2008 - JAMB Economics Past Questions and Answers - page 3

21
The high rate of inflation in Nigeria can be attributed to
A
increasing cost of production
B
the appreciation of the naira
C
decreasing cost of production
D
high capacity utilization
correct option: a
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22
If the required reserves of a bank is 20% and N10 000 is paid into its demand deposit account, what is the excess reserves?
A
N2000
B
N18 000
C
N12 000
D
N8 000
correct option: d
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23
Contractionary monetary policy is used to
A
control inflation
B
bridge the deflationary gap
C
expand the output level
D
deregulate the economy
correct option: a
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24
The use of government revenue and expenditure to achieve set objectives is known as
A
budget
B
fiscal policy
C
revenue allocation
D
monetary policy
correct option: b
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25
An example of an indirect tax is
A
profit tax
B
sales tax
C
capital gain tax
D
poll tax
correct option: b
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26
A good indicator of economic development is an increase in
A
gross national product
B
per capital income
C
real national income
D
real per capital income
correct option: b
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27
Economic growth takes place when there is an increase in
A
savings over time
B
investment over time
C
population over time
D
output over time
correct option: d
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28
One of the effects of instability in farmer's income in Nigeria is
A
lack of infrastructural facilities
B
rural-urban migration
C
inadequate supply of fertilizer
D
low level of technology
correct option: b
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29
A major impediment to the development of agriculture in Nigeria is
A
land use system
B
inadequate supply of farm inputs
C
low income of farmers
D
limited research on seedlings
correct option: b
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30
A major consideration in locating a cement factory is the availability of
A
skilled labour
B
power
C
infrastructural facilities
D
limestone
correct option: d
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