The main reason for charging interest is to?
- A. reward enterpreneurial effort
- B. redistribute profits
- C. reward investors for present use of profits
- D. mobilize more funds for development
Money market differs from capital market in that it?
- A. deals with short-term loans while capital market deals with long-term funds
- B. deals with money only while capital market deals with capital as well
- C. is limited in scope while capital market is not
- D. uses interest rate while capital does not
A limited liability company is usually owned by?
- A. an individual
- B. a government
- C. shareholders
- D. two or more partners
Which of the following is a disadvantage of regional concentration of industries?
- A. Development of congested urban areas
- B. Existence of regional unempolyment
- C. High cost of labour
- D. Immobility of labour
Which of the following is NOT a type of business ownership?
- A. Debenture holding
- B. private company
- C. Parnership
- D. Joint Stock venture
The liability of the sole trader is?
- A. indeterminable
- B. unlimited
- C. transferable
- D. limited
To which of the following sectors do services belong?
- A. Primary
- B. Secondary
- C. Tertiary
- D. Construction
What form of market is found in an imperfect competition where there are few buyers and many sellers?
- A. Oligopoly
- B. Monopoly
- C. Duopoly
- D. Oligopsony
Which of the following is compatible with a firm in a purely competitive market?
- A. demand is inelastic
- B. demand is infinitely inelastic
- C. Marginal Cost is falling
- D. Price is greater than Marginal Cost
An increase in supply will lower price unless?
- A. supply is perfectly inelastic
- B. demand is perfectly inelastic
- C. it is followed by an increase in demand
- D. demand is highly inelastic
If a good is an inferior good, then?
- A. it is also necessarily a Giffen good
- B. the quality of the goods demanded varies inversely with its price
- C. its income elasticity of demand is negative
- D. the poor buy the good only out of habit
For normal goods the income elasticity of demand is?
- A. positive
- B. negative
- C. zero
- D. infinite
Given an original price of N3.50 per kilogram of rice and a change in price of 1.40, and given the quantity purchase at the old price as 10kg and a change in the quality as 5kg after the price change, the elasticity is equal to?
- A. 10.20
- B. 3.57
- C. 1.25
- D. 0.80
A shift in the demand curve for commodity when the supply curve is vertical will lead to a change in the?
- A. price only
- B. quantity only
- C. quality only
- D. price and quantity
In the operation of market forces, the market is in equilibrium at the point where?
- A. demand and supply curve intersect in more than one point provided the market is cleared
- B. the excess in market can be conveniently stored
- C. excess demand is negative
- D. demand and supply curves intersect
Price can be defined as?
- A. a rate of exchange
- B. a mediumof exchange
- C. the cost of product
- D. the standard of accounting
In the process of shopping, Mr. X whose wages per month does not exceed N200, finds that the price of a commodity he used to purchase with a fixed amount of N200 has risen to N230,. He therefore decides not to buy this commodity at all. Mr. X is thus affected by the?
- A. substitution effect of a price change
- B. income effect of a price change
- C. opportunity cost of a price change
- D. inflation effect of a price change
In the long run a firm will leave an industry if price?
- A. does not cover at at least Average Total Cost
- B. is not equal to Marginal Cost
- C. is higher than Average Varriable Cost
- D. is not at least equal to the minimum of Marginal Cost curve
The shut-down point for a firm in the short run is the output at which?
- A. the pricr of the product is lowest
- B. marginal Cost is constant
- C. Average Variable Cost is not covered
- D. Average Cost is minimum
The form of capital which is usually consumed or transformed into finished goods and services in the production process is called?
- A. industrial capital
- B. social capital
- C. fixed capital
- D. circulating capital
In the history of Economic Thought the concept of Division of labour is usually associated with?
- A. David Richardo
- B. J.M. Keynes
- C. Adam Smith
- D. Karl Marx