Fiscal policy measures imply a change in
- A. only taxation to control aggregate demand
- B. bank rate to infulence lending
- C. only government expenditure to regulate an economy
- D. government revenue and expenditure to regulate an economy
Commercial banks are different from development banks in that the latter
- A. lend on short-term basis
- B. pay interest on current accounts only
- C. are mostly joint-stock companies
- D. do not deal in foreign currencies
If the Central Bank increases its bank rate
- A. many banks will shut down their operations
- B. customers will borrow more from banks
- C. the supply of money may be reduced
- D. interest charges by banks will fall
If inflation is anticipated, people may
- A. save more money
- B. spend more money
- C. give out more loans
- D. spend less money
An example of commodity money is
- A. currency note
- B. mobile money
- C. cheques
- D. silver
Increasing national income without effective control of population size in a country can lead to
- A. higher per capita income
- B. increase in poverty
- C. increased outflow of aid
- D. underutilization of resources
The use of mass advertising media enable a firm to enjoy
- A. managerial economies
- B. financial economies
- C. marketing economies
- D. welfare economies
The main objective of marketing boards is to
- A. accumulate revenue for government
- B. educate farmers on pricing of cash crops
- C. stabilize the incomes of cash crop farmers
- D. provide warehousing facilities
The type of unemployment found among workers who leave their jobs in search of other jobs is termed
- A. seasonal unemployment
- B. structural unemployment
- C. frictional unemployment
- D. cyclical unemployment
Which of the following factors may not affect the efficiency of labour?
- A. Education and training
- B. Provision of welfare service
- C. Race and colour of workforce
- D. Quality of other factor inputs
A positive effect of a rapid population increase is
- A. an excessive budget deficit
- B. a reduction in standard of living
- C. a wider market for goods and services
- D. a higher dependency ratio
A major function of the retailer is to
- A. grant credit to the wholesaler
- B. break bulk and sell products in small units
- C. reduce cost of distribution
- D. generate demand for products through advertisement
The middlemen is responsible for
- A. providing research facilities
- B. purchasing raw materials
- C. designing the product
- D. breaking the bulk
A disadvantage of a jont-stock company is
- A. unlimited liability
- B. limited liability
- C. lack of continuity when a shareholder dies
- D. limited control in management by shareholders
A firm that closes down will still incur
- A. variable cost
- B. fixed cost
- C. total cost
- D. marginal cost
The production cost that varies inversely with output is the
- A. total fixed cost
- B. marginal cost
- C. average fixed cost
- D. average cost
In manufacturing, division of labour may be hindered by
- A. excessive demand for the product
- B. low level of technology
- C. excess supply of labour
- D. increase in the export of goods
If the government imposes a minimum price on a commodity
- A. market surplus occurs
- B. the market will be cleared in the short-run
- C. excess demand occurs
- D. government regulation is no longer needed
The production of rice and yam on the same farmland is an example of
- A. joint supply
- B. composite supply
- C. competitive supply
- D. market supply
A benefit that is present in all forms of economic integration is that
- A. common agricultural policy is in place
- B. the size of the market is widened
- C. factors of production are free to move and be moved
- D. common currency is in use
Foreign investment and long term securities in the balance of payment accounts are recorded as
- A. current account transaction
- B. capital account transaction
- C. balance of trade account transaction
- D. invisible balance account transaction