QUESTIONS
- A furniture manufacturing company merges with o cosmetic producing company. This type of merger is described as:
a) Horizontal integration
b) Diversified integration
c) Forward vertical integration
d) Backward vertical integration - A rise in the price of raw materials causes a rise in the general price level. This is a description of:
a) Creeping inflation
b) Inflationary spiral
c) Demand pull inflation
d) Cost push inflation - Which of the following is a reason for conducing a population census?
a) To know the cost of conducting a census
b) To reduce the level of illiteracy
c) To help distribute social amenities
d) To increase government revenue - One main characteristic of of wealth is :
a) It can be owned by the rich only
b) It can be owned by businesses only
c) It is limited in supply
d) It is made up of consumer goods - A deliberate reduction in the value of a country's currency in relation to others is called:
a) Devaluation
b) Depreciation of currency
c) Appreciation of currency
d) Revaluation - One factor that will cause the demand curve to shift to the right is :
a) A fall in population
b) Increase in the price of factors of production
c) A fall in the price of substitutes
d) Successful advertisement - In a give year, a country had a population of 10000 people in January and during the year 300 people came in and 200 people went out. What is the net migration?
a) 9900 people
b) 100 People
c) 500 People
d) 10100 people - A household allocates the following amounts for its liquidity preference:
Transactions motive = 120000FCFA
Speculative motive = 30000FCFA
Precautionary motive = 50000FCFA
What is the active balance of this household?
a) 120000FCFA
b) 150000FCFA
c) 170000FCFA
d) 200000FCFA - In order to raise more revenue, government should impose high taxes on goods with:
a) Fairly elastic demand
b) Unit elastic demand
c) perfect elastic demand
d) Fairly inelastic demand - The price paid for labor services is known as
a) Time rate
b) Wage rate
c) Piece rate
d) Bonus rate - Which of the following factors will increase the size of the national income of a country?
a) Improvement in living standards
b) Increase in national output
c) Increase use of natural resources
d) Increase in government revenue - To reduce the amount of money in circulation, Government should:
a) Make use of funding
b) Reduce special deposit
c) Reduce the cash ratio
d) Sell securities in the open market - a debenture holder is one who has
a) Lent money to the company
b) A right to dividends from the company
c) Borrowed money from the company
d) Bought shares in the company - When the government desires to control inflation in an economy, what type of budget would she adopt?
a) Balance Budget
b) Surplus Budget
c) Deficit Budget
d) Programmed budget - Production is considered complete only when:
a) the goods arrive the market
b) factors of production are completely combined to produce goods and service
c) The finished product is realized in the factory
d) Goods reach the final consumer - Which of the following is an objective of the government?
a) Impose taxes and subsidies
b) Price stability and full employment
c) Apply open market operations
d) raise revenue - A disequilibrium in the balance of payment means
a) Overall imports exceeds exports in the Balance of payment
b) Overall capita outflows exceed capita inflows in the Balance of payment
c) Overall export exceeds imports in the Balance of payment
d) Overall deficit or surplus in Balance of payments - As the price of a commodity rises from 100FCFA to 150FCFA per unit. What will be the elasticity of supply?
a) 0.53
b) 1.5
c) 0.5
d) 0.05 - Which of of the following is an example of a direct tax?
a) Corporation tax
b) Sales tax
c) Excise duties
d) Value Added tax - In public corporations, the business losses are borne by :
a) Shareholders
b) Taxpayers
c) Debenture holders
d) Managers - Which of the following is a characteristic of a perfect market
a) Heterogeneous commodities
b) Preferential treatment
c) Homogenous commodities
d) Price fluctuation - Payment made to people for which there is no work done in the current period is known as
a) Income payments
b) Bonus Payments
c) Transfer Earnings
d) Transfer payments - Fiscal policy is a government measure to control the economy by using:
a) Revenue and expenditure
b) The demand and supply of money
c) The tax base and interest rate
d) The cash ratio and bank rate