Jamb Economics 2004 Past Questions and Answers

Question 26:

• JAMB 2004

If budget deficits are financed by borrowing the crowing-out effect can be offset by an increase in

A. Government expenditure
B. Savings
C. Interest rates
D. Exchange rates

Question 27:

• JAMB 2004

The excess of aggregate expenditure over full employment level of output is referred to as

A. GNP gap
B. Deflationary gap
C. Inflation gap
D. Recessionary gap

Question 28:

• JAMB 2004

The tax levied on goods and services at each stage of production is

A. Surtax
B. VAT
C. Ad valorem tax
D. PAYE

Question 29:

• JAMB 2004

The number of shareholders in a private limited liability company ranges from

A. Two to seven
B. Two to three
C. Two to fifty
D. Two to twenty

Question 30:

• JAMB 2004

A major reason for having national development plans is to

A. Ensure efficient use of available resources
B. Involve people in national programmes
C. Make government spend more on production
D. Ensure that more citizens are involved in planning