If the consumer demand for product X increases as the price of product Y decreases we can be fairly certain that X
- A. X and Y are complementary commodities
- B. X and Y are substitute goods
- C. X and Y are independent goods
- D. X and Y are jointly supplied
- E. X and Y are inferior commodities
Opportunity cost is a term which describe
- A. The initial cost of setting up a business venture
- B. Cost of one product in terms of foregone production of others
- C. The monetary equivalent of the utility of commodity
- D. Cost related to an optimum level of production
- E. Implicit cost
Economics is called a social science because it is
- A. A branch of social studies
- B. A study of the ways man devises to satisfy his unlimited wants from unlimited resources
- C. A dismissal science in the Malthusian sense
- D. Governed by scientific law
- E. The study of human wants by the means of scientific method of observation
Which of these would not be included in the fundamental principle of a free enterprise economy
- A. Private ownership of factors of production
- B. The right to organize factor for production purposes
- C. The right to make private profit
- D. Government control of mobility of factor of production
- E. Government effort to encourage competitive capitalism within the law of the country
If the demand of a product with perfectly elastic supply increases, there will be
- A. An increase in price and quantity offered
- B. An increase in quantity offered but price will remain the same
- C. A reduction in price and quantity offered
- D. An increase in price but a reduction in quantity offered for sale
- E. An increase in quantity offered but a reduction in price
The expression ‘terms of trade’ is used to describe
- A. Quality of export
- B. The direction of foreign trade
- C. Terms of purchase on deferred payment basis
- D. The rate at which export exchange for imports
- E. Import licensing
Which of the following sector of the economy is estimated to be the largest employer of labour in the country
- A. Construction
- B. Agriculture
- C. Distribution
- D. Mining and petroleum
- E. Transport and communication
As consumption of beer increases, its marginal utility to a drinker will
- A. Increase
- B. Remain constant
- C. Fluctuate
- D. Decrease
- E. Change proportionally
Which of the following is not a form of business organization
- A. A sole proprietorship
- B. Cartel
- C. Partnership
- D. Joint stock
- E. Cooperative society
Marginal cost is
- A. Lowest cost of producing goods
- B. The cost of production of the most efficient firm in the industry
- C. Cost of production of the most inefficient firm in the industry
- D. The cost of production of the last or extra unit of goods produced by a firm
- E. The cost of production at which the minimum profit is obtained by a firm
Disposable income is the same thing as
- A. personal income minus personal savings
- B. personal inome minus taxes
- C. national income minus depriciation
- D. exports minus imports
- E. savings plus investments
A distinguishing characteristics of a consumers’ cooperative is the fact that
- A. the customers are the owners
- B. the customers are the workers
- C. the customers are the managers
- D. the customers are low income people
- E. the customers are high income people
An increase in liquid reserve requirements by the central bank of Nigeria will result in
- A. a reduction in commercial banks' excess reserves
- B. more commercial bank loan to members of the public
- C. an increase in commercial banks excess reserves
- D. no change in commercial banks excess reserves
- E. a reduction in central banks gold reserves
The biggest source of government revenue in Nigeria is
- A. mining, rents and royalties
- B. company income tax
- C. import duties
- D. export duties
- E. petroleum profit tax
The Lagos clearing house is
- A. a commodity market
- B. an import licensing centre
- C. another name for the Lagos stock exchange
- D. an insurance and underwriting centre
- E. a cheque sorting centre
The largest liability appearing in the book of a commercial bank is
- A. cash
- B. deposits
- C. loans and advances
- D. capital and reserves
- E. treasury bills
Which of the following statements is true?
- A. A proportional tax is one which takes from high income people a larger fraction of their income than it takes for low income people
- B. taxes on commodities of services which can be shifted elsewhere are usually called direct taxes
- C. The sole proprietor is a legal entity
- D. the influence of demand on price will be smallest on the short run
- E. the cost of production is the most important determining factor of supply in the long run
A Tax which takes a higher percentage from higher incomes is called?
- A. a regressive tax
- B. a progressive tax
- C. a proportional tax
- D. an indirect tax
- E. a direct tax
Which of the following can be regarded as a liability of a commercial bank?
- A. advances
- B. deposits
- C. treasury bills
- D. overdrafts
- E. cash
The effect of the demand for product A caused by a change in the price of a product B is called?
- A. cross-elasticity of demand
- B. elasticity of supply
- C. competitive demand
- D. composite demand
- E. joint demand
Which of the following financial assets consist the lowest rate of interest in Nigeria?
- A. commercial bills
- B. call money
- C. treasury bills
- D. development loan stocks
- E. deposits with the federal savings bank