16. The law of diminishing marginal utility indicates that if a consumer increases his consumption of a commodity continuously
- A. total utility must fall
- B. marginal utility must fall
- C. marginal utility may rise
- D. marginal utility may fall even though his total utility may be rising
17. Which of the following rewards is associated with entrepreneurship
- A. salaries
- B. profits
- C. interest
- D. rent
18. Which of the following is likely to be inflationary?
- A. taxes increase
- B. increase in unemployment
- C. budget surplus
- D. wages increase
The relationship between the tax rate and income which is relevant to progressive tax is shown by?
- A. curve X
- B. curve Y
- C. curve Z
- D. curve X and Z
20. The relationship between tax rate and income which is relevant to a proportional tax is depicted by?
- A. curve Z and Y
- B. curve X
- C. curve Z
- D. curve Y
21. Fiduciary issue is that part of?
- A. the issue of notes backed entirely by gold
- B. a country’s currency that is not negotiable
- C. the issue of notes not backed by gold
- D. a country’s currency officially issued
22. The type of business finances that entitles the holder to a fixed rate of dividend is?
- A. preference stock
- B. common stock
- C. debentures
- D. bank loan
23. A company’s expenditure on raw materials is regarded as?
- A. explicit cost
- B. implicit cost
- C. prime cost
- D. average cost
24. Firms are often set up close to each other in order to take advantage of?
- A. supply of skilled labour
- B. agglomeration economies
- C. internal economies of scale
- D. external economies of scale
25. A situation in which a commodity is sold abroad below its cost of production in the home country is known as?
- A. dumping
- B. counter trade
- C. bilateral trade
- D. trade liberalization
26. The problem of conducting census include
- A. high rate of rural-urban migration
- B. poor geographical distribution of population
- C. high birth rate in the country
- D. poor town planning in urban areas
27. The factor of production that has the highest degree of mobility is?
- A. land
- B. labour
- C. capital
- D. entrepreneur
28. In recent times, agriculture in Nigeria tends to lose its vital labour force as a result of?
- A. lack of an effective agricultural policy
- B. employment opportunities in the agricultural sector
- C. rural-urban drift
- D. low prices of agricultural products
29. The most important goal of OPEC is to?
- A. present a united front for the purpose of raise prices of crude oil
- B. bring unity among the petroleum exporting countries
- C. ensure political stability among member states
- D. ensure that rules on quota production are strictly followed
30. Plywood industries are often located near the source of?
- A. finance
- B. labour
- C. power supply
- D. raw materials