A tax on a commodity whose supply is perfectly inelastic is?
- A. shifted completely on the consumer
- B. completely borne by the supplier
- C. dividend in the ratio 60;40 between the consumer and the supplier
- D. divided half-and-half between the producer and the consumer
Which of the following is a liability of a commercial bank?
- A. Deposits in bank
- B. loans made by the bank to individuals
- C. loans made by the bank to other banks
- D. Bonds purchased by the bank
Find the total credit that the banking system can create if primary deposit is just N100.00 while the cash ratio is 20%
- A. 700.00
- B. 600.00
- C. 500.00
- D. 400.00
The basic purpose of imposing legal reserve requirements on commercial bank is to?
- A. assure the profitability of commercial banks
- B. provide a device through which credit creation by banks can be controlled
- C. provide a proper ratio between earning and non-earning bank assets
- D. provide the Central Bank with working capital
Which of the following is likely to be inflationary?
- A. Tax increase
- B. increase in unemployment
- C. Budget surplus
- D. Wages increase
If the same basket of goods which cost N12.00 in 1985 cost N15.00 in 1987, price index for 1987 is?
- A. 25
- B. 80
- C. 100
- D. 125
Which of the following will be the effect of allowing only economic factors to dedicate the location of industries in Nigeria?
- A. A more even development of the different parts of the country will be assured
- B. There will be an unbalanced spread in the distribution of industries
- C. The less developed parts of the country will be able to attract more industries
- D. Only the government will be able to finance the establishment of industries
Which of the following factors is the most important in siting a petrol-chemical plants?
- A. Nearness to the source of raw materials
- B. Nearness to the source of power
- C. Availability of labour
- D. Proximity to financial institutions
Capital provided by individuals to the firm by purchasing stocks is called?
- A. debt capital
- B. fixed capital
- C. circulating capital
- D. equlity capital
Divorce of ownership from control is a characteristic of?
- A. sole properitorship
- B. a limited liability company
- C. partnership
- D. a private limited company
A major difference between a state-owned enterprise and a private enterprise is that the former?
- A. is not expected to cover its costs of production while the latter is
- B. is not always expected to maximize profits while the latter is
- C. has shareholders while the latter does not
- D. has a board of directors while the latter does not
Which of the following reasons could induce a manufacturer to bypass the wholesaler in the distribution chain?
- A. To provide the quantity needed by retailers
- B. To collect useful information on his product
- C. To provide warehousing facilities
- D. To violate government regulation on distribution
In the distribution channels for goods and services, the middleman’s mark-up margin provides a rough measure for the ?
- A. quantity discounts allowed final consumer
- B. reward for business enterpreneurship
- C. effectiveness of government control over the economy's marketing channels
- D. extent of exploitation of the final consumer
Which of the following is the major function of the wholesaler?
- A. Bulk breaking
- B. Provision of useful information to th manufacturer on products
- C. Provision of after-sales services to consumers
- D. Provision of warehouse facility
Which of the following is applicable to a monopolistic firm operating at the output where marginal cost equals marginal revenue?
- A. Cost of production is at a medium
- B. The plant is of optimum size
- C. Price is above marginal revenue
- D. Average variable cost is at a minimum
The tailoring services is competitive partly because it consists of a large number of?
- A. large-scale enterprises
- B. medium scale enterprises
- C. small scale enterprises
- D. government-owned enterprises
An imperfect market in which there is only one buyer of a commodity is?
- A. monopsony
- B. oligopoly
- C. monoploy
- D. duopoly
The demand for a product is said to be price inelastic if?
- A. the price elasticity of demand is less than one
- B. the price elasticity of demand is greater than one
- C. a reduction in price results in increase in the quantity demanded
- D. an increase in price results in a decrease in the quantity demanded
If an increase in income induces a reduction in the demand for beans, beans can be referred to as?
- A. a normal good
- B. an inferior good
- C. a substitute good
- D. a giffen good
Technical progress that leads to a reduction in costs results in?
- A. an increase in equilibrium price and quantity
- B. a decrease in equilibrium price and quantity
- C. an increase in equilibrium price and decrease in equilibrium quantity
- D. a decrease in equilibrium price and increase in equilibrium quantity
The law of diminishing marginal utility indicates that if a consumer increases his consumption of a commodity continuously, his?
- A. total utility must fall
- B. marginal utility must fall
- C. marginal utility may rise even though his total utility is falling
- D. marginal utility may fall even though his total utility may be rising