price
and quantity
2. An economy in which both the public and C. a decrease in equilibrium price
private sectors contribute to economic and quantity
growth is as D. an increase in equilibrium price and
A. feudal economy a decrease in equilibrium quantity
B. capitalist economy
C. socialist economy 8. An increase in the price of a commodity
D. mixed economy will result in
A. a decrease in the quantity demanded
3. If the standard deviation of a given B. an increase in demand
data is 53, what is the variance? C. an increase in quantity demanded
A. 2,082 D. a decrease in demand
B. 2,809
C. 2,808 9. If the price of a bicycle changes from
D. 2,209 N120 to N80 and quantity bought
changes from 300 to 500 units, the
4. Which of the following set of statistical elasticity of demand for bicycle is
tools is used for further economic A. 66.7
analysis? B. 0.5
A. the median and standard deviation C. 1.5
B. the mean and mode D. 2.0
C. the mean and standard deviation
D. the mode and median 10.

5. An advantage of the range as a measure

of dispersion is that it
A. can be used to calculate open-
ended distribution
B. make use of all values of
observations in a distribution
C. takes all values into consideration
D. is useful for further
statistical calculation

6. Find the median of the following set of

data 35, 10, 14, 38, 15, 18, 22, 30 and From the graph above, the price
28 elasticity of demand is
A. 10 A. unitarily elastic
B. 38 B. perfectly elastic
C. 35 C. perfectly inelastic
D. 22 D. fairly inelastic

11. One of the assumptions of the

cardinalist approach is
A. diminishing marginal rate of
substitution

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 B. the consistency and transitivity A. reduce the cost of production
of choice B. reduce the quantity supplied
C. that total utility depends on the quantity C. increase the quantity supplied
of the commodities consumed D. lead to no change in the quantity
D. unstable marginal utility of money supplied

12. Utility is the satisfaction derived from 17. The supply of beverages by firms in a
the monopolistic market is an example of
A. distribution of goods and services A. derived demand
B. use of goods and services B. competitive supply
C. demand of goods and services C. composite supply
D. production of goods and services D. joint demand

13. 18. If the price of a commodity is fixed

below equilibrium, this will lead to
A. excess demand
B. a decrease in price
C. an increase in price
D. excess supply

19. One of the criticisms of the price

mechanism is that
A. producers are sovereign
B. it provides low degree of freedom
C. it widens the inequitable gap
D. consumers are sovereign

20. In Nigeria, government can reduce the

From the indifference curve above,
cost of accommodation by fixing rent
consumer will prefer combination
A. at the prevailing rate
A. F
B. at the equilibrium price
B. S
C. above the equilibrium price
C. M
D. below the equilibrium price
D. K
21. If a refinery achieves a reduction in cost
14. One of the major factors that
by purchasing and transporting crude oil
brings about changes in supply is
in large quantities, it enjoys
A. market discrimination
A. economies of scale
B. availability of storage facilities
B. specialization
C. the cost of storage
C. division of labour
D. incentives granted to workers
D. diseconomies of scale
15. If P = 14 (Qs + 10). What is the quantity
22. An isoquant lying above to the right of
supplied at N14?
another represents
A. 14
A. a higher output level
B. 60
B. constant returns to scale
C. 46
C. over-capacity utilization
D. 32
D. a lower output level
16. If the supply of a product is elastic, a
23.
small reduction in price will

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 26. A measure of national income used as
comparison of standard of living among
nations is
A. net national product
B. gross domestic product
C. gross national product
D. per capita income

27. The speculative demand for money is

inversely related to the
A. interest rate
B. level of income
From the graph above, R represents C. exchange rate
A. marginal cost D. inflation rate
B. total cost
C. variable cost 28. If Mr. K obtains a N50.000 loan from a
D. fixed cost bank for the purpose of providing
household needs, the demand for money
Use the graph below to answer is said to be
question 24 and 25 A. transactionary
B. speculative
C. precautionary and speculative
D. transactional and speculative

29. Which of the following is used by

the Central Bank of Nigeria to control
inflation?
A. Tariff on imports
B. Tax rate
C. Exchange rate
D. Discount rate

30. If CBN reduces money supply, the

interest rate will
24. The optimum level of output of the firm A. fluctuate
is B. rise
A. BC C. fall
B. OB D. remain unchanged
C. OS
D. BS 31. An example of an expansionary fiscal
policy action is
25. The total revenue of the firm is A. decrease in the corporate profit
represented by tax rates
A. GHEF B. decrease in welfare payments
B. GHJC C. purchase of government securities
C. EFJC D. decrease in the bank rate
D. GHOB
32. A tax on land will ultimately fall
A. partly on agents and users
B. entirely on users
C. entirely on owners

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 D. partly on users and owners
39. Government participation in the oil
33. One of the goals of development plans
industry was necessitated by the
in Nigeria is to
A. annual increase in production
A. increase the profitability of
B. formation of OPEC
multinational businesses
C. high demand for crude oil
B. improve the country's GDP
D. huge investment outlay
C. achieve higher standard of living
for the citizens
40. The deregulation of the petroleum
D. deregulate the economy
sector in Nigeria will bring about
A. efficiency in pricing and distribution
34. Life insurance companies contribute to
of the products
economic development by holding a part
B. an end to the importation of fuel
of their assets in
C. an end to foreign firms' dominance
A. long-term financial instruments
D. fixing appropriate production quotas
B. money market instruments
C. cash and near money
41. A distinguishing characteristic of
D. short-term financial instruments
consumer co-operative society is that
the
35. In order to add value to Nigeria
A. the maximum number of shareholders
agricultural produce, there is need to
is 20
A. cultivate high breed crops
B. members are the owners
B. process them into finished goods
C. members are the workers
C. adopt modern storage methods
D. the minimum number of shareholders
D. advertise them in European markets
is 5
36. The main reason for low agricultural
42. A major disadvantage of partnership
produce in west Africa is need to
business is
A. the presence of large-scale agro-
A. difficulty in the transfer of shares
allied industries
B. distrust among members
B. high dependency ratio
C. limited liability
C. over dependence on agriculture
D. large capital outlay
for subsistence
D. the use of crude implements in
43. The quality of labour force in Nigeria can
farming process
be improved by
A. establishing more tertiary institutions
37. The most important determinant for the
B. creating sufficient job opportunities
location of a brick industry is the
C. encouraging the study of science and
availability of
technology
A. market
D. establishing more skills
B. power supply
acquisition centres
C. water
D. raw materials
44. The effect of emigration on a
country's population is
38. In Nigeria, efficiency in public
A. decrease in the population
corporations can be achieved through
B. decrease in job opportunities
A. public offer
C. increase in population
B. indigenization
D. increase in dependency ratio
C. privatization
D. nationalization
45. A measure for preventing the external
value of the naira from falling is for the
government to

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 A. increase its spending with foreign
Reserve
B. sell its own currency
C. reduce interest rate
D. buy its currency with foreign reserve

46. A fiscal policy instrument that can

influence the demand pattern in an
economy is
A. government spending
B. interest rate
C. income tax
D. tariff

47. One of the main achievements of the

Economic Commission for Africa is
A. eliminating trade restrictions among
States
B. encouraging transport and
communication development
C. guaranteeing a steady flow of foreign
investment into Africa
D. providing the machinery for
collaboration on monetary issues

48. The rate of interest change on loans

depends largely on
A. the prevailing exchange rate
B. marginal efficiency of capital
C. the risk associated with the loan
D. the prevailing tax rate

49. A valid explanation for real wage growth

Is
A. an increase in the rate of productivity
B. the rising cost of capital accumulation
C. a contraction of employment in service
industries
D. an increase in the quantity of labour

50. If Mr. X lost his clerical job at a store

and searched for a similar job for ten
months before finding one this implies
that Mr. X was
A. structurally unemployed
B. frictionally unemployed
C. seasonally unemployed
D. cyclically unemployed

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