The price system refers to the system by which

A. the government controls price in the economic system

B. prices tends to rise to a general level

C. price allocates resources between consumer and producer goods

D. government allocate resources to consumers and producers

E. the producers fix the price for their products

Choice is necessary because resources

A. are available

B. can be found everywhere

C. are constant

D. are scarce

E. are unlimited

Agriculture plays a dominant role in West African economies because

A. the Green Revolution in Nigeria is agricultural

B. it supplies all the food stuffs consumed in Ghana alone

C. there are large plantation of cocoa, groundnut and oil palm in West Africa

D. it is the main source of revenue in Sirera Leon alone

E. it emplys more than 50% of the total labour force in West Africa

The monetary system that requires a double coincidence of wants is known as the

A. gold standard

B. barter system

C. commodity system

D. gold exchange standard

E. cheque system

If over a period of time there is more money in the economy than the available goods and services , the economy is likely to experience

A. devaluation

B. inflation

C. deflation

D. demonetization

E. over-valuation

The value of money is determined by the

A. rate of interest

B. general price level

C. quantity of money in circulation

D. level of economic development

E. weight of the currency notes and coins

Open market operation are the process by which

A. the Central Banks purchases and sells securities

B. Commercial Banks purchases and sells securities

C. business firms buys raw materials freely

D. huseholds buys consumer goods openly

E. the money market takes over the function of the Central Banks

Devaluation means

A. a reduction in the value of the National currency

B. a reduction in the purchasing power of the foreign currency

C. a reduction in the value of the domestic currency relative to foreign currencies

D. an increase in the value of the national currency

E. a decrease in the purchasing power of the foreign currencies

Which of the following functions do retailers perform in an economy?

A. Production

B. Exchange

C. Hoarding

D. Distribution

E. Investment

A movement along the demand curve for some goods may be caused by a change in

A. consumer income

B. the price of goods

C. consumers taste

D. the price of other goods

E. population