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