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AIC SS2 Economics 2nd term exam
Contributed by: College
  • 1. GDP MEANS___
A) Great domestic price
B) Gross domestic product
C) Green determined product
D) Giant 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) Total income
C) National income
D) Personal 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) National income
B) Real income
C) Personal income
D) Per Capita income
  • 6. One of the factors that determine national income of a country is
A) Daily consumption
B) Level of technology
C) Over population
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) Multilateral international trade
B) Oligopolistic
C) Bilateral international trade
D) Monopolistic
  • 9. The exchange of goods and services among the people within a particular country is
A) Home trade
B) Insurance
C) Free trade
D) Stock exchange
  • 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) Health
B) System of weighing
C) Languages
D) Culture
  • 12. One of the barriers of international trade is
A) Same language
B) Favourable government policy
C) Tarrif
D) Good technology
  • 13. The act of buying goods and services from other countries is known as
A) Home trade
B) Local trade
C) Export trade
D) Import trade
  • 14. All are examples of Visible imports except
A) Electronics
B) Automobile
C) Machinery
D) Houses
  • 15. Invisible imports consist of services that
A) Cannot be seen
B) Does not have value
C) Can be beautify
D) Can be carried
  • 16. Example of invisible exports is
A) Road
B) Houses
C) Banking
D) Machine
  • 17. Entrepot means
A) A country is banned from selling
B) A country sell to one country and re-exported to another country
C) A country sell to other 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) To reduce the desire for locally made goods
D) Desire to improve the standard of living
  • 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) 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) Fixed account
B) Visible 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) Negative balance of trade
C) Unfavourable balance of Payment
D) Favourable balance of payments
  • 23. All are procedure for international trade except
A) Payment arrangements is made
B) Producer send quotation to the buyer
C) Clearing agent process and complete all necessary documents
D) Buyers pay without seeing the product
  • 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 cause conflict
C) To minimize purchase
D) To make the country rich
  • 26. Who propounded the principle of comparative cost advantage
A) David Ricardo
B) Lord luggard
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 a comparative advantage over other
B) In which it has high price tag
C) In which it has low tarrifs imposed on it
D) In which it has large storage facilities for
  • 28. The principle of comparative advantage is based on the assumption that if there are
A) many countries
B) No country
C) Only one country
D) Only two 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) Old industries
B) Big industries
C) Newly established industries
D) Private industries
  • 31. One of the following is not among the non-banking financial institutions
A) Building societies
B) Hire purchase companies
C) Insurance companies
D) Commercial bank
  • 32. A_________ is a commercial institution which perform various financial activities
A) Market
B) Bank
C) Office
D) Shop
  • 33. All are procedure to open current account except
A) Application form will be filled
B) Guarantors must be recommended
C) A lawyer will be presented
D) Passport photograph will be submitted
  • 34. One of the following is not a type of bank account
A) Current account
B) Savings account
C) Real account
D) Fixed account
  • 35. Loan is
A) Money collected through cheque
B) Money lent out to customers at an agreed rate of interest for a specific period of time
C) Machine bought for production
D) Money saved for a long period of time
  • 36. One of the feature of savings account is
A) No interest is given
B) Withdraw can be done anytime
C) Anybody can withdraw from the account
D) Only the holder can withdraw from the account
  • 37. Commercial bank have the following functions except
A) Lending of money
B) Debit customers without their intentions
C) Issuance of bank statement
D) Provision of financial advise
  • 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) Order cheque
B) Purchase cheque
C) Open cheque
D) Bearer cheque
  • 40. ____ is the bankers bank
A) First bank
B) Mortgage bank
C) Central bank
D) Monument bank
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