Internal economies of scale are expected to bring about?
- A. an increase in short-run average cost
- B. an increase in long-run average cost
- C. a decrease in long-run average cost
- D. a decrease in short-run average cost
A firm’s shut-down point is reach when the average revenue fails to cover the?
- A. average variable cost
- B. marginal cost
- C. average total cost
- D. average fixed cost
A consumer’s scale of preference is an arrangement of his?
- A. scarce resources in order of importance
- B. needs in order of importance
- C. sources of income and their importances
- D. requirements and how to satisfy them
The fixing of the price of an item above or below the equilibrium price is most likely to take place in a?
- A. centrally planned economy
- B. free market economy
- C. developed economy
- D. mixed economy
If the arithmetic mean of 1,2,3,4,5,6,x, 16 and 18 is 8.0, find the value of x?
- A. 7.0
- B. 6.0
- C. 8.5
- D. 17.0
In a demand curve, the relationship between price and quantity is?
- A. indeterminate
- B. direct
- C. nil
- D. inverse
A vertical supply curve indicates that?
- A. the quantity supplied is responsive to price
- B. the same fixed quantity will be supplied no matter the price
- C. an increase in price will result in an increase in the quantity supplied
- D. there is a fixed price for the commodity below which no supply will be made
A major problem facing all economies is how to?
- A. increase consumption of imported goods
- B. improve trade among nations
- C. transform from a developing to a developed economy
- D. allocate scarce resources
When a generalization is made based on observed facts, it is known as?
- A. deductive reasoning
- B. inductive reasoning
- C. theoretical reasoning
- D. normative reasoning
A change in supply is best described as a?
- A. movement along the supply curve
- B. shift of the supply curve to the left or to the right
- C. shift of the supply curve to the left
- D. shift of the supply curve to the left
Economics is regarded as a social science because it?
- A. adopts the scientific method in production
- B. is an agent of socialization
- C. adopts the scientific method in the study of human behaviour
- D. adopts the scientific method with social problems
A normal good with close substitutes is likely to have its price elasticity of demand?
- A. between zero and one
- B. equal to unity
- C. less than unity
- D. greater than unity
For a supply curve, an increase in the price of a commodity will result in?
- A. a decrease in supply
- B. a decrease in the quantity supplied
- C. an increase in supply
- D. an increase in the quantity supplied
At the consumer equilibrium, the slope of the indifference curve is?
- A. half the slope of the budget constraint line
- B. equal to the slope of the budget constraint line
- C. greater than the slope of the budget constraint line
- D. less than the slope of the budget constraint line
In a free market economy, the price system allocates resources?
- A. under government's directives
- B. to ensure general welfare
- C. to their best alternatives
- D. to reduce poverty
If the price elasticity of demand for a good is 0.43, an increase in the price of the good will result in?
- A. an increase in profit by 43%
- B. a net gain
- C. a decrease in profit 43%
- D. a net loss
Being a member of the OPEC, Nigeria is in a favorable position to?
- A. export her crude oil
- B. control world crude oil prices
- C. reap the benefit of a cartel
- D. borrow money from members
If the United Kingdom buys gold for $60 an ounce and Nigeria buys the same ounce for N500, what will be United Kingdom’s exchange rate with Nigeria?
- A. $0.05 = N1.00
- B. $0.06 =N1.00
- C. $0.11 =N1.00
- D. $0.12 =N1.00
A country’s import price index by 1995 was 50 and her index of export price was 70. Calculate the terms of trade?
- A. 20%
- B. 71%
- C. 120%
- D. 140%
A country exporting mainly primary products and with a high percentage of her labour force in agriculture is said to be?
- A. developing
- B. developed
- C. poor
- D. underdeveloped
Public debt is composed of?
- A. internal debts and World Bank loans
- B. money owed to local and foreign contractors
- C. internal and external debts
- D. loans granted by IMF and ADB