Post Utme Economics Past Questions and Answers

Question 156:

A major difference between a state-owned enterprise and a private enterprise is that the former ____________

A. Is not expected to cover its cost of production while the latter is
B. Is not always expected to maximize profits while the latter is
C. Has shareholders while the latter does not
D. Has a board of directors while the latter does not

Question 157:

The main handicap of sole proprietorship is ____________

A. Limited liability
B. Lack of technical know-how
C. Low profit margin
D. Inadequate capital

Question 158:

Taxes and government expenditures are instruments of ____________

A. Monetary policy
B. Tax policy
C. Economic policy
D. Fiscal policy

Question 159:

If C stands for consumption, I for investment, X for exports, and \(M\) for imports, then national income is ____________

A. \(C+I+X+M\)
B. \(C+I+X-M\)
C. \(C+I-X+M\)
D. \(C+I+M\)

Question 160:

A capital market differs from the money market in that in the former ____________

A. Loan sought is long-term
B. Ioan repayment is guaranteed
C. Ioan sought is short-term
D. The percentage of interest charged is more