One disadvantages of direct taxes is that they
- A. allocate scarce resources
- B. are not rigid
- C. can be progressive
- D. can be evaded
The function of the Central Bank as the lender of last resort means that when all other sources fail,
- A. the consumer can always borrow money from the Central Bank
- B. the government can ask the Central Bank to print more money
- C. commercial banks can raise loans from the Central Bank
- D. commercial banks can deposit money with the Central Banks
One of the functions of the Central Bank is
- A. production of goods
- B. issuing of currency
- C. presenting budgets
- D. printing of cheque books
The Central Bank controls money supply through all the following except
- A. lending to the publics
- B. bank rate
- C. legal reserve requirements
- D. open market operation
Which of the following is a legal tender?
- A. bank notes
- B. bank overdrafts
- C. bills of exchange
- D. money order
In which of the following ways has inflation adversely affected your country’s economy?
- A. increase in money supply
- B. a fall in real income
- C. appreciation in the value of money
- D. increased employment
The best way of combating demand-pull inflation is to
- A. increase income taxes
- B. reduce income taxes
- C. increase import duties
- D. increase salaries and wages
Which of the following is not a reason for holding money?
- A. Ostentation
- B. Speculations
- C. Transactions
- D. Precautionary
The total stock of money available for use in an economy is
- A. a function of money
- B. a characteristics of money
- C. the demand for money
- D. the supply of money
Which of the following over estimates the value of national income?
- A. incomplete statistical data
- B. Wrong timing of computation
- C. changes in price of goods within the year
- D. double counting
Which of the following equation is appropriate for determining the Net Domestic Product (NDP)?
- A. NDP = GNP - depreciation
- B. NDP = GDP + Net Income from abroad
- C. NDP = GDP - depreciation
- D. NDP = GDP * Net Income from abroad
Which of the following is not a concept in National Income Accounting?
- A. Domestic National Products (DNP)
- B. Gross National Product (GNP)
- C. Gross Domestic Product (GDP)
- D. Net Domestic Product (NDP)
The following are all factors determining the location of industry except
- A. minimum wage rate
- B. availability of labour
- C. nearness of raw materials
- D. proximity to the market
The following are advantages of large scale agriculture except
- A. use of simple implements
- B. use of sophisticated implements
- C. increase in employment
- D. integration of crops and animal farming
The role of government in promoting agricultural development includes the following except
- A. paying the wages of farmers
- B. establishing and funding research
- C. formulation of policies
- D. provision of rural infrastructures
Which of the following does not explain why a school principal earns more salary than a school messenger?
- A. lenght of training
- B. demand and supply
- C. cost of training
- D. the messenger is a non-teaching staff
An efficient weapon used in resolving dispute between employers and employees is
- A. co-operation
- B. collective bargaining
- C. display of placards
- D. legal action
A country whose population size is too small relative to its resource is
- A. over populated
- B. optimally populated
- C. under populated
- D. producing the optimum output
The wholesaler performs the following function except
- A. breaking the bulk
- B. offering credit facilities to the consumers
- C. financing manufacturers
- D. buying in bulk from manufacturers
Which of the following is obtainable in a perfect market?
- A. P = MR > AR
- B. MP = MC > P
- C. MR < P
- D. P = MR = MC
One advantage of the Sole Proprietorship over other forms of business organization is that it can
- A. make very high profits
- B. employ many workers
- C. keeps its affair private
- D. produce on a very large high scale