An ad valorem tax is imposed on
- A. special commodities
- B. exports
- C. imports
- D. the value of a commodity
The major function of money market is to
- A. provide funds for long-term financing
- B. provide funds short-term financing
- C. stabilize the value of the local currency
- D. stabilize domestic prices
The minimum amount which banks are required to deposit with the central bank is determined by the
- A. liquidity ratio
- B. cash reserve ratio
- C. minimum lending rate
- D. aggregate credit ceiling
The money that commands a higher market value than its face value is called
- A. paper money
- B. standard money
- C. commodity money
- D. fiat money
If a basket of commodities cost N120 in the base year and N240 in the current year, calculate the price index
- A. 100
- B. 200
- C. 240
- D. 300
The investment expenditure of an economy changes by N2 million and MPC is 0.75
What is the change in income?
- A. N0.5m
- B. N1.5m
- C. N2.6m
- D. N8.0m
The investment expenditure of an economy changes by N2 million and MPC is 0.75
The multiplier is
- A. 8
- B. 4
- C. 3
- D. 2
Net National Product is derived by deducting
- A. net exports from GNP
- B. subsidies from GDP
- C. taxes from GDP
- D. depreciation from GNP
A discriminatory monopoly is characterized by
- A. a common elasticity in different markets
- B. different elasticities in different markets
- C. a finite elasticity in all markets
- D. zero elasticity in all markets
Patents and copyrights enable monopolists to
- A. determine the quality of their products
- B. determine the scale of their products
- C. restrict information flow to new firms
- D. restrict entry of new firms
If a firm doubles all inputs in the long run and the total output is less than doubled, this results in
- A. diminishing returns
- B. constant returns to scale
- C. increasing returns to scale
- D. decreasing returns to scale
The long-run average cost curve touches to the short-run average cost curves at the
- A. minimum points of all short run average cost curves
- B. declining points of all short-run average cost curves
- C. minimum point of only one of the short-run cost curves
- D. rising points of all short-run average cost curves
The equilibrium point of a firm is attained at the point where the isoquant is
- A. greater than the isocost
- B. less than the isocost
- C. tangent to the isocost
- D. greater than the output
If all factors are variable in the long run,firms will experience
- A. decreasing returns to scale
- B. increasing returns to scale
- C. diminishing returns
- D. economies of scale
An important function of the price system is to
- A. ensure that producers' profits remain high
- B. guarantee full employment of resources
- C. allocate resources to most productive uses
- D. protect the economic interests of government
Fixing price above equilibrium will cause
- A. demand and supply to remain constant
- B. an increase in quantity supplied
- C. an increase in supply
- D. a decrease in quantity supplied
The invisible hand promotes the interests of
- A. consumers
- B. society
- C. government
- D. producers
The cost elasticity of supply is a useful instrument for measuring
- A. profit
- B. productivity
- C. national income
- D. price index
If quantity supplied is constant irrespective of price changes, the supply elasticity is
- A. unitary
- B. infinity
- C. fairly elastic
- D. perfectly inelastic
The supply of cocoa is influenced by
- A. seasonal conditions
- B. the efficacy of fertilizer used
- C. the demand for beverages
- D. the availability of close substitutes
When the slope of the total utility curve is declining, the marginal utility of a consumer will be increasing if he
- A. stops consuming more of the commodity
- B. reduces the quantity consumed
- C. increases the quantity consumed
- D. consumes more of another commodity