Jamb Economics 1988 Past Questions and Answers

Question 36:

• JAMB 1988

When a nation is experiencing balance of payment surplus, it is in a better position to?

A. Increase its foreign exchange reserves
B. Increase its liabilities to foreigners
C. Reduce its foreign exchange reserves
D. Devalue its national currency

Question 37:

• JAMB 1988

Which of the following is a good example of invisible item on balance of payments account?

A. Shipping and aviation
B. Export and imports
C. Merchandise
D. Bullion

Question 38:

• JAMB 1988

Deficit financing is mostly facilitated by the existence of?

A. Stock exchange market
B. Commercial bank
C. Central bank
D. Capital market

Question 39:

• JAMB 1988

The Malthusian theory of population predicts that growth in food production will?

A. Keep pace with population growth
B. Be at a faster rate than population growth
C. Be at a slower rate tthan population growth
D. Be more rapid than population growth in the developing countries

Question 40:

• JAMB 1988

If aggregate income is N500.00 and aggregate consumption is N400.00, this means that the average propensity to consume is?

A. 0.20
B. 0.80
C. 1.25
D. 2.00