ECO122 TMA Questions and Answers



Q1 If Nigeria purchased N30 billion of gasoline from other countries last year, but it also sold N70 billion of gasoline to other countries last year, the Nigeria's net gasoline exports will be _______
 
 
 
 

Q2 Various functions of commercial banks can be divided into three main groups; Primary Functions, Agency Functions and _____
 
 
 
 

Q3 The two essential functions that a financial institution must perform to become a bank are accepting deposit and _____
 
 
 
 

Q4 A banking company is one which transacts the business of banking which means the accepting for the purpose of lending all ______ of deposits of money from the public
 
 
 
 

Q5 The meaning of Yd in macroeconomics is _____
 
 
 
 

Q6 _______ an institution which accepts deposits, makes business loans, and offers related services
 
 
 
 

Q7 At the end of 1988, the banking system consisted of the Central Bank of Nigeria, forty-two commercial banks, and ______ merchant banks
 
 
 
 

Q8 In 1952 several Nigerian members of the Federal House of Assembly called for the establishment of a central bank to facilitate
 
 
 
 

Q9 British colonial officials established the West African Currency Board in _____ to help finance the export trade of foreign firms in West Africa and to issue a West African currency convertible to British pounds sterling
 
 
 
 

Q10 No banking legislation existed Nigeria until
 
 
 
 

Q11 In _____ Nigeria's first bank, the African Banking Corporation, was established
 
 
 
 


Q12 A _______ is a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets
 
 
 
 

Q13 The following are the motives of holding money except
 
 
 
 

Q14 The following are not functions of money except
 
 
 
 

Q15 The following are the characteristics of money except
 
 
 
 

Q16 Increase in per capita income results in increase in
 
 
 
 

Q17 The ______ cannot be said to have increased, if the increase in national income is due to exploitation of labour
 
 
 
 

Q18 If the change in national income were due to change in prices, it would be difficult to measure the real change in
 
 
 
 

Q19 According an economists A.C Piguo, assert that there is a close relationship between economic welfare and national income, because both of them are measured in terms of
 
 
 
 

Q20 ______ attaches great importance to economic welfare because welfare is a very wide term.
 
 
 
 

Q21 Economic welfare is that part of social welfare which can directly or indirectly be measured in
 
 
 
 

Q22 One of the great welfare economists is
 
 
 
 

Q23 Economic welfare is a state of the mind which reflects human happiness and
 
 
 
 

Q24 Investment in economics can be defined as the act of producing capital goods which are not for ______ consumption
 
 
 
 

Q25 The inverse of average propensity to save is the
 
 
 
 

Q26 The average propensity to save is an economic term that refers to the proportion of income that is _____ rather than spent on goods and services
 
 
 
 

Q27 Determinants of savings are the followings except
 
 
 
 

Q28 The income not spent on goods and services for current consumption is called
 
 
 
 

Q29 Marginal propensity to consume is defined as the ratio of the change in consumption to the change in ____ that necessitated it
 
 
 
 

Q30 Meaning of APS is
 
 
 
 

Q31 ______ refers to the percentage of income that is spent on goods and services rather than on savings
 
 
 
 

Q32 Meaning of APC is
 
 
 
 

Q33 In a geometric fashion, the MPC is actually the slope of the _______ function
 
 
 
 

Q34 The meaning of MPC is
 
 
 
 

Q35 The marginal propensity to consume, on the other hand measures the rate at which _____ is changing when income is changing
 
 
 
 

Q36 Autonomous consumption represents consumption when income is
 
 
 
 

Q37 ______ was developed by John Maynard Keynes and detailed most famously in his book The General Theory of Employment, Interest, and Money
 
 
 
 

Q38 _____ is a single mathematical function used to express consumer spending
 
 
 
 

Q39 Consumption is distinct from consumption expenditure, which is the ______ of goods and services for use by households
 
 
 
 

Q40 Consumption is the use of goods and services by ______
 
 
 
 

Q41 A banking company is one which transacts the business of banking which means the accepting for the purpose of lending all ______ of deposits of money from the public
 
 
 
 

Q42 The meaning of Yd in macroeconomics is _____
 
 
 
 

Q43 The ______ method calculates the total expenditure required to purchase the nation's output
 
 
 
 

Q44 _______ measures the total value of all, expenditures on goods and services by individual private businesses and public sector (governments) in a particular period of time
 
 
 
 

Q45 ________ is used when the value of final good and services produced in the economy are added together, of particular period usually a year
 
 
 
 

Q46 The following are three basic approaches to the measurement of GDP except one
 
 
 
 

Q47 Disposable income or personal disposable income is the actual income which an individual spent on _____
 
 
 
 

Q48 ____ is defined as the ratio of a country�??s income to its population, while GDP per capita is defined as the ratio of a country�??s GDP to the population of the country
 
 
 
 

Q49 Domestic income does not include the income earned _____
 
 
 
 

Q50 The income of citizens of a country living abroad is termed ____ from the rest of the world
 
 
 
 

Q51 ________ is the market value of all goods and services produce by all the nationals (citizens) of a given country, irrespective of whether they reside within the domestic country or abroad.
 
 
 
 

Q52 Mr Afees Oyebo a shoe marker charges N2000.00 for each shoes that he makes. He pays his shop apprentice N200.00 per shoe made in return for sweeping the floor and other chores. For each shoe made, what is the total contribution of Mr Afees Oyebo�??s and her apprentice to GDP?
 
 
 
 

Q53 The gross domestic product is the summation of all the values of goods and services produced in a country by the _________
 
 
 
 

Q54 RI in national income means ________
 
 
 
 

Q55 NNP in national income means _________
 
 
 
 

Q56 GDP in national income accounting means _________
 
 
 
 

Q57 National income accounting provides economists and statisticians with detailed information that can be used to track the health of an economy and to forecast future __________
 
 
 
 

Q58 _____ is a term used in economics to refer to the bookkeeping system that a national government uses to measure the level of the country's economic activity in a given time period.
 
 
 
 

Q59 The ________suggested that increasing total investment, total output, total income and total consumption should raise unemployment caused by deficiency of effective demand
 
 
 
 

Q60 Microeconomics is the study of individual economic units of an economy whereas macroeconomics is the study of ____ of an economy as a whole
 
 
 
 

Q61 If the money supply is below the existing demand for money at the given exchange rate, there will be a surplus in the __________.
 
 
 
 

Q62 _________is measured by the increase in the amount of goods and services in each successive time period
 
 
 
 

Q63 A country with a net debt must be at a ________ to repay the debt over a reasonably short period of time
 
 
 
 

Q64 Rapid growth leads to urbanization and industrialization with their adverse effects on the pattern of living and __________
 
 
 
 

Q65 Generally, economists belief in the possibility of continual ______
 
 
 
 

Q66 _________is measured by the increase in the amount of goods and services in each successive time period.
 
 
 
 

Q67 Economic growth is defined as the process whereby the _______ of a country increases over a long period of time
 
 
 
 

Q68 Price stability can be maintained by following a ______ monetary policy
 
 

 
 

Q69 In an open economy which imports raw materials and other intermediate products at high prices, the cost of production of domestic goods will always ________
 
 
 
 

Q70 Rising and falling prices are both bad because they bring unnecessary ____ to some and undue advantage to others
 
 
 
 

Q71 One of the goals of macroeconomics policy is to stabilize the _______
 
 
 
 

Q72 Keynesian concept of full employment involves the following conditions except
 
 
 
 

Q73 Keynes gave an alternative definition of full employment at another place in his ______ publication.
 
 
 
 

Q74 To achieve full employment, Keynes advocated increase in effective demand to bring about reduction in _________
 
 
 
 

Q75 Macroeconomics examines economy-wide phenomena such as changes in unemployment, national income, rate of growth of gross domestic product, inflation and ________
 
 
 
 

Q76 Macroeconomics is concerned primarily with the forecasting of _________, through the analysis of major economic factors that show predictable patterns and trends, and of their influence on one another
 
 
 
 

Q77 _____ studies the behavior of the whole (aggregate) economy or economic systems rather than individual economic markets
 
 
 
 

Q78 John Maynard Keynes developed a general theory of income, output and _____ in the wake of the Great Depression of 1929
 
 
 
 

Q79 In the 18th century, the ______ adopted it in their table Economique to show the �??circulation of wealth�??
 
 
 
 

Q80 The term �??macro�?� was first used in economics by Ragner Frisch in
 
 
 
 

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