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