The effects of public expenditure - Jamb Economics Past Questions and Answers

Question 1:

• JAMB 2019

A demand which gives rise to the reverse of the law of demand is__________

A. Derived demand
B. Joint demand
C. Abnormal demand
D. Composite demand

Question 2:

• JAMB 2016

A government budget proposing to spend more than its expected revenue in a year will create_______?

A. Opportunity for combating inflation
B. Depression in the economy
C. Shortage in money supply
D. Opportunity for full employment

Question 3:

• JAMB 1983

The maintenance of general economic stability in the country necessarily relies heavily on?

A. Federal fiscal policy
B. Coordinated federal, state and local fiscal policies
C. Tax and revenue policies of state governments
D. Federal grants to state and local government
E. Federal grants to local governments

Question 4:

• JAMB 1995

Which of the following is the cheapest for the government in improving the welfare of its citizens?

A. Subsidy
B. Income supplement
C. Donation to specific projects
D. Wages increase

Question 5:

• JAMB 1998

An increase in government expenditure will lead to?

A. Investment opportunities for foreign investors
B. An increase in the level of aggregate demand
C. An increase in total tax revenue
D. Reduction in total tax revenue