Jamb Economics 2009 Past Questions and Answers

Question 21:

• JAMB 2009

In the long run, one of the characteristics of monopolistic competitive firms is that they

A. Make abnormal profits
B. Suffer losses
C. Make normal profits
D. Collude with each other

Question 22:

• JAMB 2009

Double counting is a problem in computing national income when using the

A. Expenditure method
B. Income method
C. Output method
D. Value-added method

Question 23:

• JAMB 2009

In the circular flow of income, an increase in savings causes

A. An increase in imports
B. A decrease in the income stream
C. An increase in household consumption
D. A decrease in exports

Question 24:

• JAMB 2009

The ability of commercial banks to create money depends on the

A. Reserve ratio
B. Liquidity ratio
C. Interest rate
D. Capital base

Question 25:

• JAMB 2009

The reform in the banking sector in Nigeria is principally motivated by the need to

A. Increase the capital base of banks
B. Provide more money to run the economy
C. Minimize the rate of bank failures
D. Enhance efficiency in bank operations