Commercial bank reserves at the Central Bank have the effect of?
- A. controlling credit and money supply
- B. discouraging banking operations
- C. advancing trade prospects
- D. reducing bank frauds
The stock exchange market is where?
- A. businessmen borrow some capital
- B. the federal government trades on treasury bills
- C. existing bonds and stocks are traded
- D. new stocks and shares are bought or sold
Cost-push inflation is caused by?
- A. growth of government expenditure
- B. increase in factor prices
- C. increase in money supply
- D. hoarding
A major factor affecting the value of money is the?
- A. price level
- B. banking habit
- C. transaction motive
- D. divisible nature of money
The term ‘double coincidence ‘ of wants is usually associated with a?
- A. bilateral exchange mechanism
- B. monetary exchange mechanism
- C. stock exchange system
- D. barter exchange mechanism
Industries that can be randomly located are characterized by?
- A. relatively low transport cost for both raw materials and output and factor mobility
- B. relatively heavy transport cost for raw material or output
- C. constant returns to scale
- D. signficant economy of scale
A company is said to be highly geared if the?
- A. value of fixed interest loans is high compared with share capital
- B. Value of shared capital is high compared with fixed interest loans
- C. dividend rate is high
- D. interest rate is high
Which of the business organization listed below is characterized by limited authority and liability of the individual owners?
- A. Sole properitorship
- B. Partnership
- C. Joint stock company
- D. Co-operative society
the type of business finance that entitle the holder to a fixed rate of dividend is?
- A. perferred stock
- B. common stock
- C. debenture stock
- D. bank loan
The co-operative as a form of business organization differs from partnership by having?
- A. serveral sources of capital for business financing
- B. ability to issue preferred stocks to members
- C. entrenched democratic control in the conduct of business
- D. established rules and regulations governing the activities of its members
Which type of business organization has the attribute effectively combining management with control?
- A. sole proprietorship
- B. Partnership
- C. Limited liability company
- D. Co-operatives
The size of a business units tends to be small if the activity?
- A. involves mass production of goods
- B. requires a large capital
- C. requires division of labour
- D. involves the provision of direct services
One of the purposes of advertisement in marketing is to?
- A. change the quality of the product
- B. raise the quantity of the product demanded as its price falls
- C. shift the demand curve for the product to the right
- D. raise production cost
which of the following is an important function of the retailer?
- A. Grant credit to the wholesaler
- B. Breaks bulk and sales product in small units
- C. Reduces cost of distribution
- D. Generates demand for production through advertisement
The merging of firms engage in different stages of production and marketing is called?
- A. external economies of scale
- B. vertical intergration
- C. horizontal intergration
- D. economic unoin
For purely competitive industry, a fundamental requirement of the demand curve faced by individual firms is that it should be?
- A. downward sloping and price inelastic
- B. perfectly price elastic
- C. downward sloping but price inelastic
- D. perfectly price inelastic
In order to increase its profit margin, the monopolist can manipulate
- A. both price and output
- B. either price or output
- C. only its price
- D. only its output
The marginal theory of distribution makes an assertion that the price of any factor depends upon its marginal?
- A. utility
- B. productivity
- C. rate of substitution
- D. revenue
Which of the following factors is an important determinant of the magnitude of price elasticity of demand?
- A. The production period
- B. Cost of storage
- C. Durability of the product
- D. Availability of factors of production
If, as the price of a commodity rises, the quantity demanded of the commodity remains the same, then the demand for the commodity is?
- A. static
- B. infinitely elastic
- C. externally determined
- D. perfectly inelastic
If a 10k per kg, 1000kg of yam were purchased and at 5k per kg, 1,500kg were purchased, the resultant point elasticity of demand is?
- A. 0.33
- B. 0.0001
- C. 1
- D. 10,000