JAMB and WAEC Economics questions

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

1. Question 501· 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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   Answer: D. money owed by government

   Explanation and discussion

2. Question 502· Public finance· JAMB

   Fiscal policy uses

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

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   Answer: A. government spending and taxation

   Explanation and discussion

3. Question 503· Public finance· WAEC

   The canon of taxation that says a tax should be cheap to collect is

   • Acertainty
   • Bequity
   • Ceconomy
   • Dconvenience

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   Answer: C. economy

   Explanation and discussion

4. Question 504· 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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   Answer: C. federal, state and local governments

   Explanation and discussion

5. Question 505· 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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   Answer: B. personal income tax

   Explanation and discussion

6. Question 506· Public finance· WAEC

   Value Added Tax is an example of

   • Aan indirect tax
   • Ba direct tax
   • Ca poll tax
   • Da capital gains tax

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   Answer: A. an indirect tax

   Explanation and discussion

7. Question 507· Public finance· JAMB

   Capital expenditure by government includes spending on

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

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   Answer: C. roads, bridges and hospitals

   Explanation and discussion

8. Question 508· 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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   Answer: D. a deficit budget

   Explanation and discussion

9. Question 509· 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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   Answer: D. government expenditure exceeds government revenue

   Explanation and discussion

10. Question 510· 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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    Answer: C. the same percentage of income from everyone

    Explanation and discussion

11. Question 511· 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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    Answer: B. relatively inelastic

    Explanation and discussion

12. Question 512· 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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    Answer: C. where the burden of the tax finally rests

    Explanation and discussion

13. Question 513· 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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    Answer: A. the total amount owed by the government

    Explanation and discussion

14. Question 514· Public finance· WAEC

    When government expenditure exceeds revenue, the budget is in

    • Adeficit
    • Bsurplus
    • Cbalance
    • Dsupplementary form

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    Answer: A. deficit

    Explanation and discussion

15. Question 515· 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

    Show answer

    Answer: A. a direct tax on companies

    Explanation and discussion

16. Question 516· 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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    Answer: D. the tax rate rises as income rises

    Explanation and discussion

17. Question 517· Public finance· WAEC

    A tax whose rate rises as income rises is

    • Aprogressive
    • Bregressive
    • Cproportional
    • Dindirect

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    Answer: A. progressive

    Explanation and discussion

18. Question 518· The labour market· WAEC

    Disguised unemployment exists when

    • Aworkers are between jobs
    • Bmore workers are employed than are needed, so some add nothing to output
    • Cpeople refuse to work
    • Dthere is no work in a season

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    Answer: B. more workers are employed than are needed, so some add nothing to output

    Explanation and discussion

19. Question 519· The labour market· JAMB

    Collective bargaining is

    • Athe buying of goods in bulk
    • Bthe setting of prices by firms
    • Cnegotiation between trade unions and employers over wages and conditions
    • Da government tax

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    Answer: C. negotiation between trade unions and employers over wages and conditions

    Explanation and discussion

20. Question 520· The labour market· WAEC

    The demand for labour is a derived demand because labour is wanted

    • Afor its own sake
    • Bfor the goods and services it helps to produce
    • Cby the government only
    • Donly during harvest

    Show answer

    Answer: B. for the goods and services it helps to produce

    Explanation and discussion