1991 - JAMB Economics Past Questions and Answers - page 3
21
One disadvantage of trade by barter is that?
A
people are happier when they exchange the same quantities of goods through the medium of money rather than by barter
B
the person wishing to buy good X may not have good Y which is what the other wants
C
one person must always be cheated when trade takes place by barter
D
it increases the intial cost of producing goods
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22
One of the functions of Development Banks is to
A
mint money for the development of the economy
B
provide short-term loans to commercial banks
C
provide medium and long-term finance for the development of the banking system
D
provide medium and long-term finance for the development of the economy
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23
To perform its function as a store of wealth and standard for deferred payment, money must be
A
portable
B
in attractive form
C
stable in value
D
spent more on capital goods than on consumer goods
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24
Fiduciary issue is that part of?
A
the issue of notes backed entirely by gold
B
a country's currency which is not negotiable
C
the issue of notes not backed by gold
D
a country's currency officially issued
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25
An effect of inflation is that it?
A
discourages trade by barter
B
favours debtors at the expense of creditors
C
increases the real income of salary earners
D
increases the value of a country's exports
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26
Banks aid economic expansion and development by?
A
being very strict in lending policies
B
mobilizing savings for investment lending
C
paying interest on deposit accounts
D
charging high interest on loans
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27
The term 'Stock of Capital 'means?
A
amount of money necessary to start a business
B
total amount receivable by all factors of production
C
amount of equipment plant and inventory existing at a time
D
total amount available for economic development
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28
A tax that takes an increasing fraction of income as income goes down is called?
A
conditional
B
regressive
C
progressive
D
proportional
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29
Budget deficit is the amount by which?
A
total expenditure exceeds revenue
B
recurrent expenditure exceeds revenue
C
capital expenditure exceeds revenue
D
recurrent expenditure exceeds capital expenditure
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30
The average tax rate is defined as
A
total tax rate less the marginal tax rate
B
the tax rate which applies to additional value income
C
the ratio of total taxes paid to total income
D
marginal tax rate for being progressive
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