Credit creation by banks is limited by
- A. an increase in bank deposits
- B. the establishment of specialized banks
- C. the non-availability of clllateral security
- D. the use of cheques for all transactions of the banks
- E. abolishing the reverse ratio
Under the socialist economy , the decision on what to produce is determined by the
- A. producer
- B. level of expected profit
- C. price
- D. Government
- E. preference of consumers
The term production in Economics means
- A. manufacturing of goods
- B. the creation of utilities
- C. giving birth to children
- D. the distribution of goods and services
- E. using labour in creating something
Government can influence aggregate demand through all the following measures except
- A. reduction in personal income tax
- B. retirement of director-general in the public service
- C. creation of employment opportunities
- D. compulsory deduction from salaries of all categories of workers
- E. upward revision of workers fringe benefits
Effective demand in economics means
- A. the desire for a commodity
- B. a proposal to purchase a good on credit
- C. the desire for a commodity or service backed by purchasing power
- D. an irrevocable instruction to the seller to meet up the need of the buyers
- E. the propensiyt to consume googd produced by manufacturers
Giffen commodities are those commodities
- A. which gives rise to a cobweb situation
- B. for which demand increases as price increases
- C. which have a low price elasticity of demand
- D. which are in short supply
- E. which have a high income elasticity of demand
which of the following economic system is in operation in Nigeria?
- A. Capitalist economy
- B. Socialist cum Maxist economy
- C. Socialist economy
- D. Capitalist and free economy
- E. mixed economy
All the under listed factors directly affects the supply of a commodity except
- A. price
- B. improved production method
- C. access to capital
- D. demand for the commodity
- E. level of income
Which of the following does not encourage the location of industries?
- A. Nearness to the market
- B. Availability of infrastructural facilities
- C. Government influence in sitting industries
- D. political instability
- E. Abundance of cheap labour
which of the following is an important limiting factor in the application of division of labour?
- A. market size
- B. availability of an infrastructure
- C. wage rate
- D. Raw materials
- E. Availabily of land
The law of demand states that
- A. as price increases, quantity demanded remains constant
- B. demand increases as price increases
- C. as price falls, quantity demanded also falls
- D. as price falls, quantity demanded increases
- E. demand and supply remains constant whether price fall or increase
The decision on what to produce is a problem in
- A. all economics system
- B. a mixed economic system only
- C. a democratic socialist economy only
- D. a free enterprise system only
- E. a planned eceonomic system only
Scarcity in economics means
- A. shortage of commodity
- B. unlimited demands for consumer goods
- C. limited supply of goods and services
- D. total absence of a commodity in the market
- E. high cost of a commodity
Economics is a social science which studies how
- A. to redistrubute income
- B. human beings behave
- C. the market price is fixed
- D. scarce resources are allocated to satisfy human wants
- E. high cost of a commodity
Under the ECOWAS agreement, a Nigerian can enter and stay in Ghana without a visa for a period of
- A. 14 days
- B. 30 days
- C. 60 days
- D. 90 days 100 days
The Quantity Theory of Money state that an increase in the quantity of money would bring about
- A. a geometrical rise in price
- B. an unequal rise in prices
- C. a proportionate rise in prices
- D. an absolute rise in prices
- E. a less that proportionate increase in prices
The magnitude of the national income of a country depends on all the following except the
- A. quantity of natural resources available
- B. level of technical know-how
- C. mobility of labour
- D. level of productivity
- E. quality and quantity of factors of production
Tax evasion in Economics means
- A. false declaration od assets
- B. paying tax only as and when due
- C. declaration of assets
- D. tax payments according to income received
- E. quarrelling with tax collector
Abstention from consumption enables capital to be produced . Such abstention is called
- A. savings
- B. production
- C. accumulation
- D. factors of production
- E. opportunity cost
Factory buildings, machinery and raw materials are known in Economics as
- A. personal wealth
- B. social wealth
- C. government wealth
- D. business wealth
- E. public wealth
Limited liability means that
- A. the debt of a company can only be paid from its own assets
- B. the debts of a company are paid from business as well as private funds of the owners
- C. a company does not have to pay its debts
- D. the debts of a company must be paid from a private funds only
- E. government cannot tax a company