2004 - JAMB Economics Past Questions and Answers - page 3
21
Fiscal policy is the government's plan to control aggregate demand by manipulating
A
the demand and supply of money
B
revenue and expenditure
C
tastes and preferences of consumers
D
the structure of production and employment
correct option: b
Users' Answers & Comments22
A country is said to have absolute advantage when she
A
has a higher opportunity cost in the production of a good
B
can sell to other countries without buying from them
C
can produce more of any good with fewer resources
D
has a lower opportunity cost in the production of good
correct option: c
Users' Answers & Comments23
The European Union was formed to
A
promote free trade within member nations
B
promote economic integration in non-member countries
C
assist countries to achieve their economic goals
D
finance development projects in member nations
correct option: a
Users' Answers & Comments24
When the importation of a commodity is limited to a definite quantity, the trade control means used is known as
A
exchange control
B
tax relief
C
devaluation
D
quotas
correct option: d
Users' Answers & Comments25
If budget deficits are financed by borrowing the crowing-out effect can be offset by an increase in
A
government expenditure
B
savings
C
interest rates
D
exchange rates
correct option: d
Users' Answers & Comments26
The excess of aggregate expenditure over full employment level of output is referred to as
A
GNP gap
B
deflationary gap
C
inflation gap
D
recessionary gap
correct option: c
Users' Answers & Comments27
The tax levied on goods and services at each stage of production is
A
surtax
B
VAT
C
ad valorem tax
D
PAYE
correct option: b
Users' Answers & Comments28
The number of shareholders in a private limited liability company ranges from
A
two to seven
B
two to three
C
two to fifty
D
two to twenty
correct option: c
Users' Answers & Comments29
A major reason for having national development plans is to
A
ensure efficient use of available resources
B
involve people in national programmes
C
make government spend more on production
D
ensure that more citizens are involved in planning
correct option: a
Users' Answers & Comments30
The difference between payments and receipts for visible trade is called
A
bilateral trade
B
current balance
C
balance of payments
D
balance of trade
correct option: d
Users' Answers & Comments