2020 - JAMB Economics Past Questions and Answers - page 1
Scarcity in economics means?
human wants are limitless
the economy has very few resources
the economy can scarcely produce anything
resources are limited in relation to wants
Scarcity refers to the basic economic problem, the gap between limited – that is, scarce resources and theoretically limitless wants.
Any resource that has a non-zero cost to consume is scarce to some degree, but what matters in practice is relative scarcity.
Via: Investopedia
Economics is often described as a social science because?
laboratory experiments are performed
It makes use of controlled experiments
It uses scientific methods to explain an observed phenomenon and predict future events
It makes use of fieldwork
Economics is regarded as a social science because it uses scientific methods to build theories that can help explain the behaviour of individuals, groups and organisations.
Economics attempts to explain economic behaviour, which arises when scarce resources are exchanged.
Which of the following is an example of an invisible item on the balance of payments account
shipping and aviation
exports and imports
merchandise
Bullion
Invisible balance of payments refers to services or products that do not result in the transfer of physical objects.
Examples of invisible balance are tourism, consulting services, and shipping services
A major factor affecting the value of money is the?
price level
banking habits
transaction motive
divisible nature of money
Price level is a major factor because a rise or decline in the prices of goods and services has a direct effect on the value of money.
The Nigerian bank for commerce and industry is?
a commercial bank
a development bank
an industrial bank
a merchant bank
A development finance institution, also known as a development bank or development finance company, is a financial institution that provides risk capital for economic development projects on a noncommercial basis. Wikipedia
Development banks provide medium and long-term finance to the industrial and agricultural sectors. The Nigerian bank for commerce and industry is a good example of a development bank.
To control inflation, the monetary authorities of a country can
reduce taxes
advise the government to increase its expenditure
engage in expansive monetary policies
engage in restrictive monetary policies
Which of the following is used by the central bank to control the rate of interest
bill of exchange
banker's order
fixed deposit account
open market operation
What form of market is found in an imperfect competition where there are few buyers and many sellers
monopoly
oligopoly
duopoly
oligopsony
A budget with a projected revenue in excess of its expenditure is said to be?
balanced
surplus
deficit
inflationary
A surplus budget is a budget whose revenues exceed the estimated expenditure in a particular financial year.
In order to raise more revenue for a certain period, the government should impose higher taxes on goods whose demands are___
elastic
inelastic
perfectly elastic
unitary elastic
The reason the government can impose more taxes in inelastic is because the buyer's demand does not change as much as the price changes.
This means that an increase in price of such goods as a result of high taxes or other factors does not cause a significant change in the demand.