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.
Producers operating in a free market economy are more efficient as a result of
The existence of competition
The very few number of participants
The commitment of the shareholders
Government regulation of their activities
Correct answer is A
In a free market economy, there is efficiency as a result of competition among producers. It also known as capitalist economy in which the price of the goods are fixed by price mechanism.
Which of the following is not emphasized in a product possibility curve?
Scarcity of resources
Economic development
Inefficiency in the use of resources
Unemployment of labour
Correct answer is D
Production possibility curve does not emphasized on unemployment of labour. It explain scarce of resources, economic development and inefficiency in the use of resources. The PPC is explained using the concept of scarcity, choice and opportunity cost.
Economics problems arise in all societies because
Resources are mismanaged by leaders
There is no proper planning
Resource are not in adequate supply
The services of economists are not employed
Correct answer is C
The basic problem of every society arise as a result of scarcity i.e limited supply of resources since our wants are unlimited.
Fiscal policy measures imply a change in
Only taxation to control aggregate demand
Bank rate to infulence lending
Only government expenditure to regulate an economy
Government revenue and expenditure to regulate an economy
Correct answer is D
Fiscal policy is the use of government income and expenditure instrument to regulate or control the economy. It is used to control inflation, deflation, balance of payments deficits, economic recession, unemployment, price level, GNP etc. The two most important fiscal policy tools of government are: Government expenditure and Taxation.
The use of the bank rate, cash ratio and open market operations constitute
Fiscal policy
Monetary policy
Import policy
Export policy
Correct answer is B
Monetary policy refers to the policy taken by the Central Bank to control and regulate the supply of money with the public (economy). Examples are Open market operation, Bank rate, Cash reserve ratio etc.