This post is about Question 1 to Question 30 Institute of Chartered Accountants of Nigeria, Accounting Technicians Scheme West Africa, (ICAN ATSWA) Economics, September 2021, Multiple Choice Question (MCQ), Insight Past Question.

Question 1:

Which of the following is NOT a feature of a capitalist economy?   

A. Private ownership of properties  

B. Existence of competition  

C. Freedom of enterprise  

D. Consumer sovereignty  

E. Resource allocation by a central authority 

The correct answer is (E)


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Question 2:

Which of the following basic economic concepts CANNOT be illustrated with a production possibilities curve?   

A. Full employment  

B. Unemployment  

C. Opportunity cost  

D. Inflation  

E. Economic growth  

The correct answer is (D)


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Question 3:

If a 6% increase in price results in more than 6% increase in quantity supplied, supply is said to be   

A. Price elastic  

B. Unit price elastic 

C. Perfectly price inelastic 

D. Perfectly price elastic 

E. Fairly price inelastic 

The correct answer is (A)


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Question 4:

If 푃=(í‘„+15), what is the quantity supplied (í‘„) at price P =N9.00?  

A. 33.0  

B. 12.0  

C. 3.0 

D. 1.5 

E. 15.5 

The correct answer is (C)


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Question 5:

One of the assumptions of the marginal utility theory is that, utility is    

A. Psychologically observable  

B. Cardinally measurable  

C. Ordinally measurable  

D. Qualitatively measurable  

E. Numerically indeterminable 

The correct answer is (B)


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Question 6:

Production costs such as rent, depreciation, interest, and insurance are  examples of   

A. Marginal costs  

B. Total cost  

C. Real costs  

D. Average costs  

E. Fixed costs 

The correct answer is (E)


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Question 7:

The divorce of ownership from control is a major disadvantage of 

A. Partnership 

B. Sole proprietorship 

C. Private limited companies 

D. Public limited companies 

E. Cooperative societies  

The correct answer is (D)


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Question 8:

Which of the following is obtained from a primary production activity? 

A. Electronic item 

B. Crude oil 

C. Machineries 

D. Furniture item 

E. Banking service 

The correct answer is (B)


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Question 9:

Which of the following is a method of measuring national income?   

A. Marginal efficiency method  

B. Expenditure method  

C. Multiplier method  

D. Accelerator method  

E. Price index method 

The correct answer is (B)


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Question 10:

Which of the following is a method of measuring national income?   

A. Marginal efficiency method  

B. Expenditure method  

C. Multiplier method  

D. Accelerator method  

E. Price index method 

The correct answer is (A)


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Question 11:

The monopolist power can be controlled by the government through   

A. Labour union  

B. Price legislation  

C. Import restriction  

D. Export promotion  

E. Price discrimination 

The correct answer is (B)


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Question 12:

If the marginal revenue (MR) and marginal cost (MC) functions of a firm are estimated as 2q + 4 and 3q – 9 respectively. The quantity that will maximise the firm’s profit is   

A. 4  

B. 5  

C. 9  

D. 13  

E. 20 

The correct answer is (D)


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Question 13:

The term for a maximum legal price is   

A. Price ceiling  

B. Price floor  

C. Profit-maximising price  

D. Shut-down price  

E. Mark-up price  

The correct answer is (A)


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Question 14:

If total revenue of a firm is unaffected by a price change, then demand is  

A. Price elastic 

B. Price inelastic 

C. Unit price elastic 

D. Perfectly price elastic 

E. Perfectly price inelastic 

The correct answer is (C)


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Question 15:

In a two-sector economy, if the Marginal Propensity to Consume (MPC) is 0.75, the multiplier is equal to  

A. 5 

B. 4 

C. 3 

D. 2 

E. 1 

The correct answer is (B)


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Question 16:

The Gross National Product (GNP) for a given year expressed in the market prices of some previous year is called  

A. Nominal GNP 

B. Relative GNP 

C. Absolute GNP 

D. Real GNP 

E. Per capita GNP 

The correct answer is (D)


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Question 17:

Which of the following is NOT a fundamental function of deposit money banks? 

A. Granting loan and advances 

B. Providing brokerage services 

C. Creating demand-deposit money 

D. Formulating monetary policies 

E. Accepting deposits of funds 

The correct answer is (D)


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Question 18:

Money whose face value is greater than the actual value of the material of which it is made is referred to as   

A. Legal tender  

B. Quasi money 

C. Fiat money  

D. Token money 

E. Near money  

The correct answer is (D)


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Question 19:

The instrument of persuasion that the Central Bank uses to get other financial institutions adopt a pattern of behaviour favourable to effective conduct of the monetary policy is   

A. Selective credit control 

B. Moral suasion   

C. Special deposits 

D. Reserve requirements 

E. Credit ceiling 

The correct answer is (B)


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Question 20:

The principle of taxation which enables the taxpayer to know in advance the exact amount to pay and when to make the payment is referred to as  

A. Convenience 

B. Certainty 

C. Equity 

D. Economy 

E. Flexibility 

The correct answer is (B)


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Question 21:

A tax that takes lower percentage of income as income rises is a/an 

A. Proportional tax 

B. Regressive tax 

C. Progressive tax 

D. Personal income tax 

E. Indirect tax 

The correct answer is (B)


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Question 22:

Credit facility which one country grants to another country can be described as 

A. Multilateral credit 

B. Bilateral credit 

C. London Club credit 

D. Paris Club credit 

E. IMF loan 

The correct answer is (B)


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Question 23:

Which of the following is appropriate to reduce inflationary pressure in an economy?  

A. Budget deficit 

B. Reduction in tax rate 

C. Surplus budget 

D. Devaluation of domestic currency 

E. Increase in transfer payments 

The correct answer is (C)


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Question 24:

The excess of visible exports over visible imports is described as 

A. Unfavourable balance of trade 

B. Favourable balance of payments 

C. Favourable balance of trade 

D. Unfavourable balance of payments 

E. Trade disequilibrium 

The correct answer is (C)


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Question 25:

Which of the following is NOT an argument for trade restrictions? 

A. Protection of infant industries 

B. National security 

C. Prevention of dumping 

D. Correction of balance of payments deficit 

E. Promotion of import 

The correct answer is (E)


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Question 26:

Taxes levied on goods which are manufactured within a country are called 

A. Excise Duties 

B. Export Duties 

C. Import Duties 

D. Sales Tax 

E. Value-Added Tax 

The correct answer is (A)


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Question 27:

Which of the following is NOT an objective of  International Monetary Fund? 

A. Assist members in efficient utilisation of  foreign exchange resources 

B. Help member countries in overcoming  foreign exchange deficit 

C. Settlement of legal disputes among  members   

D. Provide technical advice on debt  management 

E. Provide strategy on currency stabilisation  at the international market.   

The correct answer is (C)


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Question 28:

Suppose the population of a country and the  per capita Gross National Product (GNP) are  given as  32 million and $4687.5 respectively,  the estimated gross national income product  (GNP) is 

A. $68 billion 

B. $150 billion 

C. $180 billion 

D. $200 billion 

E. $215 billion     

The correct answer is (B)


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Question 29:

Which of the following is NOT a determinant  of economic growth? 

A. Natural resources endowment 

B. Technological progress 

C. Labour productivity 

D. Market structure 

E. Capital accumulation  

The correct answer is (D)


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Question 30:

Which  of  the  following  is  NOT  an  objective  of  the  Organisation  of  Petroleum Exporting  Countries  (OPEC)? 

A. Stabilisation of oil prices 

B. Stabilisation of exchange rates of  currencies of member countries

C. Co-ordination and harmonisation of oil  policies of member countries 

D. Provision of financial assistance to poor  non-oil producing countries 

E. Provision of relatively cheaper supply of oil  to developed countries 

The correct answer is (E)


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