JOINT UNIVERSITIES PRELIMINARY EXAMINATIONS BOARD
ECONOMICS
AUGUST 2022 EXAMINATIONS
OPTION-A440
Time Allowed: 3 Hours
SECTION A: MULTIPLE CHOICE QUESTIONS
Answer ALL Questions in this section.
Use the OMR answer sheet provided to answer the questions.
Write and shade on your OMR Sheet the OPTION written on your question paper.
Follow the instructions on the OMR sheet.
SECTION B: ESSAY QUESTIONS
Answer FOUR Questions in ALL; ONE Question from each course.
Ensure you read and follow all the Instructions on the cover page of the Answer Booklet.
JUPEB/007/MSS-J133
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SECTION A: MULTIPLE CHOICE QUESTIONS
Answer ALL Questions.
1. The concept of opportunity cost emphasises the problem of
A. scale of reference.
B. choice.
C. factors of production.
D. scarcity.
2. A change in people’s expectation will result in
A. a change in demand.
B. a change in quantity demanded.
C. a movement along the demand curve.
D. no effect on demand.
3. A consumer’s demand curve for a good
A. assumes the price of all other goods remain constant.
B. indicates the going price of the good changes.
C. assumes that prices rise as income rises.
D. will shift if the price of the good changes.
4. Banks usually create money by
A. illegally printing additional dollar bills.
B. paying interest to their depositors.
C. giving out loans.
D. offering financial advisory services.
5. Poorly performing financial markets can be the cause of
A. wealth.
B. financial instability.
C. poverty.
D. financial expansion.
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6. Keynes’s absolute income hypothesis can be rejected because studies have shown that
A. as disposable income increases, consumption increases at a diminishing rate.
B. the marginal propensity to consume may be constant.
C. rich households save a larger fraction of additional income than poor households.
D. income is never absolute and thus a hypothesis cannot be formed.
7. The term “budget deficit” refers to when government
A. expenditure exceed her revenue.
B. expenditure is less than savings.
C.external reserve is less than expenditure.
D. borrowing is less than revenue.
8. A depreciation in a domestic currency makes the prices of goods and services to
A.rise.
B. fall.
C. be constant.
D. be indeterminate.
9. Government can directly contribute to economic growth by providing
A. for regular election.
B. money for business development.
C. armed forces to fight insurgencies.
D. importing valuable goods and services.
10. Which of the following is NOT a major determinant of economic development in West African countries?
A. Production structure.
B. Income per capita.
C. Trading Pattern.
D. Mobility of factors.
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11. The period of the Business cycle in which real GDP is increasing is called the
A. expansion.
B. peak.
C. recession.
D. trough.
12. A situation where a decrease in price during recession does NOT lead to a corresponding fall in money wages is called
A. menu costs of inflation.
B. cash ratio.
C. real balance effect.
D. money illusion.
13. Expansionary monetary policy lea