JAMB Economics Past Questions & Answers - Page 41

201.

The group of unemployed members of a community who are physically handicapped or disable, is generally classified under unemployment as

A.

Frictional

B.

Cyclical

C.

Residual

D.

Hidden

Correct answer is C

Residual unemployment is the type of unemployment that occurs in periods of full employment, as a result of being mentally, physically, or emotionally unfit to work.

202.

If aggregate income is N500.00 and aggregate consumption is N400.00, this means that the average propensity to consume is?

A.

0.20

B.

0.80

C.

1.25

D.

2.00

Correct answer is B

The average propensity to consume (APC) measures the percentage of income that is spent rather than saved. 

The formular is gotten as: APC = C / DI

Income = 500

consumption = 400 

400/500 = 0.8 

203.

In order to raise more revenue for a certain period, the government should impose higher taxes on goods whose demand

A.

Elastic

B.

Inelastic

C.

Perfectly elastic

D.

Unitary elastic

Correct answer is B

High taxes should be imposed on goods whose demand is inelastic.

Inelastic demand is when the buyer's demand does not change as much as the price changes. This means that no matter how high the prices may increase as a result of high taxes or other factors, people will still be willing to buy the goods.

204.

The Nigerian bank for commerce and industry is

A.

A commercial bank

B.

A development bank

C.

An industrial bank

D.

A merchant bank

Correct answer is B

Development banks are specialized banks that provide medium and long-term finance to the industrial and agricultural sectors. The Nigerian bank for commerce and industry is an example of a development bank. It provides loans and finances for entities involved in the industrial and agricultural sectors.

205.

Which of the following is an example of an invisible item on the balance of payments account?

A.

Shipping and aviation

B.

Exports and imports

C.

Merchandise

D.

Bullion

Correct answer is A

Invisible balance of payments are services and other products that do not result in the transfer of physical objects. Examples include consulting services, shipping services, tourism, and patent license revenues.