Question 1 of 20 4,545 total questions
In economics, production is complete when
A Goods are produced in the factory
B Goods are sold to the wholesalers
C Goods and services are produced by the government
D Prices are fixed for goods and services
E Goods and services finally reach the consumer
The optimum population of a country is reached when
A All factor of production have been fully employed
B The productive effort per man is at its highest with a given volume of resources
C The total population of a country increases
D The natural resources of a country increases
E The working population of a country increases
Which of these would NOT increase population of a country
A Increase in death rate
B Decrease in birth rate
C Emigration
D Migration
E Better medical facilities
Which of the following is NOT strictly included In the study of economics?
A The study of wants
B The study of choice
C Whether a particular want satisfies a good or bad purpose
D The study of scarcity
E The study of substitution
Which of the following activities of government precludes the existence of a market economy?
A The imposition of taxes
B The control of the location of industry
C The central planning of production
D The fixing of maximum price for all necessities
E The establishment of law requiring the registration of business firms
Which of these should determine, in a planned economy how the factor of production are to be allocated among different production activities
A Fairness
B The distribution of income and wealth
C Public need which is determined by the government
D Private needs determined by the market
E The ability of individual to make profit
The advantage of sole proprietorship is as follow
A It is always successful
B Continuity is no problem
C Control and supervision is under one man
D Funds are easy to obtain
E Inter-generational equity is assured
In order to build up its capital stock, the typical less developed country should ideally
A Increase total saving
B Depend on hand-out from foreigners
C Impose tariff on import
D nationalise all foreign concern
E None of the above
By ‘trade by barter’, we mean
A Trade done by people in the village
B Exchange of goods for money
C International trade
D Exchange of goods for goods
E The trade of the middle ages
Less developed countries obtain foreign exchange reserve mainly from the export of
A Manufactured goods
B Processed and semi processed commodities
C Invisible items
D Primary product
E All of the above
Which of the following is a term used to describe a payment representing a surplus in excess of transfer costs?
A Interest rates
B Opportunity costs
C Economic rent
D Indirect costs
E Wages
Which of the following item in the balance of payment of account is an invisible transaction?
A Import of cars
B Export of cocoa
C Export of crude petroleum
D Tourism
E Import of building materials
If the consumer demand for product X increases as the price of product Y decreases we can be fairly certain that X
A X and Y are complementary commodities
B X and Y are substitute goods
C X and Y are independent goods
D X and Y are jointly supplied
E X and Y are inferior commodities
Opportunity cost is a term which describe
A The initial cost of setting up a business venture
B Cost of one product in terms of foregone production of others
C The monetary equivalent of the utility of commodity
D Cost related to an optimum level of production
E Implicit cost
Economics is called a social science because it is
A A branch of social studies
B A study of the ways man devises to satisfy his unlimited wants from unlimited resources
C A dismissal science in the Malthusian sense
D Governed by scientific law
E The study of human wants by the means of scientific method of observation
Which of these would not be included in the fundamental principle of a free enterprise economy
A Private ownership of factors of production
B The right to organize factor for production purposes
C The right to make private profit
D Government control of mobility of factor of production
E Government effort to encourage competitive capitalism within the law of the country
If the demand of a product with perfectly elastic supply increases, there will be
A An increase in price and quantity offered
B An increase in quantity offered but price will remain the same
C A reduction in price and quantity offered
D An increase in price but a reduction in quantity offered for sale
E An increase in quantity offered but a reduction in price
The expression ‘terms of trade’ is used to describe
A Quality of export
B The direction of foreign trade
C Terms of purchase on deferred payment basis
D The rate at which export exchange for imports
E Import licensing
Which of the following sector of the economy is estimated to be the largest employer of labour in the country
A Construction
B Agriculture
C Distribution
D Mining and petroleum
E Transport and communication
As consumption of beer increases, its marginal utility to a drinker will
A Increase
B Remain constant
C Fluctuate
D Decrease
E Change proportionally
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