it uses scientific methods to explain observed phenomena and predict future events
3
When a variable is associated with time period, it is?
Answer
(A)
a flow
4
Ufuoma is a consumer. His scale of preference shows that he prefers a pair of shoes to a wrist watch; he prefers the wrist watch to a pair of trousers; he prefers the pair of trousers to the pair of shoes. This means that Ufuoma is
Answer
(C)
inconsistent
5
Air is essential to life but commands no price!
Diamond is not essential to life but commands a high?
Answer
(B)
value
6
The average product of labour in a given period is obtained by dividing the?
Answer
(D)
total product by the number of workers
7
Development outside a given firm which reduce the firm costs are called?
Answer
(B)
external economies
8
Which of the following BEST describes the production function?
Answer
(C)
it relates physical outputs to physical inputs
9
The law of Diminishing Returns begins to operate when?
Answer
(C)
marginal product begins to fall
10
The assumption of profit maximization implies profit?
Answer
(A)
is the most important consideration of the firm
11
Total fixed cost measures the cost of?
Answer
(B)
all assets where quantity cannot be varied in the short run
12
The output at which total revenue equals total cost is known as?
Answer
(B)
break even level output
13
A commodity is said to have a derived demand when the commodity
Answer
(B)
is demanded because of what it can help to produce
14
If goods were free, a rational consumer would consume?
Answer
(D)
the amount where marginal utility was the highest
15
Which of the following changes in equilibrium price and quantity is as a result of an upward shift in the market demand for a commodity?
Answer
(D)
Both the price and the quantity rise
16
One factor which influences the slope of a non-linear demand curve for a commodity is the?
Answer
(C)
availability of substitutes
17
One of the characteristics of an imperfect market is?
Answer
(B)
a lack of homogeneity of products
18
Total revenue is always equal to?
Answer
(D)
average revenue multiplied by the quantity sold
19
If prices fall in a perfectly competitive industry, the firms in that industry in the short run will?
Answer
(C)
reduce production
20
Which of the following is TRUE at the quantity of output where Average Cost (AC) per unit has reached its minimum level?
Answer
(C)
MC=AC
21
In the short run, the monopolistic competitors?
Answer
(A)
always makes profit
22
Price leadership is?
Answer
(A)
a form of tacit collusion
23
The additional revenue obtained by using one more unit of a factor is called?
Answer
(D)
marginal revenue product
24
In a public company, enterpreneurial functions are performed by the?
Answer
(D)
board of directors
25
The most important limitation on the partner as a form of business enterprise is the?
Answer
(B)
legal limitation placed on the number of partners
26
Under partnership, investors who have no desires to be actively involved in the day-to-day management of such organization, are called?
Answer
(B)
sleeping partners
27
Localization of industries refers to the?
Answer
(A)
tendency to concentrate industries in particular areas
28
Restriction on credit creation by commercial banks can be effected through?
Answer
(D)
liquidity ratio
29
Which of the following factors enhances the ability of commercial banks to create money?
Answer
(A)
Reduction in the reserve ratio
30
In any economy, what is used as money is determined by?
Answer
(A)
government acceptance commodity standard
31
The rate at which money changes hands is known as the?
Answer
(D)
velocity of circulation
32
Merchants banks perform all the following functions EXCEPT?
Answer
(B)
provision of current account facilities
33
Which of the following is a direct tax?
Answer
(D)
property tax
34
Which of the following would most likely be considered an example of benefit taxation?
Answer
(D)
Highway-user tax
35
When a nation is experiencing balance of payment surplus, it is in a better position to?
Answer
(A)
increase its foreign exchange reserves
36
Which of the following is a good example of invisible item on balance of payments account?
Answer
(A)
Shipping and aviation
37
Deficit financing is mostly facilitated by the existence of?
Answer
(C)
central bank
38
The Malthusian theory of population predicts that growth in food production will?
Answer
(C)
be at a slower rate tthan population growth
39
If aggregate income is N500.00 and aggregate consumption is N400.00, this means that the average propensity to consume is?
Answer
(B)
0.80
40
Which of the following items is subtracted when computing Gross National Product at factor cost, by the expenditure method?
Answer
(B)
Indirect taxes
41
In estimating the national income of a country, the three approaches usually adopted are the?
Answer
(C)
expenditure,income and output
42
If technology becomes less capital-intensive, it means?
Answer
(B)
an increase in the capital/ratio
43
The most threatening problem for the less developed countries is?
Answer
(C)
population explosion
44
An increase in an economy's productive capacity implies?
Answer
(B)
an increase in the economy's capital stock
45
Collectivism refers to the system of management of state enterprises in a?
