When the price of a commodity is below the equilibrium price the quantity demanded will exceed the quantity supplied. Such a situation is referred to as
- A. elastic supply
- B. joint demand
- C. excess supply
- D. derived demand
- E. none of the above
when the demand curve shift to the right it indicate that a larger quantity is demanded at each price. This is caused by one of the following
- A. a fall in income
- B. a rise in the price of a complement
- C. a fall in the price of substitute
- D. a change in taste against this commodity
- E. none of the above
One of the reason why the condition of supply of a commodity may change is
- A. a change in real income
- B. changes in the technique of production
- C. a change of fashion or taste
- D. change in population
If two commodities are good substitutes for one another, e.g butter and margarine,an increase in the demand for one will reduce the demand for the other. This type of demand is called
- A. composite demand
- B. elastic demand
- C. derived demand
- D. competitive demand
- E. inelastic demand
Production covers all but one of the following activities:
- A. changing the position of a good in time as, for example, holding stock of goods until they are required
- B. the provision of some kind of service e.g retailing
- C. changing the form of a good from the raw material to the finished product
- D. changing the situation of a good as for example , from a factory in Lagos to a retail shop in port harcourt
- E. the use of good and services to satisfy individual wants
Which of the following is not true of the theory of optimum population?
- A. It is possible for densely populated country to be underpopulated if it has insufficient labour to make the most effective use of its other factors
- B. The quantity of labour which combined with the other factors gives the minimum output is known as optimum population
- C. The quantity of labour which combined with the other factors, gives the maximum output, is known as optimum population
- D. The test for over-population is whether it exceed the optimum
- E. It is possible for a thinly populated country to be over populated if it has a poor supply of other factor
which of the following is not true about occupational distribution of the labour force of West Africa?
- A. A large percentage of the labour force is engaged in agriculture
- B. Agriculture is the most important occupation in West Africa
- C. The manufacturing sector employs a large percentage of the population
- D. Agriculture does not constitute an important source of paid employment
- E. The public sector forms an important source of paid employment
Bondholders are treated more favorably than shareholders because
- A. They are not liable for the companies losses
- B. They greater voice in the electing board of the directors
- C. They control the management
- D. They have a prior claim on the companies assets
- E. none of the above
A rational consumer will adjust his spending pattern so that
- A. He buys only the one item that gives him most total satisfaction
- B. The marginal utility he gets from the last unit of item is the same
- C. The marginal utility he gets from the last naira spent on each item is the same
- D. The total utility he gets from each item is the same
- E. The total amount of money he spends on each item is the same
In economics, production is complete when
- A. Goods are produced in the factory
- B. Goods are sold to the wholesalers
- C. Goods and services are produced by the government
- D. Prices are fixed for goods and services
- E. Goods and services finally reach the consumer
The optimum population of a country is reached when
- A. All factor of production have been fully employed
- B. The productive effort per man is at its highest with a given volume of resources
- C. The total population of a country increases
- D. The natural resources of a country increases
- E. The working population of a country increases
Which of these would NOT increase population of a country
- A. Increase in death rate
- B. Decrease in birth rate
- C. Emigration
- D. Migration
- E. Better medical facilities
Which of the following is NOT strictly included In the study of economics?
- A. The study of wants
- B. The study of choice
- C. Whether a particular want satisfies a good or bad purpose
- D. The study of scarcity
- E. The study of substitution
Which of the following activities of government precludes the existence of a market economy?
- A. The imposition of taxes
- B. The control of the location of industry
- C. The central planning of production
- D. The fixing of maximum price for all necessities
- E. The establishment of law requiring the registration of business firms
Which of these should determine, in a planned economy how the factor of production are to be allocated among different production activities
- A. Fairness
- B. The distribution of income and wealth
- C. Public need which is determined by the government
- D. Private needs determined by the market
- E. The ability of individual to make profit
The advantage of sole proprietorship is as follow
- A. It is always successful
- B. Continuity is no problem
- C. Control and supervision is under one man
- D. Funds are easy to obtain
- E. Inter-generational equity is assured
In order to build up its capital stock, the typical less developed country should ideally
- A. Increase total saving
- B. Depend on hand-out from foreigners
- C. Impose tariff on import
- D. nationalise all foreign concern
- E. None of the above
By ‘trade by barter’, we mean
- A. Trade done by people in the village
- B. Exchange of goods for money
- C. International trade
- D. Exchange of goods for goods
- E. The trade of the middle ages
Less developed countries obtain foreign exchange reserve mainly from the export of
- A. Manufactured goods
- B. Processed and semi processed commodities
- C. Invisible items
- D. Primary product
- E. All of the above
Which of the following is a term used to describe a payment representing a surplus in excess of transfer costs?
- A. Interest rates
- B. Opportunity costs
- C. Economic rent
- D. Indirect costs
- E. Wages
Which of the following item in the balance of payment of account is an invisible transaction?
- A. Import of cars
- B. Export of cocoa
- C. Export of crude petroleum
- D. Tourism
- E. Import of building materials