Economic Post UTME past questions and answers

Economic Post UTME past questions and answers

Here are 20 sample questions with options and answers:

What is the main function of an economic system?

a) Production

b) Distribution

c) Consumption

d) All of the above

Answer: d) All of the above

In economics, the term "CPI" stands for:

a) Consumer Price Index

b) Corporate Profit Indicator

c) Central Productivity Index

d) Capital Price Inflation

Answer: a) Consumer Price Index

Which of the following is not a factor of production?

a) Land

b) Labor

c) Money

d) Capital

Answer: c) Money

What is the law of demand?

a) Price and quantity demanded are inversely related.

b) Price and quantity demanded are directly related.

c) Price has no effect on quantity demanded.

d) Quantity demanded is constant at all prices.

Answer: a) Price and quantity demanded are inversely related.

Gross Domestic Product (GDP) measures the:

a) Total population of a country.

b) Total market value of all goods and services produced within a country's borders.

c) Total government expenditures.

d) Total imports and exports of a country.

Answer: b) Total market value of all goods and services produced within a country's borders.

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

a) Private ownership of the means of production

b) Market-driven allocation of resources

c) Government control and planning of economic activities

d) Consumer sovereignty

Answer: c) Government control and planning of economic activities

What is the opportunity cost of a decision?

a) The cost of a good or service in monetary terms

b) The value of the next best alternative foregone

c) The cost of production

d) The total cost incurred in the decision

Answer: b) The value of the next best alternative foregone

Which of the following is a regressive tax?

a) Income tax

b) Sales tax

c) Property tax

d) Value-added tax (VAT)

Answer: b) Sales tax

The concept of "perfect competition" in economics implies:

a) A large number of sellers and homogeneous products.

b) A single seller and unique products.

c) A few sellers and differentiated products.

d) A single seller and monopoly power.

Answer: a) A large number of sellers and homogeneous products.

What does the law of diminishing marginal utility state?

a) As the price of a good increases, the demand for it increases.

b) As a consumer consumes more units of a good, the additional satisfaction from each additional unit decreases.

c) As income increases, the demand for inferior goods increases.

d) The price of a good is directly proportional to its utility.

Answer: b) As a consumer consumes more units of a good, the additional satisfaction from each additional unit decreases.

What is a trade deficit?

a) When a country's exports exceed its imports.

b) When a country's imports exceed its exports.

c) When a country has a balanced trade with no deficit.

d) When a country's currency is strong in the foreign exchange market.

Answer: b) When a country's imports exceed its exports.

Which type of inflation is caused by an increase in production costs?

a) Demand-pull inflation

b) Cost-push inflation

c) Built-in inflation

d) Hyperinflation

Answer: b) Cost-push inflation

The concept of "elasticity of demand" measures:

a) The responsiveness of quantity demanded to changes in price.

b) The total revenue of a firm.

c) The absolute demand for a good.

d) The price level in an economy.

Answer: a) The responsiveness of quantity demanded to changes in price.

What is a public good in economics?

a) A good that is available to everyone and has no rivalry or exclusivity.

b) A good provided by private businesses.

c) A good that is non-excludable but has rivalry.

d) A good that is only available to the government.

Answer: a) A good that is available to everyone and has no rivalry or exclusivity.

What does the "Laffer curve" illustrate in economics?

a) The relationship between inflation and unemployment.

b) The trade-off between economic growth and income inequality.

c) The relationship between tax rates and tax revenue.

d) The elasticity of demand for luxury goods.

Answer: c) The relationship between tax rates and tax revenue.

Which of the following is a fiscal policy tool used to combat inflation?

a) Increasing government spending

b) Cutting interest rates

c) Reducing government spending

d) Reducing taxes

Answer: c) Reducing government spending

What is the primary goal of monetary policy?

a) Managing government expenditures

b) Controlling inflation

c) Regulating trade barriers

d) Managing fiscal deficits

Answer: b) Controlling inflation

Which of the following is a characteristic of a monopoly market structure?

a) Many sellers and differentiated products

b) A few sellers and homogeneous products

c) A single seller with no close substitutes

d) A large number of sellers and perfect competition

Answer: c) A single seller with no close substitutes

What is the formula for calculating GDP using the income approach?

a) GDP = C + I + G + (X - M)

b) GDP = Wages + Profits + Rent + Interest

c) GDP = Consumption + Investment + Government Spending

d) GDP = Exports - Imports

Answer: b) GDP = Wages + Profits + Rent + Interest

Which organization is responsible for regulating the money supply in the United States?

a) World Trade Organization (WTO)

b) Federal Reserve System (Fed)

c) International Monetary Fund (IMF)

d) United Nations (UN)

Answer: b) Federal Reserve System (Fed)