Disposable income is an income which?
- A. is available for consumption and savings
- B. pensioners receive from the government
- C. is payable to the disable members of the community
- D. accures to the environmental sanitation authorites for refuse disposal
The system of measurement of national income as the sum of all final demands is called?
- A. income approach
- B. expenditure approach
- C. value-added
- D. final demands approach
If the government invest the sum of N1,000,000.00 and the marginal propensity to consume is 0.75, what is the change in income?
- A. N1,000 000.00
- B. N4,000 000.00
- C. N6,000 000.00
- D. N14,000,000.00
If birth rate is constant and death rate declines, population?
- A. falls
- B. expands
- C. stabilizes
- D. oscilates
Which of the following is likely to hinder labour mobility in Nigeria?
- A. Higher wages elsewhere
- B. Cultural similarities
- C. Good accommodation elsewhere
- D. Ignorance of job opportunities elsewhere
Import duties will increase total expenditure on imports if the demand for imports is?
- A. elastic
- B. inelastic
- C. infinitely elastic
- D. derived
Which of the following is a tariff?
- A. Limit on the amount of goods which can be imported
- B. Inteest rate on foreign loans
- C. Government payment to domestic producers for exports
- D. Tax on imported goods
Which of the following is likely to reduce a surplus in the balance of payments of a country?
- A. Devaluation
- B. Increased tariff on imports
- C. Export promotion
- D. Currency appreciation
Balance of trade is the difference between?
- A. exports and imports of goods and services
- B. capital inflows and capital outflows
- C. visible and invisible balances
- D. exports and imports of goods
Under a system of freely floating exchange rates an increase in the international value of a country’s currency will cause?
- A. its exports to rise
- B. its imports to rise
- C. gold to flow into that country
- D. its currency to be in surplus
A tax on a commodity whose supply is perfectly inelastic is?
- A. shifted completely on the consumer
- B. completely borne by the supplier
- C. dividend in the ratio 60;40 between the consumer and the supplier
- D. divided half-and-half between the producer and the consumer
Which of the following is a liability of a commercial bank?
- A. Deposits in bank
- B. loans made by the bank to individuals
- C. loans made by the bank to other banks
- D. Bonds purchased by the bank
Find the total credit that the banking system can create if primary deposit is just N100.00 while the cash ratio is 20%
- A. 700.00
- B. 600.00
- C. 500.00
- D. 400.00
The basic purpose of imposing legal reserve requirements on commercial bank is to?
- A. assure the profitability of commercial banks
- B. provide a device through which credit creation by banks can be controlled
- C. provide a proper ratio between earning and non-earning bank assets
- D. provide the Central Bank with working capital
Which of the following is likely to be inflationary?
- A. Tax increase
- B. increase in unemployment
- C. Budget surplus
- D. Wages increase
If the same basket of goods which cost N12.00 in 1985 cost N15.00 in 1987, price index for 1987 is?
- A. 25
- B. 80
- C. 100
- D. 125
Which of the following will be the effect of allowing only economic factors to dedicate the location of industries in Nigeria?
- A. A more even development of the different parts of the country will be assured
- B. There will be an unbalanced spread in the distribution of industries
- C. The less developed parts of the country will be able to attract more industries
- D. Only the government will be able to finance the establishment of industries
Which of the following factors is the most important in siting a petrol-chemical plants?
- A. Nearness to the source of raw materials
- B. Nearness to the source of power
- C. Availability of labour
- D. Proximity to financial institutions
Capital provided by individuals to the firm by purchasing stocks is called?
- A. debt capital
- B. fixed capital
- C. circulating capital
- D. equlity capital
Divorce of ownership from control is a characteristic of?
- A. sole properitorship
- B. a limited liability company
- C. partnership
- D. a private limited company
A major difference between a state-owned enterprise and a private enterprise is that the former?
- A. is not expected to cover its costs of production while the latter is
- B. is not always expected to maximize profits while the latter is
- C. has shareholders while the latter does not
- D. has a board of directors while the latter does not