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A development plan covering a period of fifteen years is:
a) Perspective plan b) Short-term plan c) Medium-term plan d) Combined plan
Answer: a) Perspective plan -
Factors militating against improved agriculture in Nigeria are:
a) Land tenure b) Lack of proper storage facilities c) A and B d) None of the above
Answer: c) A and B -
In order to accelerate economic development, a country must:
a) Pursue a rational population policy b) Pursue an incremental population policy c) Stimulate her population growth rate d) Pursue a high population growth rate
Answer: a) Pursue a rational population policy -
Labour productivity is defined as:
a) Total level of output b) Average output c) Output per man hour d) Marginal output of labour
Answer: c) Output per man hour -
Marketing board is:
a) Joint stock company b) Public corporation c) Cooperative society d) Private limited liability company
Answer: b) Public corporation -
One of the following classical economists propounded the theory of population:
a) Adam Smith b) Alfred Marshall c) Thomas Robert Malthus d) All of the above
Answer: c) Thomas Robert Malthus -
If the supply curve of labour market is given as S = 4L + 8, what is L when S = 20?
a) 3 b) 2 c) 4 d) 5
Answer: a) 3 -
The traditional basis for international trade is:
a) Comparative advantage b) Terms of trade c) Balance of trade d) Tariff and quota
Answer: a) Comparative advantage -
OPEC is a good example of:
a) Economic grouping b) Social organization c) Regional grouping d) Cartel
Answer: d) Cartel -
One of the functions of CBN is:
a) Long-term loan syndication b) Floor for capital market stock c) Acceptance of deposits d) Lender of last resort
Answer: d) Lender of last resort -
Which one of the following is not an important determinant of growth of an economy?
a) Human capital b) Production possibility frontiers c) Entrepreneurship d) Technology
Answer: b) Production possibility frontiers -
The system of agricultural practice which involves hunting, gathering and growing of food crops for family consumption is described as:
a) Subsistence farming b) Co-operative farming c) Plantation agriculture d) Mixed cropping
Answer: a) Subsistence farming -
What is the term used to describe a policy aimed at promoting the local production of goods which are usually imported?
a) Deregulation b) Tariff reduction c) Import substitution d) Export promotion
Answer: c) Import substitution -
If planned savings exceeds planned investment, the result will be:
a) An unplanned rise in stock b) A rise in the national income c) A rise in the general level of prices d) A fall in planned investment
Answer: d) A fall in planned investment -
An industry is a group of:
a) Firms producing related goods b) Companies producing unrelated goods c) Firms producing differentiated goods d) Firms producing distinct goods
Answer: a) Firms producing related goods -
In the agricultural sector, improved extension services facilitate:
a) Acquisition of technique b) Mobility of labour c) Livestock production d) Arable crop production
Answer: a) Acquisition of technique -
Labour-intensive strategy of industrialization emphasizes the use of:
a) Steam energy in the process of production b) Manual labour c) Synthetic raw materials d) Hydro-electric power
Answer: b) Manual labour -
The economics of aggregates is referred to as:
a) Macro-economics b) Micro-economics c) National income d) Income distribution
Answer: a) Macro-economics -
One of the aims of ECOWAS is the:
a) Liberalization of trade among member states b) Establishment of its headquarters in each member state c) Discouraging of trade among member states d) Taking over of business in member states
Answer: a) Liberalization of trade among member states -
Which of the following is a leakage out of the circular flow?
a) Saving b) Investment c) Consumption d) Expenditure
Answer: a) Saving -
When production is based on free enterprise, firms seek to maximize:
a) Employment b) Innovation c) Profit d) Quality
Answer: c) Profit -
What would you call a firm which produces and sells as much as it can at a given market price?
a) A monopolistic firm b) An oligopolistic firm c) A perfectly competitive firm d) A free market producer
Answer: c) A perfectly competitive firm -
A production function can be defined as the relationship between:
a) Inputs and output b) Costs and revenue c) Inputs and revenue d) Inputs and cost
Answer: a) Inputs and output -
The three limitations of division of labour are:
a) Capital, labour and entrepreneurship b) Price, quantity and product c) Extent of market, nature of product, political and strategic consideration d) All of the above
Answer: c) Extent of market, nature of product, political and strategic consideration -
The equilibrium national income of an economy in an open economy is:
a) Y = S + C + IG b) Y = C + I + G + (X−M) c) Y = C + I + G + (M−X) d) Y = C + I + G
Answer: b) Y = C + I + G + (X−M) -
The formulation of hypothesis in economics helps in:
a) The establishment of economic thinking b) Making normative statements c) The establishment of economic theory d) Establishment of government policies
Answer: c) The establishment of economic theory -
The population of a country is regarded to be greater than the optimum if:
a) Output per capita increases as population increases b) Output per capita decreases as population increases c) Output per capita decreases as population decreases d) Output per capita is zero as population increases
Answer: b) Output per capita decreases as population increases -
Economic development can be defined as:
a) Economic growth minus change in population b) Economic growth and change in population c) Growth in income per capita d) Economic growth plus change in population
Answer: c) Growth in income per capita -
Ricardo’s law of comparative advantage is based on:
a) The opportunity cost theory b) The law of diminishing marginal utility c) The law of increasing relative cost d) The law of diminishing returns
Answer: a) The opportunity cost theory -
The theory of division of labour is best associated with:
a) Ricardo b) Keynes c) Marx d) Adam Smith
Answer: d) Adam Smith -
Socialist mode of planning is based on:
a) Development plan b) Rolling plan c) Perspective plan d) Central plan
Answer: d) Central plan -
Agro-allied industry involves:
a) Production enterprises on the farm b) Production on a joint stock basis c) Production of only cash crop d) Production of only food crops
Answer: a) Production enterprises on the farm -
When the quantity of a good does not change at all as price changes, demand is said to be:
a) Perfectly inelastic b) Unit elasticity c) Perfectly elastic d) Elastic
Answer: a) Perfectly inelastic -
The curve which shows different combinations of labour and capital that can produce the same level of output is known as:
a) Isocost b) Isoquant c) Production possibility curve d) MP curve
Answer: b) Isoquant -
The private sector in Nigeria is made up of:
a) Household b) Corporate bodies c) Incorporated businesses and households d) Joint stock companies
Answer: c) Incorporated businesses and households -
A downward pressure on the price of a commodity towards the equilibrium results from:
a) Increase in demand b) Decrease in demand c) Decrease in supply d) B and D
Answer: b) Decrease in demand -
Given C = 20 + 0.7Y, I = 60. What is the equilibrium level of national income?
a) 6000 b) 600 c) 650 d) 60
Answer: b) 600 -
The rate at which one input can be substituted for another and still maintain the same level of output is called:
a) Marginal efficiency of capital b) Marginal rate of capital c) Marginal rate of technical substitution d) All of the above
Answer: c) Marginal rate of technical substitution -
Which of these does not belong?
a) Deregulation b) Foreign exchange c) Hedging d) Foreign payment
Answer: a) Deregulation -
Which of the following cost items refers to price?
a) Variable cost b) Opportunity cost c) Fixed cost d) Average cost
Answer: b) Opportunity cost -
A good is said to be inferior if:
a) Its negative substitution effect is exceeded by its negative income effect b) Its negative substitution effect is exceeded by its positive income effect c) Its positive substitution effect is exceeded by its positive income effect d) All of the above
Answer: b) Its negative substitution effect is exceeded by its positive income effect -
Economic integration among regional groups aims at:
a) Deriving the benefits of free trade b) Maximizing their joint profit c) All of the above d) None of the above
Answer: c) All of the above -
A shift in the demand curve for a good may result from:
a) A change in the price of other goods b) A change in the price of the good c) A change in money income d) All of the above
Answer: d) All of the above -
A discriminating monopolist tends to charge a lower price in the market where the demand elasticity is:
a) Higher than in the other b) Lower than in the other c) Equal to unity d) Greater than zero
Answer: a) Higher than in the other -
The practice in which a group of firms establishes a central selling agency for their product is called:
a) Oligopoly b) Cartel c) Monopoly d) Oligopoly
Answer: b) Cartel -
The quickest way of achieving an economic vision on a regional basis is to remove all:
a) Customs barriers b) Language barriers c) Legal barriers d) Monetary barriers
Answer: a) Customs barriers -
The total revenue derived from the demand for a commodity will not change as price varies if the:
a) Elasticity of demand along the curve is zero b) Elasticity of demand along the curve is unity c) A and B d) None of the above
Answer: b) Elasticity of demand along the curve is unity -
A greater burden of taxes on essential goods is borne by the:
a) Lower income group b) Higher income group c) Middle income group d) None of the above
Answer: a) Lower income group -
Which of the following best explains the cause of structural unemployment?
a) Change in the pattern of aggregate demand leading to the decline of some industries and the emergence of others b) Structural rigidities c) Change in technology d) None of the above
Answer: a) Change in the pattern of aggregate demand leading to the decline of some industries and the emergence of others -
An economic system which is regulated by the invisible hand is known as:
a) Planned economy b) Market economy c) Communist d) All of the above
Answer: b) Market economy
2025 IJMB economics paper 3
