Economics Questions and Answers
Economics questions and answers to help you prepare for JAMB, WAEC, NECO, Post UTME and job aptitude tests or interviews.
Economics questions and answers to help you prepare for JAMB, WAEC, NECO, Post UTME and job aptitude tests or interviews.
Localization of industry is encouraged because of
Low interest charges on loans
High standard of living
Low foreign exchange rate
Improvements in infrastructure
Correct answer is D
i) Nearness to raw material.
(ii) Availability of source of power.
(iii) Physical and climate conditions.
(iv) Growth of local industries and infrastructure
(v) Supply of trained labor.
(vi) Availability of capital.
(vii) Momentum of an early start.
Which of the following can cause oil glut in the International market?
Excess demand over supply
Under-capacity utilization
Excess supply over demand
Economic boom
Correct answer is C
Oil glut is a Market situation where the supply of a good or service far exceeds its demand, usually resulting in a substantial fall in its price.
Population growth is determined by_______?
Dependency ratio
Labour force
Per capita
Net migration
Correct answer is D
Fertility, mortality and migration are principal determinants of population growth.Population change depends on the natural increase changes seen in birth rates and the change seen in migration. Changes in population size can be predicted based on changes in fertility (births), mortality (deaths) and migration rates.
A government budget proposing to spend more than its expected revenue in a year will create_______?
Opportunity for combating inflation
Depression in the economy
Shortage in money supply
Opportunity for full employment
Correct answer is D
When the government spends more than it collects, a budget deficit exists.
A country's terms of trade can be improved by________?
Revaluation of currency
Collective bargaining
Reducing demand for imported goods
Imposing lower export duties
Correct answer is C
A country can purchase more imported goods for every unit of export that it sells when its TOT improves. An increase in the TOT can, therefore, be beneficial because the country needs fewer exports to buy a given number of imports. To improve the terms of trade, imports have to be reduced to atleast match up exports.