Question 1 of 20 86 total questions
Land is often different from other factors of production because it
A is a free gift of nature
B constitutes one-third of the entire world
C has different grades
D is owned bt individuals
E is owned by government
The situation where government revenue in a fiscal year is less than its expenditure is referred to as
A budget deficit
B balanced budget
C budget surplus
D budget statement
E unfavourable budget
The situation where government revenue in a fiscal year is less than its expenditure is referred to as
A budget deficit
B balanced budget
C budget surplus
D budget statement
E unfavourable budget
indirect tax are taxes which
A are levied on the income and profit of the individuals and firms
B always affects the producer only
C are bassed on the progressive principles
D are based on the regressive principles
E are levied on goods and services purchased by individuals and firms
inflation caused by increase in demand is known as
A cost-push inflation
B hyper-inflation
C demand-pull inflation
D creeping inflation
E runaway inflation
which of the following is not the function of a commercial bank
A accepting deposits from the publicv
B serving as banker to the government
C lending to the public
D safekeeping of valuables
E undertaking foreign exchange transaction of customers
Money supply is the
A currency available in the banks
B currency in circulation and time deposits
C currency in circulation and saving deposits
D currency in circulation and demand deposits
E money scarcity
when price of a commodity is fixed by the law either below or above the equilibrium, the mechanism is known as
A price discrimination
B price control
C perfect market
D equilibrium price
E market structure
A market condition where profit is maximized when MR = AR = MC = P is known as
A monopoly
B oligopoly
C monopsony
D perfect competition
E duopoly
Which of the following will increase the GNP of an economy?
A increase government expenditure on the salary of the civil serants
B An increase in the proportion of the productively employed population
C a decrease in the rate of unemployment
D A decrease in the output per worker
E An increase in the population dependency ratio
A change in supply implies a
A shift in the supply curve to the right and not to the left
B shift in supply curve to the left and not to the right
C shift in supply curve to the left or to the right
D movement along the supply curve
E decrease in price and quantity supplied
The greater burden of the taxes on essential goods is borne by
A the middle income group
B high income group
C low income group
D people between the middle and high income group
E few top rich people
The comparative cost of doctrine of international trade means specialization in production according to
A absolute cost advantage
B absolute cost disadvantage
C comparative cost disadvantage
D comparative cost advantage
E the availability of labour
which of the following is not a good reason for the importation of agriculture in West African countries? it
A employs about 60% of the people
B provides the highest tax revenue
C is a major foreign exchange earner in most of the countries
D provides the raw materials for all import-substitution industries
E provide raw materials only for foreign industries
the largest part of the revenue of a country is derived from
A direct taxation
B indirect taxation
C excise duties
D company taxes
E non-tax revenue
Proportional tax is a tax whose
A percentage rate remains constant as the tax base increases
B percentage base increases as the tax base increases
C percentage rate decreases as the tax rate increases
D percentage rate fluctuates as the tax base increases
E burden falls heavily on consumer
Which of the following is not function of central bank
A Banker to the Government
B Banker's bank
C Acceptance of deposit from the public
D Responsibility for monetary policy
E Lenders of last resort
Which of the following is not a negative effect of inflation
A Lenders earn less
B Pensioneers and salary earners on fixed income suffer
C Exports tends to decline
D Savings are discouraged
E Borrowers tends to gain
Which of the following is not characteristics of a perfect competition ?
A many sellers and buyers are in the market
B there is perfect knowledge of the market situation
C supply and demand are equal
D there is no discrimination
E Products are identical
Near Money is made up of
A very liquid asset which can be easily converted into money
B currency in circulation and demand deposit
C note and coins
D fixed assets which cannot be converted into money
E the total money supplied in the economy
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