Which of the following occurs in the circular flow of economic activities with no leakages
- A. Consumption equals saving
- B. Saving equals investment
- C. Imports equal exports
- D. National income equals national expenditure
The demand and supply equations for a commodity are given respectively as D = 20 – 1/2P; S = 8 + 1/4P. Recalling that at equilibrium, D = S, the equilibrium (P) and quantity (Q) can be obtained as
- A. P = 12, Q = 16
- B. P = 15, Q = 10
- C. P = 12, Q = 14
- D. P = 16, Q = 12
If in this demand-supply diagram, the quantity supplied is OQ, then
- A. price will be OP
- B. there will be excess demand of RT
- C. price will be ON
- D. price will tend to rise
A textile firm operates a plant in the North (where capital expensive relative to labour)as well as a plant in the South (where labour is expensive relative to capital ). In this diagram above the Southern plant will minimize cost by combining labour and capital in the amounts indicated by
- A. P
- B. Q
- C. X
- D. Y
The group of unemployed members of a community who are physically handicapped or disabled, is generally classified under unemployment as?
- A. frictional
- B. cyclical
- C. residual
- D. hidden
Collectivism refers to the system of management of state enterprises in a?
- A. mixed economy
- B. co-operative organization
- C. capitalist economic system
- D. socialist economy
An increase in an economy’s productive capacity implies?
- A. an increase in the economy's rate of capital replacement
- B. an increase in the economy's capital stock
- C. a decrease in government spending
- D. an increase in government spending
The most threatening problem for the less developed countries is?
- A. the continual depletion of their soil fertility
- B. the rise of nationalism
- C. population explosion
- D. their differences towards economic growth
If technology becomes less capital-intensive, it means?
- A. an increase in the capital/labour ratio
- B. an increase in the capital/ratio
- C. a fall in the labour/capital ratio
- D. increased unemployment
In estimating the national income of a country, the three approaches usually adopted are the?
- A. expenditure, value-added and output
- B. income, final product and output
- C. expenditure,income and output
- D. avoiding of double counting, final expenditure and value added
Which of the following items is subtracted when computing Gross National Product at factor cost, by the expenditure method?
- A. Consumption expenditure
- B. Indirect taxes
- C. Exports and property income from abroad
- D. Gross Domestic Fixed Capital Formation
If aggregate income is N500.00 and aggregate consumption is N400.00, this means that the average propensity to consume is?
- A. 0.20
- B. 0.80
- C. 1.25
- D. 2.00
The Malthusian theory of population predicts that growth in food production will?
- A. keep pace with population growth
- B. be at a faster rate than population growth
- C. be at a slower rate tthan population growth
- D. be more rapid than population growth in the developing countries
Deficit financing is mostly facilitated by the existence of?
- A. stock exchange market
- B. commercial bank
- C. central bank
- D. capital market
Which of the following is a good example of invisible item on balance of payments account?
- A. Shipping and aviation
- B. Export and imports
- C. Merchandise
- D. Bullion
When a nation is experiencing balance of payment surplus, it is in a better position to?
- A. increase its foreign exchange reserves
- B. increase its liabilities to foreigners
- C. reduce its foreign exchange reserves
- D. devalue its national currency
Which of the following would most likely be considered an example of benefit taxation?
- A. Excise tax
- B. Corporate income tax
- C. Property tax
- D. Highway-user tax
Which of the following is a direct tax?
- A. Sales tax
- B. Purchase tax
- C. Export duties
- D. property tax
Merchants banks perform all the following functions EXCEPT?
- A. raising of capital for industry
- B. provision of current account facilities
- C. management of investment portfolios
- D. provision of credit for overseas trade
The rate at which money changes hands is known as the?
- A. rate of inflation
- B. velocity of transactions
- C. velocity of money
- D. velocity of circulation
In any economy, what is used as money is determined by?
- A. government acceptance commodity standard
- B. government acceptance of an inconvertible paper standard
- C. laws and customs
- D. its use as a store of value