NATIONAL OPEN UNIVERSITY OF NIGERIA

UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF MANAGEMENT SCIENCES
SEPTEMBER/OCTOBER 2016 EXAMINATION

COURSE CODE:                  ACC320                     

CREDIT UNIT: 2

COURSE TITLE:                 ECONOMICS AND BUSINESS ENVIROMENT       

TIME ALLOWED:               2 HRS

INSTRUCTIONS:     1. Attempt question Number one (1) and any other two (2).

2. Question number 1 is compulsory and carries 30 marks, while the other questions carry 20 marks each.

                        3. Present all your points in coherent and orderly Manner

Question          1a.   Explain how business firms maximise profit?

                        b. Differentiate between positive and normative economics.

c. Discuss the two branches of economics known to you

Question 2a. Explain the concept of Elasticity.

       b. With the help of diagram explain how a rise in the price of  a perfectly elastic             good affect demand  for good.

Question 3.    In the Nigerian capital market, the major participant is the Nigerian Stock Exchange (NSE). Discuss the role of NSE in the economic development of Nigeria.  

Question 4.   Write short notes on:

1. Direct action environment and
2. Indirect action environment.

Question 5. What are the pitfalls in Max Weber's concept of bureaucracy?