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.
The theory of ............... was propounded by ..................
Comparative advantage; Mercantilists
Absolute advantage; Adam Smith
Comparative advantage; Adam Smith
Absolute advantage; David Ricardo
Correct answer is B
The theory of absolute advantage was propounded by Adam Smith while the theory of comparative advantage was propounded by David Ricardo.
Structural unemployment
Cyclical unemployment
Seasonal unemployment
Frictional unemployment
Correct answer is A
Structural unemployment occurs when production structure changes or changes in demand or technology. It also occurs when a worker loses job because their jobs are transferred to other countries.
A group of firms producing differentiated products
A group of firms producing distinct commodities
A group of firms producing related goods
A group of firms producing unrelated goods
Correct answer is C
An industry is a group of firms producing similar products and under separate administration or management.
The part of income after tax that is not consumed is defined as
Wages and salaries
Saving
Capital investment
Nondurable goods expenditure
Correct answer is B
The part of income after tax that is not consumed is defined as saving. This is because when income is earned, it is either used for consumption or saved. Therefore, if it is not consumed, it is saved. Capital investment, wages and salaries, and nondurable goods expenditure are all forms of consumption, not saving.
The real money supply divided by the real GDP
The money supply multiplied by the price level
The money supply divided by the price level
The ratio of real GDP to the real money supply
Correct answer is D
Velocity of money is the total amount of money in circulation in an economy. It is calculated as Velocity of money = GDP/Money Supply