The indices used to measure the cost of living is
- A. consumption expenditure
- B. national income
- C. per capital income
- D. price index
- E. savings and investment
The desire to hold cash balances in order to meet expenditures which arises due to unforeseen circumstances is
- A. motive
- B. aim
- C. determination
- D. self discipline
- E. none of the above
The decision of whether to use labour or capital intensive techniques in production process is a problem of
- A. for whom to produce
- B. how to produce
- C. resource allocation
- D. what to produce
- E. when to produce
Arrangement of wants in order of importance is brought about by
- A. excess supply of goods
- B. interest in doing so
- C. scarcity of resources
- D. opportunity cost
- E. limited wants
Which of the following is NOT a factor to be considered in siting an industry in a particular area?
- A. access to raw material
- B. availability of recreational facilities
- C. market
- D. sources of power
- E. transport facilities
The amount of money required for the day-to-day running of a business is known as
- A. economics capital
- B. fixed capital
- C. paid- up capital
- D. reserve capital
- E. working capital
The excess profit made by a firm in a competitive market situation in the short-term is known as
- A. break even
- B. marginal profit
- C. net profit
- D. normal profit
- E. super normal profit
Individuals who buy new shares in anticipation of reselling at higher prices in the stock exchange market are called
- A. bears
- B. brokers
- C. bulls
- D. jobbers
- E. stags
Which of the following is true about average cost?
- A. Fixed cost/quantity
- B. Marginal + Fixed cost
- C. Quantity × Fixed cost
- D. Total cost/quantity
- E. Total cost - fixed cost Quantity
The most generally accepted definition of Economics was given by
- A. Adam Smith
- B. David Ricardo
- C. Lord Robinson
- D. Thomas Mathus
- E. Sam Aluko
In a socialist economic system, decisions relating to the fundamental economic problems are taken by
- A. academicians
- B. government
- C. individuals
- D. judiciary
- E. manufacturers
When a change in the demand for commodity A leads to a change in demand for commodity B in the same direction, demand for A & B is
- A. competitive demand
- B. complementary demand
- C. composite demand
- D. independent demand
The assumptions of the principles of comparative cost advantage is based on
I. Absence of Trade Restrictions
II. No transport costs
III. Constant technology
- A. II & III only
- B. I & II only
- C. I, II & III only
- D. II only
- E. III only
To an individual, the term cost will include expenditure on the following EXCEPT
- A. clothing
- B. Entertainment
- C. housing
- D. payment of school fees
- E. settling national debts
The types of unemployment that evolved the use of machines to replaces human labour is known as
- A. cyclical unemployment
- B. frictional unemployment
- C. seasonal unemployment
- D. structural unemployment
- E. technological unemployment
The introduction of money into the economy has helped to resolve the following problems EXCEPT
- A. accessibility of needs
- B. availability of goods
- C. coincidence of wants
- D. making deferred payments
- E. measure and store of value
The following are the main problems of distribution of essential commodities in Nigeria EXCEPT
- A. excessive demand
- B. hoarding of goods
- C. long chain of distribution
- D. poor storage facilities
- E. poor transportation network
When total utility is at maximum, then marginal utility is
- A. decreasing
- B. increasing
- C. maximum
- D. negative
- E. zero