The lower the price of a commodity, the greater the quantity demanded. This is based on the assumption that the consumers’

A. income is diminished

B. income remains the same

C. utility is diminished

D. population is high

The demand for beans in bags is given by the function Q - 36 + 0, 4P = 0. Where P is price in naira and Q is quantity, find Q when P = 20 naira.

A. 12 bags

B. 24 bags

C. 28 bags

D. 30 bags

If the price of goods X rises and the quantity demanded of goods Y increases then the two goods X and Y must be

A. inferior goods

B. substitutes

C. complements

D. free goods

In a situation where demand is perfectly elastic , imposition of tax on a commodity to raise its price will result in

A. consumers increasing their demand for the product

B. consumers' demand for the product remaining unchanged

C. consumers shifting completely to substitute products

D. suppliers increasing the supply of the product

Patents are examples of

A. natural barriers to entry

B. legal barriers to entry

C. illegal barriers to entry

D. unnatural barriers to entry

Which of the following is a characteristics of monopoly

A. many sellers

B. Homogenous commodity

C. a single seller

D. Perfect knowledge

When a firm is nationalized ,

A. former owners are removed without compensation

B. it has the right o draw on state funds for capital investment

C. it must break even within a specific period

D. workers take control of the firm

The practice whereby a business is owned by two or more independent firms is termed

A. indigenization

B. joint venture

C. commercialization

D. foreign investment

The main objective of privatizing a government business is to

A. create additional employment

B. increase expenditure

C. source for new funds

D. increase the level of efficiency

The return of investment that is just sufficient to satisfy the owner of a business is called?

A. economic profit

B. business profit

C. normal profit

D. excess profit