ECONOMICS
DEMAND IN ECONOMICS IS SYNONYMOUS WITH
A. needs B. wants of the consumer C. all goods demanded in the market D. wants supported with ability to pay ✓ E. all consumers goods In economics, demand refers to the quantity of a good or service that consumers are willing and…
GIVEN THAT FIXED COST IS N500.00, VARIABLE COST N1,500.00 AND OUTPUT IS 50 UNITS, WHAT WILL BE THE AVERAGE COST OF PRODUCING ONE UNIT
A. N2,000.00 B. N60.00 C. N50.00 D. N40.00 ✓ E. N30.00 To calculate the average cost of producing one unit, we can use the formula: Average Cost = (Fixed Cost + Variable Cost) / Output Given: Fixed Cost = N500.00 Variable Cost =…
AN EFFICIENT WEAPON USED IN RESOLVING DISPUTE BETWEEN EMPLOYERS AND EMPLOYEES IS
A. co-operation B. collective bargaining ✓ C. display of placards D. legal action Collective bargaining is an efficient weapon used in resolving disputes between employers and employees. It is a process where representatives of the employees, usually labor unions, negotiate with the…
AT THE HIGHEST LEVEL OF TOTAL UTILITY, MARGINAL UTILITY IS
A. negative B. positive and falling C. positive and rising D. zero ✓ At the highest level of total utility, the marginal utility is zero. This concept is derived from the law of diminishing marginal utility, which states that as a person consumes…
IN A FREE MARKET ECONOMY, RESOURCES ARE ALLOCATED THROUGH THE
A. government department B. price mechanisms ✓ C. trade union D. state planning committee In a free market economy, resources are allocated through the price mechanisms. In this type of economic system, decisions regarding what goods and services to produce, how…
WHEN THE PRODUCTION POSSIBILITY CURVE SHIFTS OUTWARDS, THE ECONOMY EXPERIENCES
A. growth ✓ B. over-production C. inefficient use of resources D. under-production When the production possibility curve shifts outwards, it indicates that the economy is experiencing growth. This growth signifies an increase in the potential total output of goods and services that…
THE PRICE OF A COMMODITY IS DETERMINED BY THE
A. supplier B. consumer C. quantity of goods demanded D. quantity of goods supplied E. interaction of demand and supply ✓ The price of a commodity is determined by the interaction of demand and supply. This means that the price at which a commodity…
ECONOMICS IS A SCIENCE WHICH STUDIES HUMAN BEHAVIOURS AS A RELATIONSHIP BETWEEN ENDS AND SCARCE MEANS WHICH HAVE ALTERNATIVE USES. ‘ENDS’ HER REFERS TO
A. resource B. wants ✓ C. choice D. output E. factors In economics, the term “ends” refers to the wants or desires that individuals seek to satisfy through the consumption of goods and services. These wants are essentially the ultimate goals or objectives…
INFERIOR GOODS ARE REFERRED TO IN ECONOMICS AS GOODS
A. Whose quality is low B. Consumed by very poor people C. Whose consumption falls when cunsumers’ income rises ✓ D. Which satisfy only the basic needs E. None of the above In economics, inferior goods are referred to as goods that experience an…
CAPITAL MARKET
Capital market is a market for medium-term and long-term loans. The capital market serves the needs of industry and the commercial sector. It comprises all the institutions which are concerned with either the supply of or demand for long-term capital.…
MONEY MARKET
Money market can be defined as a market for short-term loan. The market consists of institutions or individuals who either have money to lend or wish to borrow on a short-term basis. Instruments used in the money market Treasury…
TRADITIONAL FINANCIAL INSTITUTIONS
The traditional financial institutions came into existence several years before the establishment of modern banking system in many countries in the West African subregion. It involves the coming together of a group of people with common interest in the same…
INSURANCE COMPANIES
Insurance companies are financial institutions that are concerned with insurance. Insurance may be defined as a contract between an insurer and an insured, under which an insurer promises to indemnify (compensate) the insured against loss, which he may suffer in…
MORTGAGE BANKS
Mortgage banks are financial institutions that specialise in granting loans to individuals and corporate bodies for building purposes. Such loans are repaid by instalments and can be spread over several years. Mortgage banks accept deposit from the investing public at…
MERCHANT BANKS
Merchant banks are financial institutions which perform specialised functions, such as acceptance of bills of exchange, issuance of loans for foreign trade transactions, issuance of new shares, and provision of medium and long-term loans. They are sometimes referred to as…
DEVELOPMENT BANKS
Development banks are specialised financial institutions which provide long-term credit or loan to other enterprises for capital projects. They provide loans for projects in the area of agriculture, commerce and industry. Examples of development banks in Nigeria are Nigeria Industrial…
BANK CLEARING HOUSE
Bank clearing house is an institution established by member banks to simplify exchanging and obtaining of payments for the cheques that are paid into bank branches throughout the country. The clearing system is used among banks to settle cheques drawn…
CENTRAL BANK
Central bank is the highest financial institution in a country which carries out the monetary policy of the government. It is the sole authority in the banking industry which acts as banker to the government and the commercial banks. Central…
CHEQUES
The Bill of Exchange Act defines a cheque as: “A bill of exchange drawn on a banker payable on demand.” In other words, a cheque is an order written by the drawer to a bank to pay on demand a…
CREDIT FACILITIES PROVIDED BY COMMERCIAL BANKS
Banks can act as agent of lending by means of loan, overdraft and discounting bill of exchange. Commercial banks act as agent of lending through the following ways: 1) Loan: Through loan, money is lent out to customers at an…
TYPES OF BANK ACCOUNTS
There are three types of account which customers can open in a bank. These are current, deposit and savings accounts. Current Account: Current account is the type of bank account usually operated by businessmen and organisations and is required if…
MEANING OF FINANCIAL INSTITUTIONS
Financial institutions refer to all business organisations which hold money for individuals and institutions and may borrow from them in order to give loans or make other investments. Financial institutions are very important for the economic development of a nation.…
JOINT VENTURES OR ENTERPRISES
Joint ventures or enterprises can be defined as those businesses in which private investors and governments are in partnership. In other words, these are ventures which are set up by government in collaboration with private firms. One of the major…
CO-OPERATIVE SOCIETIES
A co-operative society is defined as a voluntary business organisation in which a group of individuals with common interest pool their resources together to promote the economic welfare of their members in production, distribution and consumption of goods and services.…
PUBLIC CORPORATION
Public corporation, also known as public enterprise or statutory corporation, may be defined as a large scale business organisation set up, owned and financed by the government of a country mainly to provide services to the members of the public.…
PUBLIC LIMITED LIABILITY COMPANY (OR JOINT STOCK COMPANY)
A public limited liability company is defined as one which by its articles allows the public to subscribe for its shares, must have a minimum of seven persons but no maximum number is prescribed, allows the shares to be transferred…
PRIVATE LIMITED LIABILITY COMPANIES
A private limited liability company is defined as one which by its articles restricts the right to transfer its shares, limits the number of its shareholders from two to fifty, prohibits any invitation to the public to subscribe for its…
LIMITED LIABILITY COMPANIES
DEFINITION OF A COMPANY A company can be defined as a legal person or entity created by the association of a number of people in accordance with the law for the purpose of pooling their capital together in order to…
THE PARTNERSHIP
A partnership may be defined as a type of business organisation in which two to twenty persons agree legally to set up and manage a business outfit with the sole aim of making profit. Partnership is usually formed by an…
SOLE PROPRIETORSHIP
Sole proprietorship may be defined as a form of business enterprise owned, financed and managed by one person with the primary aim of maximising profit. The sole proprietorship, also popularly referred to as one-man business, is the oldest and the…
DIVISION OF LABOUR, SPECIALISATION AND SCALE OF PRODUCTION
DIVISION OF LABOUR Division of labour is defined as the breaking down of a production process into a number of separate operations, whereby each operation is undertaken or performed by one person or a group of persons. Division of labour…
MONEY
Money is anything that is generally acceptable as a medium of exchange and in the settlement of debts. Money can also be defined as anything that is generally acceptable as a means of payment. TRADE BY BARTER Trade by…
INFLATION AND DEFLATION
Inflation may be defined as a persistent rise in the general price level of goods and services. Inflation occurs when the volume of purchases is permanently running ahead of production, with too much money in circulation chasing too few goods.…
INSTRUMENTS OF BUSINESS FINANCE
Instrument of business finance also called Financial Instrument is a physical or electronic document that has intrinsic monetary value or transfers value. For example, cash is a financial instrument. Listed and unlisted securities, loans, insurance policies, interests ina partnership, and…
LABOUR MARKET
Labour can be defined as all human efforts of any kind, either skilled or unskilled, mental or manual, directed towards the production of goods and services. Market on the other hand is defined as a place or any means of…
BASIC ECONOMIC PROBLEMS OF SOCIETY
Basic economic problems refer to the problems people encounter in the society while attempting to satisfy their numerous wants with the limited resources available to them. These basic economic problems of society include what to produce, how to produce, for…
BASIC CONCEPTS OF ECONOMICS
The subject Economics has no specific definition. It has been defined in many ways by various economists as a social science which studies human beings and their behaviour. Some of the definitions given by some of the experts in the…
