In a centrally planned economy, what to produce is
Answer
(D)
the responsibility of state's bureaucrats
4
Which of following is not a feature of socialism?
Answer
(A)
Collective ownership of productive resources
5
Households make economic decisions because they want to
Answer
(D)
maximize their satisfaction
6
A normal supply curve has a positive slope which indicates that
Answer
(C)
sellers are willing to sell more at a higher price
7
To control inflation, the central bank of a country may adopt
Answer
(B)
a restrictive monetary policy
8
Disposable income is the income earned
Answer
(C)
when personal income tax is deducted from personal income
9
Livestock production in West Africa is hindered mainly by
Answer
(D)
pests and diseases
10
The components of a three-sector economy are
Answer
(C)
households, firms and the government
11
A declining population is one in which the population is
Answer
(A)
experiencing a high rate of emigration
12
Which of the following agencies help to stabilize farmers' income?
Answer
(C)
Marketing boards
13
Other things being equal, an increase in supply will lead to
Answer
(A)
a fall in price and an increase in quantity bought and sold
14
Examples of joint stock banks are
Answer
(A)
commercial banks
15
Which of the following is not a characteristic of a developing country? High
Answer
(A)
real per capita income
16
Goods consumed out of habit have
Answer
(C)
inelastic demand
17
If the coefficient of price elasticity of demand is 0.1, demand is
Answer
(B)
inelastic
18
The profit of a producer is the difference between
Answer
(B)
total revenue and total cost
19
The rate of increase in utility is
Answer
(D)
marginal utility
20
The supply of tea is linearly presented as p = 0 . 2Q, where P is the price and Q is the quantity. What is P when Q = 25?
Answer
(D)
$ 125
21
Increase in supply due to changes in plant size will take place only in the
Answer
(B)
long run
22
The long - run average cost curve is made up of several short-run
Answer
(C)
average variable cost curves
23
Co-operative societies formed to market the output of their members are called
Answer
(B)
marketing co-operative societies
24
Money will serve as a standard of deferred payment if it is
Answer
(D)
stable in value
25
Due to an increase in price, a seller increases the quantity offered for sale from 400 units to 450units. What is the percentage change in quantity supplied?
Answer
(C)
12.5%
26
Which of the following will increase the nominal value of national income?
Answer
(D)
High rate of subsistence production
27
Cyclical unemployment is one associated with
Answer
(B)
trade fluctuations
28
Which of the following best defines inflation?
Answer
(C)
Persistent increase in prices
29
Perfect knowledge of events in a perfect market will be made possible by the existence of
Answer
(A)
many buyers and sellers
30
An increase in the price of a commodity from $10 to $ 15 leads to an increase in the quantity supplied from 10 units to 15 units. The price elasticity of supply is
Answer
(C)
1.
31
Economic development may be hindered if there is
Answer
(D)
rapid population growth
32
Which of the following types of unemployment results from changes in the pattern of aggregate demand ?
Answer
(D)
Seasonal unemployment
33
Which of the following is not a reason countries import goods?
Answer
(D)
The love for other nations
34
Provision of short-term loans to solve balance of payments problems is done by the
Answer
(B)
International Monetary Fund
35
West African countries are experiencing worsening terms of trade because
Answer
(A)
they are primary producers
36
Which of the following statements is correct?
Answer
(B)
The marginal utility is a always zero whenever the total utility reaches the maximum
37
A change in the quantity demanded of a given commodity is determined by the
Answer
(C)
price of the commodity
38
The likely implication of the devaluation of a country's currency is that
Answer
(A)
exports of such a country become cheaper
39
International trade is desirable because it
Answer
(C)
provides foreign market for local goods
40
A financial institution established for the purpose of providing specialzed services like acceptance of bills of exchange and equipment leasing is known as
Answer
(A)
Merchant Bank
41
Which of the following functions of money is mostly affected during inflation?
Answer
(C)
Store of value
42
Precautionary motive for holding money is to
Answer
(C)
cover unforeseen events
43
Which of the following measures will not encourage industrialization in West Africa?
Answer
(A)
Taking over of all forms of industries by the government
44
The concentration of many firms of a particular industry in a particular area is known as
Answer
(C)
localization of industries
45
Which of the following is not an effect of the discovery of mineral resources in an area?
