Which of the following advantages of localization of industries may also be a disadvantage?
- A. External economies
- B. Concentration of industries and of people
- C. Development of organized markets
- D. Reduced costs of research
Which of the following is an external economy derived by a firm?
- A. Low cost opportunities enjoyed by being in a place where other producers concentrate
- B. Technical economics enjoyed by varying the factors of production
- C. Economics of management by putting administrators where the are most efficient
- D. marketing advantages attained through preferential treatment in the purchase and distribution of produce
One of the advantages of a partnership over a sole proprietorship is that?
- A. it is the most popular form of business organization
- B. the patern can easy withdraw from business
- C. it makes an increase in the capital of the business possible
- D. there is no limit to the number of people who may bring in capital
Which of the following is a characteristic of private limited liability company?
- A. its shares can be sold to the public
- B. the number of shareholders ranges from fifty to one hundred
- C. all shareholders have equal powers and responsibilities
- D. the number of shareholders ranges from two to fifty
In a public company, shares are?
- A. sold to one person only
- B. distributed freely
- C. advertised to members of the public for subscription
- D. disposed by the Chief Executive
The most important advantage of co-operative societies is?
- A. their high degree of democracy
- B. the increase inthe cost of marketing
- C. that member are encouraged to save money
- D. the possibility of raising loans for the members
In the normal channels of distribution the breaking of bulk is performed by the
- A. producer
- B. wholesaler
- C. retailer
- D. consumer
A monopolist will practice price discrimination in two markets if?
- A. the cost of separating the markets is large
- B. the markets have different elasticities of demand
- C. there is free flow of information in the two markets
- D. there is a patent of the commodity
A producer sustains a loss in the short run if
- A. marfinal revenue is less than price
- B. price is less than average cost
- C. average variable cost is less than average cost
- D. marginal cost is less than marginal revenue
One major difference between monopoly and perfect competition is that?
- A. the perfect competitor is a price taker while the monopolist determines his own output
- B. homogeneity of purpose exists for the perfect competitor while non-homogeneity of purpose exist for the monopolist
- C. sellers are located all over the world in the perfect competition but sellers are only in one country in the case of the monopolist
- D. there is free entry and exist in perfect competition but no free exist in monopoly
Which of the following is an important function of prices in a market economy?
- A. Ensuring that resources are used in the most efficient manner
- B. Ensuring an equitable distribution of goods and services
- C. Ensuring that all industries are perfectly competitive in the long run
- D. Equating level of purchases with level of needs
The revenue accruing to the seller of commodity X as a result of a fall in price will
- A. increase `
- B. fall
- C. first fall but will increase later
- D. remain unchanged
Use the table below to answer question 17 and 18.
Market Demand Schedule for Commodity X. \(\begin{array}{c|c}
\text{ Price N} & \text{Quantity(Million units)} \\ 60 & 100 \\
50 & 140 \\
40 & 220 \\
30 & 260 \\
20 & 300 \\
10 & 340 \\
\end{array}\)
If the price of commodity X falls from N40.00 to N30.00 what is the price elasticity of demand?
- A. 0.62
- B. 0.73
- C. 1.00
- D. 1.50
The main function of price mechanism is to?
- A. limit consumer demand
- B. enable producers make profit
- C. allocate scarce resources among competing ends
- D. ensure consumer sovereignty
Given that beef and fish are substitutes, a rise in the price of beef relative to that of fish will?
- A. induce greater demand for beef
- B. induce greater demand for fish
- C. induce lower demand for fish
- D. equate demands for beef and fish
In drawing an individual’s demand curve for a commodity, which of the following is not kept constant? The
- A. individual's money income
- B. price of subtitutes
- C. price of complementary goods
- D. price of the commodity under consideration
Which of the following statements describes a mixed economy?
- A. The government and the private sector interact in solving the basic economic problems
- B. The invisible hand solves the basic economic problems
- C. The government produces and distributes all goods and services
- D. Society answers the 'what', 'how', and 'for whom' questions only through the market system
What fundamentally determines how much a consumer spends in a producer’s shop?
- A. Individual's propensity to consume
- B. level of his taxation
- C. level of his income
- D. Individual's taste or fashion
Population density refers to?
- A. densely populated urban centres
- B. the total area divided by the total population
- C. densely populated rural areas
- D. the total population divided by the total area
A country has a population distribution as shown below:
\(\begin{array}{c|c}
\text{Age Group years} & \text{ Corresponding percentage} \\
\text{Above 60} & 22 \\
15 – 60 & 60 \\
0 – 14 & 15 \\
\end{array}\)
The dependency ratio is?
- A. 3:2
- B. 1:3
- C. 2:3
- D. 1:5
Mobility of labour is NOT affected by
- A. optimum size of population
- B. marriage and family
- C. regulation of trade unions
- D. period of training