JAMB Economics Past Questions & Answers - Page 53

261.

The use of government income and expenditure instrument to regulate the economy is termed______

A.

Monetary policy

B.

Physical policy

C.

Fiscal policy

D.

Public finance

Correct answer is C

Fiscal policy is used to control inflation, deflation, unemployment, Economic recession.

262.

The demand for labour is a________

A.

Derived demand

B.

Joint demand

C.

Complementary demand

D.

Composite demand

Correct answer is A

The demand for labour is a derived demand and has a negative slope indicating as wage rises less labour is determined.

263.

Which of the following is not a cause of unemployment_______

A.

Poor education

B.

Lack of skills

C.

Good government planning

D.

Corruption

Correct answer is C

Good planning by the government helps to reduce unemployment.

264.

As indifference curve shows equal level of satisfaction at all points, An isoquant shows equal level of________

A.

Input

B.

Commodities

C.

Output

D.

Factors

Correct answer is C

An isoquant curve is the combination of labour and capital which shows the same output i.e labour and capital = Product.

265.

The shape of the production possibility frontier is determined by the_________

A.

Law of returns to scale

B.

Law of diminishing returns

C.

Factors of productions

D.

Technology

Correct answer is B

Law of diminishing returns also known as law of variable proportion is used to determine. The shape of the PPF.