In market economy, the question of what, how and for whom to produce are solved the
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(C)
price mechanism
2
Economic goods are termed scarce goods when they are?
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(A)
not available in sufficient quantities to satisfy all wants for them
3
A school girl who needs a book and mirror, each coasting five naira, decides to purchase the book instead of the mirror since she cannot pay for the two at the same time. Determined the real cost of her book.
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(C)
the mirror
4
Macroeconomics is a study of economics science from the point of view of?
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(C)
aggregate or general economy
5
If units of a variable factor are increasingly added to a fixed factor and the marginal physical product keeps increasing, production is said to be taking place under conditions of?
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(A)
increasing returns to the variable factor
6
At any given level of output, the total cost of a firm equals the?
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(C)
average cost multiplied by variable costs
7
At any given level of output, a firm's total variable cost equals ?
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(B)
total cost less total fixed costs
8
If the price of a ball point pen falls from N1.00 to N0.60 and the quantity demanded increases from 200 to 300, the point elasticity of demand is equal to?
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(A)
1.25
9
If a society is operating on the production possibility curve, this implies that the resources are?
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(A)
fully and efficiently utilized
10
A market is in disequilibrium if?
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(D)
the quantity demand differs from the quantity supplied
11
The cross-elasticity of demand between complementary goods is?
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(D)
negative
12
Resources are efficiently allocated when production takes place at that output where price equals?
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(C)
marginal cost
13
Comparison of the price and output decisions of a perfectly competitive firm with those of a monopolist shows that the?
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(B)
perfect competitior charges a lower price and produces a large output than the monopolist
14
In a perfectly competitive market, the firm is in long-run equilibrium at the output where?
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(B)
average cost is minimum
15
The ordinary partner in a partnership?
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(C)
has unlimited liability in case of business failure
16
A possible factor which limits the extent of growth of a firm is the?
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(D)
unwillingness to share ownership and control
17
One of the most outstanding disadvantages of co-operative societies as business organization is that?
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(C)
it is poorly financed
18
A disadvantage of a joint-stock company is?
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(D)
loss of controlling interest
19
A characteristic of a debenture is that?
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(B)
its yeild is a fixed rate of interest
20
Industries tend to be located closer to market centers than to the sources of major raw materials if the?
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(B)
products are relatively more expensive to transport than the major raw materials
21
One disadvantage of trade by barter is that?
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(B)
the person wishing to buy good X may not have good Y which is what the other wants
22
One of the functions of Development Banks is to
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(D)
provide medium and long-term finance for the development of the economy
23
To perform its function as a store of wealth and standard for deferred payment, money must be
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(C)
stable in value
24
Fiduciary issue is that part of?
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(C)
the issue of notes not backed by gold
25
An effect of inflation is that it?
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(B)
favours debtors at the expense of creditors
26
Banks aid economic expansion and development by?
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(B)
mobilizing savings for investment lending
27
The term 'Stock of Capital 'means?
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(C)
amount of equipment plant and inventory existing at a time
28
A tax that takes an increasing fraction of income as income goes down is called?
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(B)
regressive
29
Budget deficit is the amount by which?
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(A)
total expenditure exceeds revenue
30
The average tax rate is defined as
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(C)
the ratio of total taxes paid to total income
31
Personal distribution of income implies?
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(A)
the way in which income is distributed among specific households or spending units
32
One of the advantages of international trade is that it?
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(A)
increases world output
33
there is an improvement in the terms of trade of a country if?
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(D)
the value of exports is greater than the value of imports
34
Under flexible exchange rates, a deficit could be corrected by?
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(B)
appreciation of other currencies
35
The higher the the dependency ratio the?
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(B)
smaller the proportion of the active labour force relative to the inactive
36
The age distribution of a country's population is of economic importance because it affects the?
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(A)
pattern of expenditure
37
It is important to measure the National Income of a country because?
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(A)
it is a major determinant of the standard of living
38
The Gross Domestic Product is defined as the total value of?
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(A)
all final goods and services produced in a country during the year
39
In the national income and product accounts, double counting is avoided if?
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(A)
only final goods counted
40
If W stands for wages/salaries, P for profit, R for interest and Z for rent on land real estate, then national income is?
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(D)
W + P + R + Z
41
A major obstacle to economic development is?
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(B)
low farm productivity
42
Consider the following diagram where XYZ represents the average curve of a firm. XY shows that as out put increases the average declines. However, this decline cannot continue indefinitely because
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(B)
indivisibilities
43
The firm portrayed is selling in
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(D)
a market in which companies produce homogeneous commodities
44
Demand is relatively inelastic
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(A)
at P2 range
45
Consider the table which shows output (o), total cost (TC)of production and marginal cost (MC) for a firm in a competitive market. Suppose price (P) = N 12, what is the maximum profit the firm can make ?
