EXCEL MINDS ACADEMIC GROUP ECO 101 MOCK EXAMINATIONS

An economic agent contracts a loan of N15,000, which he will repay in three equal annual installments. What will be the total interest paid, knowing that the annual interest rate is 12% per year

• N3,600

• N1,800

• N5,400

• N1,500

Which of the following statements about monopoly is true

• A. there are several companies producing a specific product

• B. there is only one producing company, but the product has close substitutes

• C. there is no competitors on the relevant market

• D. input barriers are low

Which of the following statements is false

• A. perfect competition involves many sellers of standardized products

• B. monopolistic competition involves many sellers of homogeneous products

• C. the oligopoly involves several producers of standardized or differentiated products

• D. monopoly involves a single product for which there are no close substitutes

The total utility coincides with the marginal utility

• A. for the first unit consumed

• B. only for the irrational consumer

• C. at the level of the last unit consumed

• D. at the saturation point

Which of the following would be the best definition of the study of economics

• A. Economics is the study of how the stock market operates

• B. Economics is the study of how governments set production goals

• C. Economics is the study of how scarce resources are allocated to unlimited wants

• D. Economics is the study of how firms decide to make hiring decisions

A demand curve is drawn on the assumption that

• A. quantity demanded always increases as price falls

• B. changes in price do not influence supply

• C. price elasticity of demand does not vary along the demand curve

• D. factors affecting demand, other than price, remain constant

Which of the following features define human wants

• A. are not concurrent

• B. do not disappear momentarily if they are satisfied

• C. is unlimited in capacity

• D. is unlimited in number

Suppose you buy Economics by David King. What is the opportunity cost of your purchase

• A. The money you paid for the book

• B. Whatever you would have spent the money on if you had not bought the book

• C. The cost of producing the book

• D. The time you spend studying the book

The indifference curve means

• A. equal consumption of two goods

• B. equal utility from the consumption of two combinations of goods

• C. equal consumer income

• D. equal prices of the goods consumed

Which of the following can be considered as the basic features of public goods

• A. are state-owned

• B. are characterized by non-excludability and non-rivalry

• C. are characterized by excludability and rivalry

• D. may be positive or negative