A disadvantage of the corporate form of business is the?
- A. risk of the owners of loss of personal effects if the business should fail
- B. ability of the corporation to is financial resources
- C. limited life span of the corporation
- D. problems presented by separation ownership from control
- E. None of the above
In a free market economy, the rationing of scarce goods is done principally by
- A. the government
- B. business organizations
- C. the price mechanism
- D. consumers
- E. both A and B
Capital earns income because?
- A. it is productive
- B. it is expensive
- C. it is always cheaper to substitute capital for labour
- D. it is technically more efficient than labour
- E. both A and B above
When we draw a market demand curve, we?
- A. ignore tastes, incomes and other prices
- B. assumes that tastes, income and prices do not matter
- C. assumes that taste, income and all other prices change in same direction as prices
- D. assume that tastes, incomes and all other prices remain constant
- E. both A and B above
Which of the following is the standard concept for measuring and analyzing population growth?
- A. The rate of natural increase
- B. The net migrate
- C. The rate of population increase
- D. The fertility rate
- E. All of the above
If you do not have to give anything in order to get a particular thing, then its opportunity cost is?
- A. zero
- B. not measurable
- C. its price in money
- D. infinite
- E. equal to one
The fundamental problem of Economics is?
- A. money
- B. poverty
- C. unemployment
- D. the scarcity of resources relative to wants
- E. inflation
If a firm doubles its output and its cost increase by 60%, the firm is experiencing
- A. increase cost
- B. economies of scale
- C. decreasing returns
- D. decreasing cost
- E. none of the above
Which is NOT a method of raising capital funds in Nigeria?
- A. Borrowing from abroad
- B. Internal borrowing
- C. Nigerianization of foreign companies
- D. Gifts from abroad
- E. Saling government bonds
Which sector can you say is growing fastest in the Nigeria economy?
- A. Agriculture
- B. Industry
- C. Education
- D. Transport
- E. Labour
Mr.A earns N300 and pays N15 in tax. Mr. B earns N100 and pays N6 in tax. This tax system can be described as?
- A. proportional tax
- B. progressive tax
- C. competitive tax
- D. excise tax
- E. regressive tax
If the price of a commodity falls and the quantity purchased of it does not rise, the commodity can be described as
- A. normal
- B. abnormal
- C. inferior
- D. superior
- E. scarce
A limited liability company is owned by?
- A. an individual
- B. two or more partners
- C. shareholders
- D. government
- E. a bank
Division of labour means?
- A. the labour is divided into different section
- B. the work is divided into different parts to be completed by each labour
- C. production is completed by the different department of a factory
- D. commodities are produced at different times by a single labourer
- E. the labour force in the country is not united
By subsistence production we mean?
- A. goods and services are produced for consumption only
- B. goods and services are sold to others
- C. raw materials are produced in the country
- D. goods and services are produced for the market
- E. none of these
An economic problem arises when?
- A. manufactured goods are in short supply
- B. money is in short supply
- C. buyers are many
- D. sellers are few
- E. scarcity and choice are involved
The budget of Nigeria will be deficit if
- A. revenue expenditure exceeds the revenue receipts
- B. capital expenditure exceeds the capital receipts
- C. revenue and capital receipts exceeds revenue and capital receipts
- D. the government is spending more than its receipts
- E. all of the above
Which would you NOT consider an advantage of one-man business?
- A. freedom of action
- B. limited liabiities
- C. Quick decision-making
- D. Personal contact with customers
- E. none o the albove
Nigeria earns the major part of her foreign exchange from the export of?
- A. manpower to another countries
- B. crude oil
- C. petroleum products
- D. groundnuts and cotton
- E. palm oil and cocoa
By balance of visible trade we mean?
- A. import and export of goods
- B. import and export of service
- C. balance of current account in the balance of payment
- D. balance of capital account in the baalance of payment
- E. all of this
International trade arise because?
- A. one country has more abundant resource
- B. one country has the technology to produce the commodity whilst the other has not
- C. one country has the maximum comparative advantage or minimum comparative disadvantage in the production
- D. one country has manpower to produce the commodity than the country
- E. All of the above