2009 - JAMB Economics Past Questions and Answers - page 3
21
Double counting is a problem in computing national income when using the
A
expenditure method
B
income method
C
output method
D
value-added method
correct option: d
Users' Answers & Comments22
In the circular flow of income, an increase in savings causes
A
an increase in imports
B
a decrease in the income stream
C
an increase in household consumption
D
a decrease in exports
correct option: b
Users' Answers & Comments23
The ability of commercial banks to create money depends on the
A
reserve ratio
B
liquidity ratio
C
interest rate
D
capital base
correct option: a
Users' Answers & Comments24
The reform in the banking sector in Nigeria is principally motivated by the need to
A
increase the capital base of banks
B
provide more money to run the economy
C
minimize the rate of bank failures
D
enhance efficiency in bank operations
correct option: c
Users' Answers & Comments25
A manufacturer who wants to build a new plant will source funds from the
A
commercial banks
B
money market
C
capital market
D
government
correct option: c
Users' Answers & Comments26
Cost-push inflation occurs when
A
production cost is high
B
factor prices decrease
C
there is too much money in circulation
D
government embarks on deficit financing
correct option: a
Users' Answers & Comments27
If government expenditure exceeds revenue, this result in
A
balanced budget
B
national debt
C
budget deficit
D
budget surplus
correct option: c
Users' Answers & Comments28
The Basic Needs Approach to development is
A
poverty alleviation
B
provision of educational infrastructure
C
provision of health services
D
improvement in workers income
correct option: a
Users' Answers & Comments29
If government expenditure exceeds revenue, this result in
A
balanced budget
B
national debt
C
budget deficit
D
budget surplus
correct option: c
Users' Answers & Comments30
The major reason why countries strive to achieve optimum growth is to
A
be self-sufficient
B
raise general living standards
C
raise the level of production
D
reduce aggregate expenditure
correct option: a
Users' Answers & Comments