The relationship between the cost of living and standard of living is
- A. A rise in cost of living gives a corresponding rise in standard of living
- B. A lower cost of living give a higher standard of living
- C. A lower cost of living give a lower standard of living
- D. None of the above
\(\begin{array}{c|c}
\text{Units of labour} & \text{Fixed capital} & \text{Total product} & \text{Average product} & \text{Marginal product} \\
\hline
0 & 10 & – & – & – \\
\hline
1 & 10 & 10 & 10 & 10 \\
\hline
2 & 10 & 25 & ? & 15 \\
\hline
3 & 10 & 50 & 16.7 & 25 \\
\hline
4 & 10 & 80 & 20.0 & 30 \\
\hline
5 & 10 & 106 & 21.2 & 26 \\
\end{array}\)
Calculate the average product when the 2nd labour was employed 12.5
- A. 12.5
- B. 12
- C. 15
- D. 10
The following equations relate to an open economy with a government sector. E = aggregate expenditure on domestically produced goods, C = Consumption, I = Investment, G = Government expenditure, T = taxes, M = imports, X = Exports. Which equation is correct
- A. E = C + I + G
- B. E = C + I + G + M – X
- C. E = C + I + G + X – M
- D. E = C + I + G – T + M – X
The income elasticity of demand of normal goods is
- A. negative
- B. positive
- C. zero
- D. fixed
The technical relationship between the physical inputs and the physical outputs of a firm is
- A. Utility
- B. Cost
- C. Demand
- D. Production function
Which of the following are examples of transfer payment
- A. gift and donations
- B. rents and rates
- C. profit and dividends
- D. internal and external debts
Which of the following business units can issue shares?
- A. Partnership
- B. Public limited liability company
- C. Sole proprietorship
- D. Central bank
A monopolist has the power to influence the prices of goods and services. Therefore, he is a
- A. price maker
- B. price taker
- C. price system
- D. price competition
A firm that charges the maximum price without attracting competition from new entrants is
- A. Oil firms
- B. Monopolistic competitive firm
- C. Monopolistic firm
- D. Perfectly competitive firm
Census can be classified as
- A. defacto and dejure
- B. increasing and decreasing
- C. over and under
- D. optimum
All the following are the canons of taxation given by Adam Smith except
- A. objective
- B. economy
- C. convenience
- D. certainty
\(\begin{array}{c|c}
\text{Units of quantity} & \text{Total utility} & \text{Marginal utility} \\
\hline
0 & – & – \\
\hline
1 & 10 & 10 \\
\hline
2 & 15 & 5 \\
\hline
3 & 17 & 2 \\
\hline
4 & 18 & 1 \\
\hline
5 & 18 & 0 \\
\end{array}\)
The table illustrate the law of
- A. admonishing returns
- B. increasing returns
- C. diminishing marginal utility
- D. increasing marginal utility
The concentration of industries in a particular geographical area is
- A. localization of industries
- B. roles of industrialization
- C. location of industry
- D. strategies of industrialization
The market in which the operators are many and none of them can influence the price is
- A. stock exchange market
- B. imperfect market
- C. perfect market
- D. exchange market
Petroleum has the following positive contributions to the Nigerian economy except
- A. Generate employment
- B. Source of government revenue
- C. development of mono economy
- D. Infrastructure development
\(\begin{array}{c|c}
\text{Capital consumption allowance} & \text{N20,000} \\
\hline
\text{Gross domestic production} & \text{N60,000} \\
\hline
\text{Factor payment to foreigners} & \text{N10,000} \\
\hline
\text{Factor income from abroad} & \text{N15,000} \\
\end{array}\)
From the above table, calculate the Gross National Product.
- A. N70,000
- B. N75,000
- C. N50,000
- D. N60,000
The tax levied on locally produced goods is
- A. import duty
- B. excise duty
- C. company tax
- D. value added tax
The quantity theory of money states that a reduction in the quantity of money in circulation would bring about
- A. A constant change in price
- B. A rise in prices
- C. An unequal fall in prices
- D. A proportionate fall in price
The source of all economic problems arises from
- A. wants
- B. Scarcity
- C. Opportunity Cost
- D. Scale of Preference
A commercial bank can create money by
- A. issuing currency
- B. increasing cash ratio
- C. issuing cheque
- D. lending to borrowers
What will increase the likelihood that the firms in an industry will conclude to maximize their joint profit?
- A. The industry has many differentiated products
- B. The industry is characterized by rapid technological change
- C. The industry consist of large number of producers
- D. There are significant barriers to prevent firms entering the market