Jamb Economics 1979 Past Questions and Answers

Question 36:

• JAMB 1979

An ad valorem tax means

A. Total amount of an income tax
B. A certain percentage on the value of a commodity
C. A certain percentage tax on the volume of commodity
D. A tax on capital gain
E. A profit tax

Question 37:

• JAMB 1979

The foreign exchange rate of a country is

A. The interest rate fixed by the central bank
B. The price of one national currency in terms of another
C. The rate at which the central bank issues money
D. The rate of interest on government bonds
E. None of the above

Question 38:

• JAMB 1979

The 'terms of trade' means

A. The trade agreement between two countries
B. The difference in the volumes of exports of two countries
C. The value of a unit of export in relation to the value of a unit of import
D. The production of total value of exports to the value of total trade
E. None of the above

Question 39:

• JAMB 1979

Which is the most liquid of the following financial assets held by an individual?

A. Outstanding balance on the current account of a commercial bank
B. A credit balance on a savings account
C. A crossed postal order
D. An insurance policy
E. All of the above

Question 40:

• JAMB 1979

The price mechanism

A. Regulates supply and demand
B. Rations the consumers
C. Rewards the producers
D. Allocates scarce resources
E. Does all of the above