To reduce the high rate of inflation in the economy, the government should?
- A. increase taxes and have a budget surplus
- B. increase taxes and have a budget defilicit
- C. decrease taxes and have a budget defilicit
- D. decrease taxes and have a balance budget
The total amount of money in circulation includes cash?
- A. and current account
- B. owned by banks and the non-bank public
- C. and current acount balances owned by banks and non-bank public
- D. owned by banks, the government and the non-bank public
The best way to reduce the supply of money in the economy is to?
- A. increase the liquidity ratio
- B. increase the number of bank-notes and cheques produced
- C. decrease treasury bills
- D. liberalize access to credit
Monetization refers to the ratio of?
- A. total transactions to monetary transactions
- B. monetary assets to total assets
- C. monetary transactions to total transactions
- D. money in circulation to total income
Which of the following is NOT directly concerned with dealings in treasury bills?
- A. The stock exchange
- B. The Central bank
- C. Commercial banks
- D. Discount houses
Because most of her crude oil is exported, the foreign exchange earnings and the forward linkage effects Nigeria realize from her oil production are?
- A. both high
- B. respectively high and low
- C. respectively low and high
- D. both low
A significant effect of the growth of the oil sector in Nigeria has been to?
- A. increase the rate of unemployment
- B. diminish the percentage contribution of the agricultural sector to GNP
- C. slow down the pace of industrialization
- D. retard the rate of economic growth
The consumer-goods industry is predominant in the industrial sector of the Nigerian economy because of the?
- A. availability of market and most of the raw materials required
- B. availability of the necessary machinery required
- C. experience of Nigerian producers
- D. relatively lower cost of production of such goods
Firms are often set up close to each other in order to take advantage of?
- A. supply or skilled labour
- B. agglomeration economies
- C. internal economies of scale
- D. external economies of scale
The primary barrier to land reform in developing countries is the?
- A. frequent opposition by the landlords
- B. realization that output levels might fall
- C. fear that peasants will be cut off from credit
- D. general contentment with the present arrangement
Under the Nigerian Structural Adjustment Programme, the marketing of agricultural commodities in Nigeria has been placed under?
- A. the marketing boards
- B. the commodity boards
- C. the river-basin authorities
- D. private investors and individuals
Farmers’ income may fall if they produce more cash crops for export because?
- A. foreign demand is inelastic
- B. the price of the crops will rise
- C. of domestic currency depreciation
- D. of export duties
The type of business finance that entitles the holder to a fixed rate of dividend is?
- A. perferred stock
- B. common stock
- C. debenture
- D. bank loan
The main reason for the current programme of privatization and commercialization of public enterprises in Nigeria is to?
- A. reduce public expenditure
- B. encourage efficiency in the performance of such enterprises
- C. reduce the number of public enterprises
- D. raise the prices of goods and services produced by the enterprises
The main handicap of sole proprietorship is?
- A. limited liability
- B. lack of technical know-how
- C. low profit margin
- D. inadequate capital
An important function of the retailer is to?
- A. grant credit to the wholesaler
- B. break bulk and sell products in small units
- C. reduce cost of distribution
- D. generate demand for products through advertisement
A firm with marginal cost equals to its marginal revenue will produce the equilibrium output if it is in?
- A. pure competition only
- B. pure monopoly only
- C. monopolistic competition only
- D. any type of market
The demand curve for a normal good will shift to the left if?
- A. the incomes of consumers rise
- B. the price of the goods rises
- C. the price of complementary goods rises
- D. advertising expenditure on complementary goods increase
If demand is relatively inelastic and sellers are able to raise the price of their commodity, then there we be a?
- A. fall in both quantity of demand and total revenue
- B. fall in the quantity demanded and rise in total revenue
- C. fall in the quantity demanded and rise in marginal revenue
- D. rise in both the quantity demanded and the marginal revenue
The price mechanism is more effective in achieving efficient performance of the economy than the planning mechanism because of the?
- A. role of supply and demand
- B. role of material incentive
- C. existence of buyers and sellers
- D. role of money
The U-shape of the long run average cost curve can be explained by the?
- A. law of increasing returns
- B. law of constant returns
- C. law of diminishing returns
- D. concepts of economies and diseconomies of scale