JAMB Economics Past Questions & Answers - Page 175

871.

If Nigeria imports vehicles from Japan the transaction will appear as a

A.

Debit on Japan's balance of payments

B.

Credit on Japan's balance of payments

C.

Credit on Nigeria's balance of trade

D.

Credit on Nigeria's balance of payment

Correct answer is B

The balance of payments (BOP) is a statement of all transactions made between entities in one country and the rest of the world over a defined period of time, such as a quarter or a year.

Japan's current account in the balance of payment will have a credit balance to the tone of the car value in monetary terms while Nigeria's capital account will be debited

872.

The primary motive for an individual engaging in production is to

A.

Make profit

B.

Satisfy basic human wants

C.

Redistribute wealth

D.

Put inputs into use

Correct answer is A

The main motive of a business organization, especially private business enterprise is to make profit. 

873.

One of the characteristics of free trade zone is

A.

Common tariff against non-member countries

B.

Different trade policies of non-member countries

C.

Free factor mobility within the zone

D.

Harmonized trade among member countries

Correct answer is D

In a free trade zone, trade/business transactions are allowed to move freely between member nations. Each member country is allowed to determine its own trade policies with regard to non-members. 

874.

The maximum number of shareholders for a limited liability company is

A.

Twenty

B.

Five

C.

Seven

D.

Infinite

Correct answer is D

 There is no limitation on the number of shareholders a limited liability company can have.

875.

A disadvantage of Nigeria's dependence on imported petroleum products is the

A.

Instability in the demand for the products

B.

Dominance of multinational firms

C.

Instability in the supply of the product

D.

Poor maintenance of the refineries

Correct answer is C

No explanation has been provided for this answer.