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.
Macroeconomics focuses on the following units in an aggregative manner
Household, firms, government, corporate sector and external sector
Individual consumers, individual firms, government and external sector
Government, household firms, individual consumers and external sector
Individual consumers, household firms and manufacturing sector
Correct answer is C
Macroeconomics focuses on the following units in of government, household firms, individual consumers and external sector.
An increase in nominal income without increase in price will result to
Increased real income
Increased GDP
Decreased real income
Decreased GNP
Correct answer is A
When nominal income increases without any change to prices, this means consumers can purchase more goods at the same price, and for most goods, consumers will demand more.
Identify one of the following which can NOT be used to close deflationary gap
Increased interest rate
Increased money supply
Increase government expenditure
Reduction in taxes
Correct answer is A
- Monetary policy is implemented by reducing the interest rates in the economy in order to increase the supply of money to enhance growth.
- The fiscal policy is implemented by the reduction of taxes and increasing government spending in order to boost demand.
- Policymakers may choose to implement a stabilization policy to close the recessionary gap and increase real GDP.
The decision to consume more of one product under normal circumstances will apply
Less of another product will be consumed
More of another product will be consumed
Less of the product will be consumed
No other products will be consumed
Correct answer is A
Getting more of one commodity allows a consumer to demand less of the other product. The demand for substitute products shows a negative correlation. That is, consumption of one product reduces or replaces the need for the other.