Surplus in balance of payment leads to?
- A. inflation or increasing prices generally
- B. increases in foreign reserves
- C. decreases in foreign reserves
- D. Government budget surplus
- E. none of the above
Which of the following statement does NOT describe a situation of perfect competition.?
- A. The firm faces an infinitely elastic demand curve
- B. The firm makes no pure profit in the short run
- C. The price does not change with changes in the output level of the firm
- D. There is freedom of entry into, and exit out of the industry
- E. The firm can sell all it produces at the market price
If a commodity has many substitutes, it is most likely that?
- A. the demand curve is fairly inelastic
- B. the demand curve is fairly elastic
- C. the demand curve is paraell to the quantity axis
- D. the demand curve is positively sloped
- E. the price of the commodity is too high
Elasticity of demand is given by
- A. the prcentage change in quantity demanded divided by the corresponding percentage change in price
- B. the percentage change in price divided by the corresponding percentage change in quantity demanded
- C. the percentage change in quantity demanded divided by the corresponding price
- D. the percentage change in price divided by the corresponding quantity demanded
- E. none of the above
Economics may be defined as?
- A. the study of money and banking
- B. the study of markets and prices
- C. the study of production and distribution
- D. the study of human behaviour in the allocation of scarce resources
- E. the study of the employment of labour, land, and capital
The process by which West African countries attempt to reduce the import of manufactured goods by encouraging firms to produce these goods at homes is known as?
- A. industrialization
- B. export-promotion
- C. import-substitution
- D. export--substitution
- E. import-expansion
Which of the following statement is NOT true about agriculture in West Africa?
- A. Agriculture employs over 60% of West Africa’s occupied population
- B. Agriculture production is the basis for excise taxes in West Africa
- C. Many West Africa countries depend on agricultural exports for foreign exchange earnings
- D. Agriculture supplies West African industries with raw materials
- E. Agriculture provides incomes to West African farmers who engaged in it
The situation whereby in a fiscal year a government’s revenue receipt are less than its expenditures is referred to as?
- A. budget deficit
- B. balance budget
- C. budget surplus ‘
- D. budget statement
- E. unfavourable budget.
Indirect taxes are taxes?
- A. which are levied on the incomes and profits of individuals and firms
- B. whose incidence always falls on the consumer
- C. which are based on the progressive principle
- D. on casinos, airports and capitals gains
- E. which are levied on people and economic units through the goods and services they purchase
Invisible trade refers to trade in?
- A. services
- B. goods and services
- C. tangible goods
- D. short-term and long-term capital
- E. goods that cannot be seen
The infant industry argument for protection in developing countries recognizes the needs to employ tariffs to protect
- A. Industries producing baby food and clothing
- B. Industries owned by infants
- C. Newly set-up industries
- D. Industries in which infants will be taken care of
- E. Industries that behave like infants
Summary of product condition in countries i and ii
Amount of labour days, cocoa(tons) Cloth(tons)
Country i 200 600 900
country ii 200 300 800
From the above table, we can correctly say in respect of international trade that
- A. Country I has absolute disadvantage in the production of both cocoa cloth
- B. Country I has absolute advantage in the production of both cocoa and cloth
- C. Country II has absolute advantage in the production of both cocoa and cloth
- D. Country II has comparative advantage in the production of cocoa
- E. Country II should leave the production of both cocoa and cloth to country I
Which of the following is NOT a major function of a Central Bank?
- A. Serving as Goverment''s bank
- B. Serving as bankers bank
- C. Acceptance of deposit from the public
- D. Responsibility for monetary policy
- E. Serving as lender of last resort
The function of money as a standard of deferred payments
- A. Make possible for an individual to build up store of many things for future use
- B. Makes it possible for payment to be postponed from the present to a future date
- C. Facilitate the exchange of goods
- D. Makes easy calculations possible
- E. None of the above
Government in West Africa countries engage in running a number of enterprises because ?
- A. Large amount of capital are needed and key industries should not be left in private hands
- B. Private capital would not established an adequate infrastructure
- C. It brings about a more even distribution of the country’s wealth
- D. The social costs of some enterprises make the government the most suitable body to set them up
- E. All of the above
Money becomes a very poor store of value in a period of
- A. Deflation
- B. Stable prices
- C. Recession
- D. Inflation
- E. Harvest
Which of the following is NOT true about specialization or division of labour?
- A. Specialization and exchange go hand in hand
- B. Specialization implies that each person produces a surplus of one or a few items (e.g commodities) n which he is specialized
- C. Division of labour needs not take account of the extent of the market
- D. Division of labour results in increased productivity
- E. Division of labour involves the danger of unemployment
Two goods, X and Y, are said to be complementary when?
- A. A fall in the price of X raises the demand for Y
- B. A fall in the price of X causes a fall in the demand for Y
- C. A fall in the price of X does not affect the demand for Y
- D. A rise in the price of X does not affect the demand for Y
- E. The two goods are competitive.
Which of the following alternatives will NOT assist in checking the population growth in West Africa countries?
- A. Immigration
- B. Brith control measures, e.g. use of contraceptives
- C. Late marriage
- D. Creating more educational opportunities for women
- E. Sex education
‘Choice arises because of scarcity of resources’,In discussing this statement, Which of the following is NOT correct?
- A. Human wants are numerous but the resources needed to satisfy them are limited
- B. Given numerous wants and limited resources only individuals and businesss firms make choice
- C. The process of making a choices involves opportunity cost
- D. An economist is not interested morality or otherwise of any choice so made
- E. Usually choice is made from a list of wants compliled in the context of a scale of preference
One of the disadvantages of division of labour is that?
- A. there is saving of time
- B. it result in workers acquiring greater skill at their jobs
- C. there is a greater risk of unemployment
- D. it makes possible the use of machinery
- E. it makes the worker less fatigued by his work