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