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.
Custom union
Free trade area
Common market
Economic community
Correct answer is A
Custom union is a form of economic integration in which higher tarrifs are levied on non-member states. It is an economic integration.
Nation engage in external trade because of difference in
Comparative cost
Absolute cost
Fixed cost
Variable cost
Correct answer is A
Comparative cost advantage is a reason for nations engage in external trade. The principle of comparative cost advantage was propounded by David Ricardo.
Which of the following activities will not lead to economic growth?
Massive importation of capital goods
Intensive capital formation
Use of modern technology
Massive importation of consumer goods
Correct answer is D
Massive Importation of consumer goods will not lead to economic growth. Economic growth simply means increase in output per period of time.
The figure above shows change in demand for commodity X which is a normal good. Use it to answer the questions that follows
Which of the following caused the change in demand from D0 D0 to D2 D2?
Fall in income of consumer
Rise in the price of a substitute
Rise in the price of a complement
Fall in the supply of commodity X
Correct answer is B
A change in the demand from D0 D0 to D2 D2 is caused by the rise in the price of substitute, for example, if the price of milo increases, consumer will buy more of bournvita which will make the demand for bournvita to increase.
In order to increase revenue, government should tax commodities for which demand is
Perfectly price inelastic
Price inelastic
Price elastic
Unitary elastic
Correct answer is B
For government to generate more revenue, tax on commodities should be price inelastic. Inelastic means when tax is imposed, consumers do not react to tax i.e more of the goods are demanded.