An increase in both the legal reserve ratio and discount rate has the effect of?
- A. increasing the quantity of money in circulation
- B. decreasing the quantity of money in circulation
- C. increasing the value of money
- D. decreasing the value of money
An indigenous company wholly owned by the federal government of Nigeria which currently engaged in prospecting for oil is?
- A. the Nigerian National Oil Company
- B. Peak Petroleum Industries Nigeria Limited
- C. Nigeria Exploration and Production Company
- D. the Nigeria National Petroleum Corporation
Petroleum is the mainstay of the Nigerian economy because it is the?
- A. main foreign exchange earner
- B. greatest employer of labour
- C. greatests contributor to the growth of agriculture
- D. source of high income for its workers
Labour-intensive strategy of industrialization emphasizes the use of?
- A. steam energy in the process of production
- B. manual method of production
- C. synthetic raw materials
- D. hydro-electric power
What is the term used to describe a policy aimed at promoting the local production of goods which are usually imported?
- A. Deregulation
- B. import substitution
- C. Tariff reduction
- D. Backward integration
The system of agriculture practice which involves hunting, gathering and growing of food crops for family consumption only is described as?
- A. peasant agriculture
- B. plantation agriculture
- C. co-operative farming
- D. subsistence farming
The major factor that causes fluctuations in the supply of agricultural produce is?
- A. high price
- B. pests
- C. weather variations
- D. rural-urban migration
In the event of liquidation of a private limited liability company, the shareholders’ liability is limited in their total?
- A. income from all sources
- B. family assets
- C. collateral offered for bank loans
- D. investment inthe company
A major shortcoming of the sole proprietorship form of business is lack of?
- A. working capital
- B. patronage
- C. continuity
- D. market
Output restriction, fixing of prices, creating obstacles to free entry into the market are features of?
- A. pure monopoly
- B. perfect monopoly
- C. perfect competition
- D. monopsonist competition
In the long run, a firm in a perfectly competitive market will make?
- A. normal profit
- B. adnormal profit
- C. marginal profit
- D. no profit
The basic idea behind brand differentiation under an imperfect market arrangement is to?
- A. stimulate demand for rival products
- B. create demand for the particular product
- C. enable the product penetrate the market
- D. enable the product to complete with others
Elasticity demand is an effective tool in the hands of a producer in that it enables him?
- A. raise his profit and lower his costs
- B. discourage buyers from cheating
- C. determine what he will produce
- D. set his price to maximize his profit
A demand which is positively related to price is true of?
- A. normal goods
- B. giffen goods
- C. ostentatious goods
- D. capital goods
An increase in the supply of labour in a factory while other things remain equal will lead to?
- A. an increase in the wage rate and an increase in the number of people employed
- B. a decreased in the wage rate and a decrease in employment
- C. an increase in the wage rate and an decrease in the employment
- D. a decrease in the wage rate and an increase in employment
A firm determines its profit when it studies its?
- A. Marginal Cost
- B. Average Cost
- C. Total Cost
- D. Average Cost relative to price in the market
The basic relationship between the cost of production, and the market price of any commodity in the short run is that the market price?
- A. always reflects the cost of labour
- B. reflects the variable, but not the fixed cost of production
- C. does not rise above variable costs
- D. is determined by the cost of production and the current rate of inflation
A company’s expenditure on raw materials is regarded as?
- A. explicit cost
- B. implicit cost
- C. prime cost
- D. average cost
In the long run, all production factors are?
- A. fixed
- B. semi fixed
- C. variable
- D. semi-variable
When the Total Product (TP) is at maximum point, the Marginal Product (MP) and the Average Product (AP) respectively are?
- A. zero and decreasing
- B. decreasing and zero
- C. negative and decreasing
- D. both at their maximum
Unemployment can be reduced by?
- A. restricting the productive base of the economy
- B. adopting capital-intensive techniques of production
- C. adopting labour-intensive techniques of production
- D. adopting a mixture of labour and capital-intensive techniques of production