JAMB Economics Past Questions & Answers - Page 444

2,216.

The foreign exchange market is a market where

A.

Graded commoditties like wheat, flour, etc are sold and bought

B.

Currencies are sold and bought

C.

Treasury bills are sold and bought

D.

Government bonds are sold and bought

E.

Treasury certificates are sold

Correct answer is C

No explanation has been provided for this answer.

2,217.

Price control cannot work in Nigeria because

A.

The population is too large

B.

The policemen hate to arrest people

C.

While it is fairly easy to control producers and importing firms, smaller distributors are too many to be controlled

D.

Control cannot work under military rule

E.

Too many things are produced in the country

Correct answer is C

No explanation has been provided for this answer.

2,218.

If a company doubles all its inputs and discovers that its output is more than doubled, we can say that the company is experiencing

A.

Increasing Marginal utility

B.

Diseconomies of scale

C.

Increasing costs

D.

Constant returns to scale

E.

Increasing returns to scale

Correct answer is E

A company is said to be experiencing increasing returns to scale when the output increases by a larger proportion than the increase in inputs during the production process.

For example, if the input is increased by 3 times, but output increases by 3.75 times, then the firm or economy has experienced increasing returns to scale.

2,219.

Which is NOT a direct effort to increase Agricultural production in Nigeria?

A.

Operation Feed the Nation

B.

Nigerian Youth Service Corps

C.

Increased loans to farmers and cooperatives

D.

Research in Agric & Extension services

E.

Mechanization of Agriculture

Correct answer is B

The National Youth Service Corps was not established to cater to the agricultural needs of the country, rather, it is a program set up by the Nigerian government during the military regime to involve Nigerian graduates in nation-building and the development of the country.

2,220.

Which is an example of an invisible item in the trade Account of Ghana?

A.

Export of Cocoa from Ghana

B.

Import of oil from Nigeria

C.

A gift of a Peugeot 504 by a firm in Nigeria to a firm in Ghana

D.

Payment for shipping and insurance by a Ghanaian company to companies outside Ghana

E.

None of the above

Correct answer is D

 Invisible trade includes those items that can not be seen or touched. That is the exchange of intangible goods such as services (receipts and payments arising from activities such as customer service or shipping), income from foreign investment in the form of interest, profits, and dividends; private or government transfers of monies from one country to another, etc.