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WorksheetsEconomics Multiple Choice Questions
Total questions: 20
Worksheet time: 10mins
Which of the following best explains scarcity?
Having too much money to spend
Limited resources compared to unlimited wants
Shortage of money in the economy
The use of modern technology in production
What is the central economic problem every society faces?
How to increase population
How to allocate limited resources
How to reduce exports
How to print more money
Which of the following is NOT a factor of production?
Land
Labour
Capital
Consumption
The reward for labour is called:
Wage
Rent
Interest
Profit
Which of the following is a consumer good?
Sewing machine
Television
Tractor
Printing press
What does opportunity cost represent?
The best alternative forgone
The cost of producing a good
The total money spent on raw materials
The future value of money
A normal good is one in which demand:
Rises as income falls
Falls as income rises
Rises as income rises
Is not affected by income
Which of these is an example of complementary goods?
Rice and beans
Tea and sugar
Bread and yam
Shirt and trousers
The law of diminishing returns applies when:
Output decreases as all inputs increase
Adding more of one factor eventually reduces extra output
Demand and supply are equal
Inflation reduces production
Market equilibrium occurs when:
Price is higher than demand
Quantity supplied equals quantity demanded
Price falls below supply
Quantity demanded exceeds supply
Which of the following is a direct tax?
Import duty
Value Added Tax (VAT)
Excise duty
Personal income tax
Inflation is a situation where:
The prices of all goods fall continuously
The general price level of goods and services rises
Wages are greater than profits
Imports exceed exports
Which of these is a function of money?
Medium of exchange
Source of employment
Factor of production
Reward for capital
The institution that regulates banks in Nigeria is the:
Ministry of Finance
Central Bank of Nigeria
Nigerian Stock Exchange
International Monetary Fund
National income is the:
Total income earned by all citizens in a country
Total revenue collected by government
Total value of imports and exports
Total wages paid to workers
Which of the following best describes a mixed economy?
An economy controlled only by government
An economy run entirely by private individuals
An economy combining government and private sector control
An economy without trade
Balance of payments records:
Imports only
Exports only
All economic transactions with the rest of the world
Income tax from citizens
Which of these is NOT a characteristic of money?
Portability
Durability
Divisibility
Instability
Public goods are goods that are:
Provided free of charge in the market
Non-excludable and non-rivalrous
Produced only by private companies
Sold at high prices
Structural unemployment is caused by:
Lack of education and skills
Mismatch between workers’ skills and job requirements
Seasonal changes in demand
Short time between leaving one job and getting another
