Economics is the study of how societies allocate limited resources to meet the unlimited needs and wants of individuals. It focuses on the production of goods and services, economic growth, and various complex issues that are important to society.
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Question 11: An increase in the discount rate is an indication of a central bank's intention to pursue?
Options:
A) an expansionary monetary policy
B) a disciplined monetary policy
C) a dynamic monetary policy
D) a contractionary monetary policy
Show Answer
The correct answer is A .
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Question 12:
| | Sector 1
Agriculture | Sector 2
Manufacturing and Crafts | Sector 3
Petroleum and Mining | Sector 4
Services |
| Share in total National Output | 25% | 10% | 50% | 15% |
| Share in total Employment | 60% | 10% | 5% | 25% |
| Growth rate of Sectoral Output | 2% | 5% | 10% | 3% |
From the above, the Growth Rate of Total National Output or GDP is
Options:
A) 6.45%, i.e (25 x 2 + 10 x 5 + 50 x 10 + 15 x 3)/ 100%
B) 20.0%, i.e. (2 + 5 + 10 +3)%
C) 2.95%, i.e (60 x 2 + 10 x 5 + 5 x 10 + 25 x 3)/ 100%
D) 5.0%, i.e,(2 +5 + 10 + 3)/ 4%
E) not obtainable
Show Answer
The correct answer is D .
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Question 13: Optimum population is desirable because it enables an economy to obtain maximum?
Options:
A) per capita income
B) per capital output
C) per capita real income
D) per capital revenue
E) growth rate
Show Answer
The correct answer is A .
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Question 14: Cost - push inflation occurs when_______
Options:
A) production cost is high
B) government embarks on deficits financing
C) factors decrease
D) there is too much in circulation
Show Answer
The correct answer is A .
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Question 15:
An example of transfer payments in national income accounting is
Options:
A) money transferred to another country
B) unemployment allowance paid to the citizens
C) the amount paid to a worker on transfer
D) transfer of funds from one bank to another
Show Answer
The correct answer is B .
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Question 16: Unemployment can be reduced by?
Options:
A) restricting the productive base of the economy
B) adopting capital-intensive techniques of production
C) adopting labour-intensive techniques of production
D) adopting a mixture of labour and capital-intensive techniques of production
Show Answer
The correct answer is C .
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Question 17: If the importation of a commodity is limited to a definite quantity, the trade control measure imposed is
Options:
A) excise duties
B) import duties
C) quotas
D) tariff
Show Answer
The correct answer is C .
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Question 18:
The following are economic agents in any economy EXCEPT
Options:
A) Central Bank
B) House hold
C) Firm
D) Government
Show Answer
The correct answer is A .
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Question 19:
A persistence rise in the prices of inputs will lead to
Options:
A) cost push inflation
B) demand pull inflation
C) hyperinflation
D) stagflation
Show Answer
The correct answer is A .
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Question 20: A well conducted census is important for?
Options:
A) effective defence
B) effective revenue generation
C) good economic planning
D) optimum population
Show Answer
The correct answer is C .