NDA PAST QUESTIONS ON ECONOMICS 2010

1. A non-specific factor of production is: 7. The theoretical basis for international trade
A. machine is the principle of
B. factory building A. Comparative advantage
C. unskilled labour B. different currencies
D. farmland C. international co-operation
D. exchange between countries
2. Which of the following is another expression
for opportunity cost? 8. Which of the following, is not an objective of
A. money cost the African Development Bank (ADB)
B. real cost A. promotion of private and public investment
C. artificial cost in member states.
D. None of the above B. financially viable projects in member
countries.
3. Which of the following definition of C. provision of technical assistance needed for
Economies is the most generally accepted? the execution of development projects
A. science that deals with the production D. encourage member countries to revolt
B. science that deals with distribution against former colonial masters.
C. science that studies mankind
D. science which studies human behaviour as a 9. One of the following is the correct
relationship between ends and scares means characterization of the advanced market
which have alternative uses. capitalist economy
A. proper distribution of income.
4. Factors of Production are said to be specified B. a greater standard by the generality of the
when. citizens
A. they can be put to all in product production C. it is not rolled to economic uncertainties and
B. they can be put to only one use in political upheavals
production D. the rich getting richer and the poor getting
C. they are used to analyse cost effect poorer
D. None of the above
10. The other appropriate name for the Third
5. Total product refers to: World Nations is
A. The total amount of goods produced over a A. Nigeria
period of time by factors of production B. Bangladesh
B. The total amount of goods produced over a C. Underdeveloped
period of time by a non-specific factor of D. India
production
C. The total amount of food produced over a 11. Which of the following is leakage out of a
period of time by a specific factor of production circular flow:
D. None of the above. A. saving
B. investment
6. One of the aims of Economic Community of C. consumption
West African States (ECOWAS) is the D. expenditure
A. Liberalisation of trade among member
states. 12. Which of the following is rot gain from
B. Establishment of its headquarters in each of petroleum in the Nigerian economy:
the member states. A. rural-urban migration
C. Discouragement of trade among member B. creation of employment
countries C. source of foreign exchange
D. The takeover of business in member states. D. source of energy
13. development plan covering a period of A. 5% increase in both birth and death rate
fifteen years is: B. 5% increase in death rate with a 4%
A. perspective plan increase in birth rate.
B. short term plan C. 10% decrease in both birth and death rate
C. medium-term plan D. 4% increase in death rate with a 5%
D. combined plan increase in birth rate.

14. A foreign exchange market where there is 20. Which of the following will you recommend
the official operating side by side with The to a country facing inflation
autonomous market is called: A. surplus budgeting
A. the second tier B. deficit budgeting
B. co-operation C. rise in interest rate
C. foreign exchange market D. reduction in income tax
D. foreign exchange currency
21. To facilitate the exportation of crude oil
15. The theoretical basis for international trade from Nigeria, special
is: A. roads were built to connect the major oil
A. international co-operation wells to the port
B. exchange between countries B. pipelines were laid to connect the major oil
C. absolute advantage wells to the ports
D. comparative advantage C. railway lines were constructed to connect
the major oil wells to the ports
16. Which of the following is not a D. airstrips were constructed for jets to
characteristic of good money evacuate the oil
A. divisibility
B. inflation 22. In order to accelerate economic
C. portability development, a country must
D. durability A. pursue a rational population policy
B. pursue an incremental population policy
17. Trade by barter means C. stimulate her population growth rate
A. borrowing money from CBN D. pursue a high population growth rate
B. selling on credit
C. exchange of goods for other goods 23. The reduction of high fertility rate is a
D. None of the above measure in population control designed to
make the
18. Factor militating against improved A. female population higher than the male
agriculture in Nigeria are; B. male population higher than the female
A. land tenure C. female and male population equal
B. lack of proper storage Facilities D. growth in population more sustainable
C. A and B above
D. None of the above 24. The efficiency of labour can be increased
by:
19. Which of these will cause the population to A. placing an embargo on recruitment
increase B. constant training of workers

2
C. retirement of workers on a regular tic D. its value is unstable
D. engaging expatriate only
31. Which of the following is the major function
15. if the labour force in a given community is of the wholesaler?
2,000000, the wage employment 200,000 and A. Bulk breaking
the unemployed are 80,000. what is the B. Provision of useful information to the
unemployment rate in the community? manufacturer on products
A. 40.0% C. Provision of after-sales service to consumers
B. 10.0% D. Provision of warehousing facility.
C. 4.0%
D. 0.4% 32. In the distribution channels for goods and
services, the middleman's mark-up margin
26. The price paid for labour services is the provides a rough measure for the
A. income rate A. quantity discounts allowed final consumers
B. salary rate B. reward for business entrepreneurship
C. wage rate C. effectiveness of government control over the
D. commission rate economy's marketing channels
D. extend of exploitation of the final consumer
27. The distribution channel that contributes
mom to the cost production is 33. Which of the Following reasons could
A. producer-wholesaler-retailer-consumer induce a manufacturer to bypass the
B. producer-retailer-wholesaler-consumer wholesaler in the distribution chairs
C. producer-retailer-consumer A. To provide the quantity needed by retailers
D. producer-wholesaler-consumer B. To collect useful information on his product
C. To provide warehousing facilities
28. GNP not a good measure of social welfare D. To violate government regulation on
because there are unrecorded distribution
A. government
B. transfer payments 34. A major difference between a state-owned
C. indirect taxes enterprise and a private enterprise is that the
D. social costs former
A. is not expected to cover its costs of
29. in national income accounting, NNP is production while the latter is
derived by subtracting from the GNP. B. is not always expected to maximize profits
A. indirect taxes while the latter is
B. capital consumption C. has shareholders while the latter does not
C. transfer payments D. has a board of directors while the latter does
D. allowance for wastage not

30. Money may not be accepted as a store of 35. The divorce of ownership from control is a
value if characteristic of
A. its value is stable A. sole proprietorship
B. it is easily divisible B. a limited liability company
C. it is easily transferable C. partnership

3
D. a private limited company ANSWERS:

36. Capital provided by individuals to the firm 1. C

by purchasing stocks is called 2. B
A. debt capital 3. D
B. fixed capital 4. A
C. circulating capital 5. A
D. equity capital 6. A
7. A
37. Which of the following factors is the most 8. D
important in siting a petrochemical plant? 9. B
A. Nearness to the source of raw materials 10. C
B. Nearness to the source or power 11. A
C. Availability of labour 12. A
D. Proximity to financial institutions 13. A
14. A
38. Which of the following will be the effect of 15. D
allowing only economic factors to dictate the 16. B
location of industries in Nigeria? 17. C
18. C
A. A more even development of the different 19. D
parts Of the country will be assured 20. C
B. There will be an unbalanced spread in the 21. C
distribution of industries 22. A
C. The less developed parts of the country will 23. D
be able to attract more industries 24. B
D. Only the government will be able to finance 25. C
the establishment of industries 26. C
27. A
39. If the same basket of goods which cost 28. B
₦12.90 in 1985 cost ₦15.00 in 1987, the price 29. B
index for 1987 is 30. D
A. 25 31. A
B. 80 32. B
C. 10 33. B
D. 125 34. B
35. B
40. Which of the following is likely to be 36. D
inflationary? 37. A
A. Tax increase 38. B
B. Increase in unemployment 39. B
C. Budget surplus 40. D
D. Wages increase

4
 NDA PAST QUESTIONS ON ECONOMICS 2011
1. Mean. median, mode, variance and standard A. A rate of exchange
variation belong to the domain of: B. A medium of exchange
A. Inferential statistics C. The cost of production
B. Random sampling statistics D. The unit of Account
C. Descriptive statistics
D. Variance of grouped data 8. Elasticity of demand can be defined as:
A. An increase in demand as a result of a
2. The importance of Bar Chart in statistics is proportionate fall in price
that: B. An increase in demand due to a small fall in
A. It makes comparison of events very dear price
B. it is too easy to construct C. An increase in demand due to an increase in
C. It is used to represent a distribution that has supply
so many frequencies D. An increase in demand due to a decrease in
D. It is used to show various segments of a supply
component bar chart
9. The equilibrium market price is determined
3. The formula for obtaining the median of a at a point where:
distribution is: A. Both what are supplied and demanded are
n
A. Md = L – (nb − )i equal
2
nw B. The price is moderate
B. Md = L ± (
n
nb )i C. Sellers can sell all their commodities
2−
nw
D. Consumers can buy all they desire
𝐸𝑑2 Full equilibrium requires that:
C.
N−1 A. MR = MC
D. L = MD ( n
2 − nb )i B. TR > TC
nw C. MC = MR and AC — AR
D. MR = MC = AR = AC
d
4. In the formula? N N stands for:
10.
A. The number of occurrences 11. The history of development planning in
B. The number of frequencies Nigeria started
C. The summation of the frequencies A. 1960
D. The summation of occurrences B. 1962
C. 1970
5. In economics, the concept of utility means: D. 1968
A. The monetary value of the goods we
consume 12. The Structural Adjustment Programme was
B. The total value of all the goods and services aimed at:
consumed A. Encouraging capital flight
C. The amount of satisfaction we derive from B. Discouraging capital inflow
the consumption of goods and services C. Getting a realistic value of the Naira
D. The utilization of goods and services. D. Encouraging

6. The concept of utility is highly emphasized in 13. if supply and demand established a price
the theory of: fern good such that there is no shortage or
A. Demand surplus of good then price is successfully
B. Production performing its functions.
C. Demand and supply together A. Constant
D. Distribution. B. Non price
C. Rationing
7. Price can be defined as: D. Probability
 B. The producer uses more land than capital
14. To assure that the no price determinant C. The producer uses more capital than land
demand and supply do not employ the D. The producer uses more machines than
assumption human labour
A. Demand and supply
B. Equilibrium price 20. A system which allows cultivation of crops
C. Constant supply as well as raising of livestock is known as
D. Other things being equal A. Pastoral
B. Mixed grazing.
15. The basic determinant of the level of C. Mixed cropping
employment and output and of sale price level D. Mixed farming
is the volume or level of in the
A. Total spending. 21. If quantity demanded exceeds quantity
B. Surplus money supplied, price is than the equilibrium
C. Circulation price
D. None of the above A. Less
B. Constant
16. The primary measure of National Output of C. Equal
goods and services during a given period of D. indicate
time is
A. Great depression 22. When demand is graphed, price is placed
B. Comparison on axis and quantity on the axis
C. The gross national product A. Indirect, direct
D. Gross Domestic Product B. Vertical, horizontal
C. Quantity, demanded
17. Giving two factors of production, X and Y, D. Product, decrease
and "X-saving" technological change
refers to the case where the new Y/X ratio 23. The Principal national macro-economic
A. Negative goals include the following:
B. Less than the original A. National goods and priorities
C. Equal to the original B. Full employment of the nation's productive
D. Greater than the original inputs
C. Acceptable levels of economics growth
18. An increase in consumer spending leads to D. Maximum levels of economic stability
a proportionally larger increase in capital
expenditure 24. Which of the following is a variable that
A. Multiplier cause the demand curve to
B. Deflation A. demand and supply
C. Accelerator B. quantity supplied
D. Inflation C. prices substitute goods
D. marginal cost
19. Production is said to be capital intensive
when:
A. The producer uses on capital

2
25. Two commodities are considered to be Year 1 Year 2
perfect substitutes for each other if the GNP at current prices (Nm) 20,000 27,000
elasticity of substitution is Population (million) 20 24
A. infinite 31. What is the percentage increase in GNP
B. positive between year 1 and year 2?
C. negative A. 3.5%
D. zero B. 14.0%
C. 20.0%
26. The total of all income payment which land, D. 35.0%
labour and capital as well as entrepreneurs
receive in a year is known as 32. Calculate the GNP per head or the
A. Gross National Product population in year 1 and year 2
B. Net National Product A. ₦2,000.00; ₦1,000.00
C. National income B. ₦1,125.00; ₦2,000.00
D. None of the above C. ₦1,000.00; ₦2,000,00
D. ₦1,000.00; ₦1,125.00
27. Labour productivity is defined as;
A. total level of output 33. In national income accounting, aggregate
B. average output saving in any year is defined as
C. output per man/hour A. all disposable income not spent on
D. marginal output of labour consumption
B. all savings deposits in all banks during the
28. A marketing board is: year
A. Joint Stock Company C. all savings and time deposits in all banks
B. Public Corporation during the year
C. Cooperative Society D. the value of inventory change for the year
D. Private Limited Liability Company
34. Which of the following combinations is a
29. All but one are barriers to international veritable set of development indicators?
Trade A. Growth of government expenditure arid
A. Chocking at country's borders imports
B. Differences in currency B. Growth of population and national income
C. Geographical barriers C. High: fertility, literacy and school enrolment
D. High standard of living rate.
D. Low infant mortality and high per capital
30. All but one are advantages of monopoly; income, and literacy rates.
A. Planned production
B. Reduction in waste of output 35. If an economy grows at an annual rate of
C. Efficiency in production 5% of which 3% is deemed to be due to
D. Eliminates wasteful competition improvement in the productivity of labour and
capital combined, the remaining 2% is
Use the information below to answer generally attributed to
questions 31 and 32 A. the size of the population
B. technical progress

3
C. the environment foreign currency, the amount paid should be
D. the amount of natural resources recorded in Nigeria’s balance of payments as
an item of
36. If a country has a balance of payment A. Nigeria's invisible export trade
crises, which of the following measures can B. Nigeria's import trade
best bring about an improvement in the short C. Nigeria's visible to
run? D. foreign capital inflow into Nigeria
A. Large scale importation of foreign goods
B. Investment in capital market abroad 39. The Nigerian Trust Fund is managed on
C. Large-scale export of locally made goods behalf of Nigeria by the
D. Repayment of debt to her creditors A. World Bank
B. International Monetary Fund
37. The terms of trade of a country is defined C. African Development Bank
as D. Economic Commission for Africa
index of import prices
A. index of export prices x 100
40. One of the gains by member states of the
index of exportable Economic community of West African States is
B. index of importable x 100
A. monocultural dependency
index of visible imports x 100 B. trade creation
C.
index of visible exports C. trade inversion
D. index of export prices D. economic independency
index of import prices x 100
ANSWERS:
38. When a foreigner on a visit to Nigeria pays
for hotel accommodation and meals with some
1. C 15.A 29.D
2. B 16.D 30.D
3. B 17.D 31.D
4. A 18.A 32.D
5. C 19.D 33.A
6. A 20.D 34.B
7. A 21.A 35.B
8. B 22.B 36.C
9. A 23.A 37.D
10.D 24.C 38.A
11.B 25.B 39.C
12.C 26.C 40.B
13.C 27.C
14.B 28.C

4
 NDA PAST QUESTIONS ON ECONOMICS 2012
Use the table below to answer Questions
1. Economics can he be defined as: 6, 7 and 8.
A. reduction in spending in the face of
competing alternatives
B. allocation of resources to alternatives uses
C. economic behaviour of small units like the
household and the firm
D. the study of economic aggregate, like
inflation and national income
6. The marginal product X is:
2. I. What and how much will be produced? A. 18
II. Flow will it be produced? B. 20
III. For whom will it be produced? C. 24
IV. Flow much will be exported and consumed? D. 25
From the above, identify the combination of
basic resource allocation questions in economic 7. The total product Z is:
analysis. A. 73
A. I, II and III B. 75
B. I, II and IV C. 45
C. I, III and IV D. 118
D. II, III and IV
8. The average product Y is:
3. In a capitalist economy, the economic A. 8.0
problem of what goods to produce is decided B. 12.0
mainly C. 14.6
by: D. 15.5
A. shadow prices
B. profit level 9. A country exporting mainly primary products
C. relative prices and with a high percentage of her labour force
D. a central planner in agriculture is said to be:
A. developing
4. When a commodity .X sold for ₦25 per unit, B. developed
50 units of the commodity were purchased. C. poor
With an increase in the price of commodity X to D. underdeveloped
₦50 per unit, the demand for commodity Y fell
to 20 units, The two commodities can be 10. Being a member of the OPEC, Nigeria is in
classified as: a favourable position to:
A. substitutes A. export her crude oil
B. durable and non-durable B. control world crude a price
C. intermediate and final C. reap the benefit of a cartel
D. complements D. borrow money from members

5. In a free market system, trading can only 11. When a generalization is made based on
take place when the market is not working observed facts. It is known as
efficiently. Equilibrium price find quantity under A. deductive reasoning
perfect competition is: B. inductive reasoning
I. MC=AR=TR C. theoretical reasoning
II. TC = AR =P D. normative reasoning
III. MC=AR=P
IV. MC =.AR =TC 12. A vertical supply curve indicates that
A. the quantity supplied is responsive to price
B. the same fixed quantity will be supplied no
matter the price
C. an increase in price will result in on increase A. it allows free movement of factors of
in the quantity supplied production
D. there is a fixed price for the commodity B. it makes possible the use of the capital-
below which no supply will be made intensive method of production
C. nations are substantially different in their
13. A firm's shut-down point is reached when endowments of economic resources
the average revenue fails to cover the . D. it affords the trading nations the
A. average variable cot opportunity' to earn high profit
B. marginal cost
C. average total cost 20. National income estimates can be used to
D. average fixed cost .
A. differentiate between the rich and the poor
14. The long run is a period during which a firm in a country
. B. prepare a country's annual budget
A. sells input to purchase fixed assets C. project the level of a country's economic
B. varies all its inputs development
C. sources all its inputs from within D. compare a country growth rate with that of
D. replaces all its inputs another over a period of time

15. An important feature of perfect competition 21. Import substitution aims at .

is that . A. substituting agricultural products with
A. the movement of goods and services is industrial ones
restricted B. substituting imports with agricultural exports
B. there is adequate information on the C. devalue the currency
existing prices D. de-emphasize import-substitution industries.
C. prices are centrally administered
D. individual economic units can influence 22. ECOWAS has taken a giant step towards
prices economic integration by .
A. presenting a united front against foreign
16. A tax that increases at a higher percentage economic exploiters
as income increases is called . B. introducing common currency for travellers
A. a proportional tax C. holding frequent meetings at various state
B. a regressive tax capitals.
C. a progressive tax D. increasing economic stability among
D. an income tax member states

17. Economic growth can be accelerated 23. The types, sources and uses of government
through . income are mainly concerned with .
A. balancing of savings and consumption A. public expenditure
B. postponement of current consumption B. public revenue
C. planned current consumption C. public budget
D. increased current consumption D. public finance

18. National debt is an expected outcome of 24. One of the problems arising from the
. localization of industries is .
A. deficit budget A. high prices of output
B. consolidated budget B. the exportation of output
C. balanced budget C. the scarcity of foreign exchange
D. surplus budget D. structural unemployment

19. The major reason why nations engage in 25. The major purpose of the African
international trade is that . Development Bank is to .
2
A. provide loans for trade development A. lack of fertilizer
B. provide loans for infrastructural B. lack of high-yielding seeds
development C. lack of sufficient farmland
C. provide loans for development bank in D. lack of extension services
distress
D. educate peasant farmers in new techniques 33. All the following but one factor affects the
location of industry
26. Which of the following is not characteristic A. nearness to raw material
of good money? B. availability of foreign exchange
A. divisibility C. availability of infrastructure
B. inflation D. nearness to market
C. portability
D. durability 34. The indifference curve indicates:
A. the locus of the consumer's utility of given
27. Trade by barter means: two goods consumed
A. borrowing money from CBN _ B. level of production where the firms are
B. selling on credit indifferent
C. exchange of goods for others goods C. curves of equal demand
D. none of the above D. points of equal demand

28. Factors militating against improved 35. A seller of goods whose demand is elastic
agriculture in Nigeria are: will increase his revenue if .
A. land tenure A. he reduces the prices
B. lack of proper facilities B. he increases the price
C. A and B above C. he increases his output
D. None of the above D. he gives a discount

29. Which of these will cause the population to 36. Liquidation of a limited liability company
increase? implies that the .
A. 5% increase in both birth and death rate A. company may not pay its debt
B. 5% increase in death rate and a 4% B. debts of the company can only be paid from
increase in birth rate its own assets
C. 10% increase in both birth and death rate C. debts of the company are paid from both
D. 4% increase in death rate with a 5% business and private funds of the owners
increase in birth rate D. debts of the company must be paid from
public funds only
30. Which of the following will you recommend
to a country facing inflation'? 37. One form of business organization which is
A. surplus budgeting not motivated solely by profit objective is the
B. deficit budgeting A. joint stock company
C. rise in interest rate B. private limited company
D. reduction in income tax C. cooperative society
D. ordinary partnership
31. The technical name for the idleness of
labour is 38. Which of the following can have their
A. unemployment shares quoted on the stock exchange?
B. mobility of labour A. public corporations
C. efficiency of labour B. A partnership
D. All of the above C. A consumer co-operative
D. A public limited liability company
31. The following are reasons for low
agricultural yield in Nigeria except
3
19. The sector that employs the largest 35. C
proportion of the active labour force in Nigeria 36. B
is the 37. C
A. oil sector 38. D
B. federal civil service 39. D
C. financial sector 40. A
D. agricultural sector

40. An entirely domestic effort (firmed at

improving agricultural production in Nigeria is
the .
A. Agricultural Development Programme
B. Agro-Industrial Development Scheme
C. Food and Agricultural Organization
D. National Land Development Authority

ANSWERS:

1. B
2. A
3. B
4. D
5. C
6. C
7. A
8. D
9. A
10. C
11. A
12. B
13. C
14. B
15. B
16. C
17. C
18. A
19. C
20. D
21. B
22. D
23. D
24. D
25. B
26. B
27. C
28. C
29. D
30. C
31. A
32. C
33. B
34. A
4
 NDA PAST QUESTIONS ON ECONOMICS 2013
1. Economics is a science which deals with Use the diagram below to answer Questions 7
. and 8.
A. the factors or production
B. oil exploration
C. allocation of scarce resources
D. the gross. domestic product (GDP)

2. An effective way to controlling inflation in a

mixed economy is to .
A. increase productivity
B. reduce income tax
C. ration available output 7. The average total cost when 20 units are
D. increase imports produced is .
A. ₦20.00
3. Demand patterns are determined by the B. ₦23.00
market on the basis of . C. ₦13.00
A. scale of preference D. ₦15.00
B. consumer sovereignty
C. consumer rationality 8. A country achieves economic development
D. price of the commodity when there is .
A. an increase in military expenditure
4. If the demand for one commodity excludes B. an increase in capacity utilization
another, it is said to be . C. a sustained increase in per capita income
A. complementary D. an even distribution of goods and services
B. competitive demand
C. composite demand 9. The transfer of public shareholding, in
D. derived demand corporations to private enterprises is .
A. concession
5. When 20 units of output are produced, TC B. incorporation
will be . C. commercialization
A. ₦360 D. privatization
B. ₦300
C. ₦460 Given the demand and supply equations Qd =
D. ₦400 120,000 - 20,000P
and Qs = 20,000P,
Price (₦) Qty Answer Questions 10 and 11.
(bags)
1 60 10. What is the equilibrium price?
2 120 A. 3
From the table above, the price elasticity of B. 4
supply is . C. 6
A. 4 D. 8
B. 25
C. 1 11. What is the equilibrium quantity?
D. 2 A. 60,000
B. 40,000
C. 80,000 D. all of the above
D. 45,000
18. An economic system in which means of
12. The middlemen in the chain of distribution production belong to private
are individuals is known as .
A. retailers and consumers A. Communism
B. manufacturer and consumer B. Mixed economic system
C. wholesalers and retailers C. The capitalist mode of production
D. consumer and wholesalers D. Central planning system

13. The Central Bank of Nigeria creates liquidity 19. The elasticity of supply shows the
in the economy through responsiveness of .
A. Exchange control A. supply to demand
B. Demand and savings B. demand to supply
C. Monetary policy C. supply to changes in price
D. Fiscal policy D. demand to changes in price

14. When government revenue in a fiscal year is 20. The sized labour force of a country depends
less than its expenditure, we have a . on but one of the following factors
A. financial statement A. official employment age
B. balanced budget B. the pursuit of higher education
C. deficit budget C. proportion of men not willing to work
D. surplus budget D. age composite of population

15. if the growth rate of available resources 21. Suppose 201l is given as the base and the
continuously outpaces that of the population a national income for 2012 is 3600,000
country will experience . and the index number for 2011 is 3200.
A. under population Calculate the real income for 2012.
B. optimum population A. 3300000
C. maximum population B. 230(1000
D. over population C. 4300,000
D. 6400.000
16. The equilibrium wage rate in an economy is
determined by the . 22. NEPAD means .
A. workers' union A. Nigerian European Partnership for Africa's
B. supply and demand for labour Development
C. rate of inflation B. New Partnership for Advancement of
D. efficiency of labour Democracy
C. New Partnership for Africa's Democracy
17. Composite demand refers to . D. New Partnership for Africa's Development
A. some commodities that serve two or more
purposes 23. The account that shows the actual transfer of
B. products which have no clear relationship money from one country to the
with one another other is called .
C. commodities which are consumed jointly A. Capital account
2
B. Foreign account C. total productivity of labour in rural areas
C. Foreign exchange account D. marginal productivity of labour in rural areas
D. Domiciliary account
30. Money becomes a very poor store of value in
24. For an inferior good, a decrease in income the period of .
will lead to . A. deflation
A. a lower equilibrium price B. stable price
B. a change in the quantity demanded C. recession
C. an outward shift of the demand curve D. inflation
D. an inward shift of the demand curve
31. One of the effects of an increased minimum
25. Statutory organizations usually established wage in Nigeria is .
by acts of parliament are called . A. to create voluntary unemployment
A. public corporations B. to decrease the wage rate
B. cooperative societies C. to increase the level of unemployment
C. joint stock companies D. to create involuntary unemployment
D. public enterprises
32. In a capitalist economy. the economic
26. Taxes and government expenditure are problem of what goods to Produce is divided
instruments of . mainly by:
A. tax policy A. shadow prices
B. economic policy B. relative prices
C. monetary policy C. profit level
D. fiscal policy D. a central planner

27. Farmers' income may fall if they produce 33. National debt is an expected outcome of
more cash crops for export because . .
A. foreign demand is inelastic A. consolidated budget
B. of domestic currency depreciation B. deficit budget
C. the price of the crops will rise C. balanced budget
D. of export duties D. surplus budget

28. A firm with a marginal cost equals its 34. One way of correcting the balance of
marginal revenue will produce the equilibrium payments problem of a country is to
output of A. introduce import — promotion measures
A. pure competition only B. buy investments abroad
B. pure monopoly only C. devalue the currency
C. monopolistic competition only D. de-emphasize import - substitution industries
D. any type of market
35. The theory of comparative advantage states
29. The migration of young people from rural to that a commodity should be produced
urban areas in Nigeria should help to raise the in that nation where the
. A. absolute money cost is least
A. standard of living in urban areas B. absolute cost is least
B. marginal productivity of labour in urban areas C. production possibility curve increases
3
D. opportunity cost is least 7. D
8. C
36. An 'adverse environmental impact of the 9. D
petroleum industry on the economy is 10. A
A. oil spillage 11. A
B. the vandalization of oil equipment 12. C
C. communal riots 13. C
D. community development 14. C
15. B
37. When importation of a commodity is limited 16. B
to a definite quantity, the trade 17. A
control means used is known a . 18. C
A. quota 19. C
B. tax relief 20. C
C. devaluation 21. A
D. exchange control 22. D
23. A
38. A discount house is a market where . 24. B
A. various bills are exchanged 25. D
B. short-term and medium-term loans are 26. D
obtained 27. B
C. shares are bought and sold 28. D
D. short-term loans are obtained 29. B
30. C
39. Economic growth is different from economic 31. D
development because economic growth . 32. A
A. describes expansion and change 33. B
B. is measurable but not objective 34. C
C. describes expansion and not change 35. B
D. is not measurable but objective 36. A
37. A
40. In economics, the concept of utility means: 38. A
A. the monetary value of the goods we consume 39. B
B. the total value of all the goods and services 40. C
consumed
C. the amount of satisfaction we derive from the
consumption of goods and services
D. the utilization of goods and services

1. C
2. A
3. B
4. B
5. B
6. C
4
 NDA PAST QUESTIONS ON ECONOMICS 2014
1. The study of Economics becomes necessary 8. A nation with a working population that is
because of sufficient to exploit its resources is said to be
A. utility derived from a commodity having
B. needs to draw up a scale of preference A. optimum population
C. opportunity cost of goods and services B. underpopulation
D. scarcity of resources C. overpopulation
D. occupational population
2. Moses bought a pair of shoes instead of a
face cap. His real cost therefore is 9. If the fixed cost is ₦600.00, variable cost is
A. the shoes N400.00 and total output is 100. What is the
B. the face cap average cost?
C. the price of face cap A. ₦10.00
D. the price of shoes B. ₦I1.00
C. ₦20.00
3. Resources are scarce in relations to D. ₦12.00
A. choice
B. the demand for them 10. In a centrally planned economy, the
C. limited wants economic problem of deciding what to produce
D. their scale of preference is dependent on
A. private enterprise
4. Which of these is a measure of central B. state command
tendency? C. relative prices
A. mode D. input cost
B. variance
C. standard deviation 11.
D mean deviation Quality of Goods Total Revenue from
sold Goods sold
5. Production cost such as rent, depreciation 43 ₦228.00
and interest are referred to as 34 ₦233.00
A. total cost 45 ₦238.00
B. average cost
C. marginal cost The firm whose sales and total revenue of the
D. fixed cost goods sold as given above is
A. a monopolist
6. The satisfaction derived by an individual B. a monopolistic competition
from consuming one additional unit of a C. a perfect competition
commodity is known as D. an oligopolist
A. marginal utility
B. marginal output 12. At a point where marginal revenue of a
C. diminishing utility monopolist is equal to zero, its total revenue
D. increasing utility will be
A. falling
7. If a factory worker performs only one small B. rising
operation many times during each working day, C. equal to zero
it may lead to D. maximum
A. division of labour
B. monotony of the work 13. A distinguishing characteristics of
C. increase production cooperative societies is that voting power
D. loss of working hours depends on the
A. number of shares held
B. status of the members
C. equality of members 20. GNP is not a good measure of social
D. management's decisions welfare because there are unrecorded
A. indirect tax
14. The concept of privatization presupposes B. social costs
A. efficiency C. government subsidies
B. market price D. transfer payments
C. indigenization
D. foreign trade 21. Statistics is used in economics to interpret
A. Geometric events
15. A capital market differs from the money B. Economic events
market in that the former C. Harmonic events
A. loan sought is short term D. Algebraic events
B. loan repayment is guaranteed
C. loan sought is long term 22. A budget where current receipts are less
D. the percentage of interest charged is more than current expenditures is called?
A. Balanced budget
16. An aspect of taxation that involves B. Unbalanced budget
normative economics is the C. Deficit budget
A. tax rate D. Surplus budget
B. effect on incentive to work
C. fairness of the tax 23. The market form in which there is only one
D. tax burden producer is called
A. unfair competition
17. Public debt is composed of B. Monopoly
A. internal debts and World Bank loans C. Oligopoly
B. money owed to local and foreign contractor D. imperfect competition
C. internal and external debts
D. loans granted by IMF and ADB 24. One of the reasons why the barter system
was abandoned was because
18. A country's import price index by 1995 was A. of double coincidence of wants
50 and her index of export prices was 70. B. it was too simple
Calculate the terms of trade. C. it was not reasonable
A. 20 % D. all of the above
B. 71 %
C. 140 % 25. Inflation can be defined as:
D. 120 % A. When the economy becomes inflated
B. A persistent rise in the general price level
19. In order to accelerate economic over time
development, a country must C. When there is too much money in
A. stimulate her population growth rate circulation
B. pursue a high population growth rate D. When there is shortage of goods
C. Pursue a rational population policy
D. pursue an incremental population policy 26. When a generalization is made based on
observed facts, it is known as

2
A. theoretical reasoning
B. normative reasoning
C. deductive reasoning
D. inductive reasoning

27. If the price elasticity of demand for a good

is 0.43, an increase in the price of the good will
result in
A. a net gain
B. a decrease in profit by 43%
C. a net loss 31. The firm portrayed is selling in
D. an increase in profit by 43% A. a purely competitive market
B. a market in which demand elastic at all
28. In a free market economy, the price prices
system allocates resources C. an imperfectly competitive market
A. to their best alternative uses D. a market in which companies produce
B. to ensure general welfare homogeneous commodities
C. under government's directive
D. to reduce poverty 32. Demand is relatively inelastic
A. at P2 range
29. A normal goods with close substitutes is B. in the P2P4 price range
likely to have its price elasticity of demand C. at P3 only
A. greater than unity D. at any price below P2
B. less than unity
C. between zero and one 33. Which of the following statements must
D. equal to unity hold if price discrimination is to be possible?
A. Elasticity in the various markets must not
30. A major advantage of specialization and differ
division of labour is that B. The seller must recognize the possibility of
A. Workers will be adequately rewarded resale
B. trade unionism will be encouraged C. The market must not be separated but
C. time wastage will be minimized integrated
D. there will be ready market for labour D. The market should be separated and there
should be no resale.
Instruction: Use the diagram below to
answer Questions 31 - 33. Instruction: Use the table below to answer
Question 34 and 35.
Output Total Average Marginal
in Units Revenue Revenue Revenue
in ₦ in ₦ in ₦
1 20 20
2 38 19 18
3 54 16
4 68
3
 5 80 16 demand curve is tangential to the average
variable cost curve
C. supply curve is tangential to the marginal
34. Given the output of 3 units, the average
cost curve
revenue is
D. demand curve is tangential to the average
A. ₦ 0.00
cost curve
B. ₦ 18.00
C. ₦ 20.00
38. A major assumption in a perfectly
D. ₦ 24.00 competitive market is that
A. the number of buyers and sellers is small
35. Determine the marginal revenue if the total B. individuals cannot influence prices
revenue is ₦ 80 C. the quality of products remains the same
A. ₦ 12.00
D. prices will always remain constant
B. ₦ 14.00
C. ₦ 16.00
39. One of the techniques of monetary control
D. ₦ 18.00
used by the Central Bank of Nigerian is
A. selective credit control
36. The regulatory authority of the capital B. budget deficit
market in Nigeria is the C. foreign exchange control
A. Central Bank
D. monitoring the general prices
B. Securities and Exchanges Commission
C. Nigerian Deposit Insurance Corporation
40. Which of the following is true about the
D. Stock Exchange Market
value or money?
A. it varies inversely with the price level
37. In the long run, the equilibrium point of a B. it varies directly with the price level
monopolistic firm is a point where the C. it depreciates in the period of deflation
A. marginal cost curve is tangential to the
D. it is not affected by the price level
average fixed cost curve
B. ANSWERS:
1. D 15.C 29.B
2. B 16.C 30.C
3. B 17.C 31.D
4. A 18.C 32.A
5. D 19.C 33.C
6. A 20.D 34.Bonus
7. B 21.B 35.A
8. A 22.C 36.B
9. A 23.B 37.A
10.B 24.A 38.B
11.C 25.B 39.B
12.D 26.D 40.A
13.C 27.B
14.A 28.D

4
 NDA PAST QUESTIONS ON ECONOMICS 2015
1. Which of the following does not cause D. exports and saving
increase in supply?
A. an increase in the commodity's price 8. Which of the following cost items refers to
B. an improvement in technology price?
C. a reduction in factor price A. variable cost
D. a decrease in the cost of material B. average cost
C. opportunity cost
2. Which of the following statements is not true D. fixed cost
when price is above equilibrium price?
A. there is shortage of the commodity 9. The basis for all economic activities is
B. the quantity supplied exceeds the quantity A. scarcity
demanded of the commodity B. poverty
C. the pressure on the commodity price is C. industrial expansion
downward D. economic development
D. there is surplus of the commodity
10. Which of these factors does not determine
3. A specific argument advanced for protection the level of aggregate savings?
is? A. the level of income
A. to protect domestic labour against cheap B. the size of the population
foreign labour C. income distribution
B. to reduce unemployment D. the rate of interest
C. to protect infant industries and industries
important for national defence 11. In the theory of the firm, the curve used in
D. all of the above the determination of profit level is?
A. the average fixed cost
4. The interest rate is? B. the marginal cost
A. the price of using money or loanable funds C. the average variable cost
B. expressed in percentage terms D. the average cost
C. determined by demand and supply of
loanable funds 12. If the supply of a commodity is perfectly
D. all of the above inelastic the market price is determined by?
A. demand
5. In order to maximize profits, a firm borrows B. supply
until the return on investment C. the cost of production
A. equals the rate of interest D. quantity supplied.
B. exceeds the rate of interest
C. is smaller than the rate of interest 13. One of the economic problems of Nigeria
D. none of the above today arises from?
A. the overutilization of human resources
6. The market supply of labour depends on B. inadequate man-power resources
A. the population size C. overutilization of manpower resources
B. the proportion of the population in the D. the underutilization of man-power
labour force resources.
C. the state of the economy
D. all of the above 14. International trade is necessary because?
A. different countries arc differently endowed in
7.Which of the following are leakages from the natural and human resources
circular flow? B. no country is autarky
A. consumption and saving C. some countries have comparative advantage
B. saving and imports in production of particular commodities over
C. imports and exports other countries.
D. countries are determined to increase their D. the regulatory nature of the market
gold.
21. If 𝑥̅ = 6 and N = 6, determine the value of
15. The monetary system that relates to double Σ𝑓𝑥̅
coincidence of wants is referred to as? A. 72
A. the gold standard B. 12
B. the cheque system C. 36
C. barter D. 1
D. the commodity system
22 A typical feature of a market economy is
16. The World Trade Organization is that
responsible for? A. there is equality of economic agents
A. stabilizing and harmonizing oil price B. full employment exist
B. ensuring equal participation of countries in C. consumer sovereignty
trade D. all producers make profit
C. minimizing obstacles to international trade
and investment 23. In long-run, one of the characteristics of
D. modernizing world economics monopolistic competitive firms is that they?
A. suffer losses
17. The money paid per hour for work done is B. collude with each other
A. salary C. make abnormal profits
B. cost D. make normal profits
C. bonus
D. wage rate 24. Per Capita Income in any African country is
measured by
18. In modern economies, Malthusian theory of A. adding total investment to the GNP
population is ineffective because of B. adding total saving to the GNP
A. technical progress C. dividing the GNP by the total population
B. government policies D. adding total saving to the GDP
C. birth control measures
D. natural disaster 25. The income-consumption relationship
indicates that the marginal propensity to
19. During the era of barter, money was consume?
generally in form of A. is greater than zero and greater than one
A. coins B. equals to zero
B. notes C. equal to one
C. commodities D. lies between zero and one
D. precious metals

20. The downturn in the prices of shares on

stock markets is a highlight of
A. Invisible hand Use the following demand and supply
B. efficient allocation of resources schedule to answer questions 26-29.
C. consumer rationality

2
Price (₦) Quantity Quantity 31. In the operation of market forces, the
Demanded supplied market is in equilibrium at the point where?
1 20 3 A. demand and supply curves intersect in more
2 18 6 than one point provided the market is cleared.
3 15 8 B. the excess in the market can be
4 10 10 conveniently stored
5 8 15 C. excess demand is negative
6 6 18 D. demand and supply curves intersect.
7 2 20
32.
26. What is the equilibrium price?
A. 4
B. 10
C. 6
D. 7

27. What is the equilibrium quantity

A. 4
B. 10
C. 7 In the diagram above, PS is the supply curve
D. 6 for a particular commodity, while OP is the
price. Which of the following statements is
28. what is the excess supply at the price of correct?
₦5.00? A. The quantity is infinitely elastic
A. -7 B. When price is zero, the quantity supplied
B. 7 infinite
C. 8 C. When price is infinite, the quantity supplied
D. 6 zero
D. The quantity supplied in indefinite
29. What is excess supply at the equilibrium
price? 33.
A. 1
B. 2
C. 3
D. 0

30. The additional revenue obtained by using

one more unit of a factor is called its?
A. Marginal product
In which of the diagram below is the consumer
B. additional product
surplus correctly shaded?
C. marginal revenue product
A. I
D. average product
B. II
C. Ill

3
D. IV D. a determinant of the market forces of
equilibrium
34. A budget with a projected revenue in
excess of its expenditure is said to be? 38. Economic development is distinguishable
A. balanced from economic growth because the former?
B. surplus A. is not concerned with growth parameters
C. deficit B. affects only the poor people
D. Inflationary C. also includes an efficient distribution of
economic growth
35. Frictional unemployment? D. is an increase in the production of goods
A. is total unemployment minus structural and services.
unemployment
B. occurs when the unemployment are persons 39. The joint ventures operating in the Nigerian
with specific training. oil industry are between?
C. occurs when the number of job seekers A. the NNPC and independent marketers
exceeds the number of vacancies B. the NNPC and multinational marketers
D. occurs when people are changing jobs. C. the NNPC and producer/marketers
D. multinational corporations and independent
36. marketers.

40. Comparative advantage implies that a

country will specialize in producing the
Commodity?
A. with the highest opportunity cost
B. for which output per worker is lower than in
other countries
C. with the lowest opportunity cost
D. for which output per worker is the same
with those of other countries.

From the diagram above, a shift in the demand ANSWERS:

curve from D0 D0 to D1 D1 implies? 1. A
A. a rise in the demand for the commodity 2. A
B. a fluctuation in the demand for the 3. D
commodity 4. D
C. a fall in the demand for the commodity 5. A
D. an equilibrium in the demand for the 6. D
commodity 7. B
8. C
37. If the equilibrium price of a certain 9. A
commodity is ₦120.00 and the government 10.B
fixed its price at ₦110.00, the supply will be? 11.D
A. greater than the equilibrium supply 12.A
B. smaller than the equilibrium supply 13.D
C. the same as the equilibrium supply
4
14.A
15.C
16.C
17.D
18.A
19.C
20.D
21.C
22.C
23.D
24.C
25.D
26.A
27.B
28.B
29.D
30.C
31.D
32.A
33.D
34.B
35.D
36.A
37.B
38.C
39.C
40.C

5
 NDA PAST QUESTIONS ON ECONOMICS 2016
1. One of the following classical economists
propounded the theory of population.
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
A. a rise in the demand for the commodity
3. If the marginal propensity to consume is B. a fluctuation in the demand for the
0.80 and the investment expenditure changes commodity
from N100 million to ₦140 million in a given C. a fall in the demand for the commodity
economy, find the level of equilibrium in the D. an equilibrium in the demand for the
given economy, commodity
using the formula:
K= 1
Use the table below to answer Questions
1 − MPC
where (K = multiplier, MPC = Marginal 6.
Propensity to Consume) Output in Total Average Marginal
A. ₦20 million Unit Revenue Revenue in ₦ Revenue ₦
B. ₦40 million in ₦
1 20 20 -
C. ₦28 million
2 38 19 18
D. ₦200 million
3 54 -
4. The population of a country X in 1990 was 4 68 - -
35 million. The births were 450,000 while it 5 80 16
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 6. Given an output of 3 units, the average
population of the country at the end of 1990. revenue is
A. 24,250,000 A. ₦16,000
B. 25,350,000 B. ₦18,000
C. 34,750,000 C. ₦20,000
D. 35,250,000 D. ₦24,000

From the diagram below, a shift in the demand 7. The diagram below represents a production
curve from D0D0 to D1D1, implies function. At which of the point does diminishing
return sets in?
 D.
Percentage change in the quantity supplied of commodity X
Percentage change in the price commodity Y

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

A. I
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 demand
C. price is always higher than marginal cost
D. there are always many buyers and many
sellers 11. A total tax revenue is represented by
A. P1EHP0
9. The national income of a country indicates B. P0HQ00
that the Gross National Income was N17,700 C. P1EQ00
million and Gross Domestic Product was D. P1ED1P0
N16,800. The difference of N900 million
represents 12. What is the term used to describe a policy
A. debts repayment aimed at promoting the local production of
B. investment abroad goods which are usually imported?
C. net income from abroad A. Deregulation
D. capital consumption B. Import sustainability
C. Traffic reduction
10. The cross elasticity of supply is expressed D. Backward integration
as
Percentage change in supply 13. If a consumer plans to spend 120k on four
A. Percentage change in price
Percentage change in demand oranges but spent 80k, his consumer surplus is
B. Percentage change in price A. ₦1.50
Percentage change in the price of the commodity X
C. Percentage change in the price commodity Y B. ₦0.40
C. ₦1.00
D. ₦2.00

14.
2
 C. there must be positive balance on capital
account
D. the aggregate of the balance of trade and
the invisible balance must be positive

18. 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

In the diagram above, the price P2, in the price 19. The equilibrium market price is determined
control situation is referred to as at a point where
A. maximum price A. Both what are supplied and demanded are
B. markup price equal
C. minimum price B. The price is moderate
D. mark-down price Liquidation of a limited C. Sellers can sell all their commodities
liability company implies that D. Consumers can buy all they desire

15. Liquidation of a limited liability company 20. Crude petroleum is a good example of a
implies that A. lasting asset
A. company may not pay its debts B. wasting asset
B. debts of the company can only be paid from C. synthetic product
its own assets D. costless resources
C. debts of the company are paid from both
business and private funds of the owners 21. Full equilibrium requires that
D. debts of the company must be paid from A. MR = MC
public funds only B. TR = TC
C. MC = MR and AC = AR
16. An increase in government expenditure will D. MR = MC and AR = AC
lead to
A. investment opportunities for foreign 22. To privatize an enterprise means
investors A. all foreigners are to take control of the
B. an increase in the level of aggregate business
demand B. transfer ownership and control of the
C. an increase in total tax revenue business to the private sector
D. reduction in total tax revenue C. transfer ownership and control of the private
sector
17. If a country has a balance of payment D. indigenization of the enterprise
surplus on current account, this means that
A. the total visible export is greater than 23. The indigenization decree in Nigeria was
invisible import promulgated in order to
B. the value of goods exported must be greater
than the value of goods imported
3
A. allow indigenes to have full participation in
the economic activities of the country 29. Business does not exist in a vacuum; it
B. drive away foreigners affects and is affected by
C. give equal chances to indigenes and A. social, legal. economic and political
foreigners in making economic decisions frameworks
country B. macro-economy and philanthropic
D. give industrial training to indigenes organizations
C. multi-national corporations
24. Resources are scarce in relation to D. climate change
A. choice
B. the demand for them Consider the table below and answer the
C. limited wants question that follows
D. their scale of preference Units of Total Utility Marginal
quantity Utility
25. The principal national macro-economic consumed
goals include the following 0 - -
A. national goods and priorities 1 10 10
B. full employment of the nation's productive 2 15 5
inputs 3 17 2
C. acceptable levels of economic growth 4 18 1
D. maximum levels of economic stability 5 18 0

26. The greatest disadvantage of the barter The table above illustrates the law of
system is the need for A. increasing productivity
A. durability B. diminishing marginal productivity
B. divisibility C. diminishing marginal utility
C. homogeneity D. increasing returns
D. double coincidence of wants
31. Aggregate demand is composed of
27. Two commodities are considered to be A. Consumption
perfect substitutes for each other if the B. Savings
elasticity of substitution is C. Consumption and investment
A. infinite D. Consumption, investment and government
B. positive expenditures
C. negative
D. zero Study the diagram below and answer
Questions 32 and 33.
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

4
 B. inelastic demand
C. perfectly inelastic demand
D. elastic demand

35. In the diagram below. the line labeled PM is

the marginal revenue curve of a
A. Monopoly.
B. Competitive firm
C. Monopsony
D. Oligopoly

32. In the diagram above, the equilibrium price

is
A. OQ0
B. OQ2
C. P0P2
D. OP0 36. Decreasing returns to scale implies that if
all factors of production are doubled, output
33. At price OP2, will be
A. demand exceeds supply A. more than doubled
B. supply exceeds demand B. less than doubled
C. demand equals supply C. doubled
D. OQ2 is the quantity demanded D. none of the above

34. The diagram below illustrates: 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
MA MB
A. =
A. perfectly elastic demand PA PB

5
B.
MA
>
MB 25.B
PA PB
MA MB 26.D
C. <
PA PB 27.D
MA PB
D. < 28.A
PA MB
29.A
39. The elasticity of supply of perishable goods 30.C
is 31.D
A. zero 32.D
B. elastic 33.A
C. inelastic 34.D
D. unitary 35.A
36.B
40. Which one of the following is not an 37.D
example of economic efficiency? 38.A
A. Productive efficiency 39.B
B. Resource efficiency 40.D
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

6
 NDA PAST QUESTIONS ON ECONOMICS 2017
1. Aggregate demand is composed of A. Excess demand
A. consumption and expenditure B. Excess supply
B. savings and income C. Equilibrium quantity supplied
C. consumption and investment D. Equilibrium quantity demanded
D. consumption, investment and government
expenditure 7. Public expenditure creates expansionary
effects on the economy when it is:
2. The major advantage of a public corporation A. In excess of government revenue
is B. Channelled into capital projects
A. Stability C. Diverted into imports
B. Inability to easily raise fund D. Financed through oil revenue
C. service-oriented policy
D. Its ability to monopolize production 8. What is the term used to describe a policy
aimed at promoting the local production of
3. Mr Akintade earns ₦300 and pays ₦15 as goods which are usually imported?
tax, Mr Basil earns ₦100 and pays ₦6 as tax. A. Deregulation
This tax system can be described as: B. Import substitution
A. Proportion tax C. Tariff reduction
B. Progressive tax D. Backward integration
C. Competitive tax
D. Regressive tax 9. Inflation in the Nigerian economy may be
fuelled by an increase in
4. if the growth of available resources A. the dollar price of crude oil
continuously outpaces that of the population, a B. the sale of company shares
country will experience C. government expenditure
A. underpopulation D. sale of government bonds
B. optimum population
C. maximum population 10. In the figure below, the broken line labelled
D. overpopulation M is the marginal revenue curve of a:

5 One of the following classical economists

propounded the theory of population
A. Thomas Robert Malthus
B. Adam Smith
C. Alfred Marshall
D. All of the above

6. In the graph below, FG indicates

A. Monopoly
B. Competitive fir
C. State corporation
D. Monopoly

11. Under perfect competition the long-run

equilibrium requires:
A. MR=MC
B. MR=AC=AR
C. MR=MC
D. MR=MC=AR 16. The progressive tax structure is designed
to
12. The purchasing power of naira will fall A. take more from the income of the poor
when: B. take more from the income of the rich
A. The naira is devalued C. take an equal proportion of income from
B. Government cuts all salaries and wages both the rich and the poor
C. There is inflation D. reduce the problems emanating from tax
D. The colour of naira is changed imposition

13. A country has a production distribution as 17. If the labour productivity in a cement
shown below: industry is increasing as the output of cement
Age Group in Corresponding is expanded, then the amount of labour per
Years Percentages unit of output produced must be:
Above 60 25 A. Less than zero
15-60 60 B. Decreasing
0-14 15 C. Constant
D. Increasing
The dependency ratio is:
A. 3:2 18. If profit maximization is assured to be
B. 1:3 objective of a business enterprise, labour must
C. 2:3 be paid a wage rate equal to the:
D. 1:5 A. Marginal revenue of the enterprise
B. Average revenue of the labour in the
14. Given that the cash reserve ratio is 10%, enterprise
what is the maximum amount of money that C. Average revenue of the enterprise
the banking system can create from an initial D. The marginal cost of the production
cash deposit of ₦100?
A. ₦100 19. The diagram below represents the
B. ₦1,000 production function. At which of the point does
C. ₦9,000 diminishing return sets in
D. ₦10,000

15. There is an improvement in the terms of

trade of a country if:
A. A large quantity of exports is given up to
obtain a unit of imports
B. The volume of exports is greater than the
volume of imports.
C. A smaller quantity of export is given up to
obtain a unit of imports
D. The value of exports is greater than the
value of imports

A. I

2
B. J recorded, but 5% of the male died, what will be
C. K the population of Afaka in December 1981
D. L A. 96,000
B. 192,000
20. Cross elasticity of demand can be C. 288,000
expressed mathematically as: D. 470,400

25. With a given level of money income, a

consumer maximizes satisfaction from the
consumption of goods and services when the:
A. Total utility derived from each good or
services is increasing at an increasing rate.
B. Marginal utility derived from each good or
services is increasing at the same rate
C. Marginal utility derived per naira spent is the
same for all goods and services
D. Total utility derived from all goods and
services is large
21. A sustained increase in the production of
goods and services in a country is called: 26. The type of cost which has to be covered
A. Development for a firm to continue production in the short-
B. Growth run is:
C. Diversification A. Overhead cost
D. Planning B. Fixed cost
C. Marginal cost
22. One of the techniques for rectifying a D. Average variable cost
deficit balance of payment is:
A. Import promotion 27. In commercial banking, an account for
B. Devaluation which the customer cannot withdraw money
C. Physical intervention instantly is a
D. Borrowing from abroad A. Demand deposit account
B. Time deposit account
23. The advantages which firms obtain directly C. Special deposit account
from expanding their operations are referred to D. Saving deposit account
as:
A. Internal economies of scale 28. A glut in the world market of crude oil
B. External economies of scale means:
C. Economies of localization A. A fall in crude oil production
D. Economies of resources allocation B. An excess supply of crude petroleum
C. A higher crude oil price offered by the buyer
24. The population of Afaka was 480,000 in D. A higher crude oil price demanded by the
December 1980, out of which 60% were seller
female. If within one year no births were

3
29. Stock and Share, as well as Bonds, are
examples of instrument used in the: 35. A country exporting mainly primary
A. Commodity by the market products and with a high percentage of her
B. Money markets labour force in Agriculture is said to be:
C. Capital markets A. Developing
D. Security market B. Developed
C. Underdeveloped
30. In many developing countries, the D. Poor
infrastructural problem is acute due to the
shortage of: 36. A country's import price index by 1995 was
A. Industries and industrial equipment 50 and her export price was 70. Calculate the
B. Savings, investment and consumption terms of trade
C. Natural resources for development A. 20%
D. Supporting services that encourage B. 71%
economic activities C. 120%
D 140%
31. Development plans have not been
successful in some developing countries largely 37. Using the following formula, obtain the
because of: velocity of money
A. The very large working population MV=PT; where M is Money, V is the velocity of
B. The increasing level of consumption money, P is price and G is the transaction
C. The scarcity of industrial raw materials A. V=PT/MV
D. Shortage of skilled labour and experts B. V=TP/M
C. V=MV/PT
32. The equilibrium wage rate in an economy is D. V=M/TP
determined by the
A. workers' union 38. In a perfectly competitive market, the
B. supply and demand for labour competitor
C. rate of inflation A. is a price taker
D. efficiency of labour B. determines the price to sell his goods
C. determines both price and quantity
33. Favourable terms of trade are important to D. can sell above the ruling market prices
a country because it facilitates
A. The economic prosperity of importers and 39. Taxes and government expenditure are
exporters instruments of
B. Export of hard currency by the government A. Tax policy
C. Economic prosperity for the country B. economic policy
D. Import hard currency by the government C. monetary policy
D. fiscal policy
34. A primary industry is concerned with:
A. Clearing and cultivating of land only 40. A firm with a marginal cost equals its
B. The operation of small-scale enterprises marginal revenue will produce the equilibrium
C. The economic activities of primary producers output of
D. Extraction of resources in their raw state A. pure competition only

4
B. pure monopoly only 39. D
C. monopolistic competition only 40. A
D. any type of market

ANSWERS:

1. D
2. D
3. D
4. A
5. A
6. A
7. A
8. B
9. C
10. D
11. D
12. C
13. C
14. B
15. B
16. B
17. B
18. B
19. C
20. A
21. B
22. B
23. A
24. D
25. C
26. C
27. B
28. B
29. C
30. D
31. D
32. B
33. C
34. D
35. D
36. B
37. B
38. A

5
 NDA PAST QUESTIONS ON ECONOMICS 2018
1. Scale of Preference is referred to as the: B. Competitive markets
A. Consumer wants in order of priority C. Labour Unions
B. Consumer preference for luxuries goods D. Central planning
C. Array of consumer's needs
D. Choices consumers make 8. Law of diminishing marginal utility is also
called .
A. Law of consumption
B. Law of equi-marginal utility
C. Law of satisfaction
D. Law of satiable wants

9. Which of the following types of inflation

2. The average total cost when 20 units are would result if the price level rose because of
produced is . an increase in the price of raw materials?
A. ₦5.00kg A. Deflation
B. ₦47. 50kg B. Demand-pull inflation
C. ₦50.00kg C. Hyperinflation
D. ₦45.00kg D. Cost-push inflation

3. The demand for money is referred to as the 10. Creation of utility is known as .
. A. Consumption
A. Need for money to invest B. Satisfaction
B. Desire to hold money in liquid form rather C. Want
than investing it D. Production
C. Desire to hold money in tangible assets.
D. Interest rate 11. An economy is in the midst of a recession.
An example of a government policy aimed at
4. One of the characteristics of a monopolist is moving the economy back on the path of
that, he can influence . positive growth is an .
A. Price or quantity A. Increase in taxes
B. Both price and quantity B. Increase in government spending on
C. Prices charged by other producers infrastructure improvements
D. Quantity produced by other producers C. Increase in the property tax
D. Decrease in cash transfers to the very poor
5. One of the goals of development plans in
Nigeria is to . 12. The current Governor of the Central Bank
A. Improve the country’s GDP of Nigeria is .
B. Increase the profitability of multinational A. Sanusi Lamido Sanusi
business B. Tony Elumelu
C. Deregulate the economy C. Godwin Emefiele
D. Achieve the higher standard of living for the D. Shamsudeen Usman
citizens
13. Which of the following is NOT a regulator in
6. Want satisfying capacity of a commodity is the Nigerian financial services sector?
called . A. The Central Bank of Nigeria (CBN)
A. Demand B. The Securities and Exchange Commission
B. Consumer Surplus (SEC)
C. Utility C. The Nigeria Deposit Insurance Corporation
D. Equilibrium (NDIC)
D. The Bank of Industries (BOI)
7. In a command economy, resource allocation
is managed primarily by . 14. Which of these is not a traditional factor of
A. Large corporations production?
A. Land
B. Labour 21. One of the problems arising from
C. Capital localization of industries is .
D. Energy A. The expectation of output
B. Structural unemployment
15. The largest tax collected at the Federal C. The scarcity of foreign exchange
Government level is the . D. Huge prices output
A. Company Income Tax (CIT)
B. Personal Income Tax (PIT) 22. Which of the following combinations is
C. Value Added Tax (VAT) variable set of development indicators?
D. Property Tax A. Growth of government expenditure and
imports
16. The population of a county x in 1990 was B. High fertility, literacy and school enrolment
35 million. The births were 450,000 while it rates
recorded 210,000 deaths. If in the same year, C. Growth of population and national income
its immigrants were 20,000 and 10,000 of its D. Low infant mortality and high per capital
citizens left the country. Calculate the total income and literacy rates
population of the country at the end of the
1990. 23. Factors of production are said to be
A. 23,350,000 specified when .
B. 24,250,000 A. The can be put to only one use in production
C. 32,250,000 B. The can be put to all uses in production
D. 34,750,000 C. None of the above
D. They are used to analyze cost effective
17. In a free market economy, wage is
determined mostly by . 24. Economics of scale described .
A. The inter-play of demand and supply A. The quantity of the product
B. The trade union B. The demand schedule
C. None of the above C. The price of the product
D. The government D. The quantity produced

18. Per capita income in any African Country is 25. Current account are classified as money
measured by . because .
A. Adding total saving to the GNP A. They are ultimately the obligations of the
B. Dividing the GNP by the total production treasury
C. Adding total saving to the GNP B. Banks hold currently equal to the value of
D. Adding total investment to the GNP their outstanding deposits
C. They can be readily used in the making of
19. If the fixed cost is ₦600.00, variable cost is the purchases and payment of debts
₦400.00 and total output is 100. What is the D. They earn interest income to the depositor
average cost?
A. ₦20.00 26. Production is said to be complete when :
B. ₦12.00 A. Goods are in the market
C. ₦10.00 B. Goods are completely manufactured
D. ₦11.00 C. Goods are with the final consumers
D. Goods are with retailers
20. The middlemen in the chain of distribution
are . 27. One of the disadvantages of international
A. Manufacturer and Consumer trade is that it:
B. Retailers and Consumers A. Encourage economic independence among
C. Consumer and Wholesalers nations
D. Wholesalers and Retailers B. Increases world output
2
C. Promotes self-reliance and satisfaction with B. Monetary policy
only what can be produced internally C. Fiscal policy
D. Restricts spread of technical knowledge D. Tax policy

28. If the growth of available resource 34. If the equilibrium price of a certain
continuously out spaces that of the population, commodity is ₦120.00 and the government
a country will experience . fixed its price at ₦110.00, the supply will be
A. Under Population .
B. Competitive Population A. Smaller than the equilibrium supply
C. Optimum Population B. Greater than the equilibrium supply
D. Over Population C. A determinant of the market forces of
equilibrium
29. In the Graph Below, FH indicates . D. The same at the equilibrium supply

35. Moses bought a pair of shoes instead of a

face cap, his real cost is therefore is .
A. The face cap
B. The shoes
C. The prices of shoes
D. The price of face cap

36.
A. Excess Demand
B. Equilibrium Quantity Supplied
C. Excess Supply
D. Equilibrium Quantity Demand

30. Which of the following is not an example of

economic effiency?
In the diagram above, PS is the supply curve
A. Resource Efficiency
for a particular commodity, when OP is the
B. Productive Effiency
price.
C. Programme Effiency
Which of the following statement is correct?
D. Technical Effiency
A. When price is zero, the quantity supplied
infinite
31. What is excess supply at the equilibrium
B. The quantity is elastic
price?
C. The quantity supplied infinite
A. 2
D. When a price is infinite, the quantity
B. 1
supplied is zero
C. 0
D. 3
37. In economics, the concept of utility means
.
32. Which of the following would cause the
A. The total value of all the goods and services
aggregate demand curve to shift to the right?
consumed
A. An increase in purchases by the federal
B. The amount of satisfaction we derive from
government
consumption of goods and services
B. An increase in real interest rates
C. The utilization of goods and services
C. An appreciation of the domestic currency
D. The monetary value of the goods we
D. A decrease in the money supply
consume
33. Taxes and government expenditure are
38. The diagram below illustrates:
instruments of .
A. Economic policy
3
 ANSWERS
1. A
2. A
3. B
4. B
5. D
6. C
7. D
8. C
A. Inelastic demand 9. D
B. Perfectly elastic demand 10. D
C. Elastic demand 11. B
D. Perfectly inelastic demand 12. C
13. D
39. A specific argument advanced for 14. D
protection is . 15. A
A. To reduce unemployment 16. C
B. To protect domestic labour against cheap 17. A
foreign labour 18. B
C. All of the above 19. C
D. To protect infant industries and industries 20. D
important for national defence 21. B
22. D
40. The regulatory authority of the Capital 23. A
Market in Nigeria is the . 24. D
A. Securities and Exchange Commission 25. B
B. Central Bank 26. C
C. Stock Exchange Market 27. D
D. Nigerian Deposit Insurance Corporation 28. A
29. A
30. C
31. C
32. A
33. C
34. A
35. A
36. D
37. B
38. C
39. D
40. A