AIC SS 2 Economics Revision Test for 3rd Term 2022/23
  • 1. 1. A firm maximises profit where
A) MC=MR
B) MC<MR
C) MC>MV
D) MB=MA
  • 2. 2. A point at which DD=SS is referred to as
A) Equilibrium point
B) Stabilization point
C) Equality point
D) Equipment point
  • 3. 3. One of the following is the objectives of public finance except
A) satisfaction of needs
B) good fiscal policy
C) equitable distribution of income
D) control of inflation
  • 4. 4. An aspect of economics that deals with government revenue and expenditure is called
A) Public control
B) Public regulations
C) Public finance
D) Publicity
  • 5. 5. Need refers to ____________________
A) none of the above
B) luxury
C) desire
D) necessity
  • 6. 6. The use of income and expenditure refers to
A) Fiscal police
B) Fiscal policy
C) Fiscal plot
D) public finance
  • 7. 7. Price stability is one of the objective of demand and supply
A) Too complex
B) False
C) True
D) No idea
  • 8. 8. The two major types of taxes are ___________ and ________________.
A) direct and direct
B) direct and deficit
C) direct and indirect
D) direct and suplex
  • 9. 9. ______________ is a regular source of revenue.
A) Recurring expenditure
B) Recurring expense
C) Recurrent revenue
D) Recurrent experience
  • 10. 10. Loans obtained from the World Bank is called
A) all of the above
B) internal/external revenue
C) external revenue
D) internal revenue
  • 11. 11. Grants and aids are sources of _____________ revenue to the government.
A) extra
B) Intra
C) external
D) internal
  • 12. 12. The fiscal policy of the government are incorporated in the _______________ .
A) Expenditure
B) budget
C) revenue
D) election
  • 13. 13. VAT means
A) Value Added Tax
B) none of the above
C) Value added Tap
D) Value added top
  • 14. 14. Payment of pensions is an example of _____________
A) transfer services
B) Bank transfer
C) Bank payment
D) Bank money
  • 15. 15. _____________ refers to total expenses incurred by public authorities in all levels of administration.
A) I don't know
B) Government taxation
C) Government revenue
D) Government expenditure
  • 16. 16. Expenses which are repeated on a yearly basis is called
A) Recurrent money
B) Recurrent salary
C) Recurrent revenue
D) Recurrent expenditure
  • 17. 17. Expenses on projects which are permanent in nature is referred to as
A) capital receipt
B) capital expenditure
C) capital revenue
D) Capital money
  • 18. 18. A _____________ budget is when revenue equals to expenditure
A) deficit
B) unbalanced
C) balanced
D) surplus
  • 19. 19. ________________ is a financial statement of the total revenue and proposed expenditure
A) Balance sheet
B) Budget
C) Bonus
D) Report sheets
  • 20. 20. Which of the following can be used to foster economic growth and development.
A) Budget
B) Opportunity cost
C) Choice
D) Scale of preference
  • 21. 21. There are ___________ types of budget.
A) five
B) three
C) two
D) four
  • 22. 22. When inflows are equal to outflows, the budget is said to be
A) surplus
B) suplex
C) deficit
D) balanced
  • 23. 23. When a government spending exceeds government revenue, the budget is said to be
A) budget
B) surplus budget
C) balanced budget
D) deficit budget
  • 24. 24. A budget _____________ occurs when the government spending is less than government revenue
A) balanced
B) balance balanced budget
C) deficit
D) surplus
  • 25. 25. The following are sources of government borrowing in Nigeria except
A) Treasury bills
B) Development stocks
C) Treasury certificate
D) POS
  • 26. 26. Government stocks that are used for long- term borrowing is called
A) Development projects
B) Development plan
C) Master plan
D) Development stock
  • 27. 27. Mathematically, NNP = GNP --- ?
A) Deficit
B) Surplus
C) Appreciation
D) Depreciation
  • 28. 28. Mathematically, GNP = GDP + ?
A) Net income from abroad
B) Network from abroad
C) Net sales
D) Net tax
  • 29. 29. The amount earned by individual for taking part in the production of goods and services is called
A) Personal savings
B) Personal development
C) Personal income
D) National savings
  • 30. 30. Nominal income expressed in terms of what it can buy.
A) National income
B) Personal income
C) Real income
D) Nominal income
  • 31. 31. Per capita income is also called
A) currency per earning
B) stock valuations
C) income per capital
D) stock exchange
  • 32. 32. The formula for calculating national income using expenditure method is
A) C+I+G+(X--M) + subsidies --- Taxes -- Depreciation
B) C+I +G +(M --X) + subsidies -- Taxes -- Depreciation
C) C +I + G + Subsidies --- Taxes -- Depreciation
D) C+G+ I +(X+M) -- subsidies --Taxes --Depreciation
  • 33. 33. There are __________ approaches or methods of calculating NI
A) six
B) five
C) four
D) three
  • 34. 34. The following are uses of national income except one
A) Problem of double counting
B) Economic planning
C) Index for classification
D) Redistribution of income
  • 35. 35. The following are problems of computing National Income except
A) Problems of inflation
B) Ignorance and illiteracy
C) Estimation of assets and liabilities
D) Incomplete information
  • 36. 36. Measurement of level of economic performance is one uses of National Income
A) Complex
B) True
C) False
D) No idea
  • 37. 37. The type of demand which occurs as a result of demand for other commodities is referred to as
A) Joint demand
B) Complementary demand
C) Composite demand
D) Derived demand
  • 38. 38. A demand which occurs when two commodities that are related to each other are demanded at the same time.
A) Good demand
B) Joint demand
C) Derived demand
D) Competitive demand
  • 39. 39. The formula :C+I+G+ (X-M)+ subsidies -- Taxes -- Depreciation is used for calculating
A) National Income
B) National Debts
C) Development Plan
D) National Development
  • 40. 40. The use of tools like hoe,cutlasses and other crude tools are majorly used in
A) Cooperative farming
B) subsistence farming
C) commercial farming
D) Plantation farming
  • 41. 41. If the quantity demanded(Qd) = 20 --2p and quantity supplied (QS) = 6p --12. Determine the equilibrium price.
A) 12
B) 8
C) 32
D) 4
  • 42. 42. If the Quantity demanded (Qd) = 20 -- 2p and the Quantity Supplied (QS)= 6p --12. Determine the equilibrium quantity.
A) 4
B) 30
C) 18
D) 12
  • 43. 43. When two commodities have fairly close substitutes, demand is said to be ____________
A) derived
B) competitive
C) composite
D) All of the above
  • 44. 44. The first law of demand states that all things being equal
A) the higher the price , the higher the quantity of goods to be demanded
B) the higher the price, the lower the quantity of goods to be demanded and vice versa
C) the lower the price
D) the higher the price ,the lower the quantity of goods to be supplied
  • 45. 45. The following are factors affecting demand except
A) the price of other commodities
B) number of producers
C) population
D) price
  • 46. 46. The second law of demand and supply states that all things being equal
A) the lower the price,the higher the quantity of goods to supplied
B) the higher the price, the higher the quantity of goods to be supplied
C) None of the above
D) the higher the price, the higher the quantity of goods to be demanded
  • 47. 47. The following are factors affecting supply except
A) Income of the consumer
B) Taxation
C) Price
D) Weather
  • 48. 48. ___________ is defined as the quantity of goods or services that consumers are willing to buy at alternative prices over a given period of time.
A) Demand
B) Equipment
C) Supply
D) Equilibrium
  • 49. 49. ___________ refers to the desire for goods and services.
A) Supply
B) Demand
C) No idea
D) Want
  • 50. 50. ____________ is the production of crops and rearing of animals for man's use.
A) Mining
B) Searching
C) Agriculture
D) Lumbering
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