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