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) Equality point
B) Stabilization point
C) Equipment point
D) Equilibrium point
  • 3. 3. One of the following is the objectives of public finance except
A) good fiscal policy
B) satisfaction of needs
C) control of inflation
D) equitable distribution of income
  • 4. 4. An aspect of economics that deals with government revenue and expenditure is called
A) Public finance
B) Public control
C) Public regulations
D) Publicity
  • 5. 5. Need refers to ____________________
A) luxury
B) necessity
C) none of the above
D) desire
  • 6. 6. The use of income and expenditure refers to
A) Fiscal police
B) Fiscal plot
C) public finance
D) Fiscal policy
  • 7. 7. Price stability is one of the objective of demand and supply
A) No idea
B) True
C) Too complex
D) False
  • 8. 8. The two major types of taxes are ___________ and ________________.
A) direct and deficit
B) direct and direct
C) direct and indirect
D) direct and suplex
  • 9. 9. ______________ is a regular source of revenue.
A) Recurrent experience
B) Recurring expense
C) Recurring expenditure
D) Recurrent revenue
  • 10. 10. Loans obtained from the World Bank is called
A) internal/external revenue
B) internal revenue
C) external revenue
D) all of the above
  • 11. 11. Grants and aids are sources of _____________ revenue to the government.
A) external
B) Intra
C) internal
D) extra
  • 12. 12. The fiscal policy of the government are incorporated in the _______________ .
A) revenue
B) budget
C) election
D) Expenditure
  • 13. 13. VAT means
A) Value added Tap
B) Value added top
C) none of the above
D) Value Added Tax
  • 14. 14. Payment of pensions is an example of _____________
A) Bank money
B) transfer services
C) Bank payment
D) Bank transfer
  • 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 expenditure
D) Government revenue
  • 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 revenue
D) capital receipt
  • 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) 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) three
B) five
C) four
D) two
  • 22. 22. When inflows are equal to outflows, the budget is said to be
A) balanced
B) deficit
C) suplex
D) surplus
  • 23. 23. When a government spending exceeds government revenue, the budget is said to be
A) balanced budget
B) surplus budget
C) budget
D) deficit budget
  • 24. 24. A budget _____________ occurs when the government spending is less than government revenue
A) deficit
B) surplus
C) balance balanced budget
D) balanced
  • 25. 25. The following are sources of government borrowing in Nigeria except
A) Treasury bills
B) POS
C) Treasury certificate
D) Development stocks
  • 26. 26. Government stocks that are used for long- term borrowing is called
A) Development projects
B) Master plan
C) Development stock
D) Development plan
  • 27. 27. Mathematically, NNP = GNP --- ?
A) Deficit
B) Appreciation
C) Surplus
D) Depreciation
  • 28. 28. Mathematically, GNP = GDP + ?
A) Net sales
B) Network from abroad
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) Personal savings
B) National savings
C) Personal income
D) Personal development
  • 30. 30. Nominal income expressed in terms of what it can buy.
A) Real income
B) National income
C) Nominal income
D) Personal income
  • 31. 31. Per capita income is also called
A) income per capital
B) currency per earning
C) stock exchange
D) stock valuations
  • 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) four
B) five
C) three
D) six
  • 34. 34. The following are uses of national income except one
A) Redistribution of income
B) Index for classification
C) Problem of double counting
D) Economic planning
  • 35. 35. The following are problems of computing National Income except
A) Ignorance and illiteracy
B) Estimation of assets and liabilities
C) Incomplete information
D) Problems of inflation
  • 36. 36. Measurement of level of economic performance is one uses of National Income
A) False
B) No idea
C) Complex
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) Complementary demand
C) Derived 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) Derived demand
B) Joint demand
C) Good demand
D) Competitive demand
  • 39. 39. The formula :C+I+G+ (X-M)+ subsidies -- Taxes -- Depreciation is used for calculating
A) Development Plan
B) National Income
C) National Development
D) National Debts
  • 40. 40. The use of tools like hoe,cutlasses and other crude tools are majorly used in
A) commercial farming
B) Cooperative 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) 32
B) 12
C) 8
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) 12
D) 18
  • 43. 43. When two commodities have fairly close substitutes, demand is said to be ____________
A) competitive
B) composite
C) All of the above
D) derived
  • 44. 44. The first law of demand states that all things being equal
A) the lower the price
B) the higher the price , the higher the quantity of goods to be demanded
C) the higher the price, the lower the quantity of goods to be demanded and vice versa
D) the higher the price ,the lower the quantity of goods to be supplied
  • 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) None of the above
B) the higher the price, the higher the quantity of goods to be supplied
C) the higher the price, the higher the quantity of goods to be demanded
D) the lower the price,the higher the quantity of goods to supplied
  • 47. 47. The following are factors affecting supply except
A) Weather
B) Price
C) Taxation
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) Supply
B) Equipment
C) Equilibrium
D) Demand
  • 49. 49. ___________ refers to the desire for goods and services.
A) Supply
B) No idea
C) Demand
D) Want
  • 50. 50. ____________ is the production of crops and rearing of animals for man's use.
A) Searching
B) Agriculture
C) Lumbering
D) Mining
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