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