The real value of money is
- A. its face value
- B. what it can buy ata a particular time
- C. its rate of exchange with other currencies
- D. its intrinsic worth
- E. its rate of circulation
A budget is define as a
- A. Summary of expected expenditure by individuals and government
- B. summary of expected income
- C. record of value of services rendered in a year
- D. record of goods produced in a year
- E. summary of expected income and expenditure
The greatest foreign exchange earner for Nigeria before the advent of petroleum was
- A. mining
- B. handicraft
- C. agriculture
- D. manufacturing
- E. tourism
If a monopolist is attempting to maximize profit , which of the following should he attempt to do?
- A. Equate average cost to average revenue
- B. Equate marginal cost to marginal revenue
- C. Equate marginal cost to average revenue
- D. fix price and output
- E. Equate price to total cost
A point along a consumer’s indifference curve shows
- A. the difference commodities he can consume
- B. a combination of all commodities he is willing to buy
- C. a combination of two commodities from which he derive the same satisfaction
- D. the quantity of commodities demanded by him
- E. the difference between quantity supplied and quantity demanded
Which of the following constitute the major components of money supply in a development economy?
- A. Demand deposits
- B. Paper money
- C. Bank drafts
- D. Coins
- E. Time deposits
Which of the following does not give a characteristics of money?
- A. Durable
- B. Portable
- C. Divisible into small units
- D. Generally acceptable
- E. Medium of exchange
At optimum population level, a country has its
- A. maximum population
- B. ageing population
- C. highest birth rate
- D. highest output per heade
- E. lowest death rate
Malthus observed in his theory that population was growing
- A. at a regular rate
- B. in arithmetical progression
- C. in geometrical progression
- D. in mathematical progression
- E. in trigonometrical progression
Which of the following is not a function of an insurance company?
- A. Mobilization of funds through premiums collected
- B. Encouragement of savings habits through life assurances
- C. Collection of deposits from the public
- D. Granting of loans on long-term basis for investment
- E. Encouragment of investment by security of capital
Which of the following does not require the use of information from census?
- A. allocating central government revenue among states or regions
- B. planning for development in the states of regions
- C. Demarcating constituencies for election in the states or regions
- D. providing adequate social amenities and services in the states or regions
- E. Controlling geographical mobility of labour among the states or regions
In perfect competition , the marginal cost curve intersects the average cost curve
- A. from below at its lowest point
- B. from above at its lowest point
- C. from below before the lowest point
- D. at the zero point
- E. from below after the lower point
The effect of an increase in price on the demand for a commodity with elastic demand will be
- A. an increase in the demand for the commodity
- B. a decrease in the demand for the commodity
- C. a further increase in the price of the commodity
- D. reduction in the number of the distributors of the commodity
- E. a general increase in the cost of the production
Which of the following explains marginal cost?
- A. Overhead cost plus variable cost resulting from production
- B. the average cost of producing more units of the products
- C. The extra cost of producing more units of products
- D. Overhead cost minus variable cost
- E. The additional to total cost resulting from the production of an additional unit
Credit creation by banks is limited by
- A. an increase in bank deposits
- B. the establishment of specialized banks
- C. the non-availability of clllateral security
- D. the use of cheques for all transactions of the banks
- E. abolishing the reverse ratio
Under the socialist economy , the decision on what to produce is determined by the
- A. producer
- B. level of expected profit
- C. price
- D. Government
- E. preference of consumers
The term production in Economics means
- A. manufacturing of goods
- B. the creation of utilities
- C. giving birth to children
- D. the distribution of goods and services
- E. using labour in creating something
Government can influence aggregate demand through all the following measures except
- A. reduction in personal income tax
- B. retirement of director-general in the public service
- C. creation of employment opportunities
- D. compulsory deduction from salaries of all categories of workers
- E. upward revision of workers fringe benefits
Effective demand in economics means
- A. the desire for a commodity
- B. a proposal to purchase a good on credit
- C. the desire for a commodity or service backed by purchasing power
- D. an irrevocable instruction to the seller to meet up the need of the buyers
- E. the propensiyt to consume googd produced by manufacturers
Giffen commodities are those commodities
- A. which gives rise to a cobweb situation
- B. for which demand increases as price increases
- C. which have a low price elasticity of demand
- D. which are in short supply
- E. which have a high income elasticity of demand
which of the following economic system is in operation in Nigeria?
- A. Capitalist economy
- B. Socialist cum Maxist economy
- C. Socialist economy
- D. Capitalist and free economy
- E. mixed economy