16.
Use the table below to answer the question below;
The international production set for Nigeria and Austria is;
Products | Nigeria | Austria |
Cocoa | 20 tonnes | 12 tonnes |
Lace | 1o metres | 8 metres |
From the table, it can be deduced that_______
- A. Nigeria should produce cocoa and lace
- B. Nigeria can benefit from producing lace only
- C. Austria should produce lace and Nigeria should produce cocoa
- D. Austria should produce cocoa and lace
17. The PAYE ( Pay As You Earn) in Nigeria is an example of ______
- A. Flat rate Tax
- B. Community tax
- C. Regressive tax
- D. Progressive tax
18. A good measure of the standard of living usually used for international comparison is_______
- A. Per capita income (PCI)
- B. Gross national product (GND)
- C. Net national income (NNI)
- D. Gross domestic product (GDP)
19. What is the most important factor influencing the location of the iron and steel industry at Ajaokuta?
- A. Availability of labour in the area
- B. Availability of power
- C. Nearness of raw material
- D. Access to transport facilities
20. The Power Holding Company of Nigeria (PHCN) is a ________
- A. Public limited company
- B. Private authority
- C. Public Corporation
- D. Public Liability company
21. Which of the following is NOT a character of perfect competition?
- A. Supply and demand are equal
- B. Products are identical
- C. There is perfect knowledge
- D. There is no advertising
22. Inflation is likely to benefit_______
- A. Debtors
- B. Persons with back savings
- C. Creditors
- D. Persons who lived on fixed pension funds
23. When a nation’s exports are greater than its imports,_________
- A. The net foreign trade is zero
- B. A favourable balance of trade exists
- C. A favourable balance of payment exists
- D. An unfavourable balance of trade exists
24. Surplus in balance of payments leads to ________
- A. Government budget surplus
- B. Increase in foreign reserves
- C. Decrease in foreign reserves
- D. None of the above
25. Economics may be defined as ________
- A. The study of human behaviour in the allocation of scarce resources
- B. The study of money and banking
- C. The study of markets and prices
- D. The study of production and distribution
26. Money becomes a very poor store of value in a period of _______
- A. Harvest
- B. Deflation
- C. Recession
- D. Inflation
27. In Nigeria, cheques are not money because________
- A. Most Nigerians cannot identity them
- B. They are not legal tender
- C. There are no banks in rural areas
- D. They are not generally acceptable as a medium of exchange
28. Division of Labour is limited by the________
- A. Size of labour firm
- B. Availability of raw material
- C. Size of the labour force
- D. Absolute size of the country’s population
29. The value of money depends primarily on _________
- A. The gold backing of the currency
- B. The general price level
- C. Government decree that it is legal tender
- D. None of the above
30. In a free market economy. the rationing of scarce goods is done principally by_______
- A. Consumers
- B. The government
- C. The price mechanism
- D. All of the above
