The action of government to forgo road construction in order to provide more health facilities denotes

A. sound economic decision

B. opportunity cost

C. practicable government policy

D. scale of preference

In Economics , a market is defined as any

A. agreement made for consumers to buy all they need

B. ngement made for producers sell all their goods

C. agreement to sell commodities at low prices

D. arrangement whereby the buyers and sellers are in contact

Which of the following is not a function of an insurance company?

A. pooling resources together against risks

B. Mobilization of funds through premiums collected

C. Encouragement of investment by security of capital

D. collection of deposits from the public for investment

A debenture holder earns

A. commission

B. profits

C. fixed interest

D. quasi-rent

All economic systems must decide what to produce because

A. resources are not available

B. consumers want maximum satisfaction

C. resources are limited in supply

D. producers want maximum profit

Trade between two countries is known as

A. bilateral trade.

B. bilateria trade

C. multilateral trade

D. internal trade

In the balance of payments of a country, tourism is classified under

A. capital account

B. invisible trade

C. merchandise trade

D. official reserves

General rise in the price level induced by increased price of inputs is referred to as

A. run-away inflation

B. cost -push inflation

C. demand -pull inflation

D. imported inflation

Which of the following is a function of merchant banks?

A. Acting as bankers' bank.

B. Lending to the commercial banks as a last resort

C. controlling inflation in the economy

D. underwriting and issuing of shares

A budget is balance when expected total revenue is

A. greater than expected expected expenditure

B. less than total expenditure

C. equal to expected expenditure

D. greater than total expenditure