Question 1 of 20 91 total questions
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
The size of a business units tends to be small if the activity?
A involves mass production of goods
B requires a large capital
C requires division of labour
D involves the provision of direct services
One of the purposes of advertisement in marketing is to?
A change the quality of the product
B raise the quantity of the product demanded as its price falls
C shift the demand curve for the product to the right
D raise production cost
which of the following is an important function of the retailer?
A Grant credit to the wholesaler
B Breaks bulk and sales product in small units
C Reduces cost of distribution
D Generates demand for production through advertisement
The merging of firms engage in different stages of production and marketing is called?
A external economies of scale
B vertical intergration
C horizontal intergration
D economic unoin
For purely competitive industry, a fundamental requirement of the demand curve faced by individual firms is that it should be?
A downward sloping and price inelastic
B perfectly price elastic
C downward sloping but price inelastic
D perfectly price inelastic
In order to increase its profit margin, the monopolist can manipulate
A both price and output
B either price or output
C only its price
D only its output
The marginal theory of distribution makes an assertion that the price of any factor depends upon its marginal?
A utility
B productivity
C rate of substitution
D revenue
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