22 reviewed questions with answers and explanations.
Practice selection: full-paper coverage has not been confirmed.
Scale of preference refers to
C: List of goods and services in order of priority
A scale of preference ranks goods or wants in order of priority. It helps a household choose which wants to satisfy first when resources are limited.
AI-reviewed · source checkedPopulation (million) and food production (million tonnes) are respectively50 and220;70 and210;90 and225;100 and275. Using maximum food output per person as the criterion, what is the optimum population in millions?
A: 50
Food output per person is220/50=4.4,210/70=3,225/90=2.5 and275/100=2.75 tonnes. Among the listed populations,50 million gives the highest output per person.
AI-reviewed · source checkedBy definition, variable cost (VC) is related to total costs (TC) and fixed cost (FC) by the equation.
B: VC = TC - FC
Total cost is fixed cost plus variable cost. Subtracting fixed cost from total cost therefore gives variable cost: VC=TC−FC.
AI-reviewed · source checkedThe higher the price fo capital relative tot he price of labour, the more production techniques should be
A: Labour-intensive
When capital becomes more expensive relative to labour, cost-minimising firms have an incentive to substitute labour for capital where technology permits. Production becomes more labour-intensive.
AI-reviewed · source checkedThe U-shape of the long-run average cost curve can be explained by
D: Concepts of economies and diseconomies of scale
Long-run average cost can fall because of economies of scale and later rise because of diseconomies of scale. Together they explain the conventional U-shaped long-run curve.
AI-reviewed · source checkedA singlet firm’s short-run total costs at outputs0,10,20,30 and40 are N1000,N1200,N1400,N1600 andN1800 respectively. What is variable cost per unit at an output of20?
D: N20
Fixed cost isN1000, the cost at zero output. At20 singlets, variable cost is1400−1000=N400. Dividing by20 gives average variable cost ofN20 per singlet.
AI-reviewed · source checkedIf demand is relatively inelastic and sellers are able ro raise the price of their commodity, then there will be a
B: Fall in the quantity demanded and a rise in total revenue
With inelastic demand, a price increase causes a smaller proportionate fall in quantity demanded. Price times quantity therefore rises, so total revenue increases while quantity demanded falls.
AI-reviewed · source checkedThe types of business finance that entitles the holder to a fixed rate of dividend is
A: Preferred stock
Preference shares commonly specify a dividend rate and receive priority over ordinary shares. Debt securities and bank loans pay interest rather than dividends.
AI-reviewed · source checkedFarmer’s income may fall if they produce more cash crops for export because
A: Foreign demand is inelastic
If export demand is inelastic, a larger supply can lower the export price proportionately more than quantity sold rises. Total sales revenue can then fall despite greater production.
AI-reviewed · source checkedMonetization refers to the ratio of
C: Monetary transactions to total transactions
Monetisation describes the extent to which transactions use money. The share of monetary transactions in total transactions expresses that extent as a ratio.
AI-reviewed · source checkedThe best way to reduce the supply of money in the economy is to
A: Increase the liquidity ratio
A higher required liquidity ratio can constrain banks’ lending capacity and monetary expansion. Liberalising credit or producing more notes does not provide the same contractionary mechanism.
AI-reviewed · source checkedUnder the narrow-money definition, the money stock includes cash
A: And current-account balances owned by the non-bank public
Narrow money includes currency held by the non-bank public and their transferable current-account deposits. Currency held inside banks is excluded to avoid counting the same money twice.
AI-reviewed · source checkedTo reduce the high rate of inflation in the economy, Government should
A: Increase taxes and have a budget surplus
Higher taxes and a budget surplus withdraw spending power from the economy. Other conditions unchanged, this contractionary fiscal stance can reduce demand-driven inflation.
AI-reviewed · source checkedThe objective of public finance is to promote
A: Full employment, national income and price stability
Public finance can support employment, national income and price stability through government revenue and spending decisions. Maximising revenue or expenditure for its own sake is not the general objective.
AI-reviewed · source checkedAn account from which allocations are made to the three tiers of government in Nigeria is called the
C: Federation Account
The Federation Account receives qualifying revenues for allocation among Nigeria’s federal, state and local governments. It is distinct from the statistical national-income accounts.
AI-reviewed · source checkedIn year1, GNP at current prices is N20000 million and population is20 million. In year2, GNP is N27000 million and population is24 million. What is the percentage increase in GNP?
D: 35.0%
GNP rises by27000−20000=7000 million naira. Relative to the initial20000 million, the increase is7000/20000×100=35%. These figures measure nominal rather than inflation-adjusted growth.
AI-reviewed · source checkedIn year1, GNP at current prices is N20000 million and population is20 million. In year2, GNP is N27000 million and population is24 million. What is GNP per person in years1 and2 respectively?
D: N1000.00; N1125.00
Year1 GNP per person is20000/20=N1000. Year2 is27000/24=N1125. The million units cancel when income is divided by population.
AI-reviewed · source checkedIn national income accounting, aggregate saving in any year is defined as
A: All disposable income not spent on con sumption
Saving is disposable income not used for current consumption. It is a flow over the period and is not identical to the stock of deposits held in banks.
AI-reviewed · source checkedWhich of the following combination is a veritable set of development indicators?
D: Low infant mortality and high per capita income and literacy rate
Low infant mortality, higher income per person and high literacy together indicate health, material and educational progress. Population or spending growth alone does not establish improved development.
AI-reviewed · source checkedIf a country has a balance of payment crisis, which of the following measures can best bring about an improvement in the short run?
C: Large-scale export of locally made goods
Additional export sales bring foreign exchange into the country. Importing, investing abroad and repaying foreign debt instead use foreign currency.
AI-reviewed · source checkedWhen a foreigner on a visit to Nigeria, pays for hotel accommodation and meals with some foreign cur rency, the amount paid should be recorded in Nigeria’s balance of payments as an item of
A: Nigeria’s invisible export trade
A non-resident buying accommodation and meals purchases Nigerian services. These travel receipts are invisible exports, rather than merchandise exports or capital investment.
AI-reviewed · source checkedOne of the gains by member states of the Economic Community of West African States is
B: Trade creation
Lower barriers between regional members can create trade and expand the market available to their producers. This is a potential gain from economic integration.
AI-reviewed · source checked