The Net National Product (NNP) of a country is $50m while the depreciation allowance is $10m. The Gross National Product (GNP) is
- A. $40m
- B. $60m
- C. $30m
- D. $500m
The malthusian theory of population is best illustrated when
- A. the size of the population and available resources are equal
- B. both population and food supply increase at the same rate
- C. food supply increases much faster than population growth
- D. population increases much faster than food supply
Consumers have access to a variety of goods through the activities of the
- A. retailers
- B. advertising agencies
- C. mass media
- D. wholesalers
When the demand for a commodity increases while supply remains unchanged, the equilibrium price and quantity will
- A. increase
- B. remain constant
- C. decrease
- D. turn negative
The dependency ratio of a country is the
- A. the children and aged who rely on the active population for support
- B. people who are cared for by their extended families
- C. total active population who depend on government for survival
- D. number of children who depend on their parents for survival
A fall in the price of a normal commodity which has elastic demand will result in
- A. a fall in demand
- B. a fall in quantity demanded
- C. an increase in revenue
- D. a decrease in revenue
An example of government’s recurrent expenditure is
- A. electrification projects in rural areas
- B. the cost of building a school
- C. purchase of new vehicles
- D. paying salaries of workers
An indication that there is inflation in a country is that
- A. there is a decrease in the demand for goods and services
- B. there are too many goods in circulation
- C. the same amount of money buys lower quantity of goods
- D. people prefer to lend than to borrow
When job vacancies are publicized, the government is mainly trying to solve the problem of
- A. residual unemployment
- B. cyclical unemployment
- C. technological unemployment
- D. frictional unemployment
Commericial banks help in economic development mainly by
- A. acting as trustees and executors of wills
- B. acting as intermediaries between government and borowers
- C. serving as custodians of valuables
- D. giving financial advice to the government
Country M enjoys absolute advantage over country N in the production of commodities X and Y, if country M
- A. is inefficient in the production of both commodities X and Y
- B. is more efficient than country N in producing both commodities X and Y
- C. can produce only commodity Y cheaper than country N
- D. and country N are efficient in the production of both goods
A small scale firm located within an industrial estate will enjoy
- A. government protection and funding
- B. technological economies of scale
- C. financial economies of scale
- D. external economies of scale
The total fixed cost curve is
- A. horizontal
- B. upward sloping
- C. vertical
- D. downward sloping
Resources are pooled for the mutual benefit of its members mainly in a
- A. cooperative society
- B. joint stock company
- C. private company
- D. partnership
Use the graph above to answer the question
The curve labelled W shows the
- A. regressive tax
- B. proportional tax
- C. specific tax
- D. progressive tax
The study of economics is mainly concerned with how to
- A. rank individuals' wants given the abundant resources
- B. make choice when resources are inadequate
- C. satisfy every member of all societies
- D. produce all the goods needed by everyone
Warehousing is an economic activity that falls under
- A. secondary production
- B. primary production
- C. tertiary production
- D. intermediate production
If the demand for a commodity remains constant as price increases, the commodity is said to be
- A. perfectly price inelastic
- B. unit price elastic
- C. price elastic
- D. price inelastic
Which of the following items is not classified as working capital?
- A. Fuel
- B. Money to pay wages
- C. Semi-finished goods
- D. Equipment
When the marginal utility from the consumption of commodity X (Mux) is greater than the price commodity X (Px), a rational consumer should
- A. strive to remain in disequilibrium
- B. consume the same quantity of commodity X
- C. consume more of commodity X
- D. reduce consumption of commodity X
An economy system is mainly concerned with
- A. studying the relationship between ends and means
- B. the allocation of scarce resources between alternative ends
- C. handling situations of abudant resources
- D. the establishment of economic laws