UNICAL Economics 2007/2008 Past Questions

Practice each question, then open it to see the full details.

Land is a most significant factor in terms of contribution to the economy because

A.it enables us to build industries
B.we build house on it
C.all our highways are constructed on it
D.vital resources it enrich economy

All of the following are assets of a commercial bank except

A.cash
B.bills discounted
C.bank deposits
D.advances to customers

The quantity theory of money state that an increase in the quantity of money would bring about

A.a geometric rise in prices
B.an unequal rise in price
C.a proportionate rise in price
D.an absolute rise in price

Under the socialist economy, the decision on what to produce is determined by the

A.producers
B.level of expected profit
C.price
D.government

Terms of trade simply means the price

A.ratio of import to export
B.ratio of export multiplied by import
C.ratio of export to import
D.ratio of export multiplied by price ratio of import

In perfect competition, the marginal cost curve intersects the average cost curve

A.from below at its lowest point
B.from above at its lowest point
C.from below before the lowest point
D.at the zero point

International trade takes place because of differences in

A.production cost
B.language
C.government
D.currency

One major aim of a cartel is

A.increase production
B.regulate output through quota system
C.have a joint account
D.share profits equally

Which of the following does not hinder the efficient distribution of goods in West Africa?

A.inadequate transportation network
B.inadequate storage facilities for agricultural goods
C.inadequate credit facilities for potential distributors
D.government participation in the distributive trade

Which of the following is not a negative effect of inflation?

A.lenders earn less
B.pensioners and salary earners on fixed incomes suffer
C.exports tend to decline
D.savings are discouraged