Question 1 of 20 4,545 total questions
International and inter-regional trade differ primarily because?
A comparative advantage is relevant to the former but not to the latter
B products flow across national boundaries
C there are different resources supplies among countries of the world
D of regulation from GATT
The law of comparative advantage states that a country should specialize in the production of a commodity
A for which local demand is greatest
B in which its oportunity cost is lower than that of the trade partner
C for which foreign demand is greatest
D for which there is abundant supply of raw materials
By using exchange controls, a country tries to eliminate a balance of payments deficit by?
A limiting her imports to its currency value of exports
B reducing the nation's domestic price level
C limiting her exports to its currency value of imports
D overvaluing the country's currency
A balance budget is defined as a condition of?
A balance of payments equilibrium
B equality of planned aggregate demand supply
C equality of planned receipts and planned expenditure
D equality of planned exports and planned imports
A perfect example of a public good is?
A air
B education
C water
D transport
The main objectives of public expenditure does NOT include?
A stabilization of national economy
B achievement of a more equitable income distribution
C meeting the social needs of the people
D revenue sharing and profit maximizationn
The three groups of government revenue are?
A investment income, direct tax and indirect tax
B imports duties, excise tax and export duties
C company tax, personal income tax and import duties
D company tax, import duties and excise tax
Government intervention in an economy is often justified on the group that?
A wants are unlimited while resources are scarce
B productivity is higher in the public than in the private sector
C free market may not work, or produce desirable results
D opportunity cost of government expenditure is zero
A tax is defined as regressive if?
A the proportion of income paid as tax increase as the income level increases
B all income group pay the same percentage of their income as tax
C the proportion if income taen by the tax falls as income increases
D the proportion of income taken by the tax is a fixed nominal amount of income for all income groups
Commercial bank reserves at the Central Bank have the effect of?
A controlling credit and money supply
B discouraging banking operations
C advancing trade prospects
D reducing bank frauds
The stock exchange market is where?
A businessmen borrow some capital
B the federal government trades on treasury bills
C existing bonds and stocks are traded
D new stocks and shares are bought or sold
Cost-push inflation is caused by?
A growth of government expenditure
B increase in factor prices
C increase in money supply
D hoarding
A major factor affecting the value of money is the?
A price level
B banking habit
C transaction motive
D divisible nature of money
The term 'double coincidence ' of wants is usually associated with a?
A bilateral exchange mechanism
B monetary exchange mechanism
C stock exchange system
D barter exchange mechanism
Industries that can be randomly located are characterized by?
A relatively low transport cost for both raw materials and output and factor mobility
B relatively heavy transport cost for raw material or output
C constant returns to scale
D signficant economy of scale
A company is said to be highly geared if the?
A value of fixed interest loans is high compared with share capital
B Value of shared capital is high compared with fixed interest loans
C dividend rate is high
D interest rate is high
Which of the business organization listed below is characterized by limited authority and liability of the individual owners?
A Sole properitorship
B Partnership
C Joint stock company
D Co-operative society
The type of business finance that entitles the holder to a fixed rate of dividend is?
A perferred stock
B common stock
C debenture stock
D bank loan
The co-operative as a form of business organization differs from partnership by having?
A serveral sources of capital for business financing
B ability to issue preferred stocks to members
C entrenched democratic control in the conduct of business
D established rules and regulations governing the activities of its members
Which type of business organization has the attribute effectively combining management with control?
A sole proprietorship
B Partnership
C Limited liability company
D Co-operatives
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