In commercial banking, an account from which the customer cannot withdraw money instantly is a?
- A. demand deposit account
- B. time deposit account
- C. special deposit account
- D. savings deposit account
Which of the following is inflationary?
- A. An increase in taxation
- B. An increase in savings
- C. A decrease in money supply
- D. An increase in government expenditure
The most important attribute of money is?
- A. homogeneity
- B. relative scarcity
- C. divisibility
- D. general acceptability
The main problem of the Organization of Petroleum Exporting Countries is how to?
- A. prevent members from violating their quota
- B. enhance the quality of petroleum product
- C. compete with the North Sea producers
- D. ensure viable crude reserves
A glut in the world market for crude oil means?
- A. a fall in crude oil production
- B. an excess supply of crude petroleum
- C. a higher crude oil price offered by the buyer
- D. a higher crude oil price demanded by the seller
One of the dangers of the localization of industries is?
- A. residual employment
- B. mass unemployment
- C. structural unemployment
- D. cyclical unemployment
A firm is said to have benefited from external economies in production if it has realized?
- A. a more efficient management of resources
- B. a better combination of factors of production
- C. reduced resources costs due to operation of other firms
- D. a higher profit level due to increased sales
Plywood industries are often located near the source of?
- A. finance
- B. labour
- C. power supply
- D. raw materials
What is the effect of inelastic demand for agricultural products on the income of a farmer?
- A. A price rise results in its fall
- B. A price fall results in its fall
- C. A price fall results in its rise
- D. A price rise leaves the income unchanged
The most important requirement for increasing agriculture output in Nigeria is?
- A. for the government to go into large scale farming
- B. to employ relevant foreign technology and reform the land tenure system
- C. to increase farmers'incomes and improve the farming techniques
- D. to employ more extension workers
The suggestion that peasants in Africa have backward-bending supply curves of output implies that their response to an increase in the price of their crops will be to?
- A. increase their output
- B. decrease their output
- C. keep their output constant
- D. hoard their output
The shares that must be redeemed first at liquidation of a company are?
- A. preference shares
- B. non-voting ordinary shares
- C. ordinary shares
- D. debentures
A form of business organization which is characterized by limited authority and liability of individual owners is the?
- A. sole proprietorship
- B. partnership
- C. joint stock company
- D. co-operative society
The best channel of distribution of baked bread is through?
- A. wholesalers to retailers then to consumers
- B. direct sales to consumers
- C. wholesalers to consumers
- D. retailers to consumers
A market where there are many differentiated products is called?
- A. monopoly
- B. perfect competition
- C. monopolistic competition
- D. oligopoly
If the percentage change in the income of the consumers of an industrial product is less than the resulting percentage change in the quantity demanded of the product, then the income elasticity of demand for the product is?
- A. less than one
- B. equal to one
- C. greater than one
- D. equal to zero
The elasticity of demand for a firm’s product is 2.
If the firm reduces its price by 20 percent, its sales revenue will increase by?
- A. 10 per cent
- B. 20 per cent
- C. 30 per cent
- D. 40 per cent
If a demand curve that intersects a perfectly inelastic supply curve shifts rightward, then?
- A. the equilibrium price and quantity will increase
- B. only the price will increase
- C. only the quantity will increase
- D. the price will remain constant
Given a market demand curve Q=120-2p and a supply curve Q = 4p, the equilibrium price and quantity respectively are?
- A. 20 and 80
- B. 30 and 120
- C. 40 and 60
- D. 60 and 240
A good is said to be inferior if its demand?
- A. rises as it price rises
- B. falls as it price rises
- C. rises as it price falls
- D. is perfectly inelastic
The type of cost which has to be covered for a firm to continue production in the short-run is the?
- A. overhead cost
- B. fixed cost
- C. marginal cost
- D. average variable cost