National income is used to measure
- A. a country's population size
- B. a country's economic growth
- C. the human level of development
- D. the flow of imports to a country
The production strategy used in an over-populated country is
- A. import substitution
- B. capital intensive
- C. labour intensive
- D. first come first employed
The effect of privatization on the industrial sector of a country is that it
- A. ensures efficiency
- B. discourages efficiency
- C. leads to decrease in output
- D. leads to liquidation
Which of the following is not true of small companies ? they
- A. Cannot benefit from economies of scale
- B. Are a good source of new jobs
- C. Can satisfy demand in specialist markets
- D. Have a good record of technical innovation
The following are features of subsistence agriculture except
- A. little capital
- B. processing of raw materials
- C. small allotments of land
- D. use of crude oil
which of the following is not a consequence of increased unemployment?
- A. a fall in tax revenue for the government
- B. a reduction in trade union's influence
- C. a fall in death rate
- D. an increase in the labour force
Natural growth rate of population can be defined as the
- A. difference between birth rate and death rate
- B. number of births in a year
- C. increase in the population growth in a year
- D. difference between the total population and the death rate
The grouping of the population according to the economic activities people engage in is
- A. age distribution
- B. sex distribution
- C. geographical distribution
- D. occupational distribution
If the labour force of a country is 2.5 million and 2 million are employed , what is the unemployment rate?
- A. 0.2%
- B. 20%
- C. 200%
- D. 250%
Frictional unemployment can be reduced by
- A. encouraging the use of retaining schemes
- B. removing barriers to labour mobility
- C. restricting the introduction of new technology
- D. lowering the level of wages paid to young people
The increase in population growth in big cities is referred to as
- A. settlement
- B. migration
- C. industrialization
- D. urbanization
One good reason for the elimination of middle men is that they
- A. cause increase in price
- B. help in price stability
- C. grade and blend goods
- D. are too many
A firm’s main aim is to
- A. survive the business
- B. maximize profits
- C. increase its market share
- D. satisfy the ambition of its managers
If there are no barriers to entering a market, it means that
- A. anyone can become a buyer or a seller
- B. unwanted goods can always enter the market
- C. the market becomes a dumping ground
- D. the goods are not inspected
In which of the following markets does a firm have power to make super normal profits both in the short run and long run?
- A. Monopoly
- B. Duopoly
- C. Oligopoly
- D. Monopsony
A market structure where profit is maximized when marginal revenue, marginal cost and price are equal is known as
- A. perfect competition
- B. monopoly
- C. oligopoly
- D. imperfect competition
A firm will shut down in the long run if its earning is
- A. less than normal profit
- B. greater than normal profit
- C. equal to super normal profit
- D. less than super normal profit
The resource used in production are called
- A. variable inputs
- B. factors of production
- C. capital for production
- D. fixed inputs
which of the following does not change in the short run?
- A. Variable cost
- B. marginal cost
- C. total cost
- D. fixed cost
The type of production that involve the tapping and harnessing of natural resources is
- A. primary production
- B. secondary production
- C. tertiary production
- D. industrial production
which of the following is not true about land?
- A. the supply is fixed
- B. land is mobile
- C. it is subject to diminishing returns
- D. land is heterogeneous