Economics is the study of how societies allocate limited resources to meet the unlimited needs and wants of individuals. It focuses on the production of goods and services, economic growth, and various complex issues that are important to society.
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Question 71:

A point P, the marginal rate of substitution is
Options:
A) less than one
B) greater than one
C) zero
D) unity
Show Answer
The correct answer is A .
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Question 72: Derived demand is normally used with reference to
Options:
A) superior goods
B) inferior goods
C) the cost of production
D) the factors of production
Show Answer
The correct answer is D .
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Question 73: One of the causes of the present high rate of inflation in Nigeria is
Options:
A) increasing budget surplus
B) increasing factor costs
C) exchange rate appreciation
D) high capacity utilization
Show Answer
The correct answer is C .
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Question 74:
If the quantity demanded of a commodity increases from 20 to 30 when there is an increase in price from N4 to N5, the elasticity of deman is_______
Options:
A) Zero
B) 10
C) 2
D) 1
Show Answer
The correct answer is C .
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Question 75: If 100 units and units of commodity X are supplied at N80 at different times, it means that there is
Options:
A) a change in supply
B) a change in the quantity supplied
C) an increase in the quantity supplied
D) a increase in the quantity supplied
Show Answer
The correct answer is B .
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Question 76: If goods were free, a rational consumer would consume?
Options:
A) an infinite amount of each good
B) the amount where marginal utility became zero
C) the same amount as when each good had a price
D) the amount where marginal utility was the highest
Show Answer
The correct answer is D .
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Question 77: Which of the following is likely to hinder labour mobility in Nigeria?
Options:
A) Higher wages elsewhere
B) Cultural similarities
C) Good accommodation elsewhere
D) Ignorance of job opportunities elsewhere
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The correct answer is B .
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Question 78: Which is considered the most effective tool by which the Central Bank of Nigeria can control the activities of commercial banks?
Options:
A) Open market operation
B) Reserve requirements
C) Bank rate
D) Directives
E) Special deposits
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The correct answer is B .
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Question 79: Which of the following will be the effect of allowing only economic factors to dedicate the location of industries in Nigeria?
Options:
A) A more even development of the different parts of the country will be assured
B) There will be an unbalanced spread in the distribution of industries
C) The less developed parts of the country will be able to attract more industries
D) Only the government will be able to finance the establishment of industries
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The correct answer is B .
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Question 80:
Oligopoly means _________
Options:
A) single buyer in the market.
B) few buyers in the market.
C) few sellers in the market
D) many sellers in the market
Show Answer
The correct answer is C .