Economics ECO15B1 – Module 1 FACULTY OF MANAGEMENT SCIENCE Department of Accounting 2023 Class wok Economics ECO15B1 – Module 1 INSTRUCTIONAL PROGRAMME: ND: Accounting ND: Internal Auditing INSTRUCTIONAL OFFERING: ECONOMICS 1 – Module 2 SUBJECT CODES: ECO15B1 DATE: DURATION: 60 minutes TOTAL MARKS: 50 NUMBER OF PAGES: (Including Cover) EXAMINERS: Mr AS Adeyanju MODERATOR: INSTRUCTIONS: 1. Answer all the questions in English. Question Description of Topic Marks Time (minutes) 1 to 35 Introduction to Economics 20 30 Economics ECO15B1 – Module 1 MULTIPLE CHOICES QUESTION (20 MRAKS) 1. Economics studies individuals and organizations in society engaged in the ____ a. b. c. d. e. Production of goods and services Distribution of goods and services Consumption of goods and services All of the above None of the above 2. Economics is a social science rather than a natural science because ____________ a. One of its subjects is social security. b. Its subject is people and how they behave. c. Its subject is social gatherings. d. Debates within economics last longer and are much less likely to end in a clear consensus. e. All of the option is correct. 3. Economics is most accurately described as the study of a. Money b. How to make choices given limited resources with unlimited desires. c. Financial institutions. d. How to eliminate scarcity. e. How firms maximize profit 4. The issue that is not covered within microeconomics is_______________ a. The behaviour of households. b. The pricing decisions of a firm. c. The purchasing decisions of a consumer d. Inflation. e. Price discrimination 5. Which of the following does not refer to macroeconomics? a. The study of aggregate economic activity. b. The study of the economic behaviour of individual decision-making units such as consumers, resource owners, and business firms. c. The study of the causes of and policies to remedy unemployment. d. The study of the causes of inflation. e. The study of the causes of the exchange rate fluctuations. Economics ECO15B1 – Module 1 6. Scarcity is correctly described by which of the following statements? I Scarcity exists if there are more uses for resources than can be satisfied at one time. II. Scarcity exists if decisions must be made about alternative uses for resources. III. Scarcity would not exist in a society in which people wanted to help others instead of themselves. a. I only b. II only c. III only. d. I and II only e. I, II, and III. 7. a. b. c. d. e. The word economic refers to something that_________________ Is scarce. Is limited. Commands a price. All of the above none of the above 8. a. b. c. d. e. Which of the following is not a scarce economic element? Labour Capital. Human wants. Land. Natural resources 9. Every choice result in a foregone best alternative, which economists call the______ a. Accounting cost b. Switching cost c. Inferior cost d. Average cost e. Opportunity cost 10. In economics the term opportunity cost refers to _________ a. The monetary cost of a good or service. b. The money cost of hiring an economic resource. c. The value of a good or service forgone. d. The money cost of providing a good or service. e. All of the above. 11. The primary functions of an economic system are to answer the questions. a. What, how, and for whom to produce. b. When, where, and why to produce. c. How to maximize profits and minimize time spent making things. d. How fast, how much, and how often to produce. Economics ECO15B1 – Module 1 e. Where does the money go and how can those in society get some. 12. The economic problem of what to produce refers to the decision of___________ a. Which goods and services and how much of each are to be produced b. Which goods are good for society. c. Which goods and services to produce to maximize the rate of economic growth. d. What hat combination of resources and production techniques to use. e. All of the above 13. The economic problem of how to produce refers to the decision of______________ a. Who should be given the authority to produce goods and services. b. How many people in the population are to be employed. c. How much of current production should go toward consumption rather than saving. d. Which of the production techniques is to be used. e. All of the above f. 14. The economic problem of for whom to produce refers to the decision of__________ a. How to allocate economic resources b. How many of the wants of various members of society are to be satisfied. c. How much to produce for import or export. d. How much saving should go on in the economy. e. None of the above 15. Which of the following is an essential characteristic of a capitalist economy? a. Access to international markets b. Equal distribution of income. c. Equal opportunity for all members of society to own a business. d. The absence of government involvement in the economy. e. Private ownership and control of the factors of production. 16. In a mixed economy, what to produce and how much to produce are determined by_______ a. A central planning agency b. A private planning agency c. An international planning agency d. Markets and the government e. Large corporations and small entrepreneurs. Economics ECO15B1 – Module 1 Production Possibilities Curve ( see the study slide) 17. The production-possibility frontier depicts_____________ a. The maximum amounts of alternative combinations of two goods that an economy can produce at a point in time. b. The limited number of resources that an economy has at a point in time. c. The alternative combination of capital and labour inputs used in producing goods and services over time. d. The economy's employment level at a point in time e. All of the above 18. A point inside the production-possibility curve indicates___________________. a. Inefficiency b. Unemployed resources c. That existing resources can produce at a higher level of output. d. All of the above none of the above 19. A point outside the production-possibility curve_____________ a. Indicates the highest efficiency. b. Implies overemployed resources. c. Is unattainable with the existing quantity and quality of economic resources, the level of technology and the price level. d. All of the above e. None of the above 20. The production-possibility curve shifts outward when__________ a. There is an increase in the opportunity cost of a good b. Increased drug use decreases the skills of the labour force. c. There is a technological advance. d. Unemployed resources are called back to work. e. All economic resources begin to be employed more effectively.
