Privatization and commercialization of public enterprise in Nigeria is necessitated by
- A. the IBRD conditions
- B. the government's loss of interest in them
- C. their operational inefficiency
- D. the IMF conditions
A greater burden of the taxes on essential goods is borne by the
- A. lower income group
- B. higher income group
- C. contract workers
- D. newly recruited workers
The major objective of a revenue allocation formula in a country is to
- A. share revenue between the different tiers of government
- B. divert revenue from areas of surplus to areas of need
- C. ensures the financial viability of the country
- D. share revenue between the public and private factors
Under a floating exchange rate regime, the determinant of the exchange rate is
- A. an Act of the National Assembly
- B. the highest denomination of the currency
- C. demand for and supply of foreign goods
- D. the system of government
The distinction between capital and recurrect expenditure lies in the
- A. nature of the goods and services to be provided
- B. time frame of the expenditure
- C. source of the revenue generated
- D. amount of expenditure involved
An advantage of the sole proprietorship over the partnership from of business organisation is that
- A. its existence is limited by an individual's life span
- B. it relies on the decision of friends to succeed
- C. the possibility of conflict in management is virtually non-existent
- D. it enjoys limited liability for debt in the event of failure
Securities are described as listed when they are
- A. mobilished as long-term debt instruments
- B. traded on a recognised stock market
- C. bought and sold purely for development purposes
- D. mobilized as short-term debt instruments
The monetary control instrument most effectively used by the Central Bank of Nigeria is the
- A. open market operations
- B. margin requirment
- C. reserve ratio
- D. discount rate
Inflation that is usually associated with periods of trade boom is
- A. creeping inflation
- B. cost-push inflation
- C. stagflation
- D. demand-pull inflation
Insurance companies, pension and provident funds and unit trusts are all examples of
- A. rural-based revenue mobilizers
- B. non-governmental organisations
- C. government financial agencies
- D. non-bank financial institutions
For a firm, value added can be defined as the difference between the
- A. input prices and product prices
- B. value of its output and inputs purchased from other firms
- C. value of its output and the cost of production
- D. total revenue and total cost
The distinguishing characteristic between the money market and the capital market lies in whether the
- A. securities are primary or secondary
- B. debt instruments provided are long-term or short-term
- C. funds mobilized are private or public
- D. securities are in debentures or ordinary shares
The term ‘Near money’ is best described as
- A. a financial instrument that is readily convertible to cash
- B. government financial instrument that is convertible to cash
- C. time deposits with low interest rates
- D. a financial asset that is convertible to cash
Imperfect market is characterized by
- A. perfect mobility of factors of production
- B. many buyers and few sellers
- C. a large number of buyers and sellers
- D. non-preferential treatment
The long-run average cost curve is called a planning curve because it shows what happens to costs when
- A. a bigger size of plant is built
- B. differents sizes of plants are built
- C. variable inputs are increased
- D. fixed factors are increased
Price elasticity of supply is a ratio of the change in
- A. original quantity to a change in new quantity
- B. quantity supplied to the change in price
- C. price to the change in quantity supplied
- D. quantity supplied to the change in demand
Short-run period in production is a period too short for a firm to be able to change its
- A. scale of operation
- B. total revenue
- C. total outputs
- D. variable inputs
A normal supply curve is usually positively sloped because the relationship between
- A. price and supply is positive
- B. demand and price is positive
- C. supply and price is negative
- D. price and demand is negative
If the demand curve facing a firm is sharply downward-sloping, the firm is likely to be
- A. a monopolistic competitor as it can have a limited influence on price
- B. a monopolist as it can have a great influence on price
- C. a perfect competitor as it cannot influence the market price
- D. an oligopolist as it can collude with other firms to have some influence on price
\(\begin{array}{c|c} \text{Out put produced per day (Units)} & \text{Fixed cost per day (N)} & \text{Total cost per day (N)} \\ \hline 20 & 60 & 100 \\ \hline 30 & 60 & 120 \\ \hline 40 & 60 & 130 \\ \hline 50 & 60 & 135 \\ \hline 60 & 60 & 150 \\ \hline 70 & 60 & 170 \\ \hline 80 & 60 & 190\end{array}\)
Using the table above. The ATC at 30 units of output is
- A. ₦3.00
- B. ₦4.00
- C. ₦60.00
- D. ₦120.00
In a planned economy, the emphasis is on
- A. public ownership and control
- B. prices and competition
- C. individual choices and decisions
- D. private ownership and control