Economics Past Questions And Answers
To reduce the high rate of inflation in the economy, the government should?
- A. increase taxes and have a budget surplus
- B. increase taxes and have a budget defilicit
- C. decrease taxes and have a budget defilicit
- D. decrease taxes and have a balance budget
Fiscal policy that can control inflation will include the use of
- A. balanced budgeting
- B. tax holidays
- C. budget deficit
- D. budget surplus
External finance for a limited liability company is mainly sourced through?
- A. the leasing equipment
- B. the issuing of shares
- C. trade credits
- D. banks loans
If the marginal propensity to consume is 0.75 and private investment increases by N10 billion while government expenditure decreases by N15 billion, GDP will decrease by?
- A. N12 billion
- B. N15 billion
- C. N20 billion
- D. N25 billion
An argument for the use of commercial policy rest on the need to
- A. make imported goods affordable
- B. reduce domestic unemployment
- C. encourage the importation of non-essential goods
- D. make a country enjoy absolute advantage in production of all goods
the Central Bank's expansionary monetary policy is justified at a period?
- A. when the inflation rate is high and the economic is experiencing a boom
- B. of economic depression accompanied by low capacity utilization
- C. when trade unions are clamouring for higher wages
- D. when price of crude petroleum is rising
An increase in the rice harvest, all things being equal, may cause____________
- A. Price to increase substantially.
- B. Price to fall substantially
- C. Demand to fall substantially.
- D. Farmer's incomes to be more than doubled
The Quantity Theory of Money state that an increase in the quantity of money would bring about
- A. a geometrical rise in price
- B. an unequal rise in prices
- C. a proportionate rise in prices
- D. an absolute rise in prices
If the government imposes a minimum price on a commodity
- A. market surplus occurs
- B. the market will be cleared in the short-run
- C. excess demand occurs
- D. government regulation is no longer needed
Changing the structure of a commodity in order to increase its utility is called?
- A. Time utility
- B. form utility
- C. marginal utility
- D. place utility