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2. The reward for capital is

A. interest
B. rent
C. risk
D. premium.

3. The reduction in the value of a country's currency in relation to the value of the currencies of other nations is known as

A. deflation
B. inflation
C. devaluation
D. revaluation

4. Mortgage banks give loans to investors on a long- term basis to

A. finance agriculture
B. establish banks
C. acquire machinery
D. build houses.

5. In a capitalist economy, factors of production are owned and controlled by the

A. citizens
B. businessmen
C. government
D. foreigners.

6. The establishment of industries in rural areas will help to reduce

A. urban-rural migration
B. rural-urban migration
C. rural-rural migration
D. urban-urban migration.

7. International trade is an application of the principle of

A. industrial production
B. mass production
C. regional production
D. comparative cost advantage.

8. The number of people who are qualified to work and who offer themselves for employment is called

A. migrant labour
B. working population
C. labour turnover
D. mobility of labour.

9. Which of the following is an advantage of localisation of industry?

A. Development of subsidiary firms
B. creation of parallel markets
C. Development of slums
D. Attraction of foreign capital.

10. The Economic Community of West African States (ECOWAS) has been slow in achieving its objectives because of

A. the activities of multinationals
B. inadequate personnel at the secretariat
C. political instability
D. inadequate international support.

11. Joint ventures are partnership involving

A. the poor and the rich
B. employers and workers
C. government and private investors
D. multinationals and individuals.

12. In which of the following business units are the owners mostly the customers?

A. co-operatives
B. limited liability companies
C. partnership
D. public corporations

13. The formula index of export prices x 100/index of import price. is used to measure the

A. volume of trade between
B. direction of international trade
C. commodity terms of trade
D. volume of imports.

14. Use the table below to answer question 14. If specialisation should take place, then

A. Ghana should produce coffee and cocoa
B. Ghana would benefit by producing cocoa only
C. Sierra Leone should not produce any of the products
D. Sierra Leone should produce coca and Ghana coffee.

15. Which of the following is an invisible item?

A. Petroleum services
B. Processed rice
C. Processed milk
D. Banking services

16. The full meaning of OPEC is

A. Oil and Petroleum Exporting Countries
B. Original Petroleum Exporting Countries
C. Organisation of Petrol Exporting Countries
D. Organisation of Petroleum Exporting Countries.

17. The main concern of economists is to

A. control the growth of population
B. redistribute income between the rich and the poor
C. satisfy all human wants
D. allocate scarce resources to satisfy human wants.

18. Productive resources can also be called

A. principles of production
B. factors of production
C. items of production
D. labour and materials resources.

19. The study of Economics becomes necessary because of the

A. large population size of the world
B. scarcity of resources
C. opportunity cost of goods and services
D. need to satisfy every desire of man.

20. The type of demand that exists between torchlight and battery is

A. competitive demand
B. complementary demand
C. composite demand
D. independent demand.

21. The population density of a town made up of 50 square kilometre land area and 100 million people is

A. 50,000 people per square kilometre
B. 0.2 million people per square kilometre
C. 0.5 million people per square kilometre
D. 20 million people per square kilometre

22. From the table, the mean of the distribution is

A. 2.2
B. 2.5
C. 3.2
D. 4.5 23.

23. What is the median of the distribution?

A. 5
B. 4
C. 3
D. 2

24. Human wants are insatiable because wants are

A. limited while means are scarce
B. unlimited and means are also unlimited
C. limited and means are also limited
D. unlimited while means are scarce.

25. If the budget of the country was $7,200.00, how much is allocated to education

A. $2,400.00
B. $2,000.00
C. $ 200.00
D. $ 1,000.00