Money is able to function more as a medium of exchange when
- A. there is a fall in production
- B. more prople engage in subsistence production
- C. individuals and nations are self-sufficient
- D. there is specialization of labour
Assisting members to solve temporary balance of payments problems is the reasons for the establishment of the
- A. International Monetary Fund
- B. Economic Commission for Africa
- C. World Bank
- D. African Development Bank
National income is calculated mainly to
- A. determine how income is to shared
- B. help firms generate more funds
- C. determine aid to to be received from other nations
- D. determine the level of sectoral performance
At what point on the total product curve shown above will marginal product be negative?
- A. Q
- B. S
- C. R
- D. P
To overcome the problem of double counting under the expenditure approach,
- A. spending on intermediate goods and inputs are considered
- B. valued added method is used
- C. proper accounting standards must be used
- D. only spending on final goods are considered
A government may cause a favourable change in her invisible trade account by
- A. developing tourism and other services
- B. imposing high tariff on exports
- C. encouraging people to go for medical treatment abroad
- D. increasing the export of her primary products
Industries are sometimes located in areas which are not profitable so as to
- A. encourage rural-urban migration
- B. be able to even-out development
- C. bring about external economies of scale
- D. be able to reap internal economies of scale
The supply of light could be met using a candle, lantern and gas lamp. This is an example of a
- A. complementary supply
- B. abnormal supply
- C. joint supply
- D. composite supply
A monopolist may enjoy abnormal profit only if its
- A. marginal cost exceeds marginal revenue
- B. demand curve is perfectly elastic
- C. expenditure on advertisement increases
- D. price exceeds average total cost
If the government stops subsidy on cocoa production, the supply curve of cocoa will
- A. become vertical
- B. remain unchanged
- C. shift to the left
- D. shift to the right
The demand for a factor input as a result of the demand for its output is known as
- A. market demand
- B. complementary demand
- C. competitive demand
- D. derived demand
Which of the following is a non-renewable natural resources?
- A. Rubber
- B. Oil palm
- C. Coal
- D. Cocoa
Which of the following is NOT one of the characteristics of developing countries?
- A. High unemployment
- B. Mono- product economy
- C. High capital formation
- D. Low saving
Given the table demonstrating the law of diminishing marginal utility below, what is the value of X?
|
No. of oranges Consumed |
Total Utility | Average Utility |
Marginal Utility |
| 1 | 9 | 9 | – |
| 2 | 16 | 8 | x |
| 3 | 24 | 8 | 6 |
| 4 | 30 | 7.5 | 4 |
| 5 | 34 | 6.8 | y |
| 6 | 36 | 6 | 2 |
| 7 | 36 | 5.1 | 0 |
- A. 0.5
- B. 7
- C. 0
- D. 8
Economics is often described as a science because it
- A. employs the use of laboratory experiments
- B. use scientific methods to explain observed phenomena
- C. make use of controlled experiments
- D. engages accurate predication of human beings
Which of the following must be true to have a closed economy with no government, and yet the value of the investmet multiplier still increase?
- A. Marginal propensity to save has fallen
- B. Actual investment had fallen
- C. Average propensity to invest has fallen
- D. Actual saving has fallen
Overpopulation is caused by
- A. emigration
- B. disease
- C. low Literacy rates
- D. war and conflicts
The diagram above represent
- A. structural unemployment
- B. cyclical unemployment
- C. volunatary unempployment
- D. frictional unemployment
The number of people who are qualified to work and who offered themselves for employment are called
- A. mobility of labour
- B. working population
- C. migrant labour
- D. labour turnover
Which of the following will cause an increase in cost of production?
- A. Hyper-inflation
- B. Cost push inflation
- C. Structural inflation
- D. Demand pull inflation
Institutions serving as links between surplus and deficit units can be identified as
- A. tax officers
- B. pension offices
- C. financial intermediates
- D. acceptance houses