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) Equipment point
B) Stabilization point
C) Equilibrium point
D) Equality point
  • 3. 3. One of the following is the objectives of public finance except
A) equitable distribution of income
B) satisfaction of needs
C) good fiscal policy
D) control of inflation
  • 4. 4. An aspect of economics that deals with government revenue and expenditure is called
A) Public control
B) Publicity
C) Public finance
D) Public regulations
  • 5. 5. Need refers to ____________________
A) none of the above
B) necessity
C) luxury
D) desire
  • 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) False
B) True
C) Too complex
D) No idea
  • 8. 8. The two major types of taxes are ___________ and ________________.
A) direct and deficit
B) direct and suplex
C) direct and indirect
D) direct and direct
  • 9. 9. ______________ is a regular source of revenue.
A) Recurring expense
B) Recurring expenditure
C) Recurrent experience
D) Recurrent revenue
  • 10. 10. Loans obtained from the World Bank is called
A) all of the above
B) external revenue
C) internal/external revenue
D) internal revenue
  • 11. 11. Grants and aids are sources of _____________ revenue to the government.
A) internal
B) extra
C) external
D) Intra
  • 12. 12. The fiscal policy of the government are incorporated in the _______________ .
A) revenue
B) Expenditure
C) election
D) budget
  • 13. 13. VAT means
A) none of the above
B) Value Added Tax
C) Value added top
D) Value added Tap
  • 14. 14. Payment of pensions is an example of _____________
A) Bank money
B) Bank transfer
C) Bank payment
D) transfer services
  • 15. 15. _____________ refers to total expenses incurred by public authorities in all levels of administration.
A) Government taxation
B) I don't know
C) Government revenue
D) Government expenditure
  • 16. 16. Expenses which are repeated on a yearly basis is called
A) Recurrent money
B) Recurrent expenditure
C) Recurrent revenue
D) Recurrent salary
  • 17. 17. Expenses on projects which are permanent in nature is referred to as
A) Capital money
B) capital expenditure
C) capital receipt
D) capital revenue
  • 18. 18. A _____________ budget is when revenue equals to expenditure
A) deficit
B) surplus
C) unbalanced
D) balanced
  • 19. 19. ________________ is a financial statement of the total revenue and proposed expenditure
A) Balance sheet
B) Report sheets
C) Budget
D) Bonus
  • 20. 20. Which of the following can be used to foster economic growth and development.
A) Choice
B) Scale of preference
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) suplex
B) deficit
C) balanced
D) surplus
  • 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) deficit
B) balance balanced budget
C) surplus
D) balanced
  • 25. 25. The following are sources of government borrowing in Nigeria except
A) POS
B) Treasury bills
C) Development stocks
D) Treasury certificate
  • 26. 26. Government stocks that are used for long- term borrowing is called
A) Development stock
B) Development plan
C) Master plan
D) Development projects
  • 27. 27. Mathematically, NNP = GNP --- ?
A) Surplus
B) Appreciation
C) Depreciation
D) Deficit
  • 28. 28. Mathematically, GNP = GDP + ?
A) Network from abroad
B) Net tax
C) Net income from abroad
D) Net sales
  • 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) National savings
D) Personal income
  • 30. 30. Nominal income expressed in terms of what it can buy.
A) National income
B) Nominal income
C) Real income
D) Personal income
  • 31. 31. Per capita income is also called
A) stock valuations
B) income per capital
C) currency per earning
D) stock exchange
  • 32. 32. The formula for calculating national income using expenditure method is
A) C+I +G +(M --X) + subsidies -- Taxes -- Depreciation
B) C +I + G + Subsidies --- Taxes -- Depreciation
C) C+G+ I +(X+M) -- subsidies --Taxes --Depreciation
D) C+I+G+(X--M) + subsidies --- Taxes -- Depreciation
  • 33. 33. There are __________ approaches or methods of calculating NI
A) six
B) four
C) five
D) three
  • 34. 34. The following are uses of national income except one
A) Redistribution of income
B) Economic planning
C) Index for classification
D) Problem of double counting
  • 35. 35. The following are problems of computing National Income except
A) Ignorance and illiteracy
B) Problems of inflation
C) Estimation of assets and liabilities
D) Incomplete information
  • 36. 36. Measurement of level of economic performance is one uses of National Income
A) True
B) False
C) No idea
D) Complex
  • 37. 37. The type of demand which occurs as a result of demand for other commodities is referred to as
A) Derived demand
B) Complementary demand
C) Joint demand
D) Composite 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) Competitive demand
C) Derived 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) commercial farming
B) Plantation farming
C) subsistence farming
D) Cooperative farming
  • 41. 41. If the quantity demanded(Qd) = 20 --2p and quantity supplied (QS) = 6p --12. Determine the equilibrium price.
A) 12
B) 32
C) 4
D) 8
  • 42. 42. If the Quantity demanded (Qd) = 20 -- 2p and the Quantity Supplied (QS)= 6p --12. Determine the equilibrium quantity.
A) 18
B) 4
C) 30
D) 12
  • 43. 43. When two commodities have fairly close substitutes, demand is said to be ____________
A) All of the above
B) derived
C) composite
D) competitive
  • 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 higher the price ,the lower the quantity of goods to be supplied
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) number of producers
B) price
C) the price of other commodities
D) population
  • 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 supplied
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 demanded
  • 47. 47. The following are factors affecting supply except
A) Price
B) Income of the consumer
C) Weather
D) Taxation
  • 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) Equilibrium
B) Demand
C) Supply
D) Equipment
  • 49. 49. ___________ refers to the desire for goods and services.
A) Supply
B) Demand
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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