JAMB Economics Past Questions & Answers - Page 38

186.

The term M \(^3\) comprises M \(^1\) together with deposits on deposit account held by_______

A.

Banks only

B.

Discount houses only

C.

Banks and discount houses

D.

Banks, discount houses, and stock exchanges

Correct answer is C

The money supply consist of M \(^1\) and M \(^3\). M \(^3\) is a measure in money supply. M \(^3\); This is M \(^1\) plus deposits on deposit account held by barks and discount houses.

187.

One of the major criticism of the 1962 -1968 National Development Plan was that

A.

It failed to incorporate lessons gained from earlier plans to enhance its efficiency

B.

It came too quickly after the country's independence

C.

Planned expenditure was based too heavily on expected earnings from crude oil

D.

Its execution was based largely on foregn-sourced financial resources

Correct answer is A

No explanation has been provided for this answer.

188.

The use of legally permissible means to reduce tax liabilities is known as tax?

A.

Evasion

B.

Avoidance

C.

Relief

D.

Exemption

Correct answer is C

Tax relief is any government program or policy initiative that is designed to reduce the amount of taxes paid by individuals or businesses.

189.

When a country's population is experiencing increasing returns, that country is said to be

A.

Overpopulated

B.

Economically poor

C.

Over-producing goods and services

D.

Underpopulated

Correct answer is A

Increasing returns occur when the output increases in a greater proportion than the increase in input. Now, when a country population is experiencing increasing returns, it means its population is rising and may get to a point where it becomes over populated.

190.

The most important goal of OPEC is to

A.

Present a united front for the purpose of raise prices of crude oil

B.

Bring unity among the petroleum exporting countries

C.

Ensure political stability among member states

D.

Ensure that rules on quota production are strictly followed

Correct answer is D

No explanation has been provided for this answer.