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?
პასუხი
(A)
microeconomics
3
Which of the following best describes the concept of opportunity cost?
პასუხი
(C)
Goods that are not produced in order to produce more of another good
4
Market is defined as?
პასუხი
(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?
პასუხი
(C)
marginal revenue product
6
Labour productivity is defined as?
პასუხი
(A)
output per man/hour
7
Efficiency of labour is enhanced by?
პასუხი
(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?
პასუხი
(B)
rent
9
In the history of Economic Thought the concept of Division of labour is usually associated with?
პასუხი
(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?
პასუხი
(D)
circulating capital
11
The shut-down point for a firm in the short run is the output at which?
პასუხი
(C)
Average Variable Cost is not covered
12
In the long run a firm will leave an industry if price?
პასუხი
(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?
პასუხი
(D)
inflation effect of a price change
14
Price can be defined as?
პასუხი
(A)
a rate of exchange
15
In the operation of market forces, the market is in equilibrium at the point where?
პასუხი
(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?
პასუხი
(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?
პასუხი
(C)
1.25
18
For normal goods the income elasticity of demand is?
პასუხი
(A)
positive
19
If a good is an inferior good, then?
პასუხი
(C)
its income elasticity of demand is negative
20
An increase in supply will lower price unless?
პასუხი
(C)
it is followed by an increase in demand
21
Which of the following is compatible with a firm in a purely competitive market?
პასუხი
(B)
demand is infinitely inelastic
22
What form of market is found in an imperfect competition where there are few buyers and many sellers?
პასუხი
(D)
Oligopsony
23
To which of the following sectors do services belong?
პასუხი
(C)
Tertiary
24
The liability of the sole trader is?
პასუხი
(B)
unlimited
25
Which of the following is NOT a type of business ownership?
პასუხი
(A)
Debenture holding
26
Which of the following is a disadvantage of regional concentration of industries?
პასუხი
(A)
Development of congested urban areas
27
A limited liability company is usually owned by?
პასუხი
(C)
shareholders
28
Money market differs from capital market in that it?
პასუხი
(A)
deals with short-term loans while capital market deals with long-term funds
29
The main reason for charging interest is to?
პასუხი
(C)
reward investors for present use of profits
30
In the keynesian model?
პასუხი
(D)
the demand for money is directly related to the rate of interest
31
If inflation is anticipated to continue?
პასუხი
(B)
lenders will demand higher interest rate
32
Ad valorem tax means?
პასუხი
(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?
პასუხი
(B)
inelastic
34
A budget with a projected revenue in excess of its expenditure is said to be?
პასუხი
(B)
surplus
35
The money which government spends yearly for the maintenance of its school is?
პასუხი
(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?
პასუხი
(A)
Dumping
37
The rate of exchange between a domestic and a foreign currency is defined as the?
პასუხი
(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?
პასუხი
(D)
Changes in the age, sex and occupational composition of the population
39
Statistical information available in most West African countries suggests that?
პასუხი
(B)
the marginal propensity to consume is high
40
Transfer payment are
პასუხი
(C)
unearned income
41
Capital consumption allowance refers to?
პასუხი
(C)
depreciation of capital equipment
42
The difference between personal income and personal disposal income is?
პასუხი
(A)
personal income tax
43
Frictional unemployment?
პასუხი
(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
