The average curve and the marginal curve are U-shaped in the short-run and flatter in the long-run due to________
- A. Economies of scale
- B. Money cost
- C. Opportunity cost
- D. Cost functions
Restrictive monetary policy is designed to curtail aggregate demand and to overcome________
- A. Deflation
- B. Reinflation
- C. Disinflation
- D. Inflationary gap
An Instrument used by the central bank to fix commercial and merchant banks total credit to domestic economy is________
- A. monetary policy
- B. fiscal policy
- C. credit ceiling
- D. open market operation
An economic condition in which much reduced economic activity co-exists with inflation is referred to as__________
- A. stagflation
- B. inflationary spiral
- C. slump inflation
- D. inflationary gap
The money market equilibrium is defined as_________
- A. when the demand and supply of money are equal
- B. when demand is greater than supply of money
- C. when demand is less than supply of money
- D. when supply is greater than demand for money
A method of analysis that draws conclusions from data rather than general Principles already known is________
- A. Deductive reasoning
- B. Inductive reasoning
- C. Normative reasoning
- D. Positive reasoning
The arithmetic mean of 5, 8, 10, 15, 24 and 28 is_______
- A. 145
- B. 15
- C. 90
- D. 6
An economy in which the whole income is not consumed is referred to as______
- A. Frugal economy
- B. Spend thrift economy
- C. Capitalist economy
- D. Mixed economy
The method obtained by adding all the reward of factors of production in national income is________
- A. income approach
- B. expenditure approach
- C. value added method
- D. output approach
A rise in the supply of a commodity cause__________
- A. an increase in the equilibrium price and decrease in the equilibrium quantity bought and sold
- B. an increase in both equilibrium
- C. a decrease in the equilibrium price and an increase in the equilibrium quantity bought and sold
- D. a decrease in both equilibrium
The demand curve facing the monopolist in the foreign market is__________
- A. Elastic
- B. Inelastic
- C. Perfectly elastic
- D. Unitary
In the short-run, the monopoly makes_______
- A. Normal profit
- B. Abnormal Profit
- C. Loss
- D. Sales
In a perfect competition, the market price is determined by_______
- A. the government
- B. the producer
- C. the consumer
- D. the market supply and demand junctions
| Price (₦) |
Quantity Demanded |
| 8 | 10 |
| 6 | 12 |
If we move from 8 to 6, the elasticity of demand is_______
- A. -1.25
- B. 0.62
- C. 0.8
- D. 1
If two commodities are unrelated, a change in the price of one will____________
- A. have effect on the quantity demanded of the other
- B. have no effect on the quantity demanded of the other
- C. increase the quantity demanded on the other
- D. decrease the quantity demanded on the other
A demand which gives rise to the reverse of the law of demand is__________
- A. Derived demand
- B. Joint demand
- C. Abnormal demand
- D. Composite demand