JAMB Economics Past Questions & Answers - Page 225

1,121.

The tax levied on goods and services at each stage of production is

A.

Surtax

B.

VAT

C.

Ad valorem tax

D.

PAYE

Correct answer is B

No explanation has been provided for this answer.

1,122.

The excess of aggregate expenditure over full employment level of output is referred to as

A.

GNP gap

B.

Deflationary gap

C.

Inflation gap

D.

Recessionary gap

Correct answer is C

No explanation has been provided for this answer.

1,123.

If budget deficits are financed by borrowing, the crowing-out effect can be offset by an increase in

A.

Government expenditure

B.

Savings

C.

Interest rates

D.

Exchange rates

Correct answer is C

No explanation has been provided for this answer.

1,124.

When the importation of a commodity is limited to a definite quantity, the trade control means used is known as

A.

Exchange control

B.

Tax relief

C.

Devaluation

D.

Quotas

Correct answer is D

No explanation has been provided for this answer.

1,125.

The European Union was formed to

A.

Promote free trade within member nations

B.

Promote economic integration in non-member countries

C.

Assist countries to achieve their economic goals

D.

Finance development projects in member nations

Correct answer is A

The main aim of the European Union is to promote peace, trade, values, and the well-being of citizens within its border.