A form of business organization which is characterized by limited authority and liability of individual owners is the?
- A. sole proprietorship
- B. partnership
- C. joint stock company
- D. co-operative society
The best channel of distribution of baked bread is through?
- A. wholesalers to retailers then to consumers
- B. direct sales to consumers
- C. wholesalers to consumers
- D. retailers to consumers
A market where there are many differentiated products is called?
- A. monopoly
- B. perfect competition
- C. monopolistic competition
- D. oligopoly
If the percentage change in the income of the consumers of an industrial product is less than the resulting percentage change in the quantity demanded of the product, then the income elasticity of demand for the product is?
- A. less than one
- B. equal to one
- C. greater than one
- D. equal to zero
The elasticity of demand for a firm’s product is 2.
If the firm reduces its price by 20 percent, its sales revenue will increase by?
- A. 10 per cent
- B. 20 per cent
- C. 30 per cent
- D. 40 per cent
If a demand curve that intersects a perfectly inelastic supply curve shifts rightward, then?
- A. the equilibrium price and quantity will increase
- B. only the price will increase
- C. only the quantity will increase
- D. the price will remain constant
Given a market demand curve Q=120-2p and a supply curve Q = 4p, the equilibrium price and quantity respectively are?
- A. 20 and 80
- B. 30 and 120
- C. 40 and 60
- D. 60 and 240
A good is said to be inferior if its demand?
- A. rises as it price rises
- B. falls as it price rises
- C. rises as it price falls
- D. is perfectly inelastic
The type of cost which has to be covered for a firm to continue production in the short-run is the?
- A. overhead cost
- B. fixed cost
- C. marginal cost
- D. average variable cost
Labour productivity is the ratio of?
- A. labour to output
- B. man-hours to output
- C. output to man-hours
- D. average product to man-hours
One of the objectives of Nigeria’s current population policy is to?
- A. reduce the birth rate
- B. reduce the emmigration rate
- C. increase the birth rate
- D. enhance longevity
In a country, if the proportion of people who are below 15 years is 45% and those above 60 years is 30%, this implies that the?
- A. dependency is ratio high
- B. population is optimum
- C. active population is large
- D. population is growing according to Malthus theory
When a country’s population is experiencing increase returns, that country is said to be?
- A. overpopulated
- B. economically poor
- C. over-producing goods and services
- D. underpopulated
One of the fundamental differences between a capitalist and a socialist economy is that while?
- A. the former is characterized by complete government ownership of resources, the latter characterized by complete private ownership
- B. in the former, prices act as signals in the allocation of resources, it is central authority that performs this function in the letter
- C. taxes are levied in a capitalist economy, there is no taxation in a capitalist economy
- D. income and wealth are equally distributed in the socialist economy, this is not so in a capitalist economy
One of the features of a free market economy is that?
- A. resources are directed by the price mechanism
- B. workers do not earn equal wages
- C. the profit motive is serverly constrained
- D. descisions on the economy are taken by bureaucratic structures
Ike’s scale of preference reveals that he prefers bananas to pawpaw, pawpaw to oranges and oranges to bananas. Ike’s preferences are therefore?
- A. inconsistent
- B. consistent
- C. transitive
- D. rational
With a given level of money income, a consumer maximizes satisfaction from the consumption of goods and services when the?
- A. total utility derived from each goods and services is increasing at an increasing rate
- B. marginal utility derived from each good or service is increasing at the same rate
- C. marginal utility derived per naira spent is the same for all the goods and services
- D. total utility derived from all the goods and services is large
The primary objective of all international economic organizations is to?
- A. ensure that third world countries get a better share of the world's resources
- B. promote international economic co-operation for the mutual benefit of all members
- C. enforce structural adjustment programmes on less developed countries
- D. encourage exports from the developed to the less developed countries
Foreign exchange rate in a free market economy is determined by?
- A. the government
- B. the Central Bank
- C. demand and supply
- D. commercial banks
The demand made on each other by the agriculture and industrial sector as the economy grows are reflected in?
- A. backward and forward linkages
- B. horizontal and vertical linkages
- C. vertical linkages
- D. functional linkages
An increasing population might be of economic benefit to a country if?
- A. the female population is greater than the male population
- B. the dependency ratio is increasing as the total population increases
- C. a continuosly higher proportion falls into working class category
- D. the rural and urban proportion ae balanced