JAMB Economics Past Questions & Answers - Page 109

541.

The situation whereby the government of a country spends more than its budgets for a given financial year is known as

A.

Surplus budget

B.

Deficit budget

C.

Balanced budget

D.

Minus budget

Correct answer is B

Deficit budget is a situation whereby government revenue is less than government expenditure.

542.

In which of the following economic systems do we have the means of production and exchange controlled by private individuals

A.

Socialist system

B.

Mixed system

C.

Capitalist system

D.

Traditional system

Correct answer is C

Capitalist system is where the private individuals controlled the means of production and exchange

543.

The study of broad economic aggregates is

A.

Macro economics

B.

Deductive method of economic analysis

C.

Micro economics

D.

Inductive method of economics analysis

Correct answer is A

Macro Economics studies the fluctuations in the levels of large aggregates and way to prevent the fluctuation.

545.

The term of trade can be expressed as

A.

(Price index of export ÷ Price index of export) × 100

B.

(Price index of import ÷ price index of export) × 100

C.

(Price index of export ÷ Price index of import) × 100

D.

(Price index of export + Price index of import) × 100

Correct answer is C

Term of trade is the comparison between visible and invisible export and visible and invisible import expresses in price. The ratio of export to import. It could be expressed as

(price index of export ÷ price index of import) × 100

Which can be dented as (px ÷ pm) × 100