A major impediment to the development of agriculture in Nigeria is
- A. land use system
- B. inadequate supply of farm inputs
- C. low income of farmers
- D. limited research on seedlings
One of the effects of instability in farmer’s income in Nigeria is
- A. lack of infrastructural facilities
- B. rural-urban migration
- C. inadequate supply of fertilizer
- D. low level of technology
Economic growth takes place when there is an increase in
- A. savings over time
- B. investment over time
- C. population over time
- D. output over time
A good indicator of economic development is an increase in
- A. gross national product
- B. per capital income
- C. real national income
- D. real per capital income
An example of an indirect tax is
- A. profit tax
- B. sales tax
- C. capital gain tax
- D. poll tax
The use of government revenue and expenditure to achieve set objectives is known as
- A. budget
- B. fiscal policy
- C. revenue allocation
- D. monetary policy
Contractionary monetary policy is used to
- A. control inflation
- B. bridge the deflationary gap
- C. expand the output level
- D. deregulate the economy
If the required reserves of a bank is 20% and N10 000 is paid into its demand deposit account, what is the excess reserves?
- A. N2000
- B. N18 000
- C. N12 000
- D. N8 000
The high rate of inflation in Nigeria can be attributed to
- A. increasing cost of production
- B. the appreciation of the naira
- C. decreasing cost of production
- D. high capacity utilization
The theoretical relationship between money supply and prices is weakened by changes in the
- A. money supply
- B. general price level
- C. velocity of money
- D. interest rate
An example of injection into the circular flow of income is
- A. taxes
- B. pensions
- C. imports
- D. exports
The output approach to measuring national income is based on the computation of
- A. final output
- B. factor cost
- C. value added
- D. profits earned
Which of the following producer is closest to being a monopolist?
- A. A baker
- B. A wheat farmer
- C. A large chain store
- D. An automobile plant
The characteristic of entry and exit ensures that firms
- A. earn excess profit
- B. earn normal profit
- C. break-even
- D. expand their operations
In a perfectly competitive condition, a firm uses 10 units of labour at N25 and 11 units at N36, what is the marginal cost of labour?
- A. N396
- B. N323
- C. N250
- D. N146
The use of modern weaving machines in the production of local fabric will result in
- A. an increase in the demand for labour
- B. a decrease in the demand for labour
- C. an increase in wages
- D. a decrease in wages
To protect farmers during a bumper harvest,. the government usually
- A. set a maximum price
- B. release products from the buffer stock
- C. sell the excess to consumers
- D. set a minimum price
An upward movement along the same supply curve results in
- A. an increase in supply
- B. a decrease in price
- C. a decrease in quantity supplied
- D. an increase in quantity supplied
The excess benefit derived from the purchase of goods over the amount paid for them is referred to as consumer
- A. rationality
- B. surplus
- C. sovereignty
- D. credit
Diminishing marginal utility implies that
- A. total utility decreases as consumption increases
- B. marginal utility increases as consumption increases
- C. marginal utility deceases as consumption increase
- D. marginal utility decreases as consumption decreases
As long as marginal utility is positive, total utility must be
- A. negative
- B. increasing
- C. zero
- D. decreasing