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AIC SS2 Economics 2nd term exam
Contributed by: College
  • 1. GDP MEANS___
A) Giant domestic product
B) Great domestic price
C) Green determined product
D) Gross domestic product
  • 2. formula to calculate GNP IS
A) GDP- NATIONAL INCOME
B) Per Capita income - disposable income
C) GDP + NET INCOME
D) Personal income + real income
  • 3. NNP means
A) Net national product
B) New national price
C) Net 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) Personal income
B) Total income
C) National 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) National income
B) Per Capita income
C) Personal income
D) Real income
  • 6. One of the factors that determine national income of a country is
A) Level of technology
B) Over population
C) Smartness
D) Daily consumption
  • 7. International Trade is also known as
A) Local trade
B) Foreign trade
C) Domestic trade
D) Home trade
  • 8. Trading between two or more countries is
A) Oligopolistic
B) Monopolistic
C) Multilateral international trade
D) Bilateral international trade
  • 9. The exchange of goods and services among the people within a particular country is
A) Free trade
B) Stock exchange
C) Home trade
D) Insurance
  • 10. In _____, buyers and sellers use different currencies
A) Home trade
B) Local bank
C) Insurance company
D) Foreign trade
  • 11. All are differences that occurs in foreign trade except
A) Health
B) Culture
C) System of weighing
D) Languages
  • 12. One of the barriers of international trade is
A) Same language
B) Favourable government policy
C) Good technology
D) Tarrif
  • 13. The act of buying goods and services from other countries is known as
A) Local trade
B) Import trade
C) Home trade
D) Export trade
  • 14. All are examples of Visible imports except
A) Automobile
B) Houses
C) Machinery
D) Electronics
  • 15. Invisible imports consist of services that
A) Can be carried
B) Cannot be seen
C) Does not have value
D) Can be beautify
  • 16. Example of invisible exports is
A) Machine
B) Banking
C) Road
D) Houses
  • 17. Entrepot means
A) A country sell to other country
B) Trading within the country
C) A country sell to one country and re-exported to another country
D) A country is banned from selling
  • 18. One of the basis for international trade is
A) To be corrupt
B) To reduce the desire for locally made goods
C) Desire to improve the standard of living
D) To be able to inflate price
  • 19. When visible imports is equal to visible exports in monetary terms, it is called
A) Balance of trade
B) Tarrif
C) Restrictions
D) Balance of Payment
  • 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 Payment
B) Balance of Trade
C) Insurance
D) Stock exchange
  • 21. The account that shows how the balance of both current and capital accounts are settled is
A) Monetary movement account
B) Fixed account
C) Opay account
D) Visible account
  • 22. If a country is exporting more in monetary terms than it is importing, is is said to be
A) Favourable balance of payments
B) Positive balance of trade
C) Unfavourable balance of Payment
D) Negative balance of trade
  • 23. All are procedure for international trade except
A) Producer send quotation to the buyer
B) Clearing agent process and complete all necessary documents
C) Buyers pay without seeing the product
D) Payment arrangements is made
  • 24. The taxes or duties imposed on imports and exports by the government of a country is called
A) Revenue
B) Shares
C) Tarrifs
D) Cheque
  • 25. Tarrifs are impose to
A) To cause conflict
B) To make the country rich
C) To minimize purchase
D) Protect infant industries
  • 26. Who propounded the principle of comparative cost advantage
A) David Ricardo
B) David adeleke
C) Adams smith
D) Lord luggard
  • 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 low tarrifs imposed on it
C) In which it has large storage facilities for
D) In which it has a comparative advantage over other
  • 28. The principle of comparative advantage is based on the assumption that if there are
A) No country
B) Only one country
C) many countries
D) Only two countries
  • 29. Free trade means
A) Restrictions on local trade
B) Non restrictions on international trade
C) No exchange of goods
D) Restrictions on international trade
  • 30. Infant industries means
A) Newly established industries
B) Big industries
C) Old industries
D) Private industries
  • 31. One of the following is not among the non-banking financial institutions
A) Hire purchase companies
B) Insurance companies
C) Commercial bank
D) Building societies
  • 32. A_________ is a commercial institution which perform various financial activities
A) Bank
B) Market
C) Office
D) Shop
  • 33. All are procedure to open current account except
A) Passport photograph will be submitted
B) Guarantors must be recommended
C) Application form will be filled
D) A lawyer will be presented
  • 34. One of the following is not a type of bank account
A) Fixed account
B) Real account
C) Savings account
D) Current account
  • 35. Loan is
A) Money lent out to customers at an agreed rate of interest for a specific period of time
B) Money collected through cheque
C) Money saved for a long period of time
D) Machine bought for production
  • 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) Provision of financial advise
D) Lending of money
  • 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) Open cheque
B) Order cheque
C) Bearer cheque
D) Purchase cheque
  • 40. ____ is the bankers bank
A) Central bank
B) Mortgage bank
C) First bank
D) Monument bank
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