An advantage of large-scale farming over peasant farming is in the area of
- A. providing research and massive employment of labour
- B. redistributing national income to various regions of the country
- C. encouraging the use of traditional implements
- D. encouraging urban-rural migration
An important role of agriculture in Nigeria’s economic development is the
- A. processing of raw materials for industries
- B. regulation of price system
- C. provision of infrastructure
- D. provision of employment
A major feature of an underdeveloped economy is
- A. excess capacity utilization
- B. low rate of population growth
- C. low level of standard of living
- D. low level of unemployment
A major obstacle to the development of Nigeria economy is
- A. low capital formation
- B. rural-urban migration
- C. over dependence on oil
- D. poor developmental policies
Wage freeze is a policy measure aimed at
- A. encouraging investors
- B. curbing inflation
- C. regulating standard of living
- D. curbing deflation
Given a base year and the price index of 175% the following year, which of the following year will arise?
- A. The cost of living decreases of that year
- B. The cost of living remains unchanged
- C. The value of money rises by 75%
- D. The value of money falls by 75%
Short-term loans for investment are usually obtained through the
- A. stock market
- B. development banks
- C. money market
- D. capital market
One of the challenges facing the banking industry in Nigeria is
- A. ensuring technological security
- B. providing employment
- C. providing loans for investment
- D. creating more money
An inflation that co-exists with high rate of unemployment is
- A. hyperinflation
- B. stagflation
- C. demand-pull inflation
- D. cost-push inflation
The precautionary demand for money is determined by
- A. the rate of interest
- B. the level of savings
- C. the level of income
- D. general price level
If MPC = 2/3 and investment is N100 million, the level of national income is
- A. N100 million
- B. N10 million
- C. N303 million
- D. N300 million
Which of the following can be used to measure the Gross National product in an open economy?
- A. C+I+G+(X+M)
- B. C+I+G+X
- C. C+I+G
- D. C+I+G+(X-M)
A monopolist can boost up his revenue by
- A. adjusting both price and output upward
- B. reducing total output to match price
- C. increasing price
- D. reducing price
One of the characteristics of a monopolist is that, he can influence
- A. quantity produced by other producers
- B. prices charged by other producers
- C. both price and quantity
- D. price or quantity
A perfect competitor will continue to expand output up to the point where
- A. TC > TR
- B. MR = AR
- C. MC < MR
- D. MC > MR
Rent and administrative expenses are examples of
- A. average fixed costs
- B. average variable costs
- C. fixed costs
- D. variable costs
Given that FC = N500, VC = N1,500, and Q = 50 units. Find the average cost of the product.
- A. N30
- B. N40
- C. N10
- D. N20
Division of labour requires that, the tasks in a production line be performed
- A. by specialists
- B. in stages
- C. by all workers
- D. by unskilled labourers
If the production of a large firm is higher than that of a small firm, it is experiencing.
- A. external economies of scale
- B. external diseconomies of scale
- C. internal economies of scale
- D. internal diseconomies of scale
Price mechanism determines the prices of commodities through
- A. auctioning
- B. market forces
- C. the sales of treasury bills
- D. government legislation
When price is set below equilibrium, this will lead to
- A. an increase in the quantity supplied
- B. a new equilibrium
- C. a decrease in the quantity supplied
- D. a fall in price