A country has a surplus in its balance of visible trade if
- A. the value of imports exceeds the value of exports of goods
- B. the value of exports exceeds the value of import of goods
- C. the value of goods exported is equal to the value of goods imported
- D. it is able to spend a lot on capital programmes
- E. commercial banks assets increase
The numerical measure of elasticity is
- A. \(\frac{\text{%change in Q}}{\text{%change in P}}\)
- B. \(\frac{\text{change in Q}}{\text{change in P}}\)
- C. \(\frac{\text{%change in P}}{\text{%change in Q}}\)
- D. \(\frac{\text{change in P plus change in Q}}{\text{change in P}}\)
In the diagram equilibrium price is:
- A. P2
- B. Po
- C. P1
- D. indeterminate
- E. between Po and P1 Diagram P.2
Bondholders are treated more favorably than shareholders because
- A. They are not liable for the companies losses
- B. They greater voice in the electing board of the directors
- C. They control the management
- D. They have a prior claim on the companies assets
- E. none of the above
A rational consumer will adjust his spending pattern so that
- A. He buys only the one item that gives him most total satisfaction
- B. The marginal utility he gets from the last unit of item is the same
- C. The marginal utility he gets from the last naira spent on each item is the same
- D. The total utility he gets from each item is the same
- E. The total amount of money he spends on each item is the same
In economics, production is complete when
- A. Goods are produced in the factory
- B. Goods are sold to the wholesalers
- C. Goods and services are produced by the government
- D. Prices are fixed for goods and services
- E. Goods and services finally reach the consumer
The optimum population of a country is reached when
- A. All factor of production have been fully employed
- B. The productive effort per man is at its highest with a given volume of resources
- C. The total population of a country increases
- D. The natural resources of a country increases
- E. The working population of a country increases
Which of these would NOT increase population of a country
- A. Increase in death rate
- B. Decrease in birth rate
- C. Emigration
- D. Migration
- E. Better medical facilities
Which of the following is NOT strictly included In the study of economics?
- A. The study of wants
- B. The study of choice
- C. Whether a particular want satisfies a good or bad purpose
- D. The study of scarcity
- E. The study of substitution
Which of the following activities of government precludes the existence of a market economy?
- A. The imposition of taxes
- B. The control of the location of industry
- C. The central planning of production
- D. The fixing of maximum price for all necessities
- E. The establishment of law requiring the registration of business firms
Which of these should determine, in a planned economy how the factor of production are to be allocated among different production activities
- A. Fairness
- B. The distribution of income and wealth
- C. Public need which is determined by the government
- D. Private needs determined by the market
- E. The ability of individual to make profit
The advantage of sole proprietorship is as follow
- A. It is always successful
- B. Continuity is no problem
- C. Control and supervision is under one man
- D. Funds are easy to obtain
- E. Inter-generational equity is assured
In order to build up its capital stock, the typical less developed country should ideally
- A. Increase total saving
- B. Depend on hand-out from foreigners
- C. Impose tariff on import
- D. nationalise all foreign concern
- E. None of the above
By ‘trade by barter’, we mean
- A. Trade done by people in the village
- B. Exchange of goods for money
- C. International trade
- D. Exchange of goods for goods
- E. The trade of the middle ages
Less developed countries obtain foreign exchange reserve mainly from the export of
- A. Manufactured goods
- B. Processed and semi processed commodities
- C. Invisible items
- D. Primary product
- E. All of the above
Which of the following is a term used to describe a payment representing a surplus in excess of transfer costs?
- A. Interest rates
- B. Opportunity costs
- C. Economic rent
- D. Indirect costs
- E. Wages
Which of the following item in the balance of payment of account is an invisible transaction?
- A. Import of cars
- B. Export of cocoa
- C. Export of crude petroleum
- D. Tourism
- E. Import of building materials
If the consumer demand for product X increases as the price of product Y decreases we can be fairly certain that X
- A. X and Y are complementary commodities
- B. X and Y are substitute goods
- C. X and Y are independent goods
- D. X and Y are jointly supplied
- E. X and Y are inferior commodities
Opportunity cost is a term which describe
- A. The initial cost of setting up a business venture
- B. Cost of one product in terms of foregone production of others
- C. The monetary equivalent of the utility of commodity
- D. Cost related to an optimum level of production
- E. Implicit cost
Economics is called a social science because it is
- A. A branch of social studies
- B. A study of the ways man devises to satisfy his unlimited wants from unlimited resources
- C. A dismissal science in the Malthusian sense
- D. Governed by scientific law
- E. The study of human wants by the means of scientific method of observation
Which of these would not be included in the fundamental principle of a free enterprise economy
- A. Private ownership of factors of production
- B. The right to organize factor for production purposes
- C. The right to make private profit
- D. Government control of mobility of factor of production
- E. Government effort to encourage competitive capitalism within the law of the country