Jamb Economics 1980 Past Questions and Answers

Question 46:

• JAMB 1980

In the above diagram supply and demand conditions of sugar in a Nigerian market are given. An indirect tax of 10 kobo per kg is imposed it will be paid

A. Wholly by the supplier
B. Wholly by the consumer
C. Partly by the supplier and partly by the consumer
D. Wholly by the middlemen
E. Partly by stockholder and partly by consumer

Question 47:

• JAMB 1980

Commercial banks can create money in the following ways

A. By issuing coins and paper money
B. By borrowing money from Banks abroad
C. By receriving deposits from individuals
D. By printing money on the instructions of the Central Bank
E. None of the above

Question 48:

• JAMB 1980

Which is the dominant form of tax in Nigeria

A. Direct tax
B. Indirect tax
C. Inheritance tax
D. Personal income tax
E. Value added tax

Question 49:

• JAMB 1980

The terms of trade are said to be favorable only if

A. Value of total exports equals value of total imports
B. Value of merchandise exports is greater than value of merchandise imports
C. There are no balance of payments problems
D. There is an increase in the value of a unit of export in terms of imports
E. Foreign exchange reserves do not change

Question 50:

• JAMB 1980

If the government is interested in raising the highest revenue from a tax system, then for any two commodities

A. It is better to tax one whose demand is more elastic
B. It is better to tax one whose demand is more inelastic
C. Revenue will be the same from both commodities
D. It is not possible to say which will yield higher revenue
E. Government cannot make much revenue from taxing commodities