AIC SS 2 Economics Revision Test for 3rd Term 2022/23
  • 1. 1. A firm maximises profit where
A) MC>MV
B) MC<MR
C) MC=MR
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) control of inflation
B) good fiscal policy
C) satisfaction of needs
D) equitable distribution of income
  • 4. 4. An aspect of economics that deals with government revenue and expenditure is called
A) Publicity
B) Public finance
C) Public control
D) Public regulations
  • 5. 5. Need refers to ____________________
A) desire
B) luxury
C) necessity
D) none of the above
  • 6. 6. The use of income and expenditure refers to
A) public finance
B) Fiscal police
C) Fiscal plot
D) Fiscal policy
  • 7. 7. Price stability is one of the objective of demand and supply
A) False
B) No idea
C) True
D) Too complex
  • 8. 8. The two major types of taxes are ___________ and ________________.
A) direct and deficit
B) direct and direct
C) direct and suplex
D) direct and indirect
  • 9. 9. ______________ is a regular source of revenue.
A) Recurrent revenue
B) Recurring expense
C) Recurring expenditure
D) Recurrent experience
  • 10. 10. Loans obtained from the World Bank is called
A) internal revenue
B) internal/external revenue
C) all of the above
D) external revenue
  • 11. 11. Grants and aids are sources of _____________ revenue to the government.
A) external
B) internal
C) extra
D) Intra
  • 12. 12. The fiscal policy of the government are incorporated in the _______________ .
A) revenue
B) budget
C) Expenditure
D) election
  • 13. 13. VAT means
A) Value added Tap
B) Value added top
C) Value Added Tax
D) none of the above
  • 14. 14. Payment of pensions is an example of _____________
A) Bank transfer
B) transfer services
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 expenditure
C) Government taxation
D) Government revenue
  • 16. 16. Expenses which are repeated on a yearly basis is called
A) Recurrent salary
B) Recurrent revenue
C) Recurrent money
D) Recurrent expenditure
  • 17. 17. Expenses on projects which are permanent in nature is referred to as
A) capital receipt
B) capital revenue
C) Capital money
D) capital expenditure
  • 18. 18. A _____________ budget is when revenue equals to expenditure
A) unbalanced
B) surplus
C) balanced
D) deficit
  • 19. 19. ________________ is a financial statement of the total revenue and proposed expenditure
A) Report sheets
B) Bonus
C) Balance sheet
D) Budget
  • 20. 20. Which of the following can be used to foster economic growth and development.
A) Scale of preference
B) Choice
C) Opportunity cost
D) Budget
  • 21. 21. There are ___________ types of budget.
A) three
B) five
C) two
D) four
  • 22. 22. When inflows are equal to outflows, the budget is said to be
A) balanced
B) deficit
C) surplus
D) suplex
  • 23. 23. When a government spending exceeds government revenue, the budget is said to be
A) deficit budget
B) budget
C) surplus budget
D) balanced budget
  • 24. 24. A budget _____________ occurs when the government spending is less than government revenue
A) balance balanced budget
B) balanced
C) surplus
D) deficit
  • 25. 25. The following are sources of government borrowing in Nigeria except
A) POS
B) Treasury certificate
C) Treasury bills
D) Development stocks
  • 26. 26. Government stocks that are used for long- term borrowing is called
A) Development plan
B) Master plan
C) Development stock
D) Development projects
  • 27. 27. Mathematically, NNP = GNP --- ?
A) Depreciation
B) Deficit
C) Appreciation
D) Surplus
  • 28. 28. Mathematically, GNP = GDP + ?
A) Network from abroad
B) Net sales
C) Net income from abroad
D) Net tax
  • 29. 29. The amount earned by individual for taking part in the production of goods and services is called
A) National savings
B) Personal development
C) Personal income
D) Personal savings
  • 30. 30. Nominal income expressed in terms of what it can buy.
A) Nominal income
B) Real income
C) National income
D) Personal income
  • 31. 31. Per capita income is also called
A) stock exchange
B) stock valuations
C) currency per earning
D) income per capital
  • 32. 32. The formula for calculating national income using expenditure method is
A) C+G+ I +(X+M) -- subsidies --Taxes --Depreciation
B) C+I +G +(M --X) + subsidies -- Taxes -- Depreciation
C) C+I+G+(X--M) + subsidies --- Taxes -- Depreciation
D) C +I + G + Subsidies --- Taxes -- Depreciation
  • 33. 33. There are __________ approaches or methods of calculating NI
A) four
B) six
C) three
D) five
  • 34. 34. The following are uses of national income except one
A) Problem of double counting
B) Index for classification
C) Redistribution of income
D) Economic planning
  • 35. 35. The following are problems of computing National Income except
A) Problems of inflation
B) Incomplete information
C) Estimation of assets and liabilities
D) Ignorance and illiteracy
  • 36. 36. Measurement of level of economic performance is one uses of National Income
A) Complex
B) False
C) No idea
D) True
  • 37. 37. The type of demand which occurs as a result of demand for other commodities is referred to as
A) Joint demand
B) Composite demand
C) Derived demand
D) Complementary demand
  • 38. 38. A demand which occurs when two commodities that are related to each other are demanded at the same time.
A) Competitive demand
B) Derived demand
C) Joint demand
D) Good demand
  • 39. 39. The formula :C+I+G+ (X-M)+ subsidies -- Taxes -- Depreciation is used for calculating
A) National Development
B) National Debts
C) Development Plan
D) National Income
  • 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) 8
B) 4
C) 32
D) 12
  • 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) All of the above
B) competitive
C) composite
D) derived
  • 44. 44. The first law of demand states that all things being equal
A) the higher the price, the lower the quantity of goods to be demanded and vice versa
B) the lower the price
C) the higher the price ,the lower the quantity of goods to be supplied
D) the higher the price , the higher the quantity of goods to be demanded
  • 45. 45. The following are factors affecting demand except
A) number of producers
B) the price of other commodities
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) Weather
B) Income of the consumer
C) Taxation
D) Price
  • 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) Supply
B) Equilibrium
C) Demand
D) Equipment
  • 49. 49. ___________ refers to the desire for goods and services.
A) Demand
B) Supply
C) Want
D) No idea
  • 50. 50. ____________ is the production of crops and rearing of animals for man's use.
A) Agriculture
B) Mining
C) Searching
D) Lumbering
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