The economies of West African Countries depend majorly on
- A. primary product
- B. secondary product
- C. tertiary product
- D. manufacturing product
Which of the following would not be a reason for a government to impose a quota on imports?
- A. To support strategic industry
- B. To prevent dumping
- C. To decrease tax revenue
- D. Employment oppourtunity
Macroeconomics focuses on the following units in an aggregative manner
- A. household, firms, government, corporate sector and external sector
- B. individual consumers, individual firms, government and external sector
- C. government, household firms, individual consumers and external sector
- D. individual consumers, household firms and manufacturing sector
If demand function for a product is Qd = 30 – 4P, and the price and quantity of products is 4 and 14 respectively. What is the price elasticity of demand for the product?
- A. 1.14
- B. 7.1
- C. 14.1
- D. 1.7
An increase in nominal income without increase in price will result to
- A. increased real income
- B. increased GDP
- C. decreased real income
- D. decreased GNP
Identify one of the following which can NOT be used to close deflationary gap
- A. Increased interest rate
- B. Increased money supply
- C. Increase government expenditure
- D. Reduction in taxes
The decision to consume more of one product under normal circumstances will apply
- A. less of another product will be consumed
- B. more of another product will be consumed
- C. less of the product will be consumed
- D. no other products will be consumed
Indicator of underdevelopment is
- A. high life expectancy
- B. low birth rate
- C. low population growth rate
- D. low per capita income
Which of the following is the resultant effect of a fall in the profit margin of producers in an economy?
- A. Unemployment will fall
- B. Unemployment will remain constant
- C. Unemployment will increase
- D. Unemployment will fluctuate
Part-time workers who desire full-time employment are:
- A. Underemployed and contribute to the unemployment statistic
- B. Underemployed but do not contribute to the unemployment statistic
- C. Not part of the labour force and do not contribute to the unemployment statistic
- D. Cyclical unemployment
An increase in total production (real GDP) causes the demand for money to ______and the interest rate to _________
- A. Increase; decrease
- B. Decrease; decrease
- C. Increase; increase
- D. Decrease; increase
The type of price elasticity of demand for a commodity whose quantity demanded remain unchanged despite changes in the price is
- A. Perfectly elastic
- B. Infinitely elastic
- C. Inelastic
- D. Perfectly inelastic
Public corporation is financed with
- A. Capital raised from shareholders
- B. Tax payer's money
- C. Capital raised from stock exchange
- D. Capital contributed by owners
One major criticism of foreign aid to developing countries is that it
- A. Gives too much power and control to world bank
- B. Encourages growth in government bureaucracy
- C. Is capital using rather than capital saving
- D. Provides incentives for capital flight
The following are economic agents in any economy EXCEPT
- A. Central Bank
- B. House hold
- C. Firm
- D. Government
The term ‘investment’ in macroeconomics means
- A. Profit
- B. Total amount of money invested in bonds and stocks
- C. The total amount of capital goods in the country
- D. The production of goods for immediate consumption
If commodities X and Y are substitute, their cross elasticity of demand will be
- A. One
- B. positive
- C. negative
- D. zero
Which of the following is an example of expansionary monetary policy by the Central Bank of Nigeria?
- A. Lowering income taxes
- B. Increasing the discount rate
- C. Increasing the reserve ratio
- D. Buying Treasury securities from commercial banks
The demand for money will fall if
- A. People expect deflation soon
- B. Real GDP rises
- C. Real interest rates rise
- D. The GDP deflator rises
The law of supply states that, other things being constant, as price increases
- A. Supply increases
- B. Supply decreases
- C. Quantity supplied increases
- D. Quantity supplied decreases
An increase in money income with constant price results in
- A. Outward shift in the budget line
- B. Inward parallel shift in the budget line
- C. Options A and C
- D. Budget line remain constant