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.
Which of the following is true of the value of money? It
Is positively related to the price level
Depends on the value people attach to it
Is determined by the government
Is inversely related to the price level
Correct answer is D
Value of money is what one unit of money can buy and the price level is the average of prices of all the goods and services within an economy. So when the price level increases the value of money goes down and vice versa. Hence the relationship between price level in an economy and the value of money is inverse.
Which of the following items is not considered as a transfer payment?
Pension pay
Government subsidy
Student’s grant
Doctor’s salary
Correct answer is D
Transfer payment is any payment made by a government in which no goods or services are being paid for. They include welfare, financial aid, social security, and government subsidies for certain businesses. From the options above, doctor's salaries are a service paid for.
Which of the following factors will not underestimate the national income?
Rapid decrease in prices
Increased subsistence production
Practice of specialization of labour
Increase in value of services not paid for
Correct answer is D
No explanation has been provided for this answer.
The total value of goods and services produced within the borders of a country is
Net national product
Net domestic product
Gross domestic product
Gross national product
Correct answer is C
Gross domestic product (GDP) is the total market value of the goods and services produced by a country's economy during a specified period of time.
A country is described as industrialized if
The contributions of industries to national income are high
Traditional and modern sectors coexist
The country adopts an import promotion strategy
Primary industries dominate the economy
Correct answer is A
An industrialized country is a developed country with a highly mature and sophisticated economy, that has advanced technological infrastructure and have diverse industrial and service sectors. It is usually measured by gross domestic product (GDP) and/or average income per resident.