the various combinations of two commodities that can be produced
2
The study of economic behavior of individual decision-making units (consumers, resources owners and business firms) in a free-enterprise economy is known as?
отговор
(A)
microeconomics
3
Which of the following best describes the concept of opportunity cost?
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(C)
Goods that are not produced in order to produce more of another good
4
Market is defined as?
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(D)
any organizational framework which links the buyers and sellers of a good and service
5
The additional revenue obtained by using one more unit of a factor is called its?
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(C)
marginal revenue product
6
Labour productivity is defined as?
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(A)
output per man/hour
7
Efficiency of labour is enhanced by?
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(C)
Total Fixed Cost divided by the the level of output
8
The residual of production which accrues to the owner of land after all other expenses have been met is called?
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(B)
rent
9
In the history of Economic Thought the concept of Division of labour is usually associated with?
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(C)
Adam Smith
10
The form of capital which is usually consumed or transformed into finished goods and services in the production process is called?
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(D)
circulating capital
11
The shut-down point for a firm in the short run is the output at which?
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(C)
Average Variable Cost is not covered
12
In the long run a firm will leave an industry if price?
отговор
(B)
is not equal to Marginal Cost
13
In the process of shopping, Mr. X whose wages per month does not exceed N200, finds that the price of a commodity he used to purchase with a fixed amount of N200 has risen to N230,. He therefore decides not to buy this commodity at all. Mr. X is thus affected by the?
отговор
(D)
inflation effect of a price change
14
Price can be defined as?
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(A)
a rate of exchange
15
In the operation of market forces, the market is in equilibrium at the point where?
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(D)
demand and supply curves intersect
16
A shift in the demand curve for commodity when the supply curve is vertical will lead to a change in the?
отговор
(A)
price only
17
Given an original price of N3.50 per kilogram of rice and a change in price of 1.40, and given the quantity purchase at the old price as 10kg and a change in the quality as 5kg after the price change, the elasticity is equal to?
отговор
(C)
1.25
18
For normal goods the income elasticity of demand is?
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(A)
positive
19
If a good is an inferior good, then?
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(C)
its income elasticity of demand is negative
20
An increase in supply will lower price unless?
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(C)
it is followed by an increase in demand
21
Which of the following is compatible with a firm in a purely competitive market?
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(B)
demand is infinitely inelastic
22
What form of market is found in an imperfect competition where there are few buyers and many sellers?
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(D)
Oligopsony
23
To which of the following sectors do services belong?
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(C)
Tertiary
24
The liability of the sole trader is?
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(B)
unlimited
25
Which of the following is NOT a type of business ownership?
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(A)
Debenture holding
26
Which of the following is a disadvantage of regional concentration of industries?
отговор
(A)
Development of congested urban areas
27
A limited liability company is usually owned by?
отговор
(C)
shareholders
28
Money market differs from capital market in that it?
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(A)
deals with short-term loans while capital market deals with long-term funds
29
The main reason for charging interest is to?
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(C)
reward investors for present use of profits
30
In the keynesian model?
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(D)
the demand for money is directly related to the rate of interest
31
If inflation is anticipated to continue?
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(B)
lenders will demand higher interest rate
32
Ad valorem tax means?
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(A)
a certain percentage tax based on the value of the commodity
33
In order to raise more revenue for a certain period, government should impose higher taxes on goods whos demand is?
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(B)
inelastic
34
A budget with a projected revenue in excess of its expenditure is said to be?
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(B)
surplus
35
The money which government spends yearly for the maintenance of its school is?
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(C)
part of the government's recurrent expenditure
36
Which of the following applies to a commodity sold abroad at a price lower than that in the producing country?
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(A)
Dumping
37
The rate of exchange between a domestic and a foreign currency is defined as the?
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(B)
domestic currency price of a unit of the foreign currency
38
Which of the following best explains the structural changes in the population of a country?
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(D)
Changes in the age, sex and occupational composition of the population
39
Statistical information available in most West African countries suggests that?
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(B)
the marginal propensity to consume is high
40
Transfer payment are
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(C)
unearned income
41
Capital consumption allowance refers to?
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(C)
depreciation of capital equipment
42
The difference between personal income and personal disposal income is?
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(A)
personal income tax
43
Frictional unemployment?
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(D)
occurs when people are changing jobs
44
For the improvement of the welfare of a people, a high production level is not enough because
