The greatest disadvantages f barter system is the need for
- A. Durability
- B. Divisibility
- C. Homogeneity
- D. Double coincidence of wants
- E. Portability
A table which shows the price of a commodity and the quantity of it that is demanded per unit time is a
- A. Time series
- B. Demand series
- C. Demand curve
- D. Demand schedule
- E. Time schedule
Scarcity in Economics means that resources
- A. Are not enough to share among producers of goods and services
- B. Needed to satisfy human wants are limited
- C. Are never enough to share among consumers of goods and services
- D. Required to meet our essential wants are unlimited
- E. Can be managed if those who use them can behave rationally
Subsistence farming means producing food
- A. Mainly for the need of our immediate and extended family
- B. Crops for sale mainly
- C. Crops mainly for export
- D. To feed the community around
- E. In order to satisfy the government directives
The term marginal propensity to consume can best be explained as the
- A. Desire to spend more income on consumption
- B. Change in consumption as a percentage of change in income
- C. Average regularly spend on consumption
- D. Total expenditure on consumption
- E. Inclination to spend only a little on consumption
Which of these factors does not affect revenue allocation in Nigeria?
- A. Needs of an area
- B. Size of the population of an area
- C. Number of industries and land areas
- D. Revenue derivable from an area
- E. Development needs of the country
The imposition of high income tax by government to cut down demand is known as
- A. Monetary policy
- B. Budgetary policy
- C. Fiscal policy
- D. Internal policy
- E. Development policy
Which of the following crops can be referred to as Nigeria’s current export crops?
- A. Rubber, Groundnuts, Beniseed, cotton.
- B. Shear butter, Sorghum, Onions.
- C. Rubber, Cocoa, Coffee, Palm Kernel
- D. Palm Oil, Palm Kernel, Sugarcane
- E. Soya beans, Rice, Groundnut, and Cashew nut.
When the demand for a commodity is inelastic, who bears the greater burden of the indirect tax?
- A. The producer
- B. The government
- C. The retailer
- D. The consumer
- E. The wholesaler
External economies occur when
- A. Industries are scattered all around
- B. A firm decides to expand
- C. Industries are producing below capacity
- D. Firms compromising an industry are concentrated in one area
- E. A firm is located near raw materials
The coefficient of price elasticity of demand is zero when demand is
- A. Fairly elastic
- B. Perfectly inelastic
- C. Fairly inelastic
- D. Unitary elastic
- E. Perfectly elastic
Which of the following roles is being played by the Organization of Petroleum Exporting Countries (OPEC) with regards to Nigeria’s crude oil?
- A. Exploiting
- B. Exploring
- C. Refining
- D. Marketing
- E. Exporting
Which of the following is not an item of capital expenditure?
- A. Building of roads and bridges
- B. Supply of electricity
- C. Building of damns
- D. Building of habours
- E. Payment of interest on loans
The drawer of a cheque is the
- A. Person who is to be paid the sum of money as written on the cheque
- B. Person who takes the cheque to the bank
- C. Bank on which the cheque is drawn
- D. Person who writes out the cheque
- E. Bank official who certifies the payment
International trade and domestic trade are similar in all aspects except that
- A. Transportation by land, water and air is involved
- B. Goods are exchanged
- C. Services are exchanged
- D. The same currency is used as the medium of exchange
- E. Specialization and increased consumption is encouraged
A condition which adversely affects expansion of production is
- A. Effective management
- B. Limited size of the market
- C. Availability of funds
- D. Increased profit prospects
- E. Increasing returns to scale
Which of these does not relate to the law of comparative advantage?
- A. The law of comparative advantage was propounded by David Ricardo
- B. The law stresses the importance of relative efficiency
- C. In order to specialize, a country must have absolute advantage
- D. The law is based on opportunity cost principle
- E. The principle if followed, should increase total world output
Which of the following statements is true about terms of trade?
- A. Terms of trade shows the difference between the values of export and imports
- B. Terms of trade indicate the rate at which exports exchange for imports
- C. It is the ration of price index of exports to imports
- D. It is usually expressed as percentage
- E. A rise in the price of export relative to imports is an improvement
Which of the following are the most liquid assets to a commercial bank?
- A. Money at call and short notice
- B. Treasury Bills
- C. Commercial Bills
- D. Stock and Shares
- E. Cash
Which of these best explains Malthusians theory of population?
- A. Increase in population cause hunger and death
- B. The population increase faster than food supply
- C. The population grows at arithmetic progression while food production grows at geometric progression
- D. People could be sent to ‘No man’s land’ when the population increases
- E. People should produce as many children as they could to because passion cannot be controlled
The International Bank of Reconstruction and Development (IBRD) is important to the developing nations because it
- A. Gives loans to member s for legal proceedings
- B. Offer grants and aids for defense
- C. Enhances financial relationship among countries
- D. Offer soft loans for educational and health services
- E. Offer grants and aid to finance private projects