JAMB Economics questions: Public finance

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

1. Question 1· Public finance· JAMB

   A regressive tax is one that

   • Ais paid only by companies
   • Brises with income
   • Ctakes a higher proportion of income from the poor than from the rich
   • Dis the same percentage for all

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   Explanation and discussion

2. Question 2· Public finance· JAMB

   Which of the following is one of Adam Smith's canons of taxation?

   • Asecrecy
   • Bprofitability
   • Cpopularity
   • Dcertainty

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   Explanation and discussion

3. Question 3· Public finance· JAMB

   A proportional tax is one in which

   • Athe rate rises with income
   • Bthe same percentage is taken from all incomes
   • Cthe rate falls with income
   • Deveryone pays the same amount

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4. Question 4· Public finance· JAMB

   Canons of taxation include

   • Asupply and demand
   • Bprofit and loss
   • Cequity, certainty, convenience and economy
   • Dimport and export

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5. Question 5· Public finance· JAMB

   Fiscal policy involves the use of

   • Agovernment spending and taxation
   • Binterest rates only
   • Cthe exchange rate only
   • Dthe money supply only

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6. Question 6· Public finance· JAMB

   Public debt is

   • Aforeign aid grants
   • Bmoney owed to banks by citizens
   • Ccompany debt
   • Dmoney owed by government

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7. Question 7· Public finance· JAMB

   Fiscal policy uses

   • Agovernment spending and taxation
   • Binterest rates only
   • Cexchange rates only
   • Dprinting money only

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   Explanation and discussion

8. Question 8· Public finance· JAMB

   Revenue allocation in Nigeria shares federally collected revenue among

   • Acompanies
   • Bbanks
   • Cfederal, state and local governments
   • Dforeign governments

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   Explanation and discussion

9. Question 9· Public finance· JAMB

   Which of the following is a direct tax?

   • Avalue added tax
   • Bpersonal income tax
   • Cimport duty
   • Dexcise duty

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   Explanation and discussion

10. Question 10· Public finance· JAMB

    Capital expenditure by government includes spending on

    • Aoffice stationery
    • Bsalaries
    • Croads, bridges and hospitals
    • Dpensions

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    Explanation and discussion

11. Question 11· Public finance· JAMB

    A budget deficit occurs when

    • Athe government stops spending
    • Brevenue exceeds expenditure
    • Crevenue equals expenditure
    • Dgovernment expenditure exceeds government revenue

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    Explanation and discussion

12. Question 12· Public finance· JAMB

    A proportional tax takes

    • Amore from the poor
    • Bmore from the rich
    • Cthe same percentage of income from everyone
    • Dnothing

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    Explanation and discussion

13. Question 13· Public finance· JAMB

    When the burden of an indirect tax falls mainly on consumers, demand for the good is

    • Aperfectly elastic
    • Brelatively inelastic
    • Crelatively elastic
    • Dunit elastic

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    Explanation and discussion

14. Question 14· Public finance· JAMB

    The incidence of a tax refers to

    • Athe time the tax is paid
    • Bthe rate at which the tax is charged
    • Cwhere the burden of the tax finally rests
    • Dthe agency that collects it

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15. Question 15· Public finance· JAMB

    The national debt is

    • Athe total amount owed by the government
    • Bthe money owed by banks
    • Cthe value of imports
    • Dthe total of all taxes

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    Explanation and discussion

16. Question 16· Public finance· JAMB

    Petroleum Profits Tax in Nigeria is an example of

    • Aa direct tax on companies
    • Ban indirect tax on consumers
    • Ca tariff
    • Da subsidy

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    Explanation and discussion

17. Question 17· Public finance· JAMB

    A progressive tax is one in which

    • Aonly companies pay
    • Beveryone pays the same amount
    • Cthe rate falls as income rises
    • Dthe tax rate rises as income rises

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    Explanation and discussion