JAMB Economics Past Questions & Answers - Page 201

1,001.

A major objective of the Federal Government's initiative on cassava production in Nigeria is to

A.

Diversify the export base of the economy

B.

Ensure the availability of cassava

C.

Make cassava a staple food in the country

D.

Provide raw materials for industries

Correct answer is A

No explanation has been provided for this answer.

1,002.

The survival of partnership depends on

A.

The managerial ability of the partners

B.

Access to finance

C.

The goodwill of the partners

D.

Political stability

Correct answer is A

No explanation has been provided for this answer.

1,003.

The minimum number of shareholders for a joint stock company is

A.

2

B.

3

C.

4

D.

7

Correct answer is D

No explanation has been provided for this answer.

1,004.

The main objective of WTO is to

A.

Help countries with chronic balance of payments problems

B.

Help debtor nations solve their problems

C.

Ensure adequate tariff protection for infant industries

D.

Provide a mechanism for tariff reductions

Correct answer is D

No explanation has been provided for this answer.

1,005.

One of the ways of correcting a deficit balance of payments is to

A.

Revalue a country's currency

B.

Devalue a country's currency

C.

Increase imports

D.

Reduce exports

Correct answer is B

One way to improve a deficit balance of payment is through devaluation. By devaluing the currency, the value of the home currency goes down against foreign currency. This means imports will become costlier as people will have to pay more for the local currencies to obtain a foreign currency that will be used to transact business. This invariably leads to a reduction in the demand for imports, which is one of the major causes of a deficit balance of trade/payment