ECO122 EXAM PRACTICE QUESTIONS AND ANSWERS
January 18, 2025 2025-01-21 8:18ECO122 EXAM PRACTICE QUESTIONS AND ANSWERS
ECO122 EXAM PRACTICE QUESTIONS AND ANSWERS
tutirayo.net ECO122 EXAM PRACTICE QUESTIONS AND ANSWERS
1. Price is the main determinant of____
c.Microeconomic problems
2. Which of the following is included in the estimation of GDP?
c.Final goods and services
3. _____Is the total income received by an individual of a country from all sources in a year before direct taxes.
a.Personal income
4. The probability of goods or services being included more than once in estimating national income is a problem associated with____
b.Double counting
5. Macroeconomics is primarily concerned with the forecasting of_______
a.National income
6. _____Is useful for the formulation of economic policies of Nigeria.
b.Macro analysis
7. ______Are types of macroeconomic policies except.
b.Environmental policies
8. Microeconomics is based on the trends of______
b.Prices and incomes
9. If the money supply is below the demand for money at a given exchange rate in an economy, there will be a____
b.Surplus in the balance of payments
10. Rising and falling prices of goods and services in the economy are both associated with______
b.Business cycles
ECO122 PART B
To produce one more unit of a particular product amounts to reducing that of the other. This means that all factor inputs have_____
a.Production possibility curve
b.Possibility curve
c.All of the options
d.Opportunity cost
What economic term refers to the proportion of income saved rather than spent on goods?
a.Average personal income
b.Income spent on consumption
c.Average propensity to save
d.Disposable income
Which of the following banks is responsible for carrying out the government\’s economic policy in the monetary field?
a.The Central Bank of Nigeria.
b.Commercial Bank of Nigeria
c.Money Bank of Nigeria
d.Development bank of Nigeria
Marginal propensity to consume ranges between.
a.1=0
b.2 and 1
c.0<MPC>
d.None of the above
All the following factors increase government spending except______
a.Output level.
b.Defence
c.Development projects
d.Population
______Is an important tool of fiscal policy in Nigeria.
a.Government revenue
b.Government principles
c.Government properties
d.Government fiscal instrument,…..
The value of net export gives the difference between_____
a.Exports and imports…
b.Balance of payments equality
c.Import dependence
d.Exports surplus
National income accounting provides Economists with detailed information about the ____
a.Educational performance
b.Economic principles
c.The health of an economy
d.Constitutional development
To calculate NNP, we subtract capital consumption allowance from____
a.GNP
b.NI
c.GDP
d.NPC
the following is included in the estimation of GDP?
a.Income earned through illegal activities
b.Final goods and services
c.Intermediate goods and services
d.Transferred payments
The probability of goods or services being included more than once in estimating national income is a problem associated with____
a.Double counting
b.Measuring market goodd
c.Non of the above
d.Definition of what to include
_____ Is the market value of all the final goods and services produced in Nigeria during a given year.
a.All of the options
b.GNP
c.NNP
d.GDP
The problem of multiple counting arises when we apply_____
a.The price method
b.The income method
c.The estimation method
d.The out-put expenditure method…
Full employment in any economy means the absence of involuntary unemployment. This definition was propounded by______
a.J. B say
b.Adam smith
c.Lord Keynes
d.J. N Keynes
When money wages of all workers are reduced, their______are reduced correspondingly.
a.Production
b.Employment
c.Responses
d.Incomes
In the savings function -b0 +BY, what does b0 represent?
a.National income
b.Autonomous savings…….
c.Firm\’s savings
d.Autonomous investment
Which of the following terms considered money to have the most distinctive function?
a.Medium of savings
b.Medium of exchange
c.Unit of measurement
d.Liquidity…..
Which of the following factors is directly proportional to the amount of savings?
a.Disposable savings
b.Personal saving…..
c.
Interest rates
d.
Government taxation
In the savings function -b0 +BY, what does b0 represent?
a.National income
b.Autonomous savings….
c.Firm\’s savings
d.Autonomous investment
Which of the following terms considered money to have the most distinctive function?
a.
Medium of savings
b.
Medium of exchange
c.
Unit of measurement
d.
Liquidity…
Which of the following factors is directly proportional to the amount of savings?
Question 3Answer
a.
Disposable savings
b.
Personal saving…
c.
Interest rates
d.
Government taxation
_____Is truly the slope of the consumption function.
a.MPC…
b.MRS
c.MRST
d.APC
The commodity that is acceptable within an economy as a medium of making payments must be______
Question 5Answer
a.
Printed
b.
Differentiated
c.
Distributed
d.
The same….
Which of the following functions of money eliminates the problem of double coincidence of wants?
Question 6Answer
a.
Standard of deferred payments
b.
Unit of account
c.
Medium of exchange…..
d.
Store of value
Which of the following is a business motive?
Question 7Answer
a.Precautionary motive
b.Contingency motive……….
c.Transactionary motive
d.Speculative motive
MPC measures the rate at which consumption of an individual changes when_____
a.Plan changes
b.Price changes
c.Income changes….
d.Policy changes
The aggregate consumption of an economy depends on all the following factors except_____
a.Credit facilities
b.Democratic transition…
c.Government fiscal policy
d.Population distribution with respect to age
The inverse of the APC is called_____
a.MPC…
b.PCM
c.ARD
d.APS
_____Are banks set up primarily to cater for the needs of corporate and instututionsl customers.
a.Merchant banks….
b.Mining banks
c.Agricultural banks
d.Import-export banks
Which of the following is not among the type of gross private domestic Investmenst?
Question 2Answer
a.Nonresidential investment
b.Change in inventories
c.Induced investment….
d.Residential investment
______Is not among the reasons why government of Nigeria levy taxes.
a.Revenue generation
b.Discourage investments…
c.Exercise control of the economy
d.Re-distribution of income
______Is a form of tax which increases as the size of income increases.
a.Regressive tax
b.Progressive tax….
c.Convenience tax
d.Performance tax
_____Is a tax levied on appreciated value realized on assets.
a.Capital gains tax…
b.Indirect tax
c.Direct tax
d.Property tax
Current expenditure measures all spending by the government in _______
a.Capital projects
b.The current period activities…
c.None of the above
d.Investments on assets
Which of the following set of banks were licensed before Nigeria\’s independence in 1960?
a.Second generation banks
b.Third generation banks
c.First generation banks…
d.Fourth generation banks
Traditionally, the central bank performs_____main functions
Question 8Answer
a.Four….
b.Ten
c.Three
d.Six
The upward-sloping aggregate supply curve is also known as_____
a.Moving supply curve
b.Abnormal supply curve
c.Short-run aggregate supply curve…
d.Long-run supply curve
Identify the conflict resolution methods
a.Negotiation, Peace keeping and Arbitration
b.Arbitration, Peace keeping
c.Peace keeping and peacebuilding
d.Mediation, Negotiation and Arbitration….
ICJ is the acronym of _______
a.Internal Criminal Justice
b.International Court of Justice….
c.International Fourth Judge
d.Internal Court Justice
Ideological religions and culturally motivated types of conflict are categorized as ____________ based conflict
a.Religious
b.Ethics
c.Interest
d.Value…
Stages of conflict comprise of the following
a.Escalation/de-escalation stage
b.Pacifist stage / Escalation/de-escalation stage
c.Conflict stage/ Pacifist stage
d.Latent/formation stage/ Escalation/de-escalation stage…
All the following except one does not constitute road block to communication
a.Lecturin, Diagnosing
b.Excusing, prying, threatening
c.Encouraging, restating, clarifying…
d.Ordering, Judging, preaching
Which of the following is among the merits of Alternative Dispute Resolution.(ADR)?
a.It is Very Expensive
b.It is cost effective…
c.It prevents parties participation
d.It breaks relationship
ECO122 EXAM PRACTICE QUPART C
1. The following are the motives of holding money except
Ans. spending motive
2. The average propensity to save is an economic term that refers to the proportion of income that is …………… rather than spent on goods and services
Ans. saved
3. Economic welfare is that part of ……….. welfare which can directly or indirectly be measured by money
Ans. social
4.If the change in national income were due to change in prices, it would be difficult to measure the real change in ……………
Ans. economic welfare
4. The consumption is distinct from consumption expenditure, which is the …………….. of goods and services for use by households
Ans. purchase
5. The following are not functions of money except
Ans. ability to spend
6. The inverse of average propensity to save is the ……………
Ans. average propensity to consume
7. According to ……………. Economists assert that there is a close relationship between economic welfare and national income, because both of them are measured in terms of money
Ans. A C Piguo
8. The ………….. method calcuclates the total expenditure required to purchase the nation’s output
Ans. expenditure
9. RI in national income means …………………
Ans. real incomes
ECO122 EXAM PRACTICE QUESTIONS AND ANSWER PART D
1. Increase in _____results in increase in economic welfare
• per capita income
2. The meaning of disposable income _____ in macroeconomics is disposable income
• Yd
3. _____ equals consumer spending plus investment plus government spending plus exports minus imports
• Gross Private domestic investment
4. In _____ several Nigerian members of the Federal House of Assembly called for the establishment of a central bank to facilitate economic development
• 1952
5. _____ motive is the motive of holding money
• Precautionary
6. At the end of 1988, the banking system consisted of the _, forty-two commercial banks, and twenty four merchant banks
• Central Bank of Nigeria
7. British colonial officials established the West African Currency Board in _____
to help finance the export trade of foreign firms in West Africa
•1912
8. The _____ cannot be said to have increased, if theincrease in national income is due to exploitation of labour
• economic welfare
9. A _____company is one which transacts the business of banking which means the accepting for the purpose of lending all investment of deposits of money from the public
• banking
In Conclusion
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