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 an example of an invisible item on the balance of payments account?
Shipping and aviation
Exports and imports
Merchandise
Bullion
Correct answer is A
Invisible balance of payments are services and other products that do not result in the transfer of physical objects. Examples include consulting services, shipping services, tourism, and patent license revenues.
Economics is often described as a social science because
Laboratory experiments are performed
It makes use of controlled experiments
It uses scientific methods to explain an observed phenomenon and predict future events
It makes use of fieldwork
Correct answer is C
Economics is considered a social science because it uses scientific methods to build theories that can help explain the behaviour of individuals, groups and organisations.
Human wants are limitless
The economy has very few resources
The economy can scarcely produce anything
Resources are limited in relation to wants
Correct answer is D
Scarcity in economics means the available resources needed to satisfy human wants are limited, hence people are required to judiciously or efficiently allocate the scarce resources to meet the needs of society.
The purchasing power of money depends upon the__________
Value
Index
Price level
Wages
Correct answer is C
The purchasing power of money depends upon the price level when the price leve rises, the purchasing power of money gets reduced, thus adversely affecting the real wages of workers and vice-versa.
A retailer is distinguished by the nature of its sales, which is in__________
Bulk
Large
Units
Chain
Correct answer is C
A retailer is a trader who buys goods in small quantities from the wholesaler and sells in bits or units to the final consumer.