ECONOMICS QUIZ, (2021): ROUND 1

ORDER: OAU, UI, UNILORIN AND UNILAG

QUESTION I

ECONOMICS QUIZ, (2021): ROUND 1

OAU Q1

What necessitates CHOICE?

A) UNLIMITED RESOURCES & UNLIMITED WANT B) LIMITED WANT & UNLIMITED RESOURCES C)
LIMITED RESOURCES & LIMITED WANT D) UNLIMITED WANT & LIMITED RESOURCES E) OPTION
A&D
ANSWER: OPTION D

UI Q1

THE OPPORTUNITY COST CONCEPT EMPHASISES THE BASIC PROBLEM OF _____

A) WANT B) CHOICE C) SCARCITY D) SCALE OF PREFERENCE E) ALL OF THE ABOVE

ANSWER: OPTION B

UNILORIN Q1

WHAT IS THE CORE SUBJECT MATTER OF ECONOMICS?

A) WANT & RESOURCES B) SCARCITY & WANT C) CHOICE & SCARCITY D) SCARCITY & RESOURCES E)
RESOURCES & CHOICE
ANSWER: OPTION C

UNILAG Q1

THE PROBLEM OF SCARCITY NECESSITATES WHICH OF THE FOLLOWING?

I)WHAT TO PRODUCE II) HOW TO PRODUCE III) FOR WHOM TO PRODUCE IV) HOW TO DISTRIBUTE

A) I, II, III B) I, II, or III C)I, II, III, IV D)OPTION A&B E) ALL OF THE ABOVE

ANSWER: OPTION C

ECONOMICS IS SCIENCE BECAUSE IT USES THE SCIENTIFIC METHOD OF OBSERVATION, JUST LIKE OTHER
SCIENCES, ALSO KNOWN AS ______

A) DEDUCTIVE METHOD B) INDUCTIVE METHOD C) DESCRIPTIVE METHOD D) INFERENTIAL

METHOD E) AMPLIATIVE METHOD

QUESTION II

THE DIFFERENCE BETWEEN CONSUMER GOODS AND CAPITAL GOODS IS THAT THE LATTER IS USED
TO______

A) SATISFY IMMEDIATE WANTS

 B) PRODUCE OTHER GOODS & SERVICES
C) ADD VALUE IN THE PRODUCTION PROCESS
D) NONE OF THE ABOVE
ANSWER: OPTION B

A FIRM ENJOYING ECONOMICS OF LARGE SCALE WILL EXPERIENCE _____ AS A RESULT OF INCREASE IN
SIZE

A) RISING COST B)FALLING COST C) RISING COST PER UINT D) FALLING COST PER UNIT E) NONE OF
THE ABOVE
ANSWER: OPTION B

AS THE NUMBER OF UNITS PRODUCED INCREASE, FIXED COST PER UNIT IS ______

A) FALLING B) RISING C) CONSTANT D)NEGATIVE INFINITY E) POSITIVE INFINITY

ANSWER: OPTION A

WHEN A FIRM’S EXPANSION LEADS TO LESS EFFICIENCY AND INCREASE IN COST PER UNIT, THEN THE
FIRM IS EXPERIENCING_____

A) INTERNAL ECONOMICS B) INTERNAL DISECONOMICS C) ECONOMICS OF LARGE SCALE D)NON-

ADAPTATIVE ECONOMICS
ANSWER: OPTION B

QUESTION III

The marginal rate of technical substitution represents______

ANSWER: THE SLOPE OF THE ISOQUANT CURVE

The marginal rate of substitution represents______

ANSWER: THE SLOPE OF THE INDIFFERENCE

For a monopolist to practice price discrimination, the price elasticity of demand in segmented market
must be_____

ANSWER: DIFFERENT

If the central bank of Nigeria (CBN) wishes to tighten (decrease) the money supply or the quantity of
money supply in an economy, then she should employ which type of monetary policy?

Answer: Contractionary/restrictive monetary policy

QUESTION IV

THE NIGERIAN INSURANCE INDUSTRY CAN FIT INTO WHICH TYPE OF MARKET STRUCTURE?

ANSWER: MONOPOLISTIC COMPETITION

THE MARKET FOR COCOA IN NIGERIA CAN FIT INTO WHICH MARKET STRUCTURE?
ANSWER: MONOPOLY

The type of money that has been declared legal tender by Government but not backed by physical
commodity is_____

ANSWER: FIAT MONEY

Time and Savings deposit as well as other liquid assets are called_____

ANSWER: NEAR OR QUASI MONEY

The total money created is ____________related to the reserve requirement

ANSWER: INVERSELY OR INDIRECTLY

IN THE LIQUIDITY TRAP REGION THE DEMAND FOR MONEY IS ________

ANSWER: INFINITELY ELASTIC

QUESTION V

Given the total cost function in Naira TC=50+0.75q. what is the FIXED COST PER UNIT when 5 units are
produced?

Answer: 10 NAIRA

Given the total cost function in Naira TC=70+5q. what is the VARIABLE COST PER UNIT when 4 units are
produced?

Answer: 5 Naira

Given the total cost function in Naira TC=35+0.8q. what is the VARIABLE COST when 20 units are
produced?

Answer: 16 naira

Given the total cost function in Naira TC=25+0.50q. what is the MARGINAL COST when 2 units are
produced?

Answer: 50 kobo 0.50 naira