Question 1 of 20 2,540 total questions
Divorce of ownership from control is a characteristic of?
A sole properitorship
B a limited liability company
C partnership
D a private limited company
A major difference between a state-owned enterprise and a private enterprise is that the former?
A is not expected to cover its costs of production while the latter is
B is not always expected to maximize profits while the latter is
C has shareholders while the latter does not
D has a board of directors while the latter does not
Which of the following reasons could induce a manufacturer to bypass the wholesaler in the distribution chain?
A To provide the quantity needed by retailers
B To collect useful information on his product
C To provide warehousing facilities
D To violate government regulation on distribution
In the distribution channels for goods and services, the middleman's mark-up margin provides a rough measure for the ?
A quantity discounts allowed final consumer
B reward for business enterpreneurship
C effectiveness of government control over the economy's marketing channels
D extent of exploitation of the final consumer
Which of the following is the major function of the wholesaler?
A Bulk breaking
B Provision of useful information to th manufacturer on products
C Provision of after-sales services to consumers
D Provision of warehouse facility
Which of the following is applicable to a monopolistic firm operating at the output where marginal cost equals marginal revenue?
A Cost of production is at a medium
B The plant is of optimum size
C Price is above marginal revenue
D Average variable cost is at a minimum
The tailoring services is competitive partly because it consists of a large number of?
A large-scale enterprises
B medium scale enterprises
C small scale enterprises
D government-owned enterprises
An imperfect market in which there is only one buyer of a commodity is?
A monopsony
B oligopoly
C monoploy
D duopoly
The demand for a product is said to be price inelastic if?
A the price elasticity of demand is less than one
B the price elasticity of demand is greater than one
C a reduction in price results in increase in the quantity demanded
D an increase in price results in a decrease in the quantity demanded
If an increase in income induces a reduction in the demand for beans, beans can be referred to as?
A a normal good
B an inferior good
C a substitute good
D a giffen good
Technical progress that leads to a reduction in costs results in?
A an increase in equilibrium price and quantity
B a decrease in equilibrium price and quantity
C an increase in equilibrium price and decrease in equilibrium quantity
D a decrease in equilibrium price and increase in equilibrium quantity
The law of diminishing marginal utility indicates that if a consumer increases his consumption of a commodity continuously, his?
A total utility must fall
B marginal utility must fall
C marginal utility may rise even though his total utility is falling
D marginal utility may fall even though his total utility may be rising
A situation in which all inputs are doubled and output also doubles is known as?
A constant proportions
B constant returns
C increasing returns to scale
D constant returns to scale
At the point of profit maximization by a firm, marginal cost is?
A minimum
B falling
C constant
D rising
Economics of scale operate only when?
A marginal cost is falling with input
B average cost is falling with output
C fixed cost is variable
D variable cost is less than fixed cost
A firm achieves least-cost in production by substituting factors until?
A their prices are equal
B the ratio of their marginal -physical-products equals the ratio of their prices
C their marginal -physical-products are each equal to their factor prices
D their marginal -physical-products are each equal to zero
Which of following rewards is associated with entrepreneurship as a factor of production?
A Salaries
B Profit
C Interests
D Rents
One of the major advantages of specialization is that?
A the worker becomes a tenderer of machines
B it causes more employment of labour
C less machinery is required for production
D the worker wastes less time between operations
In economic life, choice among alternatives depends on the?
A income of the decision maker
B scarcity of resources
C scale of preference of the decision maker
D status of the decision maker
If one orange costs 20k and one kilogram of beef costs N10.00, the opportunity cost of one kilogram of beef is?
A 50 oranges
B 10 oranges
C 5 oranges
D 9.80
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