The use of tax and expenditure policy to regulate the economy is known as
- A. monetary policy
- B. physical measures
- C. deregulation
- D. fiscal policy
Under perfect competition, a profit maximizing firm will hire labour up to the point where the last unit of labor adds
- A. less to TR as to TC
- B. as much to TR as to TC
- C. more to TC than to TR
- D. less to TC than to TR
The problem of “how to produce” in any economy is solved by
- A. combining capital and labour intensive methods of production
- B. adopting the least cost method of production
- C. using capital intensive method of production
- D. employing the services of a manager
Which of the following is the correct order in the chain of distribution?
- A. Consumer -> Distributor → Retailer → Producer
- B. Producer → Wholesaler → Retailer → Consumer
- C. Retailer → Consumer → Producer → Wholesaler
- D. Producer → Consumer → Retailer → Wholesaler
Which of the following is NOT associated with minimum price legislation?
- A. wastages of resources
- B. excess supply
- C. excess demand
- D. unemployment
An economy in which decision of what to produce is taken partly by private individuals and state is referred to as Economy.
- A. communist
- B. mixed
- C. socialist
- D. capitalist
A major characteristics of a firm operating at a long-run equilibrium position is that
- A. average variable cost is fixed
- B. all costs can be varied
- C. only variable cost changes
- D. fixed cost can not be changed
The trade-off between two commodities along the Production Possibility Curve (PPC) shows
- A. transferable output
- B. unattainable combination
- C. scarcity principle
- D. opportunity cost principle
The demand for factors of production is said to be
- A. joint
- B. complementary
- C. derived
- D. composite
If two bags of rice were sold for #1,250 a month ago and two weeks later, the same amount was used to procure one bag. This simply means that the value of money is
- A. constant
- B. fluctuating
- C. increasing
- D. decreasing
Which of the following is NOT included in-measuring the National income through the income approach?
- A. profit earned by NITEL plc
- B. Profit earned by Nigerian bottling company plc
- C. Income earned by a bricklayer
- D. Allowance given to an aged mother by a civil servant
Which of the following is NOT a function of the IMF?
- A. Providing financial aid to members experiencing balance of payment difficulties
- B. Promoting international monetary cooperation
- C. Exchange rate stabilization
- D. assisting member countries in printing and issuing their currency
When an increase in the price of a commodity lead to a fall In the demand for another, the demand for the two commodities are said to be
- A. competitive
- B. joint
- C. composite
- D. derived
The following are rewards for factors of production EXCEPT
- A. profit
- B. rent
- C. interest
- D. subsidy
Economic problem arises as a result of
- A. money cost
- B. opportunity cost
- C. choice
- D. scarcity
What add funds to the circular flow?
- A. Expenditure approach
- B. withdrawal
- C. leakages
- D. injection
The diagram below represent
- A. Business cycle
- B. National income
- C. Inflationary gap
- D. Circular flow of income
Which of the following will NOT bring about an increase in Labour force?
- A. Decrease in death rate
- B. Better medical services
- C. Immigration
- D. Emigration
Persistent fall In the general price level is known as
- A. deflation
- B. devaluation
- C. general price Increase
- D. inflation
Which of the following is NOT a function of marketing boards in Nigeria?
- A. Grading of farm produce
- B. Importation of farm produce
- C. Fixing of prices for farm produce
- D. Marketing of farm produce
An industry operating in a perfect competitive market situation will maximum profit when
- A. DD < SS
- B. MC > AC
- C. MC = MR
- D. MC < AR