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