Fiscal Policy And Its Instruments Jamb Economics Past Questions
Question 11
An effective way of controlling inflation in a mixed economy is to
- A. increase productivity
- B. reduce income tax
- C. ration available output
- D. increase imports
Question 12
The line labelled M in the diagram above represent
- A. total cost
- B. fixed cost
- C. variable cost
- D. average cost
Question 13
If a government wants to reduce the level of inflation, it will?
- A. run a budget surplus
- B. run a budget deficit
- C. run a balanced budget
- D. borrow more money
Question 14
Fiscal policy involves changes in?
- A. open market operations
- B. revenue and expenditure of government
- C. money supply to the economy
- D. imports and exports
Question 15
To reduce the high rate of inflation in the economy, the government should?
- A. increase taxes and have a budget surplus
- B. increase taxes and have a budget defilicit
- C. decrease taxes and have a budget defilicit
- D. decrease taxes and have a balance budget
