International trade is an application of the principle of
- A. industrial production
- B. mass production
- C. regional co-operation
- D. comparative cost advantage
One disadvantages of direct tax is that
- A. government's revenue is reduced
- B. price of essential commodities fall
- C. people are discouraged from additional work
- D. firms make more profit
Taxes levied on commodities are
- A. direct taxes
- B. indirect tax
- C. poll tax
- D. investment taxes
The act of selling goods in foreign markets at prices below those charged at home market is called
- A. exchange
- B. specialization
- C. dumping
- D. exporting
To ensure high employment rate, developing countries should
- A. build more universities
- B. protect infant industries
- C. organize trade fairs
- D. prevent rural-urban drift
Which of the following is not a direct effort to increase agricultural production?
- A. operation feed the nation
- B. use of improved seedlings
- C. increased loans to farmers and co-operative societies
- D. National Youth Service Corps
When the general price level persistently falls, the rate of unemployment
- A. rises
- B. stagnates
- C. rapidly reduces
- D. equal natural groth rate
The number of people who are qualified to work and who offer themselves for employment are called
- A. migrant labour
- B. working population
- C. labour turnover
- D. mobility of labour
which of the following will ensure efficiency in the in the industrial sector of your country?
- A. indigenization
- B. privatisation
- C. nationalization
- D. liquidation
which of the following is an advantage of localization of industry?
- A. development of subsidiary firms
- B. creation of paralell markets
- C. developments of slums
- D. atrraction of foreign capital
Open Market Operation (OMO) means the
- A. provision of credit facilities by commercial banks
- B. provision of credit facilities by the mortgage banks
- C. buying and selling of government securities by the central banks
- D. procedure for the establishment of commercial banks
The market consisting of a network of dealers where currencies can be bought and sold is known as
- A. capital market
- B. foreign exchange market
- C. commodity market
- D. the stock market
Government can control inflation by
- A. printing more money
- B. reducing the rate of taxes
- C. reducing the level of expenditures
- D. establishing more banks
Which of the following will be an effect of inflation?
- A. wage earners will gain
- B. borrowing of money will be restricted
- C. money lenders will gain
- D. borrowers of money will gain
The value of money is best determined by
- A. input-output ratio
- B. the purchasing power
- C. the importance people attach to it
- D. economies of scale
Joint ventures are partnerships involving
- A. the poor and the rich
- B. employers and workers
- C. government and private investors
- D. multinationals and individuals
one main benefit of partnership is
- A. the possibility of raising funds on the stock exchange
- B. the possibility of attracting twenty one or more members
- C. that members can specialize in various functions
- D. that it enjoys its own separate legal entity
The market structure in which the operation are many and none of them can influence the price is
- A. imperfect market
- B. perfect market
- C. oligopolistic
- D. stock market
For both the monopolist and the perfectly competitive firm , profit maximizing output occurs at the point where the
- A. marginal cost curves cuts the marginal revenue curve from below
- B. marginal revenue curve cuts the marginal output from above
- C. marginal cost curve intersect the X-axis
- D. marginal revenue curve intersects the Y-axis
When a change in price does not affect the quantity demanded of a commodity , the price elasticity of demand is
- A. fairly inelastic
- B. infinitely elastic
- C. perfectly inelastic
- D. unitary elastic
Demand for inferior goods is an example of
- A. expansion of demand
- B. contraction of demand
- C. individual demand
- D. abnormal demand