In what ways will West African countries benefit from economic integration?
Explain the factors which influence the level of employment in your country.
(a) Distinguish between direct and indirect taxes.
(b) What are the advantages of direct taxes?
(a) What is a market economy?
(b) Highlight the features of a market economy.
(a) What is a perfectly competitive market?
(b) Explain the conditions necessary for a perfectly competitive market,
(a) Distinguish between fixed and variable costs.
(b) Under which conditions will a firm continue to operate at a loss in the short run? (Use figures or a diagram to explain your answer).
Explain the factors which influence the level of wages in your country.
The following data relate to a closed economy of a country where all production takes place in two firms. Use the information in the table to answer the questions that follow:
| Items | Firm A (in 000 Dollars) | Firm B (in 000 Dollars) |
| Sales | 200 | 400 |
| Raw material | 100 | 60 |
| Labour costs | 80 | 160 |
| Depression | 16 | 40 |
| Profits | 4 | 140 |
(a)(i) Which of the items listed above is an intermediate input?
(ii) What happens to intermediate inputs in the calculation of the national income?
(iii) Calculate the Gross Domestic Product (GDP) of the country.
(b)(i) Calculate the total amount of depreciation of the country
(ii) Calculate the Net Domestic Product of the country.
The table below shows the supply and demand for kilograms of maize per month in thousands. Use the information in the table to answer the questions that follow.
| Quantity supplied (000) | Price per thousand kilogram ($) | Quantity Demanded (000) |
| 16 | 3.00 | 3 |
| 13 | 2.50 | 5 |
| 9 | 2.00 | 9 |
| 6 | 1.50 | 14 |
| 3 | 1.00 | 19 |
| 1 | 0.50 | 26 |
(a) (i) If the government fixed the price of maize at $1.50 per thousand kilogram, what will be the excess demand for maize
(ii) If the government fails to enforce the fixed price, what will happen to the price of maize
(b) How can the government maintain a fixed price of $3.00 per thousand kilogram for maize?
(c) In relation to the equilibrium price, what will be the effects on the quantities demanded and supplied if the government enforced a fixed price of $1.00?
An economic system in which the state owns and controls the means of production is known as
- A. socialist economy
- B. Mixed economy
- C. Capitalist economy
- D. welfare economy
Gross Domestic Product (GDP) at market price plus net factor income from abroad gives
- A. gross capital formation
- B. net capital formation
- C. disposable income
- D. gross national product
which of the following is not a benefit derived by Nigeria from the petroleum industry?
- A. increased foreign exchange earning
- B. establishment of refineries and petrochemical industries
- C. employment of a greater proportion of the population
- D. development of airports, seaports and other social infracstructures
Devaluation of a currency in a country is likely to lead to
- A. increasing population
- B. increasing imports
- C. exports becoming cheaper
- D. reduced exports
Deficit in the balance of payment is financed through
- A. capital account
- B. current account
- C. invisible trade
- D. visible trade
A nation’s net export is negative when her
- A. stock of goods is declining
- B. depreciation exceeds investment
- C. exports is adjusted upwards
- D. imports exceeds exports
Terms of trade is used to describe
- A. the quality of exports
- B. the direction of foreign trades
- C. purchases on deferred payment basis
- D. the rate at which exports exchange for imports
International trade is based on the law of
- A. absolute cost advantage
- B. variable proportion
- C. comparative cost advantage
- D. mutual co-operation
Budget surplus implies that
- A. expenditure equals revenue
- B. expenditure is less than revenue
- C. expenditure is greater than taxation
- D. direct tax is more than indirect tax