Farmers’ income may fall if they produce more cash crops for export because?
- A. foreign demand is inelastic
- B. the price of the crops will rise
- C. of domestic currency depreciation
- D. of export duties
The type of business finance that entitles the holder to a fixed rate of dividend is?
- A. perferred stock
- B. common stock
- C. debenture
- D. bank loan
The main reason for the current programme of privatization and commercialization of public enterprises in Nigeria is to?
- A. reduce public expenditure
- B. encourage efficiency in the performance of such enterprises
- C. reduce the number of public enterprises
- D. raise the prices of goods and services produced by the enterprises
The main handicap of sole proprietorship is?
- A. limited liability
- B. lack of technical know-how
- C. low profit margin
- D. inadequate capital
An important 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
A firm with marginal cost equals to its marginal revenue will produce the equilibrium output if it is in?
- A. pure competition only
- B. pure monopoly only
- C. monopolistic competition only
- D. any type of market
The demand curve for a normal good will shift to the left if?
- A. the incomes of consumers rise
- B. the price of the goods rises
- C. the price of complementary goods rises
- D. advertising expenditure on complementary goods increase
If demand is relatively inelastic and sellers are able to raise the price of their commodity, then there we be a?
- A. fall in both quantity of demand and total revenue
- B. fall in the quantity demanded and rise in total revenue
- C. fall in the quantity demanded and rise in marginal revenue
- D. rise in both the quantity demanded and the marginal revenue
The price mechanism is more effective in achieving efficient performance of the economy than the planning mechanism because of the?
- A. role of supply and demand
- B. role of material incentive
- C. existence of buyers and sellers
- D. role of money
The U-shape of the long run average cost curve can be explained by the?
- A. law of increasing returns
- B. law of constant returns
- C. law of diminishing returns
- D. concepts of economies and diseconomies of scale
The higher the price of capital relative to the price of labour, the more production techniques should be?
- A. labour-intensive
- B. capital-intensive
- C. fixed
- D. technology-intensive
BY definition, variable cost (VC) is related to total costs (TC) and fixed costs (FC) by the equation?
- A. VC =TC + FC
- B. VC = TC - FC
- C. VC = TC/FC
- D. VC = (TC)(FC)
The migration of young people from rural to urban areas in Nigeria should help to raise the?
- A. standard of living in the urban areas
- B. total productivity of labour in the rural areas
- C. marginal productivity of labour in the rural areas
- D. marginal productivity of labour in the urban areas
the major objective of current campaign for family planning in Nigeria is to?
- A. reduce the death rate
- B. limit the number of women a man can marry
- C. keep the population growth rate constant
- D. raise the standard of living of the population
Which of the following is applicable in a wholly capitalist economy?
- A. There is government intervention in price determination
- B. Consumer sovereignty does not exist
- C. The price mechanism allocates resources
- D. Households cannot freely decide what to spend on goods and services
For an economy which last year produced only two commodities X and Y, the real cost of the quantity of X which it produced can be measured by the?
- A. amount of X it could not produced
- B. amount of Y it produced
- C. total amount of Y it could have produced
- D. extra amount of Y it could have produced
Scale of preference refers to?
- A. consumers preference for luxury goods
- B. the household monthly income
- C. list of goods and servicesin order of priority
- D. budget perparation without paying due regard to priority
Which of the following situations can give rise to economic problems?
- A. Unlimited human wants
- B. Wants of varying important
- C. Limited means available for satisfying wants
- D. Means used in different ways
A major obstacle to economic development is?
- A. a rise in industrial output
- B. low farm productivity
- C. free trade
- D. ineffective trade unions
If W stands for wages/salaries, P for profit, R for interest and Z for rent on land real estate, then national income is?
- A. W -P - R - Z
- B. W + P + Z - R
- C. P - R - Z + W
- D. W + P + R + Z
In the national income and product accounts, double counting is avoided if?
- A. only final goods counted
- B. only intermediate goods are counted
- C. only intermediate and final goods are counted
- D. the value of all goods and services are added together