Economics 2004 Jamb Examination
Question 21
The difference between birth and death rates of a given population is referred to as the
Correct Answer: C. natural growth rate
The natural growth rate is the difference between the birth rate and death rate of a population, indicating whether the population is increasing or decreasing in the absence of migration.
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Question 22
Fiscal policy is the government’s plan to control aggregate demand by manipulating
Correct Answer: B. revenue and expenditure
Fiscal policy involves the use of government revenue (taxation) and expenditure (spending) to influence aggregate demand, stabilize the economy, and achieve macroeconomic objectives such as growth and employment.
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Question 23
A country is said to have absolute advantage when she
Correct Answer: C. can produce more of any good with fewer resources
Absolute advantage refers to a country’s ability to produce more of a good or service using the same or fewer resources than another country. It focuses on productivity, not opportunity cost.
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Question 24
The European Union was formed to promote free trade within member nations
Correct Answer: A. Promote free trade within member nations
The European Union (EU) was primarily established to promote free trade among member nations, ensuring the free movement of goods, services, capital, and people to foster economic integration and growth.
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Question 25
If budget deficits are financed by borrowing, the crowding-out effects can be offset by an increase in
Correct Answer: B. savings
When budget deficits are financed through borrowing, it can lead to crowding out, a reduction in private investment due to higher interest rates. However, an increase in savings can provide more funds for investment, helping to offset this effect.
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Question 26
When the importation of a commodity is limited to a definite quantity, the trade control means used is known as
Correct Answer: D. quotas
Quotas are trade control measures that limit the quantity of a specific commodity that can be imported into a country. This helps regulate supply, protect local industries, and control the balance of trade.
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Question 27
The excess of aggregate expenditure over full emploment level of output is referred to as
Correct Answer: C. Inflationary gap
An inflationary gap occurs when aggregate expenditure exceeds the full employment level of output, leading to upward pressure on prices and demand-pull inflation in the economy.
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Question 28
The tax levied on goods and services at each stage of production is
Correct Answer: B. VAT
Value Added Tax (VAT) is a consumption tax levied on goods and services at each stage of production and distribution, based on the value added at each stage.
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Question 29
The number of shareholders in a private limited liability company ranges from
Correct Answer: C. two to fifty
A private limited liability company is legally allowed to have between two and fifty shareholders, enabling it to raise capital while maintaining private ownership and limiting public share subscription.
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Question 30
A major reason for having national development plan is to
Correct Answer: A. ensure efficient use of available resources
A national development plan is designed to guide a country’s economic and social policies, with the primary aim of ensuring the efficient allocation and use of available resources to achieve sustainable development goals.
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