UTME 2015 ECONOMICS QUESTIONS

1. The major implication of high

dependency ratio on an economy is 8.
A. high capital formation Unit of TP AP MP
B. vicious cycle of poverty labour
C. low cost of living 1 6 6 --
D. high standard of living. 2 14 7 8
3 K 9 13
2. One of the major problems of 4 40 10 F
agricultural sector in Nigeria is From the table above, find the values
A. low literacy level of farmers of K and F respectively
B. small size of farms A. 13 and 27
C. pest attack on crops B. 27 and 13
D. inadequate modem farm implements. C. 10 and 27
D. 27 and 10.
3. Cooperative societies are
characterized with 9. In the theory of consumer behaviour,
A. divergent interest of members the sum of all marginal utilities is
B. limited liability A. average marginal utility
C. free entry and exit B. the initial marginal utility
D. unlimited size of membership. C. total utility
D. diminishing marginal utility.
4. The marginal propensity to save
measures the 10. In a pure capitalist economy, the means
A. ratio of change in saving and forces of production are owned and
B. change in supply as a result of controlled by the
a change in consumption A. public and private sectors
C. ratio of change in consumption to a B. feudal lords
change in the level of income C. public sector
D. average propensity to consume. D. private sector.

5. Structural unemployment is mainly 11. A factor earning which is paid out as

caused by unemployment benefit is referred to as
A. a change in the consumption pattern A. interest rate
B. a change in the business cycle B. direct rate
C. decrease in the output level C. eco
D. Seasonal variation.
12. From the graph above, FG indicates
6. One of the major problems of census in A. equilibrium quantity demanded
Nigeria is B. excess supply
A. inadequate skilled personnel C. equilibrium quantity supplied
B. high dependency ratio D. Excess demand.
C. distortion of census figures
D. High cost of conducting census. 13. The demand for money is referred to as
the
7. A decrease in government expenditure in A. amount of money in fixed deposit
an economy will cause general price B. desire to hold money intangible assets
level to C. need for money to invest
A. remain constant D. Desire to hold money in liquid
B. fluctuate form rather than investing it.
C. fall
D. Rise.

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14. In the theory of production, a producer A. range
is at equilibrium at a point where B. variance
A. isocost is above the isoquant curve C. mean
B. isoquant is below the isocost curve D. mode.
C. isocost is tangent to the marginal
revenue 20. Localization of industry is mainly
D. isoquant is tangent to the determined by
isocost curve. A. diseconomies of scale
B. population growth
15. Balance of trade shows the relationship C. division of labour
between the D. access to raw materials.
A. internal and external trade
B. total value visible import and Export 21. Geographical distribution of a population
C. deficit and surplus balance is affected by
of payments A. low birth rate
D. total value of invisible import and B. the availability of skilled manpower
export. C. the availability of agricultural land
D. high birth ratenomic rent
16. If the cash reserve ratio is 30%, a new E. transfer payment.
deposit of ₦20 million will increase
supply by 22. A tax burden on a commodity will
A. ₦57.8m be shared equally if the demand is
B. ₦47.9m A. fairly elastic
C. ₦69.78m B. perfectly inelastic
D. ₦66.7m. C. fairly inelastic
D. unitary elastic.
17. A fall in the price c f ostentatious goods
will 23. Higher income taxes can be used
A. increase the quantity demanded to control
B. decrease the quantity demanded A. demand-pull inflation
C. decrease demand B. high interest rates
D. increase demand. C. cost- push inflation
D. hyperinflation.
18. Payment of interests on loans and the
repayment of capital sum at a future 24.
date is
A. balance debt
B. debt servicing
C. debt relief
D. debt retaking.

19. The most difficult measure of central

tendency to determine in a grouped data
is

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 A. provision of short-run loans to medium
scale industries
B. provision of long-term loans
for infrastructure
C. development of agriculture in
member countries
D. maintenance of stable exchange rates

29. One of the major activities in the

upstream sector of the Nigeria
petroleum industry includes
From the graph above, a shift of the A. transportation of finished products
Supply curve from S0S0, to S1S1 will lead B. refining of crude oil
to C. marketing of refined petrol
A. a decrease in price and quantity D. exploration of crude oil.
B. no change in price and quantity
C. an increase in price and quantity 30. The law of supply states that the
D. a decrease in price and an increase A. higher the price the higher the
in quantity. quantity supplied
B. quantity supplied is always equal to
25. An indifference map is made up of a the quantity demanded
set of C. lower the price the higher the
A. consumers' total utility quantity supplied
B. consumer surplus D. higher the price the lower the
C. budget lines quantity supplied.
D. indifference curves.
31. One of the features of a
26. Recapitalization policy will enable perfect competitive firm is
commercial banks to A. restrictions to entry and exit
A. employ more qualified workers B. price discrimination
B. open more branches C. absence of transportation cost
C. reduce interest rate D. product differentiation.
D. have a very strong capital base
32. The basis for international trade is the
27. The number of persons required to form A. differences in natural resources
a private company ranges from endowment
A. ten to twenty B. differences in the population size
B. two to fifty C. prevailing interest rate on multilateral
C. two to seven loans
D. seven to ten. D. economic system in practice.

28. The major function of international 33. Training farmers on the improved
monetary funds is the farming techniques is the major
activity of

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 A. intermediate workers 39. If a fall in the price of commodity
B. middlemen K brought about an increase in the
C. extension workers demand for commodity Y, the two
D. creditors. commodities are
A. composites
34. In a free market economy, prices are B. derived in nature
determined by C. substitutes
A. consumers D. c implements.
B. producers
C. the central government 40. In the theory of production, the price
D. the forces of demand and supply. of a factor input is determined by
A. the prevailing exchange rates
35. The basic economic problem of what to B. its elasticity of demand
produce in an economy is determined by C. the existence of large market
A. the availability of labour D. the prevailing interest rates.
B. the means of distribution
C. the availability of resources 41.
D. technological know-how.

36. In Nigeria, a fall in the supply of petrol

would generally affect the
A. import of goods and services
B. export of goods and services
C. general price level in the country
D. exchange rate of the Naira. From the graph above, find the
37. The short-run equilibrium point of a modal score
perfectly competitive firm is attained at a A. 40
point where B. 20
A. is equal to total cost C. 100
B. the demand curve is tangential to the D. 60.
marginal cost
C. the marginal cost curve is equal to the 42. When the selling price of a monopolist
marginal revenue curve is below his short-run marginal cost, he
D. the marginal cost is equal to the is said to be making
price of the firm. A. an economic profit
B. Losses
38. Government can protect consumers C. profit
from exploitative prices by introducing D. supernormal profit.
A. minimum price
B. price differentiation 43. The overall economic performance of
C. price floor a country can be assessed through
D. maximum price. A. overlooking of its agricultural sector
B. employment estimates
C. national income estimates

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 D. balance of payment. A. lack of raw materials
B. inadequate market for industrial goods
44. The supply of agricultural products C. underdeveloped infrastructural
is mainly determined by facilities
A. consumers' taste D. inadequate capital.
B. consumers' income
C. technology 48. If Qd = 40-4P and P = N4, what is
D. consumers. the quantity demanded?
A. 30
45. Determine the median of 6 10, 5, 12, B. 32
20, 18, 20 and 4 C. 24
A. 11 D. 26.
B. 9.67
C. 12.56 49. The long-run total cost curve shows
D. 12. the cost of
A. all fixed factors of production
46. B. the average fixed cost
X 10- 21- 31- 41- 51- 61- C. all factor inputs that are employed
20 30 40 50 60 70 D. variable factors of production.
F 4 6 10 50 3 5
50. The supply of farm produce is
From the table above, find the range of mainly determined by
the distribution A. consumers’ income
A. 50 B. weather condition
B. 11 C. population
C. 70 D. consumers’ taste
D. 59.

47. The failure of the Nigeria industrial

sector is mainly associated with

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