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.
An increase in nominal income without increase in price will result to
Increased real income
Increased GDP
Decreased real income
Decreased GNP
Correct answer is A
When nominal income increases without any change to prices, this means consumers can purchase more goods at the same price, and for most goods, consumers will demand more.
Identify one of the following which can NOT be used to close deflationary gap
Increased interest rate
Increased money supply
Increase government expenditure
Reduction in taxes
Correct answer is A
- Monetary policy is implemented by reducing the interest rates in the economy in order to increase the supply of money to enhance growth.
- The fiscal policy is implemented by the reduction of taxes and increasing government spending in order to boost demand.
- Policymakers may choose to implement a stabilization policy to close the recessionary gap and increase real GDP.
The decision to consume more of one product under normal circumstances will apply
Less of another product will be consumed
More of another product will be consumed
Less of the product will be consumed
No other products will be consumed
Correct answer is A
Getting more of one commodity allows a consumer to demand less of the other product. The demand for substitute products shows a negative correlation. That is, consumption of one product reduces or replaces the need for the other.
Indicator of underdevelopment is
High life expectancy
Low birth rate
Low population growth rate
Low per capita income
Correct answer is D
The indicators of underdevelopment include: high birth rates, high infant mortality, low per capita GDP, high levels of illiteracy, and low life expectancy.
Unemployment will fall
Unemployment will remain constant
Unemployment will increase
Unemployment will fluctuate
Correct answer is C
In general, Okun's findings demonstrated that when unemployment falls, the production of a country will increase and vice versa.