JAMB Economics Past Questions & Answers - Page 55

271.

An Instrument used by the central bank to fix commercial and merchant banks total credit to domestic economy is________

A.

Monetary policy

B.

Fiscal policy

C.

Credit ceiling

D.

Open market operation

Correct answer is C

Credit ceiling is one of the tools or instrument of monetary policy used by central bank to control credit in an economy.

272.

An economic condition in which much reduced economic activity co-exists with inflation is referred to as__________

A.

Stagflation

B.

Inflationary spiral

C.

Slump inflation

D.

Inflationary gap

Correct answer is C

An economic which idleness and under utilization of resources such as capital and labour is known as Slump Inflation.

273.

The money market equilibrium is defined as________

A.

When the demand and supply of money are equal

B.

When demand is greater than supply of money

C.

When demand is less than supply of money

D.

When supply is greater than demand for money

Correct answer is A

The money market is in equilibrium when the demand & supply of money are equal i.e L = μ
where L = money demand, μ = money supply
Thus μ = LT(γ) + Ls(r)

274.

A method of analysis that draws conclusions from data rather than general Principles already known is_______

A.

Deductive reasoning

B.

Inductive reasoning

C.

Normative reasoning

D.

Positive reasoning

Correct answer is A

The deductive reasoning method involves following one or more factual statements that have been established to arrive at a conclusion. Deductive reasoning aims at testing an existing theory. 

From the question above, there are existing data from which logical conclusions will be drawn and this makes it deductive reasoning.

While inductive reasoning aims at developing a theory, deductive reasoning aims at testing an existing theory.

275.

The arithmetic mean of 5, 8, 10, 15, 24 and 28 is_______

A.

145

B.

15

C.

90

D.

6

Correct answer is B

Arithmetic Mean = ∑X
N
,

where N = Number of observation and X is observations