Proportional tax is a tax whose

A. percentage rate remains constant as the tax base increases

B. percentage base increases as the tax base increases

C. percentage rate decreases as the tax rate increases

D. percentage rate fluctuates as the tax base increases

E. burden falls heavily on consumer

The largest part of the revenue of a country is derived from

A. direct taxation

B. indirect taxation

C. excise duties

D. company taxes

E. non-tax revenue

Which of the following is not a good reason for the importation of agriculture in West African countries? it

A. employs about 60% of the people

B. provides the highest tax revenue

C. is a major foreign exchange earner in most of the countries

D. provides the raw materials for all import-substitution industries

E. provide raw materials only for foreign industries

The comparative cost of doctrine of international trade means specialization in production according to

A. absolute cost advantage

B. absolute cost disadvantage

C. comparative cost disadvantage

D. comparative cost advantage

E. the availability of labour

The greater burden of the taxes on essential goods is borne by

A. the middle income group

B. high income group

C. low income group

D. people between the middle and high income group

E. few top rich people

A change in supply implies a

A. shift in the supply curve to the right and not to the left

B. shift in supply curve to the left and not to the right

C. shift in supply curve to the left or to the right

D. movement along the supply curve

E. decrease in price and quantity supplied

Which of the following will increase the GNP of an economy?

A. increase government expenditure on the salary of the civil serants

B. An increase in the proportion of the productively employed population

C. a decrease in the rate of unemployment

D. A decrease in the output per worker

E. An increase in the population dependency ratio

A market condition where profit is maximized when MR = AR = MC = P is known as

A. monopoly

B. oligopoly

C. monopsony

D. perfect competition

E. duopoly

When price of a commodity is fixed by the law either below or above the equilibrium, the mechanism is known as

A. price discrimination

B. price control

C. perfect market

D. equilibrium price

E. market structure

Money supply is the

A. currency available in the banks

B. currency in circulation and time deposits

C. currency in circulation and saving deposits

D. currency in circulation and demand deposits

E. money scarcity