A condition which adversely affects expansion of production is
- A. Effective management
- B. Limited size of the market
- C. Availability of funds
- D. Increased profit prospects
- E. Increasing returns to scale
Which of these does not relate to the law of comparative advantage?
- A. The law of comparative advantage was propounded by David Ricardo
- B. The law stresses the importance of relative efficiency
- C. In order to specialize, a country must have absolute advantage
- D. The law is based on opportunity cost principle
- E. The principle if followed, should increase total world output
Which of the following statements is true about terms of trade?
- A. Terms of trade shows the difference between the values of export and imports
- B. Terms of trade indicate the rate at which exports exchange for imports
- C. It is the ration of price index of exports to imports
- D. It is usually expressed as percentage
- E. A rise in the price of export relative to imports is an improvement
Which of the following are the most liquid assets to a commercial bank?
- A. Money at call and short notice
- B. Treasury Bills
- C. Commercial Bills
- D. Stock and Shares
- E. Cash
Which of these best explains Malthusians theory of population?
- A. Increase in population cause hunger and death
- B. The population increase faster than food supply
- C. The population grows at arithmetic progression while food production grows at geometric progression
- D. People could be sent to ‘No man’s land’ when the population increases
- E. People should produce as many children as they could to because passion cannot be controlled
The International Bank of Reconstruction and Development (IBRD) is important to the developing nations because it
- A. Gives loans to member s for legal proceedings
- B. Offer grants and aids for defense
- C. Enhances financial relationship among countries
- D. Offer soft loans for educational and health services
- E. Offer grants and aid to finance private projects
Which of the following is not a feature of Sole Proprietorship?
- A. The Sole Proprietor provides the capital to start the business
- B. The Sole Proprietor is the boss of his business
- C. There is unlimited liability
- D. Continuity is doubtful at the death of the proprietor
- E. Decision can be taken only by ten people
An economic system in which most capital goods are owned by individuals and private firms is known as
- A. Mixed economy
- B. Planned economy
- C. Capitalist economy
- D. Traditional economy
- E. Civilized economy
Nigerian indigenization decree was promulgated in order to
- A. Allow indigenes to have the full participation in the economic activities of the country
- B. Drive away foreigners
- C. Give equal chances to indigenes and foreigners in making economic decisions in the country
- D. Give industrial training to indigenes
- E. Indigenes expose the economic activities of the country
The two largest producers of crude oil in Nigeria are
- A. Borno and Ondo States
- B. Oyo and Bendel States
- C. Kwara and Benue States
- D. Rivers and Bendel States
- E. Niger and Rivers States
The major currency used for granting credits to member countries of the International Monetary Fund (IMF) is the
- A. US dollars .
- B. Canadian dollars
- C. Pounds sterling
- D. Deutschemark
- E. Belgian franc
When the demand for a commodity is inelastic, total revenue will fall if
- A. Price is increased
- B. Price is reduced
- C. Price remains constant
- D. Price is not given
- E. The commodity is a luxury
When the price of commodity A increases, the demand for commodity B decreases, then A and B are
- A. Close substitutes
- B. Complementary goods
- C. Supplementary goods
- D. Gifted goods
- E. Luxurious goods
Price control can be defined as the fixing by Government of maximum or minimum price of
- A. Luxury goods
- B. Inferior goods
- C. Imported capital goods
- D. Certain selected goods
- E. Goods consumed by low income earners
Which of these factors does not cause a change in demand?
- A. Income
- B. Taste and fashion
- C. Population
- D. Price of other commodities
- E. Price of the commodity concerned
Which of the following is not an advantage of price control?
- A. Control of inflation
- B. Distortion of price mechanism
- C. Prevention of exploitation
- D. Control of producer’s profit
- E. Helping low income earners
A demand schedule is
- A. A table containing the price of goods
- B. A table showing the relationship between price and quantity demanded of a commodity
- C. A table showing the consumer demand on order of importance
- D. The quantity of goods the consumer is prepared to buy
- E. The market demand
A normal demand curve is
- A. Is concave to the point of origin
- B. Is convex to the point of origin
- C. Is parallel to X axis
- D. Is parallel to Y axis
- E. Slopes upwards from left to right
Into which of these organization would you classify the International Monetary Fund (IMF) ?
- A. Political organization
- B. Trade organization
- C. Financial organization
- D. Social organization
- E. Commercial organization
In which of the following economics system is the consumer referred to as ‘The King’?
- A. Planned economy
- B. Mixed economy
- C. Traditional economy
- D. Free Market economy
- E. Socialist economy
in any economic system , which of the following is not an economic problem?
- A. what goods and services to produce
- B. for whom to produce goods or services
- C. what techniques of production to be adopted
- D. equal distribution of goods and services
- E. how to ensure that the economy grow over time