Jamb Economics 1987 Past Questions and Answers

Question 31:

• JAMB 1987

In the keynesian model?

A. The demand for money is inversely related to the rate of interest
B. Investment is directly related to the rate of interest
C. Investment is not related to the rate of interest to the rate of interest
D. The demand for money is directly related to the rate of interest

Question 32:

• JAMB 1987

If inflation is anticipated to continue?

A. People will lose confidence in goods
B. Lenders will demand higher interest rate
C. The growth of full employment output will be accelerated
D. People will want to hold more money

Question 33:

• JAMB 1987

Ad valorem tax means?

A. A certain percentage tax based on the value of the commodity
B. A certain percentage tax based on the volume of the commodity
C. A tax on the income of the consumer
D. Payment of a tax on the profits made

Question 34:

• JAMB 1987

In order to raise more revenue for a certain period, government should impose higher taxes on goods whos demand is?

A. Elastic
B. Inelastic
C. Perfectly elastic
D. Unitary elastic

Question 35:

• JAMB 1987

A budget with a projected revenue in excess of its expenditure is said to be?

A. Balanced
B. Surplus
C. Deficit
D. Inflationary