Jamb Economics 2006 Past Questions and Answers

Question 1:

• JAMB 2006

If the marginal propensity to consume is 0.6 and consumption expenditure changes by N10 million, the equilibrium level of income will change by

A. N4.0 milion
B. N25. 0 milion
C. N2.5 milion
D. N15.0 milion

Question 2:

• JAMB 2006

If the marginal propensity to consume is 0.6 and consumption expenditure changes by N10 million, the equilibrium level of income will change by

A. N4.0 milion
B. N25. 0 milion
C. N2.5 milion
D. N15.0 milion

Question 3:

• JAMB 2006

Personal income tax as a source of government revenue is increased when the

A. Tax rate is raised
B. Tax system is proportional
C. Retirement age is reduced
D. Tax base is contracted

Question 4:

• JAMB 2006

In computing national income, transfers are excluded because

A. They are received only by the poor
B. The figures reduce the size of national income
C. It is difficult to get the exact figures
D. They are not payments for productive activities

Question 5:

• JAMB 2006

The major role of NDIC is to

A. Insure bank deposits
B. Regulate the activities of insurance companies
C. Ensure adequate capitalization of insurance companies
D. Accept customers' deposit