Pre-Mock Econs (P1) Smart - 073148

1. The economic concept of choice is as D.
2,500 FCFA
a result of
A. Opportunity cost 6. The term “ceteris paribus” means
B. Scale of preference A. Everything is changing and only
C. Unlimited wants one remains constant
D. Scarce resources B. Only one factor is changing
2. Which one of the following is while others remain constant
another name for capitalist economic C. Everything is changing at the
system? same time
A. Socialist economic system D. Nothing at all is changing
B. Free enterprise economic system
C. Traditional economic system 7. Which of the following indicates that
D. Mixed economic system firms are at the same state of
3. Economists often find difficult to production?
give perfect forecast or prediction A. Vertical integration
like the pure scientists because: B. Diversified integration
A. Human behavior can be easily C. Lateral integration
measured D. Horizontal integration
B. Economic conditions are always
static 8. Production process is ended up by:
C. Human Controlled behavior can A. The manufacturer
be easily measured B. The consumer
D. Human behavior cannot be easily C. The wholesaler
measured D. The retailer
4. Economic goods are similar to free 9. In which economic system can one
goods because: find no freedom of choice and
A. Both goods have opportunity cost therefore loss of Consumer’s
B. Both goods yield satisfaction to sovereignty?
consumers A. Free enterprise economy
C. Both goods are unlimited in B. Command economy
supply relative to demand C. Mixed economy
D. Both goods are limited in supply D. Traditional economy
relative to demand
5. The weekly income of five sons are 10. The optimum size of a firm occurs at
as follows: 2,500FCFA, 3,000FCFA, the output level where the firm's
3,500FCFA, 4,000FCFA and A. The average cost is lowest
4,500FCFA. What is the mean B. Total cost is lowest
weekly income? C. Marginal cost is lowest
A. 4,000 FCFA D. Variable cost is l.
B. 3,500 FCFA 11. A firm that is capable of diversifying
C. 4,500 FCFA its production is said to be enjoying:
A. Financial economies of scale 17. When planned revenue is 500 billion
B. Welfare economies of scale Fcfa and planned expenditure is 450
C. Technical economies of scale billion Fcfa. The budget is known as:
D. Risk bearing economies of scale A. A neutral budget
12. Which of the following is the Most B. A balanced budget
important quality of good money? C. A budget surplus
A. Acceptability D. A budget deficit
B. Portability
C. Divisibility 18. Which of these countries make up
D. Durability the CEMAC Zone?
13. Which of the following assets of the A. Ghana, Nigeria and Cameroon
commercial bank will you classify as B. Gabon, Congo and Central
the least liquid? Africa Republic
A. Money at call C. Cameroon, Benin and Togo
B. Bills of exchange D. Equatorial Guinea, Chad and
C. Advances Cameroon
D. Coins and notes
14. Money whose face value is greater 19. The most profitable function of a
than the value of its metal is known Commercial Bank is:
as A. Accepting huge deposits from
A. Standard money customers
B. Token money B. Granting loans and overdrafts to
C. Paper money Customer
D. Near money C. Acting as agent of payments
15. The desire for people to hold wealth D. Keeping safety wills and
in cash instead of investing it is valuables of customers.
called:
A. The paradox of thrift 20. An Active balance is money held for:
B. The supply of money A. Transactions motive only
C. Thrift and loan B. Transactions and precautionary
D. The liquidity preference motive only
C. Transactions and speculative
16. Which one of the following limits motives only
the ability of the commercial bank to D. Precautionary and speculative
create credit? motives only
A. The availability of acceptable
securities 21. Who among the following will stand
B. The use of cheques to benefit during an inflationary
C. Special deposits A. Debtors
D. Increase in cash ratio B. Creditors
C. Savers
D. Fixed income earner
22. One measure the government will
employ to reduce inflation in an
economy is to implement;
A. An expansionary monetary policy
B. A contractionary monetary policy
C. A budget deficit
D. A minimum price control
23. Which is the most common form of

money in a developing country?
A. Currency
B. Bank notes
C. Coins
D. Cheques
24. Assume that the cash ratio of a single
bank is 20% and its total deposit is
1,500,000 FCFA. Calculate how
much the bank has to keep to meet
up with her customers demand
A. 1,200,000 FCFA
B. 1,700,000 FCFA
C. 300,000 FCFA
D. 180,000 FCFA
25. The full meaning of COBAC is:
A. The Banking Commission of
Central African States
B. Central Africa Banking
Commission
C. Central Commission of African
States Banking
D. The Banking Commission of
Central Africa

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1. The economic concept of choice is as D.

23. Which is the most common form of

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