JAMB Economics Past Questions & Answers - Page 275

1,372.

If a government wants to reduce the level of inflation, it will

A.

Run a budget surplus

B.

Run a budget deficit

C.

Run a balanced budget

D.

Borrow more money

Correct answer is A

To reduce inflation, the government will run a budget surplus.

This means that the government will collect more money in taxes than it spends.

This will reduce the amount of money in circulation and help to slow down the rate of inflation.

1,373.

When an indirect tax is levied on the producer of a good, the burden on the consumer will depend largely on the

A.

Elasticity of demand for the good

B.

Proportion of the consumer's income spent on the good

C.

Elasticities of demand and supply of the commodity

D.

Availability of substitutes for the commodity

Correct answer is A

No explanation has been provided for this answer.

1,374.

An increase in government expenditure will lead to

A.

Investment opportunities for foreign investors

B.

An increase in the level of aggregate demand

C.

An increase in total tax revenue

D.

Reduction in total tax revenue

Correct answer is B

No explanation has been provided for this answer.

1,375.

A rise in the market price of fixed interest securities is an indication that the

A.

Supply of money has decreased

B.

Liquidity preference has increased

C.

Market rate of interest has risen

D.

Market rate of interest has fallen

Correct answer is C

No explanation has been provided for this answer.