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AIC SS2 Economics 3rd test
Contributed by: College
  • 1. GDP MEANS___
A) Giant domestic product
B) Green determined product
C) Gross domestic product
D) Great domestic price
  • 2. formula to calculate GNP IS
A) GDP- NATIONAL INCOME
B) GDP + NET INCOME
C) Per Capita income - disposable income
D) Personal income + real income
  • 3. NNP means
A) Net national price
B) Net national product
C) New national price
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) Total income
B) National income
C) Personal 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) Per Capita income
C) National income
D) Personal income
  • 6. One of the factors that determine national income of a country is
A) Over population
B) Daily consumption
C) Level of technology
D) Smartness
  • 7. International Trade is also known as
A) Home trade
B) Domestic trade
C) Foreign trade
D) Local trade
  • 8. Trading between two or more countries is
A) Oligopolistic
B) Bilateral international trade
C) Monopolistic
D) Multilateral international trade
  • 9. The exchange of goods and services among the people within a particular country is
A) Free trade
B) Insurance
C) Home trade
D) Stock exchange
  • 10. In _____, buyers and sellers use different currencies
A) Home trade
B) Insurance company
C) Local bank
D) Foreign trade
  • 11. All are differences that occurs in foreign trade except
A) Health
B) System of weighing
C) Languages
D) Culture
  • 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) Home trade
C) Export trade
D) Import 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) 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) Houses
C) Banking
D) Machine
  • 17. Entrepot means
A) A country sell to other country
B) A country is banned from selling
C) A country sell to one country and re-exported to another country
D) Trading within the country
  • 18. One of the basis for international trade is
A) To be corrupt
B) To be able to inflate price
C) Desire to improve the standard of living
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) Balance of trade
C) Balance of Payment
D) Tarrif
  • 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) Stock exchange
B) Balance of Trade
C) Balance of Payment
D) Insurance
  • 21. The account that shows how the balance of both current and capital accounts are settled is
A) Visible account
B) Fixed account
C) Opay 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) Positive balance of trade
B) Favourable balance of payments
C) Negative balance of trade
D) Unfavourable balance of Payment
  • 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) Shares
B) Cheque
C) Tarrifs
D) Revenue
  • 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 Ricardo
C) Adams smith
D) David adeleke
  • 27. The principle of comparative advantage support that each country specializes in producing those commodities
A) In which it has high price tag
B) In which it has a comparative advantage over other
C) In which it has large storage facilities for
D) In which it has low tarrifs imposed on it
  • 28. The principle of comparative advantage is based on the assumption that if there are
A) Only two countries
B) many countries
C) Only one country
D) No country
  • 29. Free trade means
A) Restrictions on local trade
B) Non restrictions on international trade
C) Restrictions on international trade
D) No exchange of goods
  • 30. Infant industries means
A) Old industries
B) Newly established industries
C) Big industries
D) Private 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) Bank
B) Market
C) Shop
D) Office
  • 33. All are procedure to open current account except
A) A lawyer will be presented
B) Passport photograph will be submitted
C) Application form will be filled
D) Guarantors must be recommended
  • 34. One of the following is not a type of bank account
A) Savings account
B) Current account
C) Fixed account
D) Real account
  • 35. Loan is
A) Money lent out to customers at an agreed rate of interest for a specific period of time
B) Machine bought for production
C) Money saved for a long period of time
D) Money collected through cheque
  • 36. One of the feature of savings account is
A) Anybody can withdraw from the account
B) No interest is given
C) Only the holder can withdraw from the account
D) Withdraw can be done anytime
  • 37. Commercial bank have the following functions except
A) Issuance of bank statement
B) Debit customers without their intentions
C) Lending of money
D) Provision of financial advise
  • 38. All are factors to consider before granting loan
A) Marital status
B) Sources of income
C) Financial position of the customer's account
D) Purpose of loan
  • 39. One of these is not a type of cheque
A) Purchase cheque
B) Open cheque
C) Order cheque
D) Bearer cheque
  • 40. ____ is the bankers bank
A) Monument bank
B) Mortgage bank
C) Central bank
D) First bank
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