Economics Questions and Answers
Economics questions and answers to help you prepare for JAMB, WAEC, NECO, Post UTME and job aptitude tests or interviews.
Economics questions and answers to help you prepare for JAMB, WAEC, NECO, Post UTME and job aptitude tests or interviews.
------------- is NOT the cause of balance of payments (BOP) deficits in Nigeria
Poor performance of non-oil sector
Export promotion
No import substitution strategies
High servicing of debt
Correct answer is A
The causes of balance of payment deficit are: low level of agriculture, low level of technological development, inadequacies in export promotion strategy, political instability, poor social and economic infrastructure, servicing of huge external debts, existence of import dependent industries etc.
In a two by two model of international trade, it is assumed that
Both countries could gain from trade at the same time, but term of trade is inconsequential for the distribution of the gains
Both countries could gain from trade at the same time, but the volume of the gains depends on terms of trade
Neither country could ever gain from trade since term of trade is depends on the distribution of the gains from trade
Both countries could gain from trade at the same time, and the volume of the gains does not depend on terms of trade
Correct answer is B
The model emphasizes the export of goods requiring factors of production that a country has in abundance. It also emphasizes the import of goods that a nation cannot produce as efficiently. It takes the position that countries should ideally export materials and resources of which they have an excess, while proportionately importing those resources they need.
Which one of the following measures the natural growth rate of population?
Natural increase - Birth rate + Net migration
Birth rate - Death rate
Birth rate/Death rate
Birth + Net migration = Death
Correct answer is B
The natural growth rate of a population is measured by the difference between the birth rate and the death rate. This is because the birth rate indicates the number of births in a population, while the death rate indicates the number of deaths. The difference between these two rates gives the natural increase or decrease in the population, without considering migration.
Multiplier can be described as
The ratio of change in an endogenous variable to the change spending
The ratio of variables that multiplies autonomous spending plus tax
The ratio of change in output to a change in autonomous spending
The ratio of variables that multiplies autonomous spending
Correct answer is A
A multiplier is a factor of proportionality that measures how much an endogenous variable changes in response to a change in some exogenous variable such as investment, consumption, government expediture etc.
More of commodities are offered for sale at a lower than higher prices
Marginal utility falls as consumption increases
The higher the price, the higher the quantity offered for sale
Prices are usually falling when demand is low
Correct answer is A
A normal demand curve slopes downward from left to right indicating at higher price, less quantity will be demanded and vice versa.