JAMB Economics Past Questions & Answers - Page 11

51.

Among all the determinants of economic growth, the most important one is

A.

Human capital

B.

Increased GDP

C.

Land and Natural resources

D.

Technologies

Correct answer is B

The Gross Domestic Product is the total monetary or market value of all the goods and services produced within a country. It is used to measure the rate of growth in an economy.

52.

A ............ in the price of the domestic currency in terms of a foreign currency is referred to as .............

A.

Decrease, appreciation

B.

Increase, de-appreciation

C.

Decrease, depreciation

D.

Increase, consolidation

Correct answer is C

Currency depreciation is a fall in the value of a currency in a floating exchange rate system. Therefore, a decrease in the price of the domestic currency in terms of a foreign currency is referred to as depreciation.

53.

Economic problem occurs when

A.

There is scarcity relative to demand

B.

All raw materials are imported

C.

Many people are out of work

D.

There are no buyers for our goods

Correct answer is A

Scarcity explains the basic economic problem that the world has limited or scarce resoures to meet seemingly unlimited wants, and this reality forces people to make decisions about how to allocate resources in the most efficient way.

54.

Business cycle is associated with

A.

Recession

B.

Unemployment

C.

Seasonal variation

D.

Inflation

Correct answer is A

Business cycle are intervals of expansion followed by recession in economic activity. It is characterized by general upswings and downturns in a span of macroeconomics variable.

55.

Money could be defined as

A.

Options A, B and C

B.

Medium of exchange

C.

Settlement of debt

D.

Medium of payment

Correct answer is A

Money can be defined as anything that is generally acceptable as a medium of exchange (means of payment) and in the settlement of debt. It can also be defined as a medium of exchange recognized by law.