Life insurance companies contribute to economic development by holding a part of their assets in
- A. long-term financial instruments
- B. money market instruments
- C. cash and near money
- D. short-term financial instruments
One of the goals of development plans in Nigeria is to
- A. increase the profitability of multinational businesses
- B. improve the country's GDP
- C. achieve higher standard of living for the citizens
- D. deregulate the economy
An example of an expansionary fiscal policy action is
- A. decrease in the corporate profit tax rates
- B. decrease in welfare payments
- C. purchase of government securities
- D. decrease in the bank rate
A tax on land will ultimately fall
- A. partly on agents and users
- B. entirely on users
- C. entirely on owners
- D. partly on users and owners
If CBN reduces money supply, the interest rate will
- A. fluctuate
- B. rise
- C. fall
- D. remain unchanged
Which of the following is used by the Central Bank of Nigeria to control inflation?
- A. Tariff on imports
- B. Tax rate
- C. Exchange rate
- D. Discount rate
If Mr .K obtains a N50.000 loan from a bank for the purpose of providing household needs, the demand for money is said to be
- A. transactionary
- B. speculative
- C. precautionary and speculative
- D. transactional and speculative
The speculative demand for money is inversely related to the
- A. interest rate
- B. level of income
- C. exchange rate
- D. inflation rate
A measure of national income used as comparison of standard of living among nations is
- A. net national product
- B. gross domestic product
- C. gross national product
- D. per capita income
An isoquant lying above to the right of another represents
- A. a higher output level
- B. constant returns to scale
- C. over-capacity utilization
- D. a lower output level
If a refinery achieves a reduction in cost by purchasing and transporting crude oil in large quantities, it enjoys
- A. economies of scale
- B. specialization
- C. division of labour
- D. diseconomies of scale
In Nigeria, the government can reduce the cost of accommodation by fixing the rent
- A. at the prevailing rate
- B. at the equilibrium price
- C. above the equilibrium price
- D. below the equilibrium price
One of the criticisms of the price mechanism is that
- A. producers are sovereign
- B. it provides low degree of freedom
- C. it widens the inequitable gap
- D. consumers are sovereign
If the price of a commodity is fixed below equilibrium, this will lead to
- A. excess demand
- B. a decrease in price
- C. an increase in price
- D. excess supply
If the supply of a product is elastic, a small reduction in price will
- A. reduce the cost of production
- B. reduce the quantity supplied
- C. increase the quantity supplied
- D. lead to no change in the quantity supplied
One of the major factors that brings about changes in supply is
- A. market discrimination
- B. availability of storage facilities
- C. the cost of storage
- D. incentives granted to workers
Utility is the satisfaction derived from the
- A. distribution of goods and services
- B. use of goods and services
- C. demand of goods and services
- D. production of goods and services
One of the assumptions of the cardinal approach is
- A. diminishing marginal rate of substitution
- B. the consistency and transitivity of choice
- C. that total utility depends on the quantity of the commodities consumed
- D. unstable marginal utility of money
If the price of a bicycle changes from N120 to N80 and quantity bought changes from 300 to 500 units, the elasticity of demand for bicycle is
- A. 66.7
- B. 0.5
- C. 1.5
- D. 2.0
An increase in the price of a commodity will result in
- A. a decrease in the quantity demanded
- B. an increase in demand
- C. an increase in quantity demanded
- D. a decrease in demand
An increase in demand without a corresponding change in supply will lead to
- A. a decrease in equilirium price and increase in equilibrium quantity
- B. an increase in equilibrium price and quantity
- C. a decrease in equilibrium price and quantity
- D. an increase in equilibrium price and a decrease in equilibrium quantity