AIC SS2 Economics 2nd term exam
  • 1. GDP MEANS___
A) Green determined product
B) Great domestic price
C) Giant domestic product
D) Gross domestic product
  • 2. formula to calculate GNP IS
A) GDP- NATIONAL INCOME
B) Per Capita income - disposable income
C) Personal income + real income
D) GDP + NET INCOME
  • 3. NNP means
A) Net national population
B) Net national product
C) Net national price
D) New national price
  • 4. The total of all the incomes obtained from economics activities during a specific period of time after allowance has been made for Capital consumption is
A) Real income
B) Personal income
C) National income
D) Total income
  • 5. The amount earned by individual for taking part in the production of goods and services either by him or his property is
A) Real income
B) Personal income
C) National income
D) Per Capita income
  • 6. One of the factors that determine national income of a country is
A) Over population
B) Daily consumption
C) Smartness
D) Level of technology
  • 7. International Trade is also known as
A) Domestic trade
B) Foreign trade
C) Local trade
D) Home trade
  • 8. Trading between two or more countries is
A) Bilateral international trade
B) Oligopolistic
C) Monopolistic
D) Multilateral international trade
  • 9. The exchange of goods and services among the people within a particular country is
A) Insurance
B) Stock exchange
C) Home trade
D) Free trade
  • 10. In _____, buyers and sellers use different currencies
A) Local bank
B) Home trade
C) Insurance company
D) Foreign trade
  • 11. All are differences that occurs in foreign trade except
A) Health
B) Languages
C) Culture
D) System of weighing
  • 12. One of the barriers of international trade is
A) Same language
B) Tarrif
C) Good technology
D) Favourable government policy
  • 13. The act of buying goods and services from other countries is known as
A) Export trade
B) Local trade
C) Import trade
D) Home trade
  • 14. All are examples of Visible imports except
A) Machinery
B) Automobile
C) Electronics
D) Houses
  • 15. Invisible imports consist of services that
A) Can be beautify
B) Does not have value
C) Cannot be seen
D) Can be carried
  • 16. Example of invisible exports is
A) Road
B) Banking
C) Machine
D) Houses
  • 17. Entrepot means
A) A country sell to other country
B) A country sell to one country and re-exported to another country
C) A country is banned from selling
D) Trading within the country
  • 18. One of the basis for international trade is
A) To be able to inflate price
B) Desire to improve the standard of living
C) To be corrupt
D) To reduce the desire for locally made goods
  • 19. When visible imports is equal to visible exports in monetary terms, it is called
A) Restrictions
B) Tarrif
C) Balance of Payment
D) Balance of trade
  • 20. _____ is the statement or record showing the relationship between a country's total payments to other countries and it's total receipts from them in a year
A) Insurance
B) Balance of Payment
C) Balance of Trade
D) Stock exchange
  • 21. The account that shows how the balance of both current and capital accounts are settled is
A) Visible account
B) Opay account
C) Monetary movement account
D) Fixed account
  • 22. If a country is exporting more in monetary terms than it is importing, is is said to be
A) Unfavourable balance of Payment
B) Favourable balance of payments
C) Negative balance of trade
D) Positive balance of trade
  • 23. All are procedure for international trade except
A) Clearing agent process and complete all necessary documents
B) Buyers pay without seeing the product
C) Producer send quotation to the buyer
D) Payment arrangements is made
  • 24. The taxes or duties imposed on imports and exports by the government of a country is called
A) Shares
B) Revenue
C) Cheque
D) Tarrifs
  • 25. Tarrifs are impose to
A) To cause conflict
B) Protect infant industries
C) To minimize purchase
D) To make the country rich
  • 26. Who propounded the principle of comparative cost advantage
A) Lord luggard
B) David adeleke
C) Adams smith
D) David Ricardo
  • 27. The principle of comparative advantage support that each country specializes in producing those commodities
A) In which it has a comparative advantage over other
B) In which it has large storage facilities for
C) In which it has low tarrifs imposed on it
D) In which it has high price tag
  • 28. The principle of comparative advantage is based on the assumption that if there are
A) Only two countries
B) Only one country
C) many countries
D) No country
  • 29. Free trade means
A) Non restrictions on international trade
B) Restrictions on international trade
C) Restrictions on local trade
D) No exchange of goods
  • 30. Infant industries means
A) Newly established industries
B) Old industries
C) Private industries
D) Big industries
  • 31. One of the following is not among the non-banking financial institutions
A) Hire purchase companies
B) Building societies
C) Insurance companies
D) Commercial bank
  • 32. A_________ is a commercial institution which perform various financial activities
A) Shop
B) Market
C) Office
D) Bank
  • 33. All are procedure to open current account except
A) Guarantors must be recommended
B) Application form will be filled
C) Passport photograph will be submitted
D) A lawyer will be presented
  • 34. One of the following is not a type of bank account
A) Real account
B) Current account
C) Savings account
D) Fixed account
  • 35. Loan is
A) Machine bought for production
B) Money saved for a long period of time
C) Money collected through cheque
D) Money lent out to customers at an agreed rate of interest for a specific period of time
  • 36. One of the feature of savings account is
A) Withdraw can be done anytime
B) No interest is given
C) Only the holder can withdraw from the account
D) Anybody can withdraw from the account
  • 37. Commercial bank have the following functions except
A) Debit customers without their intentions
B) Provision of financial advise
C) Lending of money
D) Issuance of bank statement
  • 38. All are factors to consider before granting loan
A) Sources of income
B) Purpose of loan
C) Marital status
D) Financial position of the customer's account
  • 39. One of these is not a type of cheque
A) Purchase cheque
B) Order cheque
C) Open cheque
D) Bearer cheque
  • 40. ____ is the bankers bank
A) Mortgage bank
B) Monument bank
C) Central bank
D) First bank
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