Which of these is the real cost of satisfying any want in the sense of the alternative that has to be foregone?
Απάντηση
(B)
opportunity cost
3
Under normal circumstances, the concept of consumers sovereignty implies that
Απάντηση
(C)
the consumer and not the producer determines what is to be produced
4
A firm is at its optimum size when?
Απάντηση
(A)
it produce the greatest output at a minimum cost
5
The degree of specialization is limited by the
Απάντηση
(A)
avalibility of specialized skills and machinery
6
Production in Economics can be defined as the
Απάντηση
(D)
production of goods and services for consumption
7
A firm achieves least cost in production by substituting factors until
Απάντηση
(C)
their marginal-physical products are each zero
8
If a person receives a higher wage than would be necessary to induce him to work, he is said to be receiving
Απάντηση
(D)
surtax income
9
Mobility of labour is NOT affected by
Απάντηση
(A)
optimum size of population
10
A country has a population distribution as shown below:
\(\begin{array}{c|c}
\text{Age Group years} & \text{ Corresponding percentage} \\
\text{Above 60} & 22 \\
15 - 60 & 60 \\
0 - 14 & 15 \\
\end{array}\)
The dependency ratio is?
Απάντηση
(D)
1:5
11
Population density refers to?
Απάντηση
(D)
the total population divided by the total area
12
What fundamentally determines how much a consumer spends in a producer's shop?
Απάντηση
(C)
level of his income
13
Which of the following statements describes a mixed economy?
Απάντηση
(A)
The government and the private sector interact in solving the basic economic problems
14
In drawing an individual's demand curve for a commodity, which of the following is not kept constant? The
Απάντηση
(C)
price of complementary goods
15
Given that beef and fish are substitutes, a rise in the price of beef relative to that of fish will?
Απάντηση
(B)
induce greater demand for fish
16
The main function of price mechanism is to?
Απάντηση
(C)
allocate scarce resources among competing ends
17
Use the table below to answer question 17 and 18.
Market Demand Schedule for Commodity X. \(\begin{array}{c|c}
\text{ Price N} & \text{Quantity(Million units)} \\ 60 & 100 \\
50 & 140 \\
40 & 220 \\
30 & 260 \\
20 & 300 \\
10 & 340 \\
\end{array}\)
If the price of commodity X falls from N40.00 to N30.00 what is the price elasticity of demand?
Απάντηση
(A)
0.62
18
The revenue accruing to the seller of commodity X as a result of a fall in price will
Απάντηση
(B)
fall
19
Which of the following is an important function of prices in a market economy?
Απάντηση
(D)
Equating level of purchases with level of needs
20
One major difference between monopoly and perfect competition is that?
Απάντηση
(A)
the perfect competitor is a price taker while the monopolist determines his own output
21
A producer sustains a loss in the short run if
Απάντηση
(B)
price is less than average cost
22
A monopolist will practice price discrimination in two markets if?
Απάντηση
(B)
the markets have different elasticities of demand
23
In the normal channels of distribution the breaking of bulk is performed by the
Απάντηση
(B)
wholesaler
24
The most important advantage of co-operative societies is?
Απάντηση
(D)
the possibility of raising loans for the members
25
In a public company, shares are?
Απάντηση
(C)
advertised to members of the public for subscription
26
Which of the following is a characteristic of private limited liability company?
Απάντηση
(D)
the number of shareholders ranges from two to fifty
27
One of the advantages of a partnership over a sole proprietorship is that?
Απάντηση
(C)
it makes an increase in the capital of the business possible
28
Which of the following is an external economy derived by a firm?
Απάντηση
(A)
Low cost opportunities enjoyed by being in a place where other producers concentrate
29
Which of the following advantages of localization of industries may also be a disadvantage?
Απάντηση
(B)
Concentration of industries and of people
30
The Nigeria Bank for Commerce and Industry is?
Απάντηση
(B)
a developmment bank
31
To control inflation, the monetary authorities of a country can?
Απάντηση
(D)
engage inrestrictive monetary policy
32
Which of the following is used by the Central Bank to control the rate of interest?
Απάντηση
(D)
Open market operation
33
Gresham's law in economics shows that
Απάντηση
(A)
bad money drives good money out of circulation
34
Given that the cash reserve ratio is 10 percent, what is the maximum amount of that the banking system can create from an initial cash deposit of N1,000.00?
Απάντηση
(D)
N10,000.00
35
The most important economic characteristic differentiating commercial banks from other financial institutions is their?
Απάντηση
(C)
status as an intermediary between savers and borrowers
36
Deflation is a persistent fall in the general price level and is usually caused by?
Απάντηση
(A)
a reduction in total demand
37
Which of the following causes of inflation is related to demand-pull inflation?
Απάντηση
(A)
Low productivity on farms and in firms
38
Which of the following is NOT a goal of modern budgets?
Απάντηση
(C)
The shift of all resources from the private to the public sector
39
The best technical description of a progressive tax is a?
Απάντηση
(C)
tax which takes a higher proportion of extra naira received as income rises
40
Tax incidence is the analysis of?
Απάντηση
(D)
who ultimately pays the tax
41
In international trade, a country specializes in the production of a commodity or group of commodities for which it has?
Απάντηση
(C)
the greatest relative advantage
42
Balance of payment deficit in Nigeria CANNOT be solved by
Απάντηση
(A)
importing more goods and services
43
The term balance of trade, can be defined as the?
Απάντηση
(A)
relation between value of exports and value of imports over a given period of time
44
The term of trade often measured by the ratio of the index of export
Απάντηση
(A)
divided by the index of import prices multiplied by 100
45
A society which forgoes present consumption
Απάντηση
(B)
is devoting new resources to new capital formation
