Jamb Economics Past Questions For Year 2006
Question 41
Personal income tax as a source of government revenue is increased when the
- A. tax rate is raised
- B. tax system is proportional
- C. retirement age is reduced
- D. tax base is contracted
Question 42
If the marginal propensity to consume is 0.6 and consumption expenditure changes by N10 million, the equilibrium level of income will change by
- A. N4.0 milion
- B. N25. 0 milion
- C. N2.5 milion
- D. N15.0 milion
Question 43
If the Central Bank of Nigeria reduces the bank rate, this will cause
- A. money supply to increase
- B. commercial banks to reduce lending
- C. commercial banks to merge
- D. money supply to reduce
Question 44
One way of controlling deflation is by
- A. contractionary monetary policy
- B. decreasing wages
- C. deficit financing
- D. rigid fiscal policy
Question 45
When the federal government guarantees a loan for a state government, such a loan constitutes
- A. a public debt
- B. a transferred debt
- C. a private debt
- D. an inter-governmental debt
