A major characteristic of natural resources is that they
- A. are unlimited in supply
- B. have high cost of production
- C. are free gifts of nature
- D. do not command any price
There is unemployment of resources when production is
- A. within the production possibility curve
- B. outside the production possibility curve
- C. along the production possibility curve
- D. adequate to meet market demand
If petrol is no longer needed to produce energy, then demand for crude oil
- A. will increase
- B. will remain constant
- C. may be limited to chemical industries
- D. will make producing countries richer
The main function of the African Development Bank (AFDB) is to
- A. promote free trade and development among members
- B. provide loans to finance balance of payment problems
- C. provide loans to members to finance viable projects
- D. help members overcome their internal problems
A benefit that is present in all forms of economic integration is that
- A. factors of production are free to move and be moved
- B. common currency is in use
- C. common agricultural policy is in place
- D. the size of the market is widened
Given that a country’s index of export price is 180 and that of import is 200, the terms of trade is
- A. 0.09
- B. 2.00
- C. 90.00
- D. 380.00
Which of the following measures can lead to an increase in exports?
- A. Increase in export duties
- B. Increase in excise duties
- C. Depreciation of currency
- D. Total ban on imports
An argument for the use of commercial policy rest on the need to
- A. make imported goods affordable
- B. reduce domestic unemployment
- C. encourage the importation of non-essential goods
- D. make a country enjoy absolute advantage in production of all goods
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
Political instability hinders economic growth because it
- A. scares many people from politics
- B. prevent politicians from playing effective politics
- C. discourage entrepreneurs generally
- D. encourages urban-rural migration
Development planning focuses mainly on
- A. allocation of resources by the entrepreneurs
- B. mapping out strategies by the government
- C. developing some areas of the country by the government
- D. deciding on which types of homes to build
If demand is perfectly inelastic, a tax imposed
- A. is borne only by the producer
- B. is borne only by the consumer
- C. will have greater impact on the seller
- D. will have no impact on the buyer
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