Governments in West Africa can curtail inflation by
- A. purchasing securities in the open market
- B. selling securities in the open market
- C. encouraging importation of goods from all countries
- D. encouraging banks to lend for
Which of the following factors may lead to the underestimation of national income figures?
- A. Availability of skilled statisticians
- B. High volume of exports
- C. Emigration of skilled workers to foreign countries
- D. Subsistence production
Money would cease to be a good store of value when
- A. prices of goods and services are falling slowly
- B. there is a high level of unemployment
- C. prices of goods and services are rising rapidly
- D. prices of go0ds and services are rising slowing
Inflation may occur if
- A. rate of productivity is higher than the wage rate
- B. prices fluctuate during a particular season of the year
- C. wage increase is granted without an increase in productivity
- D. the government embarks on restrictive monetary policies
How is NNP at factor cost derived from GNP at market prices?
- A. GNP - Depreciation + Indirect taxes + Subsidies
- B. GNP Depreciation - Indirect taxes + Subsidies
- C. GNP + Depreciation Indirect taxes - Subsidies
- D. GNP+ Depreciation- Indirect taxes + Subsidies
Which of the following are intermediate products?
- A. Cement and steel
- B. Furniture and shirt
- C. Handkerchief and shoe
- D. Table and door
Import substitution as a strategy of industrialization is the
- A. replacement of locally produced goods with imported ones
- B. development of locally produced goods with imported ones
- C. establishment of firms to process imported raw materials
- D. act of using local inputs to produce goods for export
The location of iron and steel industry at a place is due to
- A. easy access to raw materials
- B. access to cheap labour
- C. government policy
- D. good infrastructure
Which of the following problem has the least effect on agricultural productivity in West Africa?
- A. Incidence of pests and diseases
- B. Unfavourable weather conditions
- C. Urban-rural migration
- D. Illiteracy
Labor productivity is defined as
- A. output per man-hour
- B. average Output
- C. the maximum number of hours Worked
- D. total output of labour
In the long run, as individuals receive higher wages, it causes
- A. demand for food to decrease
- B. demand for leisure to decrease
- C. supply of normal goods to decrease
- D. supply of labour to decrease
Which function of the wholesaler enables him to stabilize prices?
- A. Warehousing goods
- B. Advertising the goods
- C. Granting credit to retailers
- D. Transporting goods
The public sector in a mixed economy is not always because of
- A. bureaucratic practice
- B. the desire to make huge change
- C. annual planning of activities
- D. the activities of shareholders
Organization and entrepreneurship are vested in diferrent persons in a
- A. cooperative society
- B. sole proprietorship
- C. partnership
- D. public company.
The table below shows the total revenue schedule of a firm. Use the information to answer the question that follows
| Output (units) | 50 | 60 | 70 | 80 | 90 |
| Total revenue (TR) $ | 85 | 102 | 119 | 136 | 153 |
What is the firm’s marginal revenue?
- A. $153.00
- B. $17.00
- C. $1.70
- D. $O.80
The table below shows the total revenue schedule of a firm. Use the information to answer the question that follows
| Output (units) | 50 | 60 | 70 | 80 | 90 |
| Total revenue (TR) $ | 85 | 102 | 119 | 136 | 153 |
What is the unit price of the firm’s output
- A. $10.00
- B. $2.70
- C. $2.00
- D. $1.70
If the average fixed cost (AFC) of producing 5 bags of rice is $20.00, the average fixed cost of producing 10 bags will be
- A. $2.00
- B. $4.00
- C. $10.00
- D. $20.00
One feature of the average fixed cost is that it
- A. falls continuously but is never equal to zero.
- B. is U-shaped and intersects the Y-axis
- C. rises and falls faster than the marginal cost
- D. is always higher than the average variable cost
Increasing returns to scale suggests that
- A. a firm can make a profit by reducing output
- B. a firm can make more profit by increasing output
- C. as the producer reduces the quantity of raw materials used, the marginal product will double
- D. as the producer increases the quantity of raw materials used, the marginal product will fall
A large firm may experience diseconomies of scale if there is
- A. difficulty in coordinating decisions
- B. division of labor in production
- C. employment of more specialist
- D. decrease in the cost of production
If a beef market is in equilibrium at $4.00 per kg, an increase in price to $6.00 per kg may cause
- A. surplus in the market
- B. shortage in the in market
- C. black market to come into operation
- D. rationing to be introduced