NOUN E-Exam: ECO121 - Principles of Economics I, Past Questions

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Adebisi
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NOUN E-Exam: ECO121 - Principles of Economics I, Past Questions

Postby Adebisi » Tue Jul 24, 2018 3:54 pm

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The demand curve facing
a monoplist is price Inelastic S eExam
FBQ
Income elasticity of
demand is
percentage
change in
quantity
demanded over
percentage in
income
eExam
FBQ
In choice making, relative
worth of different goods
and services are
considered. This
consideration is known as
satisfaction, but to
economist it is called
Utility eExam
FBQ
Bread and butter are
complimentary goods.
True of False? TRUE TRUE eExam
FBQ
If the cross-price elasticity
between two goods is
negative, the two goods
are likely to be
complements eExam
FBQ
The price elasticity of
demand is defined as
the percentage
change in the
quantity
demanded of a
good divided by
the percentage
change in the
price of that
good.
eExam
FBQ
A price floor
sets a legal
minimum on the
price at which a
good can be sold
sets legal
minimum on the
sales price of a
good
eExam
FBQ
A situation where firms in
an industry agreed to
fixing prices and outputs
is known as
Collusive
oligopoly
eExam

FBQ
Tea and coffee are
complimentary goods.
True of False? FALSE FALSE eExam
FBQ
A binding price ceiling
creates a shortage shortage eExam
FBQ
For a price ceiling to be a
binding constraint on the
market, the government
must set it
below the
equilibrium
price
below
equilibrium
price
eExam
FBQ
If the equilibrium price of
petrol is N1.00 per litre
and the government places
a price ceiling on petrol of
N1.50 per litre, the result
will be
of petrol
an excess excess eExam
FBQ
The point at which the
demand and the supply
curve intersect each other
is known as the
equilibrium
point
eExam
FBQ
Controlled or Planned
economies are usually
associated with
and
Socialism ,
Communism
socialism,
communism
eExam
FBQ
One of the basic economic
systems is Controlled
economy
or mixed
economy or free
market
economy
eExam
FBQ
An economic system
consists of
and
and their interaction in the
process of answering basic
economic problems
individual ,
institutions
individual,
institutions
eExam
FBQ
Ayodeji could buy a
kilogram of ice cream
with N500 but opted for 2
kilograms of candy for the
same amount. This is an
example of
trade-off eExam
FBQ
The basic economics
problems are
.
and
what to produce,
how to produce,
for whom to
produce
what to
produce, how to
produce and for
whom to
produce
eExam

FBQ
If the income elasticity of
demand for a good is
negative, it must be an inferior good inferior goods eExam
FBQ
When prices and
quantities are implicitly by
a firm, we a case of Tacit collusion eExam
FBQ
If there is excess capacity
in a production facility, it
is likely that the firm's
supply curve is
price elastic eExam
FBQ
If supply is price inelastic,
the value of the price
elasticity of supply must
be
less than one eExam
FBQ
The price elasticity of
supply tends to be more
inelastic as the firm's
production facility reaches
capacity.
maximum eExam
FBQ
If the price elasticity of
supply for blue jeans is
1.3, an increase in the
price of blue jeans of 10
percent would increase the
quantity supplied of blue
jeans by
percent
13 thirtheen eExam
FBQ
A graphical representation
showing the relationship
between price and quantity
demanded of a good at a
particular point in time is
called
.
demand curve eExam
FBQ
The total quantity
demanded at each price by
consumers is the
market demand
schedule
eExam
FBQ
When definite quantities
are demanded at particular
prices for a particular
commodity especially
when the lower and higher
prices are considered, then
we have what we call
demand
schedule.
demand
schedule
eExam

FBQ
is the effect of a change in
price on quantity
demanded as a result of
switching by consumers to
alternative or from
alternative products
Substitution
effect
Substitution
effects
eExam
FBQ
A sudden increase in price
of a commodity means a
reduction in the
consumption power of the
consumer; as a result of
fall in their real income.
This situation is referred
to as
.
income effect eExam
FBQ
Price and
effects are better used in
explaining the link
between demand and
price.
substitution eExam
FBQ is another name for price
determination in
economics
price theory eExam
FBQ
If government decides to
subsidize a good, there
will be
for producer
more profit increase profit eExam
FBQ
Entrance of new firms into
the industry will
quantity supply to the
market
trible eExam
FBQ
Change in taste may not
lead to higher cost of
for a firm.
production Production eExam
FBQ
Price floor is the direct
opposite of price ceiling Ceiling eExam
FBQ
The relationship between
the price and quantity of a
good offered to the market
for sale is known as
.
Supply supply eExam
FBQ
Quantity of a commodity
purchased by an individual
or family or group of
people at different prices
at a given time and place
is known as the
.
demand for such
commodity demand eExam

FBQ
Individuals, group of
people and or family or
unrelated people
interacting in the market
place are known as
household Households eExam
FBQ
The academic and nonacademic
staffs of
National Open University
of Nigeria(NOUN) are
examples of
labour labor force eExam
FBQ
The difference between
the selling price and the
cost price is known as the profit Profits eExam
FBQ
is defined as the rate at
which a commodity is
exchanged for money or
other units of exchange.
price eExam
FBQ
If a small percentage
change in the price of a
good greatly reduces the
quantity demaneded for
that good, the demand for
that good is
price elastic eExam
FBQ
is the forces of demand
and supply which
determines the quantity of
goods and services as well
as their prices.
Market force eExam
FBQ
Sellers and buyers
exchanges goods and
services for money in a
place called
market eExam
FBQ
Firms are the
while households are the sellers, buyers seller buyer eExam
FBQ
Goods and services
usually referred to as
are produced by firms
while household
individuals are the
consumers of the goods
Commodities eExam
FBQ
As you get more of a
good, its substitution rate
diminishes to obey law of
diminishing
Marginal Rate of
Substitution
(MRS)
eExam
7/24/2018 Untitled Document
file:///C:/Users/USER.USER-PC/Downloads/Telegram%20Desktop/ECO121.html 6/15
Question
Type Question A B C D Answer Remark
FBQ
Another term for
indiference curve is law of
substitution
eExam
FBQ
Utility theory is one of the
techniques we can utilize
to measure
behavior
consumer eExam
FBQ
Hajia Ganiyat has an
income of #60 for her
fixed budget and if she
planned to spend her
income on crispy rice and
French fries for instance.
Assuming that crispy rice
cost #6 per item while
French fries cost #2 per
pack, if Lady Bola spend
#30 on each item; it means
that she can purchase
of crispy rice and
of French fries
6 packs,15 packs six packs ,
fifteen packs
eExam
FBQ
is the summation of
satisfaction derived from
all the units of goods
consumed
Total utility eExam
FBQ
is the additional
satisfaction or utility
derived from consumption
of addition units of a
product
Marginal utility eExam
FBQ
What inform the choice
made is based on the
derivable from particular
goods and that of its
alternative
satisfaction eExam
FBQ
In choice making, relative
worth of different goods
and services are
considered. This
consideration is known as
satisfaction, but to
economist it is called
utility eExam
FBQ
If the income elasticity of
demand for a good is
negative, it must be an inferior good eExam

FBQ
Capitalist Economy is
usually concerned with an
. While the aim of a
Socialist Economy is
social control
occupational
freedom
eExam
FBQ
In a Marketeconomy,
market participants act as
if guided by an
__to produce outcomes
that maximize social
welfare.
invisible hand eExam
FBQ
Trade-offs are required
because wants are
unlimited and resources
are
scarce eExam
FBQ
Macroeconomics is the
study of the
functioning of an economy
such as basic economic
growth, unemployment, or
inflation
overall eExam
FBQ
Microeconomics could
also be defined as the
study of the decisions of
individuals, households,
and businesses in
markets
specific eExam
FBQ
Scarcity in
is not the same as poverty
microeconomics eExam
FBQ
A big concern in
economics is how the
available
would be allocated, to get
maximum total output
resources eExam
FBQ
‘What to produce’ is more
important in developing
economies, as a result of
scarcity of
skilled man
power
eExam
FBQ
Free market economy or
market economy is an
economic system where
the basic economic
decisions are made by the
buyers and sellers,
individual households and
businesses in the economy
through the
price mechanism eExam

FBQ
In making a decision, we
implicitly compare the
and
of our choices over the
other one.
costs , benefits benefits , costs eExam
FBQ
The difference between
marginal utility and total
utility is that marginal
utility comes from the
unit of a product
consumed while total
utility comes from the
summation of satisfaction
derived from all the units
consumed.
last eExam
FBQ
The difference between
marginal utility and total
utility is that marginal
utility comes from the
unit of a product
consumed while total
utility comes from the
summation of satisfaction
derived from all the units
consumed.
last eExam
FBQ
is the additional
satisfaction or utility
derived from consumption
of addition units of a
product
Marginal utility eExam
FBQ
If the price of bread
increased by 7 percent
which led to 4 percent
decrease in demand for
butter, then cross-price
elasticity of demand will
be
-0.57 eExam
FBQ
If there is 15 percent
changes in quantity
demanded as a result of 5
percent rise in price,
calculated elasticity is
3 eExam
FBQ
If 5 percent increase in
price of petrol drives
down the quantity of
petrol demanded by 5
percent. Then elasticity is
calculated as follow
-1 eExam
FBQ
MPPL is marginal
physical product
of labour
eExam

FBQ Isocost is linked with Factor cost Factors of
production cost
eExam
FBQ
An Isoquant has a
relationship with Production Production
function
eExam
FBQ
The marginal rate of
substitution (MRS) is
asociated with Consumption Utility eExam


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Adebisi
Posts: 814
Joined: Mon Nov 06, 2017 6:59 am
Contact:

Re: NOUN E-Exam: ECO121 - Principles of Economics I, Past Questions

Postby Adebisi » Tue Jul 24, 2018 3:56 pm

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whatsapp: 08155572788


MCQ _ is a good example of
natural monolist
Crude oil in
Nigeria
Post office in
UK
NNPC in
Nigeria
MTN in South
Afica A eExam
MCQ
In a market where over
100 people sell all the
nework airtime, the sellers
become _
Price maker Price giver Price taker All C eExam
MCQ All except _ is right about
perfect market.
MC > MR, and
expansion
possible
Demand curve
is upward MR = 0 MR = P D eExam
MCQ
_ is not a tool that is used
to describe and evaluate
the market processes by
which individuals allocate
scarce resources to satisfy
as many wants as possible
Supply demand production
relationships raw material D eExam
MCQ Economics is the study
of_
how society
manages its
scarce resources
how society
manages its
unlimited
resources.
how to fully
satisfy our
unlimited
wants.
how to reduce
our wants until
we are satisfied.
A eExam
MCQ
If 20 percent increase in
price of needle drives
down quantity demanded
by 2 percent, elasticity for
needle is calculated as_
0.1 0.2 0.3 -0.1 D eExam
MCQ
_demand is a demand
wherein quantity
demanded does not
respond at all to price
change.
perfectly
inelastic
imperfectly
inelastic perfectly elastic imperfectly
elastic A eExam
MCQ Perfectly Inelastic is also
known as _
Positive Elastic
Demand Elastic Demand Unit Elastic
Demand
Zero Elastic
Demand D eExam
MCQ
_ of demand can be
describe as proportional or
percentage change in
quantity demanded as a
result of proportional or
percentage change in that
commodity’s price.
Price elasticity income
elasticity supply elasticity cost elasticity A eExam
MCQ
According to law of
demand when prices rise,
quantity demanded is
expected to fall ceteris
paribus (all things been
equal). This shows that
there is a_relationship
between price and
demand.
positive negative lateral adjacent B eExam
MCQ Price _ is the direct
opposite of price _ floor, ceiling door, ceil window, Ddoor carpet, floor A eExam

MCQ
Another name for price
ceiling is _ which occurs
when the government set a
maximum price that can
be charged for a product in
the market
lower Price limit upper Price upper Price
limit higher Price limit C eExam
MCQ
Supply curve is a
graphical representation of
_schedule.
demand market supply exchange C eExam
MCQ
The higher the price the _
the quantity supplied, the
lower the price the _ the
quantity supplied
lower, higher higher, higher lower, lower higher, lower D eExam
MCQ
The relationship between
the price and quantity of a
good offered to the market
for sale is known as _
demand purchase supply exchange C eExam
MCQ
Expectation of a rise in
price of goods may force
people into what is called
_
panic buying panic selling rush buying impulse buying A eExam
MCQ All except _ are referred to
as complementary goods. bread and butter tables and
chairs
vehicles and
fuel tea and coffee D eExam
MCQ
The total quantity
demanded at each price by
Ganiyat, Wilson, Vivian,
Olusanya, Adedeji, Obaka
and others is the _ for the
month.
market demand
curve
market supply
schedule
market demand
schedule
market supply
curve C eExam
MCQ
A rise in prices of goods
and services will mean _
in quantity demanded.
a rise a stable a fall an inflated C eExam
MCQ
_ is the effect of a change
in price on quantity
demanded as a result of
switching by consumers to
alternative or from
alternative products.
income effect wages effect price effect Substitution
effect D eExam
MCQ
_ is the effect of a change
in price on quantity
demanded as a result of
price changes which made
them worse off
income effect substitution
effect cost effect demand effect A eExam
MCQ
Those who manage;
organize and coordinate
and take decision in a firm
are called _
Managing
Directors landlords owners entrepreneurs D eExam
MCQ
The difference between
the selling price and the
cost price is known as the
_.
profit loss gain excess A eExam
MCQ
Allocated resources are
transformed into what we
call _ while the resources
allocated are the _ to
generate the product.
input /output output / input raw materials/
products
output / raw
materials B eExam
MCQ The role of firm is
primarily to _. distribute produce supply warehouse B eExam

MCQ
Firms and households are
made up of people in the
society who are
performing different
functions with different _
human behavior. human
character. human factor human desires. A eExam
MCQ
_ is defined as the rate at
which a commodity is
exchanged for money or
other units of exchange.
price cost money exchange A eExam
MCQ
The circular flow of goods
and incomes shows the
relationship between_
goods and
services.
wages and
salaries.
firms and
households
income and
money C eExam
MCQ
A graph showing all the
combinations of goods and
services that can be
produced if all of society's
resources are used
efficiently is a_
circular-flow
diagram.
production
possibility
curve.
capital
consumption
frontier
Lorenz curve B eExam
MCQ Opportunity cost is_
the additional
benefit of
buying an
additional unit
of a product.
the cost
incurred in the
past before we
make a decision
about what to
do in the future.
a cost that
cannot be
avoided,
regardless of
what is done in
the future.
that which we
forgo, or give up,
when we make a
choice or a
decision
D eExam
MCQ
Utility theory is one of the
techniques we can utilize
to measure _ behavior
consumer producer seller distributor A eExam
MCQ
A student chooses to study
because the marginal
benefit is greater than
the_cost.
total marginal expected average B eExam
MCQ Unemployment means
that:
there are some
people who will
not work at the
going wage rate.
there is excess
demand in the
labour market.
at the going
wage rate, there
are people who
want to work
but cannot find
work.
people are not
willing to work
at the going
wage rate.
C eExam
MCQ A recession is:
a period of
declining
unemployment.
a period of
declining prices.
a period of very
rapidly
declining prices.
a period during
which aggregate
output declines
D eExam
MCQ Inflation is:
an increase in
the overall price
level
an increase in
the overall level
of economic
activity
a decrease in
the overall price
level.
a decrease in the
overall level of
economic
activity.
A eExam
MCQ
The total demand for
goods and services in an
economy is known as:
national demand gross national
product
aggregate
demand
economy-wide
demand C eExam
MCQ Goods and services
usually referred to as _ commodities articles materials wares A eExam
MCQ
Microeconomics is not
concerned with the
behaviour of:
firms industries aggregate
demand. consumers C eExam
MCQ Macroeconomics deals
with:
the activities of
individuals units
the behaviour of
firms
economic
agents.
economic
aggregates. D eExam
MCQ Which of these is NOT a
factor of production? land A bank loan. labour capital B eExam
MCQ In economics the central
problem is_ allocation money production scarcity. D eExam

MCQ
Free market economy or
market economy is an
economic system where
the basic economic
decisions are made by the
buyers and sellers,
individual households and
businesses in the economy
through the _.
cost mechanism price
mechanism
market
mechanism trade mechanism B eExam
MCQ
Former Soviet Union,
Cuba, Germany, Russia,
North Korea etc are close
examples of_ economies
free enterprise capitalism and
Communism
Controlled or
Planned mixed economy C eExam
MCQ
Controlled or Planned
economies are usually
associated with _ where
government determines
the wages of workers, the
prices of goods and
services and level of
output.
Socialism and
Communism
capitalism and
Communism
Socialism and
facsism
Socialism and
authoritharianism A eExam
MCQ
In a controlled economy, it
is the _ that makes the
economic decision and it
is solely done meaning
that there are no _ sector
initiatives
private/
government
government /
banking private / public government /
private D eExam
MCQ
The direct exchange of
goods and services with
other goods and services is
known_
market pricing barter butter C eExam
MCQ
in Nigeria, people of
Abeokuta is known for the
_cloth business while the
Oke-ogun people continue
to produce the _traditional
attires
‘ofi’ / ‘adire’ ‘adire’ / ‘ofi’ Agbada' / 'akwa' akwa' /Agbada B eExam
MCQ
The economies of all the
countries except _ are
believed to be traditional
Saudi Arabia England Iran Pakistan B eExam
MCQ
_ emerge to resolve the
conflict between
individual objectives.
economic
institutions
government
institutions
social
institutions
politicalal
institutions C eExam
MCQ
Human wants are _and
ever dynamic due to ever
changing demands and
needs for resources which
are limited.
unlimited limited satisfactory exhaustive A eExam
MCQ
As far as basic economics
is concerned, it assumes
that people act _ so as to
gain the most benefit for
themselves especially
when benefit is compared
with the associated costs
carelessly rationally irrationally carefully B eExam
MCQ
There is usually a _
between the two choices
an individual makes
exchange preference trade-off trade-in C eExam

MCQ
_ is the study of the
overall functioning of an
economy such as basic
economic growth,
unemployment, or
inflation, etc.
political
economics budget microeconomics macroeconomics D eExam
MCQ
The study of individuals,
their economic decisions
making, and how those
decisions intermingle is
called _
macroeconomics microeconomics megaeconomics minoreconomics B eExam
MCQ
The field and discipline of
economics is divided into
two main areas, leveled to
_
individuals and
the society
individuals and
the people
person and the
society
government and
the society A eExam
MCQ
Change in input price,
government policy,
organizational change may
lead to_.
higher cost of
demand for a
firm
lower cost of
production for a
firm
higher cost of
production for a
firm
higher cost of
sales for a firm C eExam
MCQ
Income and substitution
effects are better use in
explaining the link
between_ and _.
demand and
price
demand and
supply supply and price good and price A eExam
MCQ
Quantity of a commodity
purchased by an individual
or family or group of
people at different prices
at a given time and place
is known as the _.
input for such
commodity
output for such
commodity
supply for such
commodity
demand for such
commodity D eExam
MCQ
Goods and services
usually referred to as _are
produced by firms while
household individuals are
the _ of the commodities.
‘Commondities’
, costoms
‘Commodities’ ,
consumers
‘Goodies’ ,
producers
‘Commondities’ ,
producers B eExam
MCQ
In a _ economy, the
economic decision are
made based on _, _ and _
of that society.
traditional;
believes, norms,
religion and
customs
transnational;
believes, norms,
and customs
national;
disbelieves,
norms,
irreligion and
customs
traditional;
believes, normal,
irreligion and
customs
A eExam
MCQ
In a controlled economy, it
is the _ that makes the
economic decision and it
is solely done, meaning
that there are no _
initiatives.
private sector,
government
people, public
sector
people, public
sector
government,
private sector D eExam
MCQ
Free market economy or
market economy is an
economic system where
the basic economic
decisions are made by the
buyers and sellers,
individual households and
businesses in the
economy_mechanism
through the
demand
through the
price
through the
supply
through the
output B eExam

MCQ
In Mixed economy,
economic decision on
what to produce; how and
where to produce; for
whom to produce; is made
jointly by the_ and _
sectors in the economy.
government and
the private
people and the
private
government and
the people
public and the
private A eExam
MCQ
_ and _work together to
answer basic economic
problems in relation to the
resources in the society
and its _
Market and
institutions,
availabiliity
Individual and
institutions,
availabiliity
Individual and
institutions,
scarcity
Individual and
people, scarcity C eExam
MCQ
An economic system
consists of _, _ and their
interaction in the process
of answering basic_.
individual,
institutions;
economic
problems
persons,
institutions;
economic issues
persons,
markets;
economic issues
individual,
institutions;
economic issues
A eExam
MCQ
_ have its influence on
human behavior which
determines their decisions
in answering basic _.
Market
institutions,
economic
matters
Market
institutions,
economic
problem
Social
institutions,
economic
solution
Social
institutions,
economic
problem
D eExam
MCQ
In Market economy, _ are
made by the invisible hand
of market forces.
decisions,
invisible hand
decisions,
visible hand
decisions,
invisible fingers
outputs, visible
hand A eExam
MCQ
Thorough evaluation and
rating of_ from most
valued to least valued is a
required step in arriving at
a _ of what to produce.
production and
supply, decision
goods and
services, output
goods and
products,
meeting
goods and
services, decision D eExam
MCQ
Human wants are
unlimited and ever
dynamic due to ever
changing _ and needs for
_which are limited.
demands,
resources
supply,
resources
demands,
materials supply, materials A eExam
MCQ
There is the need to strike
a balance between _ and _
human wants.
limited
resources and
unlimited,
insatiable
scarce resources
and unlimited,
insatiable
limited
resources and
limited,
insatiable
scarce resources
and limited,
insatiable
B eExam
MCQ The monopolist _ price Enjoys Allows Takes Fixes D eExam
MCQ The demand curve facing
the monoplist is _ upward slanting curved downward D eExam
MCQ
Pure monoplist is when
the monopolist has _ in the
industry.
Economies of
scale
large economies
of scale Capital no competitor B eExam
MCQ In profit making, the
monpolist profit is _ Nornal Sufficient Abnormal Less C eExam
MCQ
In an imperfect
competitive market,
monopoly stands out as a
kind.
Yes Not sure No Almost A eExam




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