Which of the following factors may not affect the efficiency of labour?
- A. Education and training
- B. Provision of welfare service
- C. Race and colour of workforce
- D. Quality of other factor inputs
A positive effect of a rapid population increase is
- A. an excessive budget deficit
- B. a reduction in standard of living
- C. a wider market for goods and services
- D. a higher dependency ratio
A major function of the retailer is to
- A. grant credit to the wholesaler
- B. break bulk and sell products in small units
- C. reduce cost of distribution
- D. generate demand for products through advertisement
The middlemen is responsible for
- A. providing research facilities
- B. purchasing raw materials
- C. designing the product
- D. breaking the bulk
A disadvantage of a jont-stock company is
- A. unlimited liability
- B. limited liability
- C. lack of continuity when a shareholder dies
- D. limited control in management by shareholders
A firm that closes down will still incur
- A. variable cost
- B. fixed cost
- C. total cost
- D. marginal cost
The production cost that varies inversely with output is the
- A. total fixed cost
- B. marginal cost
- C. average fixed cost
- D. average cost
In manufacturing, division of labour may be hindered by
- A. excessive demand for the product
- B. low level of technology
- C. excess supply of labour
- D. increase in the export of goods
If the government imposes a minimum price on a commodity
- A. market surplus occurs
- B. the market will be cleared in the short-run
- C. excess demand occurs
- D. government regulation is no longer needed
The production of rice and yam on the same farmland is an example of
- A. joint supply
- B. composite supply
- C. competitive supply
- D. market supply
A benefit that is present in all forms of economic integration is that
- A. common agricultural policy is in place
- B. the size of the market is widened
- C. factors of production are free to move and be moved
- D. common currency is in use
Foreign investment and long term securities in the balance of payment accounts are recorded as
- A. current account transaction
- B. capital account transaction
- C. balance of trade account transaction
- D. invisible balance account transaction
A consumer of a single commodity is in equilibrium when
- A. his marginal utility is equal to zero
- B. he can equate his demand with price
- C. he equates marginal utility and price
- D. he can equate his marginal and total utilities
Which of the following industries will add more value to primary products?
- A. Construction industry
- B. Processing industry
- C. Mining industry
- D. Service industry
An example of transfer payments in national income accounting is
- A. money transferred to another country
- B. transfer of funds from one bank to another
- C. unemployment allowance paid to the citizens
- D. the amount paid to a worker on transfer
In perfectly elastic supply, the supply curve
- A. is vertical
- B. is horizontal
- C. slopes downward
- D. slopes upward
Which of the following factors is not a cause of diminishing returns?
- A. Increase in variable inputs
- B. constant technology
- C. Land fragmentation
- D. Technological innovations
Gross National Product (GNP) less the provision for the wear and tear of assets is the
- A. net factor income
- B. net indirect taxes
- C. net national product
- D. net present value
Scale of preference shows
- A. opportunity cost of goods consumed
- B. incomes of consumers in order of size
- C. utilities enjoyed by consumers
- D. consumer's wants in order of priority
The use of the bank rate, cash ratio and open market operations constitute
- A. monetary policy
- B. export policy
- C. fiscal policy
- D. import policy
If the quantity demanded of a commodity increases from 20 units to 30 units when there is an increase in price from $4.00 to $5.00, the elasticity of demand is
- A. 2.00
- B. 0.50
- C. 0.65
- D. 2.50