Which of the following reasons could induce a manufacturer to bypass the wholesaler in the distribution chain?
- A. To provide the quantity needed by retailers
- B. To collect useful information on his product
- C. To provide warehousing facilities
- D. To violate government regulation on distribution
In the distribution channels for goods and services, the middleman’s mark-up margin provides a rough measure for the ?
- A. quantity discounts allowed final consumer
- B. reward for business enterpreneurship
- C. effectiveness of government control over the economy's marketing channels
- D. extent of exploitation of the final consumer
Which of the following is the major function of the wholesaler?
- A. Bulk breaking
- B. Provision of useful information to th manufacturer on products
- C. Provision of after-sales services to consumers
- D. Provision of warehouse facility
Which of the following is applicable to a monopolistic firm operating at the output where marginal cost equals marginal revenue?
- A. Cost of production is at a medium
- B. The plant is of optimum size
- C. Price is above marginal revenue
- D. Average variable cost is at a minimum
The tailoring services is competitive partly because it consists of a large number of?
- A. large-scale enterprises
- B. medium scale enterprises
- C. small scale enterprises
- D. government-owned enterprises
An imperfect market in which there is only one buyer of a commodity is?
- A. monopsony
- B. oligopoly
- C. monoploy
- D. duopoly
The demand for a product is said to be price inelastic if?
- A. the price elasticity of demand is less than one
- B. the price elasticity of demand is greater than one
- C. a reduction in price results in increase in the quantity demanded
- D. an increase in price results in a decrease in the quantity demanded
If an increase in income induces a reduction in the demand for beans, beans can be referred to as?
- A. a normal good
- B. an inferior good
- C. a substitute good
- D. a giffen good
Technical progress that leads to a reduction in costs results in?
- A. an increase in equilibrium price and quantity
- B. a decrease in equilibrium price and quantity
- C. an increase in equilibrium price and decrease in equilibrium quantity
- D. a decrease in equilibrium price and increase in equilibrium quantity
The law of diminishing marginal utility indicates that if a consumer increases his consumption of a commodity continuously, his?
- A. total utility must fall
- B. marginal utility must fall
- C. marginal utility may rise even though his total utility is falling
- D. marginal utility may fall even though his total utility may be rising
A situation in which all inputs are doubled and output also doubles is known as?
- A. constant proportions
- B. constant returns
- C. increasing returns to scale
- D. constant returns to scale
At the point of profit maximization by a firm, marginal cost is?
- A. minimum
- B. falling
- C. constant
- D. rising
Economics of scale operate only when?
- A. marginal cost is falling with input
- B. average cost is falling with output
- C. fixed cost is variable
- D. variable cost is less than fixed cost
A firm achieves least-cost in production by substituting factors until?
- A. their prices are equal
- B. the ratio of their marginal -physical-products equals the ratio of their prices
- C. their marginal -physical-products are each equal to their factor prices
- D. their marginal -physical-products are each equal to zero
Which of following rewards is associated with entrepreneurship as a factor of production?
- A. Salaries
- B. Profit
- C. Interests
- D. Rents
One of the major advantages of specialization is that?
- A. the worker becomes a tenderer of machines
- B. it causes more employment of labour
- C. less machinery is required for production
- D. the worker wastes less time between operations
In economic life, choice among alternatives depends on the?
- A. income of the decision maker
- B. scarcity of resources
- C. scale of preference of the decision maker
- D. status of the decision maker
If one orange costs 20k and one kilogram of beef costs N10.00, the opportunity cost of one kilogram of beef is?
- A. 50 oranges
- B. 10 oranges
- C. 5 oranges
- D. 9.80
The primary goal of development planning in Nigeria is to?
- A. increase profitability of enterprises
- B. achieve a rapid increase in the welfare and standard of living of Nigerians
- C. increase the level of gross domestic product
- D. make Nigeria a super-power
A sustained increase in the per capita income of a country over a period of time is called?
- A. economic growth
- B. economic development
- C. structural change
- D. stagflation
If C stands for consumption expenditure, I for investment, X for exports, and M for imports, then national income is?
- A. C + I + X + M
- B. C + I +X - M
- C. C + I - X + M
- D. C + I + X