To improve the balance of payment s position in West African countries, there must be
- A. removal of barriers to importation of goods and services
- B. increase rate of exportation of goods and services
- C. increase domestic consumption of foreign produced goods
- D. the development of the local market
When the value of a nation’s export is greater than its imports
- A. a favourable balance of trade exists
- B. an unfavourable balance of payment exists
- C. the net foreign trade is zero
- D. inflation occurs
The theory of comparative cost advantage is associated with
- A. Alfred Marshal
- B. Adam Smith
- C. David Ricardo
- D. J. B. Say
Government revenue from the groundnut industry is from
- A. licences
- B. rents
- C. royalties
- D. taxes
Mr. Bala’s income is $800.00 per month while that of Mr. Jatau is $1,200.00. If Messrs. Bala and Jtau pay $80.00 and $120.00 respectively as taxes, the tax system is
- A. progressive
- B. regressive
- C. proportional
- D. ad-valorem
Among the principles of taxation propounded by Adam Smith was that
- A. A tax should be impossible to evade
- B. A tax should be convenient to pay
- C. no tax should be levied on food
- D. there should be no taxation without representation
The central banks control credit in the economy through the use of
- A. legal tender
- B. travellers cheque
- C. foreign exchange instruments
- D. open market operation
Discounting a bill of exchange means the bill is
- A. cashed over the counter
- B. sold on the stock exchange
- C. bought for less than its face value
- D. sold to the highest bidder
The lender of last resort in the banking system is the
- A. industrial banks
- B. mortgage banks
- C. commercial banks
- D. central banks
A commercial banks deposits are
- A. liabilities
- B. assets
- C. capital
- D. cash at hand
A persistent and appreciable rise in the general level of price is known as
- A. depreciation
- B. inflation
- C. deflation
- D. production
The term demand for money means
- A. desire to borrow money from people
- B. desire of an individual to invest all his money in projects
- C. willingness of people to hold money
- D. wilingness of people to keep all their resources in assets
Acceptability, durability, homogeneity and portability are all attributes of good
- A. markets
- B. money
- C. banks
- D. government
The direct exchange of one goods for another without the use of money is known as
- A. foreign exchange
- B. exchange rate
- C. expenditure rate
- D. barter
The profit of the producers can be calculated as the
- A. total cost less total revenue
- B. average revenue less average cost
- C. total revenue less total cost
- D. marginal revenue less marginal cost
information about new goods is passed on to buyers through
- A. advertising
- B. retail trade
- C. the manufacturer
- D. wholesale trade
In which of the following business units are the owners mostly customers?
- A. co-operatives
- B. limited liability companies
- C. partnerships
- D. public corporations
Wholesalers are often criticized because they
- A. help to break the bulk
- B. finance producers
- C. increase prices
- D. provide after-sales services
One-man business are popular in West Africa because of all the following except the
- A. ease of entry
- B. small capital required
- C. limited enterpreneur skills needed
- D. tendency to become joint-stock compsnies
The transfer of ownership of a public enterprise to individuals and firms is called
- A. commercialization
- B. nationalization
- C. privatization
- D. restructuring
If elasticity of demand for a commodity is less than one, demand is
- A. unitary elastic
- B. inelastic
- C. infinetelt elastic
- D. zero elastic