JAMB Economics questions

378 questions with answers and explanations. Tap an option to check yourself.

1. Question 181· Money and inflation· JAMB

   Demand-pull inflation occurs when

   • Aimports rise
   • Bcosts rise
   • Cwages fall
   • Daggregate demand exceeds aggregate supply

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   Explanation and discussion

2. Question 182· Money and inflation· JAMB

   Near money includes

   • Acoins only
   • Bsavings deposits and treasury bills
   • Cbarter goods
   • Dcowries

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   Explanation and discussion

3. Question 183· Money and inflation· JAMB

   Cost-push inflation is caused by

   • Aa rise in unemployment
   • Btoo much money chasing too few goods
   • Ca fall in demand
   • Drising costs of production such as wages and raw materials

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4. Question 184· Money and inflation· JAMB

   Money that has value because government declares it legal tender is

   • Acommodity money
   • Bfiat money
   • Cbarter
   • Dnear money

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   Explanation and discussion

5. Question 185· Money and inflation· JAMB

   Keynes's liquidity preference theory states that the rate of interest is determined by

   • Athe stock of gold
   • Bsavings and investment only
   • Cgovernment decree
   • Dthe demand for and supply of money

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6. Question 186· Money and inflation· JAMB

   Inflation hurts which group most?

   • Apeople on fixed incomes, such as pensioners
   • Bdebtors
   • Cowners of property
   • Dproducers of goods

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7. Question 187· Money and inflation· JAMB

   Inflation is

   • Aa fall in the general price level
   • Ba persistent rise in the general price level
   • Ca rise in the price of one good
   • Dan increase in employment

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8. Question 188· Money and inflation· JAMB

   Hyperinflation is

   • Astable prices
   • Ba mild rise in prices
   • Ca fall in prices
   • Dextremely rapid inflation that destroys confidence in money

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9. Question 189· Money and inflation· JAMB

   Demand-pull inflation is caused by

   • Arising costs of raw materials
   • Btoo much money chasing too few goods
   • Ca fall in money supply
   • Dhigh unemployment

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10. Question 190· Money and inflation· JAMB

    Inflation can be controlled by

    • Acutting taxes sharply
    • Bincreasing money supply
    • Creducing money supply and government spending
    • Draising wages

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11. Question 191· Money and inflation· JAMB

    A persistent fall in the general price level is called

    • Adeflation
    • Binflation
    • Cdevaluation
    • Dstagflation

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    Explanation and discussion

12. Question 192· Money and inflation· JAMB

    Stagflation is a situation of

    • Arapid growth with no inflation
    • Bfalling prices and growth
    • Cstable prices and full employment
    • Drising prices together with stagnant output and high unemployment

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13. Question 193· Money and inflation· JAMB

    The motives for holding money, according to Keynes, are transactions, precautionary and

    • Atax
    • Binvestment
    • Cexport
    • Dspeculative

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14. Question 194· Money and inflation· JAMB

    According to the quantity theory of money (MV = PT), if the money supply doubles while V and T remain constant, the price level will

    • Aremain constant
    • Bhalve
    • Cdouble
    • Dquadruple

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15. Question 195· Money and inflation· JAMB

    The real value of money falls when

    • Ainterest rates fall
    • Bprices fall
    • Cthe general price level rises
    • Doutput rises

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16. Question 196· Money and inflation· JAMB

    The main motive for holding money to buy everyday goods is the

    • Atransactions motive
    • Bprecautionary motive
    • Cspeculative motive
    • Dprofit motive

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17. Question 197· National income· JAMB

    Gross National Product (GNP) is equal to

    • AGDP plus net income from abroad
    • BGDP minus depreciation
    • CGDP minus taxes
    • DGDP plus imports

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18. Question 198· National income· JAMB

    Leakages from the circular flow include

    • Asavings, taxes and imports
    • Binvestment, government spending and exports
    • Cwages and rent
    • Dconsumption only

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19. Question 199· National income· JAMB

    Nominal national income rises from ₦100 bn to ₦120 bn while the price index rises from 100 to 110. Real national income in the second year is about

    • A₦109 bn
    • B₦120 bn
    • C₦132 bn
    • D₦100 bn

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20. Question 200· National income· JAMB

    If the marginal propensity to save is 0.25, the investment multiplier is

    • A1.33
    • B0.25
    • C4
    • D2.5

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    Explanation and discussion