Cross elasticity of demand can be mathematically expressed as the
- A. \(\frac{\text{% change in quantity of commodity X}}{\text{% change in quantity of commodity Y}}\)
- B. \(\frac{\text{% change in quantity demanded}}{\text{% change in price}}\)
- C. \(\frac{\text{% change in quantity demanded of commodity X}}{\text{% change in price of commodity Y}}\)
- D. \(\frac{\text{% change in quantity demanded}}{\text{% change in income}}\)
\(\begin{array}{c|c}
\text{Price N} & \text{Quantity sold} \\
5 & 15 \\
5 & 16 \\
5 & 17 \\
5 & 18 \\
\end{array}\)
Marginal revenue is
- A. N5
- B. N6
- C. N8
- D. N10
Elasticity of demand is an effective tool in the hand of a producer in that it enables him
- A. rise his profits and lower his, costs
- B. discourage buyers from cheating
- C. determine what he will produce
- D. set his price to maximize his profit
Above the equilibrium point, a further rise in price tends to
- A. increase demand and restrict supply
- B. restrict demand and decrease supply
- C. increase demand and decrease supply
- D. decrease demand and increase supply
If the economy of the country is operating at X, the implication is that
- A. the productive capacity is being fully utilized
- B. the productive capacity is not being fully utilized
- C. too little of consumer goods is being produced
- D. there is a disequilibrium between the production of capital and consumer goods
The diagram represents a production function. At which of the points does diminishing returns set in
- A. I
- B. J
- C. K
- D. L
The borrowing rights of a member country of the international Monetary Fund are determined by?
- A. the seriousness of the country's economic problems
- B. its balance of payments position
- C. its quota to the fund
- D. the size of gold reserve
A situation in which a commodity is sold abroad below its cost of production in the home country is known as?
- A. dumping
- B. counter trade
- C. bilateral trade
- D. trade liberalization
In international trade, shipping and other freight charges are treated as?
- A. invisible items
- B. unilateral transfers
- C. capital transactions
- D. autonomous capital transactions
The main objective of the Economic Community of West African State is to?
- A. estabilish a West African Development Bank
- B. create a West African army
- C. introduce a common currency for the sub-region
- D. promote the free movement of persons, goods and services within the sub-region
One of the techniques for rectifying a deficit balance of payment is?
- A. import promotion
- B. devaluation
- C. physical intervention
- D. borrowing from abroad
If national income rises by 6% and population rises by 3%, per capita income will?
- A. rise by 6 percent
- B. fall by 3 percent
- C. fall by 6 percent
- D. rise by 3 percent
A sustained increase in the production of goods and service in a country is called economic?
- A. development
- B. growth
- C. diversification
- D. planning
One of the ways by which the government can speed up economic development is through the?
- A. increase in consumption pattern of the people
- B. encouragement of savings, investment and equitable distribution of goods and services
- C. increase in the rate of population growth so as to ensure that the country has a large labour force
- D. encouragement of importation of raw materials to produce consumer goods
The national income of a country indicates that the gross domestic production was N17 700 million and gross domestic product was N16 800 million. The difference of N900 million represents?
- A. debt repayment
- B. investments abroad
- C. net income from abroad
- D. capital consumption
Taxes and government expenditures are instrument of?
- A. monetary policy
- B. tax policy
- C. economic policy
- D. fiscal policy
Progressive tax structure is designed to?
- A. take more from the income of the poor
- B. take more from income of the rich
- C. take equal proportion of income from both the rich and the poor
- D. reduce the problems emanating from tax imposition
Monetary policy aimed at reducing demand-pull inflation in the country maybe carried out through?
- A. increase in taxation of private companies, public corporations and private individuals
- B. increase in cash reserve ratio of commercial banks and the sale of government securities
- C. decrease in goverment expenditure on education
- D. direct price control in the market place
Gresham’s law in Economics shows that?
- A. good drives out bad money
- B. bad money drives out good money
- C. the value of money varies inversely with the price level
- D. gold must be available to maintain the price of paper money
Inflation n the Nigeria economy may be fueled by increase in?
- A. the dollar price of crude oil
- B. the sale of company shares
- C. government expenditure
- D. sale of government bonds