A.one country has more abundant resource
B.one country has the technology to produce the commodity whilst the other has not
C.one country has the maximum comparative advantage or minimum comparative disadvantage in the production
D.one country has manpower to produce the commodity than the country
E.All of the above

Objective

Question 0

By balance of visible trade we mean?

A.import and export of goods
B.import and export of service
C.balance of current account in the balance of payment
D.balance of capital account in the baalance of payment
E.all of this

Objective

Question 0

Nigeria earns the major part of her foreign exchange from the export of?

A.manpower to another countries
B.crude oil
C.petroleum products
D.groundnuts and cotton
E.palm oil and cocoa

Objective

Question 0

Which would you NOT consider an advantage of one-man business?

A.freedom of action
B.limited liabiities
C.Quick decision-making
D.Personal contact with customers
E.none o the albove

Objective

Question 0

The budget of Nigeria will be deficit if

A.revenue expenditure exceeds the revenue receipts
B.capital expenditure exceeds the capital receipts
C.revenue and capital receipts exceeds revenue and capital receipts
D.the government is spending more than its receipts
E.all of the above

Objective

Question 0

An economic problem arises when?

A.manufactured goods are in short supply
B.money is in short supply
C.buyers are many
D.sellers are few
E.scarcity and choice are involved

Objective

Question 0

By subsistence production we mean?

A.goods and services are produced for consumption only
B.goods and services are sold to others
C.raw materials are produced in the country
D.goods and services are produced for the market
E.none of these

Objective

Question 0

Division of labour means?

A.the labour is divided into different section
B.the work is divided into different parts to be completed by each labour
C.production is completed by the different department of a factory
D.commodities are produced at different times by a single labourer
E.the labour force in the country is not united

Objective

Question 0

A limited liability company is owned by?

A.an individual
B.two or more partners
C.shareholders
D.government
E.a bank

Objective

Question 0

If the price of a commodity falls and the quantity purchased of it does not rise, the commodity can be described as

A.normal
B.abnormal
C.inferior
D.superior
E.scarce

Objective

Question 0

Mr.A earns N300 and pays N15 in tax. Mr. B earns N100 and pays N6 in tax. This tax system can be described as?

A.proportional tax
B.progressive tax
C.competitive tax
D.excise tax
E.regressive tax

Objective

Question 0

Which sector can you say is growing fastest in the Nigeria economy?

A.Agriculture
B.Industry
C.Education
D.Transport
E.Labour

Objective

Question 0

Which is NOT a method of raising capital funds in Nigeria?

A.Borrowing from abroad
B.Internal borrowing
C.Nigerianization of foreign companies
D.Gifts from abroad
E.Saling government bonds

Objective

Question 0

If a firm doubles its output and its cost increase by 60%, the firm is experiencing

A.increase cost
B.economies of scale
C.decreasing returns
D.decreasing cost
E.none of the above

Objective

Question 0

The fundamental problem of Economics is?

A.money
B.poverty
C.unemployment
D.the scarcity of resources relative to wants
E.inflation

Objective

Question 0

If you do not have to give anything in order to get a particular thing, then its opportunity cost is?

A.zero
B.not measurable
C.its price in money
D.infinite
E.equal to one

Objective

Question 0

Which of the following is the standard concept for measuring and analyzing population growth?

A.The rate of natural increase
B.The net migrate
C.The rate of population increase
D.The fertility rate
E.All of the above

Objective

Question 0

When we draw a market demand curve, we?

A.ignore tastes, incomes and other prices
B.assumes that tastes, income and prices do not matter
C.assumes that taste, income and all other prices change in same direction as prices
D.assume that tastes, incomes and all other prices remain constant
E.both A and B above

Objective

Question 0

Capital earns income because?

A.it is productive
B.it is expensive
C.it is always cheaper to substitute capital for labour
D.it is technically more efficient than labour
E.both A and B above

Objective

Question 0

In a free market economy, the rationing of scarce goods is done principally by

A.the government
B.business organizations
C.the price mechanism
D.consumers
E.both A and B

Objective

Question 0

A disadvantage of the corporate form of business is the?

A.risk of the owners of loss of personal effects if the business should fail
B.ability of the corporation to is financial resources
C.limited life span of the corporation
D.problems presented by separation ownership from control
E.None of the above

Objective

Question 0

The value of money depends primarily on?

A.the gold backing of the currency
B.the gold backing of both currency and deposit
C.the general price level
D.government decree that it is legal tender
E.none of the above

Objective

Question 0

A commercial bank is able to create money

A.by printing it
B.by maintaining reserve
C.by creating a demand deposit as it gives a new loan
D.by issuing cheques to depositors
E.by borrowing from the central bank

Objective

Question 0

Which of the following is NOT one of the balance of payment entries?

A.the current account
B.foreign exchange
C.Import and Export duties
D.Short-term capital
E.Long-term capital

Objective

Question 0

Which of the taxes appear generally progressive in nature?

A.Sales taxes
B.The personal income tax
C.Property taxes
D.Corporation taxes
E.none of the above

Objective

Question 0

In a subsistence economy?

A.there is no shortage of goods and services
B.the state is the sole owner of resources
C.production is largely oriented towards consumption in the rular sector
D.there is no exchange of goods and services
E.women predominate in all economic activities

Objective

Question 0

In a normal (typical) demand schedule, the quantity demand is?

A.directly related to price
B.inversely related to price
C.independent of price
D.proportional related to supply
E.solely dependent on haggling skill

Objective

Question 0

Division of labour is limited by the?

A.available of raw materials
B.size of the labour force
C.size of a labour firm
D.absolute size of the country's population
E.per capital income and number of potential buyers

Objective

Question 0

In a limited liability company, the greatest risk is borne by?

A.debenture holders
B.company executives
C.ordinary shareholders
D.preference shareholders
E.borad of directors

Objective

Question 0

Which of the following is NOT a function of Nigeria commercial Banks?

A.Acceptance of deposit
B.Lending of money
C.Investment in securities and business
D.Issue of currency
E.Selling and buying of travellers cheques

Objective

Question 0

In Nigeria, cheques are not money because?

A.their use is confined to business houses
B.there are no banks in rular areas
C.they are not legal tender
D.they are not generally acceptable as a medium of exchange
E.most Nigerians cannot identify them

Objective

Question 0

Indicate which of the following are invisible trade items in a country’s balance of payments?

A.oil exports and imports
B.Gold and foreign reserves
C.foreign investment
D.Dividends and profit
E.Expenditure on the shipping and tourism

Objective

Question 0

Which of the following is NOT a measure for controlling inflation?

A.Reduction in money supply
B.Wage restraint and wage freeze
C.Reduction in taxes and increase in government spending
D.price control
E.Credit restriction

Objective

Question 0

Which of the following is NOT a determinant of changes in supply?

A.Changes in the cost of production
B.Technical progress
C.Weather
D.Changes in the number of producers
E.Changes in the number buyers

Objective

Question 0

The marginal physical product of labour is?

A.the out put of labour unaided by machinery
B.the extra revenue from the output of one additional woker
C.the difference in the output of two workers
D.additional output achieved when one extraworker is added to fixed account of other factors
E.none of the above