Which of the following items does NOT belong to a country’s current account in the balance of payments accounts?
- A. Merchandise exports
- B. Merchandise import
- C. Travel
- D. Foreign currencies
- E. Insurance services
The following except ONE, are the differences between international trade and internal trade?
- A. Diferences in currencies
- B. Government control
- C. Mobility of factors of production
- D. Cultural differences
- E. Exchange of Goods and services
The international production set for Nigeria and Austria is:
\(\begin{array}{c|c}
Products & Nigeria & Austria \\
\hline
Cocoa & 20 \text{tonnes} & 12 \text{tonnes}\\
\hline
Lace & 10 \text{meters} & 8 \text{meters} \\
\end{array}\)
from the table, it can be deduced that?
- A. Nigeria should produce cocoa and lace
- B. Austria should produce cocoa and lace
- C. Nigeria can benefit from producing lace only
- D. Nigeria should not produce any of the products because of her relative disadvantages
- E. Austria should produce lace and Nigeria should produce cocoa
Question 39 and 40 are based on the table below:
The international production set for Nigeria and Austria is:
\(\begin{array}{c|c}
Products & Nigeria & Austria \\
\hline
Cocoa & 20 \text{tonnes} & 12 \text{tonnes}\\
\hline
Lace & 10 \text{meters} & 8 \text{meters} \\
\end{array}\)
The opportunity cost ratio for cocoa and lace for Austria and Nigeria is
- A. 2,2
- B. 2,1.5
- C. 1.5,4
- D. 1.5,2
- E. 0.5,1.5
Public expenditure on services, such as education and health, is known as expenditure on
- A. general services
- B. community services
- C. social services
- D. economic services
- E. administrative services
One of the major effects of an increase in government expenditure on a nation’s economy is that it?
- A. creates investment opportunities for foreign investors
- B. leads to indigenization of the private sector
- C. raises the level of total tax revenue
- D. raises the level of aggregate demand
- E. controls the spread of monopoly
Generally, property taxes?
- A. are borne entirely by landlords
- B. cannot be shifted in the long run
- C. are borne by all (renter, owner occupiers and landlords)
- D. are borne only by renters
- E. are borne by a few industrialist
Lord Keynes identified three motives for holding money, that is, keeping one’s resources in liquid form instead of in some form of investment. the motive which relates to making provision for the ‘rainy day’ is known as?
- A. speculative motive
- B. precautionary motive
- C. transactions motive
- D. investment motives
- E. rainy day motive
Cost push inflation takes place due to?
- A. the rapid increase in the demand for goods
- B. an increase in productivity of the factors of production
- C. a rise in the cost of production
- D. a rise in the standard of living
- E. the low wage rate of the workers
The Central Bank instrument of control does NOT include
- A. open market operation
- B. moral sanctions
- C. reverse requirements
- D. selective credit control
- E. printing bank-notes
The most important characteristic of money is?
- A. portability
- B. intrisic value
- C. acceptability
- D. usefulness
- E. beauty
The most important factor determining the location of the cement industry in Nigeria today is ?
- A. capital and government policy
- B. the nature of the product, infrastructure and government policy
- C. nearness to the market and source of power
- D. Price of the product and source of labour
- E. raw materials
The basic principles of co-operative societies are those of?
- A. active participation of capitalist in the affairs of co-operative societies
- B. worker ownership and worker control
- C. sole proprietorship
- D. partnership
- E. denying of credit facilities to members
The economic goal of public utilities is to?
- A. maximize profit
- B. expand assets
- C. minimize costs
- D. provide essential services
- E. pay higher dividends to shareholders
Which of the following is NOT true of debentures and debenture holders?
- A. Debentures are instruments for rising long-term capital by limited liability companies
- B. Debenture are fixed interest-bearing securities with specified maturity dates
- C. Debentures holders are creditors to the company and therefore do not share in the risk of the company
- D. Debenture holders are entitled to interest payments whether or not profits are made
- E. Preference shareholders recieve their share of profits before debenture holders receive their entitlements
The channel for food distribution in Nigeria consist of?
- A. farmers and their families
- B. producers, wholesalers and retailers
- C. producers and consumers
- D. producers and processor
- E. farmers, processors and consumers
One disadvantage of sole proprietorship is its?
- A. limited libility
- B. high profits
- C. high sense of ownership
- D. low credit rating
- E. low failure rate
pricing and output decisions of sellers are highly interdependent in markets known as?
- A. oligopoly
- B. perfect competition
- C. monopoly
- D. monopolistic competition
- E. imperfect competititon
A perfectly competitive firm does not influence the demand for its commodities by lowering its price below the market price because?
- A. it is illegal price cutting
- B. other competitors will be angry
- C. total revenue will decline due to its elastic demand curve
- D. it is able to sell all it wants at the market price
- E. it does not maximize profit
In taxation, the benefit principle requires that?
- A. everybody must draw benefit from taxation
- B. all those who earn more income must pay more taxes
- C. only those who derive benefit from services provided from public revenue should be taxed
- D. taxes paid by businesses should be shifted to those consumers benefiting from such consumer commodities
- E. everybody pays an equal amount
An imperfectly competitive market is one where?
- A. a large number of firms sell homogenous products
- B. input and output prices are unaffected
- C. each firm faces aa horizontal demand curve
- D. each firm maximize profit by selecting an output level at
- E. commodities are differentiated