Economics Past Questions And Answers
151
The principle of comparative advantage encourages a country to
- A. produce only consumer goods
- B. engage in trade if it can produce a commodity at a lower cost
- C. specializes in the production of all goods
- D. try as much as possible to be self-sufficient
152
The number of shareholders in a private limited liability company ranges from
- A. two to seven
- B. two to three
- C. two to fifty
- D. two to twenty
153
A major factor contributing to productivity is
- A. Immigration of young workers
- B. The labour force
- C. The baby boom of generation
- D. The rate of GDP per year
154
The distinction between onshore and offshore operations in oil exploration lies in the
- A. location of sites
- B. output generated
- C. size of production
- D. techniques of production
155
Goods sold in perfectly competitive markets are generally
- A. homogenous
- B. intermediate and final
- C. durable and non-durable
- D. heterogeneous
156
Among the principles of taxation propounded by Adam Smith was that
- A. A tax should be impossible to evade
- B. A tax should be convenient to pay
- C. no tax should be levied on food
- D. there should be no taxation without representation
157
If all factors are variable in the long run,firms will experience
- A. decreasing returns to scale
- B. increasing returns to scale
- C. diminishing returns
- D. economies of scale
158
The term demand for money means
- A. desire to borrow money from people
- B. desire of an individual to invest all his money in projects
- C. willingness of people to hold money
- D. wilingness of people to keep all their resources in assets
159
The main function of the African Development Bank (AFDB) is to
- A. promote free trade and development among members
- B. provide loans to finance balance of payment problems
- C. provide loans to members to finance viable projects
- D. help members overcome their internal problems
160
The standard of living in two countries can be compared using the___________
- A. number of industries in each country
- B. size of their arms and ammunition
- C. size of their national incomes only
- D. gross national product per head