Ufuoma is a consumer. His scale of preference shows that he prefers a pair of shoes to a wrist watch; he prefers the wrist watch to a pair of trousers; he prefers the pair of trousers to the pair of shoes. This means that Ufuoma is
- A. rational
- B. consistent
- C. inconsistent
- D. transitive
When a variable is associated with time period, it is?
- A. a flow
- B. a stock
- C. circular
- D. static
Economic is often described as a science because?
- A. laboratory experiments are performed
- B. it makes use of controlled experiments
- C. it uses scientific methods to explain observed phenomena and predict future events
- D. it makes use of field work
Scarcity in economics means that?
- A. human wants are limitless
- B. the economy has very few resources
- C. the economy can scarcely produce anything
- D. resources are limited in relation to wants
Economic development is defined as?
- A. positive change plus growth
- B. avalibility of more goods and services
- C. outward shift of the production possibility curve
- D. growth in the national income
For the improvement of the welfare of a people, a high production level is not enough because
- A. the have-nots deserve more than a fair share
- B. equitable distribution is necessary
- C. production efficiency is vital
- D. savings in the country must be guaranteed at more than 50 percent of income earned.
Frictional unemployment?
- A. is total unemployment minus structural unemployment
- B. occurs when the unemployed are persons with specific training
- C. occurs when the number of job seekers exceeds the number of vacancies
- D. occurs when people are changing jobs
The difference between personal income and personal disposal income is?
- A. personal income tax
- B. investment income
- C. personal savings
- D. consumption expenditure
Capital consumption allowance refers to?
- A. personal consumption expenditure
- B. indirect business taxes
- C. depreciation of capital equipment
- D. expenditure on capital equipment
Transfer payment are
- A. transfer earnings
- B. money transferred from one country to another
- C. unearned income
- D. payment transferred from one account to another
Statistical information available in most West African countries suggests that?
- A. the marginal propensity to save is high
- B. the marginal propensity to consume is high
- C. the consumption pattern is negative
- D. there exists perfect correlation between consumption and savings
Which of the following best explains the structural changes in the population of a country?
- A. Positive changes in the size and ethnic composition of the population
- B. A decrease in the size of the population
- C. An increase in the birth rate which is higher than the decrease in the death rate
- D. Changes in the age, sex and occupational composition of the population
The rate of exchange between a domestic and a foreign currency is defined as the?
- A. terms of trade
- B. domestic currency price of a unit of the foreign currency
- C. foreign currency price of gold
- D. domestic currency price of gold
Which of the following applies to a commodity sold abroad at a price lower than that in the producing country?
- A. Dumping
- B. Counter-trade
- C. Bilateral trade
- D. Trade liberalization
The money which government spends yearly for the maintenance of its school is?
- A. used only for wages and salaries
- B. part of the government's capital expenditure
- C. part of the government's recurrent expenditure
- D. the government's budget for its school
A budget with a projected revenue in excess of its expenditure is said to be?
- A. balanced
- B. surplus
- C. deficit
- D. inflationary
In order to raise more revenue for a certain period, government should impose higher taxes on goods whos demand is?
- A. elastic
- B. inelastic
- C. perfectly elastic
- D. unitary elastic
Ad valorem tax means?
- A. a certain percentage tax based on the value of the commodity
- B. a certain percentage tax based on the volume of the commodity
- C. a tax on the income of the consumer
- D. payment of a tax on the profits made
If inflation is anticipated to continue?
- A. people will lose confidence in goods
- B. lenders will demand higher interest rate
- C. the growth of full employment output will be accelerated
- D. people will want to hold more money
In the keynesian model?
- A. the demand for money is inversely related to the rate of interest
- B. investment is directly related to the rate of interest
- C. investment is not related to the rate of interest to the rate of interest
- D. the demand for money is directly related to the rate of interest
The main reason for charging interest is to?
- A. reward enterpreneurial effort
- B. redistribute profits
- C. reward investors for present use of profits
- D. mobilize more funds for development