NECO Past Questions and Answers - Page 266

1,326.

The formular used by the Expenditure approach to calculate National income is

A.

Y= C + I + X - M –G

B.

Y= C + X – M – I + G

C.

Y = C + I + G + X – M

D.

Y = C – I + X – M + G

E.

Y = C + G – X + M – I

Correct answer is C

No explanation has been provided for this answer.

1,327.

In a two-sector economy, income is a function of

A.

Consumption + investment

B.

consumption + Investment + tax

C.

Consumption + investment + expenditure

D.

Consumption + exports + imports

E.

Saving + investment

Correct answer is A

No explanation has been provided for this answer.

1,328.

To discourage the consumption of harmful commodities, government should tax such commodities if they have

A.

Elastic demand

B.

Inelastic demand

C.

Negative demand

D.

Positive demand

E.

Unitary demand

Correct answer is B

No explanation has been provided for this answer.

1,329.

An economic system in which the decision on what and how to produce is determined by the individual is called

A.

Capitalism

B.

Communism

C.

Socialism

D.

Traditionalism

E.

Welfarism

Correct answer is A

Capitalism is an economic system in which private individuals or businesses own capital goods, and decide what and how to produce goods. 

1,330.

Long-run in economic mean a period of time in which

A.

All factor inputs are not being used

B.

All factor inputs are variable

C.

All factor inputs are fixed

D.

Only few factor inputs are variable

E.

Firms are not producing at all

Correct answer is B

No explanation has been provided for this answer.