JAMB TEST 2 (ECONS)

A budget deficit means

• That a country is buying more than is selling

• That a country is selling more than is buying

• That a government is spending more than in takes in taxation

• That a government is spending less than it takes in taxation

• That a government is spending as much as it takes in taxation

When elasticity is zero, the demand curve is

• Perfectly elastic

• Perfectly inelastic

• Concave

• Downward slopping

• Circular

Inferior goods are referred to in Economics as goods

• Whose quality is low

• Consumed by very poor people

• Whose consumption falls when cunsumers' income rises

• Which satisfy only the basic needs

Malthus became famous through his theory which may be stated simply

• the death rate may become so high that people may not be able to produce

• population may outgrow the means of subsistence

• people will eventually decide not to have children

• migration of people from one place to another may leave some parts of the world barren

A commercial bank is unique in that it is the only institution that

• makes loans to private people and businessmen

• accept deposits

• can store peoples' valuables

• can transfer money from one place to another for its customers

Which is an example of an invisible item in the trade Account of Ghana?

• Export of Cocoa from Ghana

• Import of oil from Nigeria

• A gift of a Peugout 504 by a firm in Nigeria to a firm in Ghana

• Payment for shipping and insurance by a Ghanaian company to companies outside Ghana

Which is NOT a direct effort to increase Agricultural production in Nigeria?

• Operation feed the Nation

• Nigerian Youth Service Corps

• Increased loans to farmers and cooperatives

• Research in Agric & Extension services

• Mechanization of Agriculture

If a company doubles all its inputs and discovers that its output is more than doubles, we can say that the company is experiencing

• Increasing Marginal utility

• Diseconomies of scale

• Increasing costs

• Constant returns to scale

• Increasing returns to scale

Price control cannot work in Nigeria because

• the population is too large

• the policemen hate to arrest people

• while it is fairly easy to control producers and importing firms, smaller distributors are too many to be controlled

• control cannot work under military rule

• too many things are produced in the country

The foreign exchange market is a market where

• graded commoditties like wheat, flour, etc are sold and bought

• currencies are sold and bought

• treasury bills are sold and bought

• government bonds are sold and bought

• treasury certificates are sold