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Which of the following occurs in the circular flow of economic activities with no leakages
AConsumption equals saving
BSaving equals investment
CImports equal exports
DNational income equals national expenditure
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Question 2
jamb1988
The demand and supply equations for a commodity are given respectively as D = 20 - 1/2P; S = 8 + 1/4P. Recalling that at equilibrium, D = S, the equilibrium (P) and quantity (Q) can be obtained as
AP = 12, Q = 16
BP = 15, Q = 10
CP = 12, Q = 14
DP = 16, Q = 12
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Question 3
jamb1988
If in this demand-supply diagram, the quantity supplied is OQ, then
Aprice will be OP
Bthere will be excess demand of RT
Cprice will be ON
Dprice will tend to rise
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Question 4
jamb1988
A textile firm operates a plant in the North (where capital expensive relative to labour)as well as a plant in the South (where labour is expensive relative to capital ). In this diagram above the Southern plant will minimize cost by combining labour and capital in the amounts indicated by
AP
BQ
CX
DY
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Question 5
jamb1988
The group of unemployed members of a community who are physically handicapped or disabled, is generally classified under unemployment as?
Africtional
Bcyclical
Cresidual
Dhidden
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Question 6
jamb1988
Collectivism refers to the system of management of state enterprises in a?
Amixed economy
Bco-operative organization
Ccapitalist economic system
Dsocialist economy
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Question 7
jamb1988
An increase in an economy's productive capacity implies?
Aan increase in the economy's rate of capital replacement
Ban increase in the economy's capital stock
Ca decrease in government spending
Dan increase in government spending
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Question 8
jamb1988
The most threatening problem for the less developed countries is?
Athe continual depletion of their soil fertility
Bthe rise of nationalism
Cpopulation explosion
Dtheir differences towards economic growth
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Question 9
jamb1988
If technology becomes less capital-intensive, it means?
Aan increase in the capital/labour ratio
Ban increase in the capital/ratio
Ca fall in the labour/capital ratio
Dincreased unemployment
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Question 10
jamb1988
In estimating the national income of a country, the three approaches usually adopted are the?
Aexpenditure, value-added and output
Bincome, final product and output
Cexpenditure,income and output
Davoiding of double counting, final expenditure and value added
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Question 11
jamb1988
Which of the following items is subtracted when computing Gross National Product at factor cost, by the expenditure method?
AConsumption expenditure
BIndirect taxes
CExports and property income from abroad
DGross Domestic Fixed Capital Formation
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Question 12
jamb1988
If aggregate income is N500.00 and aggregate consumption is N400.00, this means that the average propensity to consume is?
A0.20
B0.80
C1.25
D2.00
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Question 13
jamb1988
The Malthusian theory of population predicts that growth in food production will?
Akeep pace with population growth
Bbe at a faster rate than population growth
Cbe at a slower rate tthan population growth
Dbe more rapid than population growth in the developing countries
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Question 14
jamb1988
Deficit financing is mostly facilitated by the existence of?
Astock exchange market
Bcommercial bank
Ccentral bank
Dcapital market
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Question 15
jamb1988
Which of the following is a good example of invisible item on balance of payments account?
AShipping and aviation
BExport and imports
CMerchandise
DBullion
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Question 16
jamb1988
When a nation is experiencing balance of payment surplus, it is in a better position to?
Aincrease its foreign exchange reserves
Bincrease its liabilities to foreigners
Creduce its foreign exchange reserves
Ddevalue its national currency
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Question 17
jamb1988
Which of the following would most likely be considered an example of benefit taxation?
AExcise tax
BCorporate income tax
CProperty tax
DHighway-user tax
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Question 18
jamb1988
Which of the following is a direct tax?
ASales tax
BPurchase tax
CExport duties
Dproperty tax
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Question 19
jamb1988
Merchants banks perform all the following functions EXCEPT?
Araising of capital for industry
Bprovision of current account facilities
Cmanagement of investment portfolios
Dprovision of credit for overseas trade
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Question 20
jamb1988
The rate at which money changes hands is known as the?
