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A major obstacle to the development of Nigerian economy is _______

A. low capital formation   B. rural-urban migration   C. over dependence on oil    D. poor developmental policies.


Liquidity preference refers to the ______

(A) need to borrow money for short periods to meet some temporary crises
(B) wish to hold more funds for precautionary purposes
(C) need to increase the money supply in order to lower the interest rate
(D) demand to hold money as assets rather than as stocks.

The best measure of dispersion to determine the tallest tree in a forest is _______

A. range   B. variance   C. standard deviation   D. mean deviation.


The term ‘Near money’ is best described as _______

A. a financial instrument that is readily convertible to cash
B. government financial instrument that is-convertible to cash
C. time deposits with low interest rates
D. a financial asset that is convertible to cash


IBRD as an international monetary institution is concerned with the ______

A. improvement of trade among member nations
B. development of infrastructure in member nations
C. balance of payments problems of member nations
D. financing of private businesses in member nations.


Trade takes place because of ______

A. marginal utility    B. inefficiency in production    C. opportunity cost    D. comparative advantage


Which of the following yields more revenue to Nigeria?

(A) value added tax  (B) royalties   (C) direct tax   (D) indirect tax.


A country embarks on deficit financing in order to ______

A. increase revenue   B. reduce aggregate demand   C. curb inflation   D. stimulate investment.


If there is an increase in demand without a corresponding increase in supply, there will be a _____

A. rise in price   B. shift in demand curve to the left   C. fall in price   D. shift in supply curve to the right


A major determinant of a floating exchange rate is ______

A. the highest denomination of the currency
B. an ACT of parliament
C. the system of government
D. the forces of demand and supply.


A perfect competitor will continue to expand output up to the point where ______

A. TC > TR    B. MR = AR   C. MC < MR    D. MC > MR



From the table above, calculate the price elasticity of supply.

A. 0.50   B. 0.80   C. 2.00   D. 1.25


One of the major criticisms of the 1962-1968 National Development Plan was that _____

A. it failed to incorporate lessons gained from earlier plans to enhance its efficiency
B. it came too quickly after the country’s independence
C. planned expenditure was based too heavily on expected earnings from crude oil
D. its execution was based largely on foreign sourced financial resources.


A rightward shift of the budget line is caused by a _______

A. fall in consumer income
B. change in consumer taste
C. fall in the commodity relative price
D. rise in the commodity relative price.


If goods p and Q are purchased by a consumer, a fall in the price of P with the price of Q unchanged will cause the budget line to _____

(A) shift parallel inwards
(B) rotate outwards away from the origin
(C) rotate inwards towards the origin
(D) shift parallel outwards.


The benefits that accrue to a firm as a result of an improvement in the industry it belongs to are called _____

(A) internal economies of scale
(B) economies of scale
(C) market economies
(D) external economies of scale.


In capitalist economies, questions about what to produce are ultimately answered by ______

A. income level of households
R. available technical skills in the economy
C. output decisions of firms
D. spending decisions of households.


In national income accounts, an item counted as part of government spending is ______

A. salaries and wages    B. pension   C. scholarship   D. social welfare.


An inflation that co-exists with high rate of unemployment is _______

A. hyperinflation   B. stagflation   C. demand pull inflation   D. cost-push inflation.


The labour force of a country is determined by the ______

A. age structure of the population
B. geographical distribution of the population
C. sex distribution of the population
D. number of people available for work.


The import-substitution strategy of industrialization is to encourage _____

A. domestic production    B. large-scale production    C. importation   D. exportation.


One of the challenges facing the banking industry in Nigeria is _______

A. ensuring technological security
B. providing employment
C. providing loans for investment
D. creating more money.


Wage freeze is a policy measure aimed at _______

A. encouraging investors   B. curbing inflation   C. regulating standard of living   D. curbing deflation


If real income increases while nominal income remains the same, it can be inferred that _____

A. unemployment rate has decreased
B. general prices have fallen
C. employment rate has risen
D. general prices have risen


The equilibrium wage in an economy is determined by the ______

(A) public service   (B) workers’ union   (C) rate of inflation   (D) supply and demand for labour.


The short-run average variable cost of a firm will rise owing to ______

A. the expansion of factory space
B. the building of new warehouses
C. an increase in the cost of labour
D. an increase in the salaries of directors.


An increase in the circulation of money without a corresponding increase in output will lead to _____

A. a rise in income levels   B. stagflation   C. deflation   D. inflation.


An advantage of the sole proprietorship over the partnership form of business is that _____

A. its existence is limited by an individual’s life span
B. it relies on the decision of friends to succeed
C. the possibility of conflict in management is virtually non-existent
D. it enjoys limited liability for debt in the event of failure


The demand for labour is an example of _____

A. composite demand   B. joint demand   C. derived demand   D. competitive demand


The record of a country's transaction in international trade is her _______

A. capital account    B. balance of payments   C. current account    D. balance of trade.


An accurate population census is important in order to ________

A. produce more food for the growing population
B. provide employment opportunities for the people
C. estimate a country's per capita income
D. fast track industrial development.


Agricultural production in Nigeria is constrained by _____

A. ineffective use of stabilization measures
B. inadequate demand
C. poor implementation of policies
D. balance of payments deficits.


A country is said to be overpopulated when _____

A. the resources are more than enough to cater for the population
B. the size of the population is greater than the annual budget
C. the resources are inadequate to cater for the population
D. there are too many able-bodied men and women in the country.


The distinction between capital and recurrent expenditure lies in the organization ______

A. nature of the goods and services to be provided
B. time frame of the expenditure
C. source of the revenue generated
D. amount of expenditure involved.


One way of correcting the balance of payments problem of a country is to ______

(A) introduce import-promotion measures
(B) buy investments abroad
(C) devalue the currency
(D) de-emphasize import-substitution industries.


The profit of a monopolist can be eliminated where price equals ______

A. AFC   B. MC   C. AC   D. AVC.


Which of the following can be used to measure the Gross National Product in an open economy?

A. C + l + G + (X + M)   B. C + I + G + X   C. C + I + G   D. C + I + G + (X - M)



If the country is currently producing at point Y, it can increase production of producer goods by _____

A. W   B. X   C. Z   D. V


Given a base year and the price index of 175% the following year, which of the following will arise?

A. The cost of living decreases in that year
B. The cost of living remains unchanged
C. The value of money rises by 75%
D. The value of money falls by 75%.



From the table above, the price elasticity of supply is _____

A. 4   B. 25   C. 1   D. 2.


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