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

\(\begin{array}{c|c}

& \text{Year 1} & \text{Year 2} \\

\hline

\text{GNP at current prices(NM)} & 20,000 & 27,000 \\ \hline

\text{Population(Million)} & 20 & 24 \\

\end{array}\)

Calculate the GNP per head of the population in year 1 and year 2.

• A. N2000.00, N1000.00
• B. N1125.00; N2000.00
• C. N1000.00, N2000.00
• D. N1000.00; N1125.00

In which of the following ways has inflation adversely affected your country’s economy?

• A. increase in money supply
• B. a fall in real income
• C. appreciation in the value of money
• D. increased employment

A shift in the demand curve indicates

• A. exceptional demand
• B. change in demand
• C. change in quantity demanded
• D. elasticity of demand

Which of the following is not a reason countries import goods?

• A. Differences in natural endowments
• B. the law of absolute advantage
• C. Differences in tastes
• D. The love for other nations

Reward for entrepreneurship is

• A. rent
• B. wages
• C. interest
• D. profit

Long-term loans can be secured from

• A. Commercial banks
• B. discount houses
• C. development banks
• D. acceptance houses

One relationship between marginal utility and total utility. When total is

• A. rising, marginal utility is rising
• B. falling, marginal utility is negative
• C. maximum, marginal utility is maximum
• D. falling, marginal utility is rising

When more of tax on a product is borne by the buyer than the seller, the commodity involved has

• A. perfectly elastic demand
• B. perfectly inelastic demand
• C. fairly inelastic demand
• D. elastic demand

The factor of production that has the highest degree of mobility is?

• A. land
• B. labour
• C. capital
• D. entrepreneur