UTME Economics Questions and Answers

UTME Economics Questions and Answers

Here are 20 UTME (Unified Tertiary Matriculation Examination) Economics questions with options and the correct answers indicated:

Which of the following is NOT a factor of production?

a) Land

b) Labor

c) Capital

d) Money

Correct answer: d) Money

In economics, the term "demand" refers to:

a) The quantity of a good or service that consumers are willing to buy at a particular price

b) The quantity of a good or service that producers are willing to supply at a particular price

c) The quantity of a good or service that is available in the market

d) The price at which a good or service is sold

Correct answer: a) The quantity of a good or service that consumers are willing to buy at a particular price

Which of the following is an example of an opportunity cost?

a) Spending money on a vacation instead of saving it

b) Buying a new car with saved money

c) Renting a house instead of buying one

d) Paying for college tuition

Correct answer: a) Spending money on a vacation instead of saving it

Which of the following is a characteristic of a perfectly competitive market?

a) Few buyers and sellers

b) Product differentiation

c) Barriers to entry

d) Price taker behavior

Correct answer: d) Price taker behavior

The production possibility curve illustrates:

a) The various combinations of goods and services an economy can produce given its resources

b) The demand and supply of a particular product in the market

c) The income distribution among different economic classes

d) The economic growth rate of a country

Correct answer: a) The various combinations of goods and services an economy can produce given its resources

The term "inflation" refers to:

a) A sustained increase in the overall price level of goods and services

b) A sustained decrease in the overall price level of goods and services

c) The rate at which the economy is growing

d) The total value of goods and services produced in an economy

Correct answer: a) A sustained increase in the overall price level of goods and services

What does the term "GDP" stand for?

a) General Demand and Production

b) Gross Domestic Product

c) Global Development Program

d) Government Debt and Payments

Correct answer: b) Gross Domestic Product

Which of the following is an example of a regressive tax?

a) Value Added Tax (VAT)

b) Progressive Income Tax

c) Corporate Income Tax

d) Sales Tax

Correct answer: d) Sales Tax

The Phillips curve shows the relationship between:

a) Inflation and unemployment

b) Government spending and economic growth

c) Interest rates and investment

d) National income and consumption

Correct answer: a) Inflation and unemployment

Which of the following is a fiscal policy tool used to stimulate economic growth?

a) Increasing government spending

b) Raising interest rates

c) Reducing taxes

d) Decreasing the money supply

Correct answer: a) Increasing government spending

The World Trade Organization (WTO) is an international organization that deals with:

a) Global health issues

b) Climate change

c) Trade rules between nations

d) Human rights violations

Correct answer: c) Trade rules between nations

Which of the following is a characteristic of a monopolistic competition market?

a) Many buyers and sellers

b) Identical products

c) Price taker behavior

d) Product differentiation

Correct answer: d) Product differentiation

Which of the following is an example of an external cost?

a) Pollution from a factory affecting nearby communities

b) Increased employment opportunities in a local area

c) Higher tax revenues from a successful business

d) Improved infrastructure due to government investment

Correct answer: a) Pollution from a factory affecting nearby communities

The term "elasticity of demand" measures:

a) The responsiveness of quantity demanded to changes in price

b) The responsiveness of quantity supplied to changes in price

c) The total demand for a product in the market

d) The income distribution among consumers

Correct answer: a) The responsiveness of quantity demanded to changes in price

Which of the following is a characteristic of a command economy?

a) Central planning by the government

b) Market forces determining resource allocation

c) Private ownership of means of production

d) Individual decision-making in economic matters

Correct answer: a) Central planning by the government

What does the term "deflation" refer to?

a) A sustained decrease in the overall price level of goods and services

b) A sustained increase in the overall price level of goods and services

c) The rate of economic growth

d) The total value of goods and services produced in an economy

Correct answer: a) A sustained decrease in the overall price level of goods and services

The term "monetary policy" refers to:

a) Government policies related to taxation and public spending

b) Policies aimed at controlling the money supply and interest rates

c) International trade agreements and tariffs

d) Economic policies to promote social welfare

Correct answer: b) Policies aimed at controlling the money supply and interest rates

Which of the following is a characteristic of oligopoly?

a) Many buyers and sellers

b) Perfect competition

c) Product differentiation

d) Price taker behavior

Correct answer: c) Product differentiation

The term "marginal utility" refers to:

a) The total satisfaction derived from consuming a good or service

b) The additional satisfaction obtained from consuming an additional unit of a good or service

c) The price elasticity of demand for a good or service

d) The total revenue generated from selling a good or service

Correct answer: b) The additional satisfaction obtained from consuming an additional unit of a good or service

Which of the following is a characteristic of a mixed economy?

a) Central planning by the government

b) Market forces determining resource allocation

c) Private ownership of means of production

d) Coexistence of public and private sectors in the economy

Correct answer: d) Coexistence of public and private sectors in the economy