JAMB and WAEC Economics questions: Public finance

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

1. Question 21· 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

2. Question 22· Public finance· WAEC

   A government plans to spend ₦12 trillion and expects revenue of ₦9 trillion. Its budget is

   • Aa supplementary budget
   • Ba surplus budget
   • Ca balanced budget
   • Da deficit budget

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   Explanation and discussion

3. Question 23· 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

4. Question 24· 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

5. Question 25· 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

6. Question 26· 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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   Explanation and discussion

7. Question 27· 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

8. Question 28· Public finance· WAEC

   When government expenditure exceeds revenue, the budget is in

   • Adeficit
   • Bsurplus
   • Cbalance
   • Dsupplementary form

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   Explanation and discussion

9. Question 29· 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

10. Question 30· 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

11. Question 31· Public finance· WAEC

    A tax whose rate rises as income rises is

    • Aprogressive
    • Bregressive
    • Cproportional
    • Dindirect

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    Explanation and discussion