31. Holding money to take care of contigencies is?
- A. a speculative motive
- B. a transaction motive
- C. a precautionary motive
- D. an expansionary motive
32. If a housewife has meat and tomatoes, she must find someone who wants meat and has tomatoes to give. this concept is described as?
- A. opportunity cost
- B. scale of preference
- C. complementary demand
- D. double of coincidence of wants
33. The stock exchange is an example of the?
- A. labour market
- B. money market
- C. commodity market
- D. capital market
34. What happens when the central bank increases bank rate in an economy
- A. borrowing is discouraged
- B. customers increase their borrowing
- C. banks can increase their lending
- D. money supply increases
35. Income is redistributed when the rich are progressively taxed and?
- A. more private schools are established
- B. subsidy is provided on petroleum products
- C. more public goods are provided
- D. farmers are given guaranteed prices
36. in order to increase revenue, government should tax commodities for which demand is?
- A. perfectly price inelastic
- B. price inelastic
- C. price elastic
- D. unitary elastic
37. Which of the following activities will not lead to economic growth?
- A. massive importation of capital goods
- B. intensive capital formation locally
- C. use of modern technology
- D. massive importation of consumer goods
38. The poorer the country, the larger the percentage of labour force engaged in?
- A. Agricultural
- B. mining
- C. trading
- D. manufacturing
39. Which of the following measure can be adopted to stabilize the external value of the local currency?
- A. reduce the volume of export
- B. increase the demand for imports
- C. increase domestic money supply
- D. reduce the demand for imports
40. Which of the following is not a measure for reducing balance of payments deficits?
- A. export drive
- B. reducing tarriffs
- C. adding to export goods
- D. increasing local production
