Try 10 free Economics questions below, each with the answer explained. When you are ready, practise all 1,035 on a timed CBT screen.
The GCE is the version of the school-leaving exam for private candidates, usually held towards the end of the year. It follows the same syllabus as the May/June exam, with objective and theory papers.
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A firm has total revenue of ₦85,300 and total cost of ₦36,800. Find its profit (a loss is shown as negative).
Answer: D. Profit = TR − TC = 85,300 − 36,800 = ₦48,500.
A household earns ₦159,000 and spends ₦95,400 on consumption. Find its average propensity to consume.
Answer: B. APC = consumption ÷ income = 95,400 ÷ 159,000 = 0.6.
When the price of a good rose from ₦1,200 to ₦1,440, quantity demanded fell from 800 to 480 units. Find the price elasticity of demand.
Answer: C. PED = % change in quantity ÷ % change in price = 40% ÷ 20% = 2 (ignoring the minus sign).
A firm sells 80 units at ₦430 each. To sell 90 units it must lower its price to ₦420. Find the marginal revenue per unit of the extra 10 units.
Answer: D. TR rises from 34,400 to 37,800; MR = change in TR ÷ change in quantity = 3,400 ÷ 10 = ₦340.
In Economics, a mixed economy is best described as
Answer: D. A mixed economy: an economy in which both the private and public sectors operate.
If the marginal propensity to consume is 0.75, find the value of the multiplier.
Answer: A. Multiplier = 1 ÷ (1 − MPC) = 1 ÷ 0.25 = 4.
Inflation is
Answer: A. Inflation is a sustained increase in the general level of prices.
According to the law of demand, when price rises the quantity demanded
Answer: B. Other things equal, higher prices reduce the quantity demanded.
Land, labour, capital and ___ are the factors of production.
Answer: B. The entrepreneur organises the other three factors.
A market with only one seller is called
Answer: A. "Mono" means one: a single seller controls supply.
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| Topic | Questions |
|---|---|
| Theory of the firm | 240 |
| National income | 187 |
| Costs and revenue | 120 |
| Consumption and savings | 62 |
| Basic concepts | 61 |
| Production | 61 |
| Elasticity | 61 |
| Money and inflation | 60 |
| Population and labour | 60 |
| Demand and supply | 60 |
| Price index | 60 |