The greater burden of the taxes on essential goods is borne by
- A. the middle income group
- B. high income group
- C. low income group
- D. people between the middle and high income group
- E. few top rich people
The comparative cost of doctrine of international trade means specialization in production according to
- A. absolute cost advantage
- B. absolute cost disadvantage
- C. comparative cost disadvantage
- D. comparative cost advantage
- E. the availability of labour
which of the following is not a good reason for the importation of agriculture in West African countries? it
- A. employs about 60% of the people
- B. provides the highest tax revenue
- C. is a major foreign exchange earner in most of the countries
- D. provides the raw materials for all import-substitution industries
- E. provide raw materials only for foreign industries
the largest part of the revenue of a country is derived from
- A. direct taxation
- B. indirect taxation
- C. excise duties
- D. company taxes
- E. non-tax revenue
Proportional tax is a tax whose
- A. percentage rate remains constant as the tax base increases
- B. percentage base increases as the tax base increases
- C. percentage rate decreases as the tax rate increases
- D. percentage rate fluctuates as the tax base increases
- E. burden falls heavily on consumer
Which of the following is not function of central bank
- A. Banker to the Government
- B. Banker's bank
- C. Acceptance of deposit from the public
- D. Responsibility for monetary policy
- E. Lenders of last resort
Which of the following is not a negative effect of inflation
- A. Lenders earn less
- B. Pensioneers and salary earners on fixed income suffer
- C. Exports tends to decline
- D. Savings are discouraged
- E. Borrowers tends to gain
Which of the following is not characteristics of a perfect competition ?
- A. many sellers and buyers are in the market
- B. there is perfect knowledge of the market situation
- C. supply and demand are equal
- D. there is no discrimination
- E. Products are identical
Near Money is made up of
- A. very liquid asset which can be easily converted into money
- B. currency in circulation and demand deposit
- C. note and coins
- D. fixed assets which cannot be converted into money
- E. the total money supplied in the economy
A stockholder partakes of the profit of a l8imited liability business by receiving
- A. shares
- B. profit
- C. wages and salaries
- D. dividends
- E. gifts
which of the following does not increase the population of country
- A. an increase in birth rate
- B. a decrease in death rate
- C. emigration
- D. immigration
- E. Early marriage
Money as a unit of account implies that it can be
- A. counted in units
- B. use to facilitate exchange
- C. used to measure the value of goods and services
- D. used to store goods and services
- E. used for future payment
if the price of margarine rises substantially, the equilibrium price and quantity of butter demand will
- A. decrease
- B. increase
- C. remain constant
- D. fluctuate
- E. be inelastic
The market price of a commodity is determine by the
- A. total number of people in the market
- B. total demand for the commodity
- C. quantity of the commodity supplied
- D. interaction of demand and supply
- E. law of demand
Economic growth is the
- A. rate of increase in a country's full employment and real output
- B. rate of increase in a nation's total population
- C. rate of increase in inflation
- D. rate of decrease inflation
- E. growth in birth rate
Money becomes a very poor store
money becomes a very poor stone of value in a period of
- A. deflation
- B. stable prices
- C. recession
- D. inflation
- E. harvest
A society that is on its production possibility curve
- A. has attained full employment but not full production
- B. has attained full production but not full employment
- C. is using its resources inefficiently
- D. has attained both full employment and full production
- E. has a lower output level than it should have
which of the following defines Economics most comprehensively ?
- A. The study of buying and selling
- B. The organization of industries and markets
- C. The study of human behaviour in the allocation of scarce resources
- D. National development, planning and budgeting
- E. The study of market forces as they affected human behaviour
which of the following is not a characteristics of money?
- A. Scarcity
- B. Durability
- C. Divisibility
- D. Homogeneity
- E. Mobility
In Economics production is complete when
- A. goods are produced in the factories
- B. goods are sold to wholesalers
- C. prices are fixed for goods and services
- D. goods and services reach the consumer
- E. goods are sold to retailers
The equilibrium price of orange is 50k. If for some reason the price rises to 60k, there will be
- A. excess demand
- B. excess supply
- C. shortage in the market
- D. many buyers in the market
- E. no buyer in the market