JAMB Economics Past Questions & Answers - Page 231

1,151.

One way of correcting the balance of payments problem of a country is to

A.

Introduce import-promotion measures

B.

Buy investments abroad

C.

Devalue the currency

D.

De-emphasize import-substitution industries

Correct answer is C

Devaluating a country's currency is one of the ways used in correcting a balance of payment problem. The term Devaluation means a reduction in the official rate at which one currency is exchanged for another. It is done to make export attractive by making imports expensive.

When a currency is devalued, its value falls against foreign currencies, when traders realize that a bulk of the local currency will exchange for very little of the foreign currency, they will prefer to export and get paid in foreign currencies with greater value, than import into the country at very high exchange rates.

1,152.

One of the roles of NNPC in the production and refining of crude oil is to

A.

Secure maximum government revenue and regulate price

B.

Prevent the smuggling of petroleum products

C.

Satisfy the domestic consumption of petroleum products

D.

Protect the local operators in the petroleum industry

Correct answer is C

No explanation has been provided for this answer.

1,153.

Some of the key indicators of underdevelopment in a country are

A.

Poverty, high level of literacy and low income

B.

Poverty, low level of literacy and low income

C.

Low level of illiteracy, low income and poverty

D.

Poverty, low income and low unemployment level

Correct answer is B

No explanation has been provided for this answer.

1,154.

External finance for a limited liability company is mainly sourced through

A.

The leasing equipment

B.

The issuing of shares

C.

Trade credits

D.

Bank loans

Correct answer is A

No explanation has been provided for this answer.

1,155.

The effect of an increase in demand for a commodity accompanied by a decrease in supply will be to

A.

Raise the price of the commodity and affect the quantity in an indeterminate way

B.

Decrease the equilibrium quantity and affect the price in an intermediate way

C.

Raise its price as well as the equilibrium quantity

D.

Lower it price while affecting the equilibrium quantity in an interminate way

Correct answer is C

No explanation has been provided for this answer.