the type of business finance that entitle the holder to a fixed rate of dividend is?
- A. perferred stock
- B. common stock
- C. debenture stock
- D. bank loan
The co-operative as a form of business organization differs from partnership by having?
- A. serveral sources of capital for business financing
- B. ability to issue preferred stocks to members
- C. entrenched democratic control in the conduct of business
- D. established rules and regulations governing the activities of its members
Which type of business organization has the attribute effectively combining management with control?
- A. sole proprietorship
- B. Partnership
- C. Limited liability company
- D. Co-operatives
The size of a business units tends to be small if the activity?
- A. involves mass production of goods
- B. requires a large capital
- C. requires division of labour
- D. involves the provision of direct services
One of the purposes of advertisement in marketing is to?
- A. change the quality of the product
- B. raise the quantity of the product demanded as its price falls
- C. shift the demand curve for the product to the right
- D. raise production cost
which of the following is an important function of the retailer?
- A. Grant credit to the wholesaler
- B. Breaks bulk and sales product in small units
- C. Reduces cost of distribution
- D. Generates demand for production through advertisement
The merging of firms engage in different stages of production and marketing is called?
- A. external economies of scale
- B. vertical intergration
- C. horizontal intergration
- D. economic unoin
For purely competitive industry, a fundamental requirement of the demand curve faced by individual firms is that it should be?
- A. downward sloping and price inelastic
- B. perfectly price elastic
- C. downward sloping but price inelastic
- D. perfectly price inelastic
In order to increase its profit margin, the monopolist can manipulate
- A. both price and output
- B. either price or output
- C. only its price
- D. only its output
The marginal theory of distribution makes an assertion that the price of any factor depends upon its marginal?
- A. utility
- B. productivity
- C. rate of substitution
- D. revenue
Which of the following factors is an important determinant of the magnitude of price elasticity of demand?
- A. The production period
- B. Cost of storage
- C. Durability of the product
- D. Availability of factors of production
If, as the price of a commodity rises, the quantity demanded of the commodity remains the same, then the demand for the commodity is?
- A. static
- B. infinitely elastic
- C. externally determined
- D. perfectly inelastic
If a 10k per kg, 1000kg of yam were purchased and at 5k per kg, 1,500kg were purchased, the resultant point elasticity of demand is?
- A. 0.33
- B. 0.0001
- C. 1
- D. 10,000
Given perfect competition in the capital market, the opportunity cost of capital is adequately reflected by the?
- A. interest rate
- B. returns on capital
- C. alternative capital foregone
- D. shadow price of foreign exchange
If the cost of production for a firm continues to increase as it output rises, the firm is said to be experiencing?
- A. large-scale production
- B. profit maximization
- C. economies of scale
- D. diseconomies of scale
if X represent the factors of production and Y represent the factor price, which of the following sets of association is correct?
- A. (land, rent) (capital, wage), (labour, profit)
- B. (land, interest) (capital,profit), (labour, wage),
- C. (land, wage), (capital, interest), (labour,rent),
- D. (land,rent), (capital, interest), (labour, wage),
Efficiency in production involves?
- A. reducing the size of the workforce
- B. producing a given output with the lowest cost combination of factors of production
- C. adoption of capital-intensive technology
- D. increasing the quantity of the fixed factor of production
The primary problem of Economics is?
- A. to obtain a more equitable distribution of money income
- B. the scarcity of productive resources relative to material needs
- C. how to reach prices which correctly depict that products and resources are not in abundance
- D. to teach people how to save so as to make more money
A shift in the production possibility frontier could result from?
- A. unemployment
- B. changes in the combination of goods produced
- C. inflation
- D. changes in production techniques
The need to construct a scale of preference is necessitated by?
- A. the need to satisfy wants
- B. scarcity and the need for choice
- C. scarcity of resources
- D. non-availability of factors of production
In its simplified form, the circular flow of income concept refers to the?
- A. real flow in goods and services between the product and factor markets
- B. monetary payment for goods and services produced by individual firms
- C. transactions in goods and services and payment for such transactions between individual firms and households.
- D. money flows associated with transactions between individual firms and households