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"Public Finance" question number distribution across years
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JAMB questions for "Economics :: Public Finance"
Q1
If MPC is 0.7 while government expenditure increased by N150m, the equilibrium national income is
A
N214 million
B
N105 million
C
N45 million
D
N500 million
E
Q2
In Nigeria, the huge public debt is as a result of
A
balanced budgeting
B
surplus budgeting
C
deficit budgeting
D
zero budgeting
E
Q3
If government expenditure exceeds revenue, this result in
A
balance budget
B
national debt
C
budget deficit
D
budget surplus
E
Q4
Guided deregulation as currently practiced in Nigeria implies that
A
market forces determine interest and exchange rates
B
government alone determines interest and exchanges rates
C
market forces and government determine interest and exchange rates
D
exchange rate is regulated while interest rate is fixed
E
Q5

If the required reserves of a bank is 20% and N10,00 is paid into its demand deposit account, what is the excess reserves?

A

N2000

B

N8000

C

N12000

D

N18000

E
Q6
The use of government revenue and expenditure to achieve set objectives is known as
A
budget
B
fiscal policy
C
revenue allocation
D
monetary policy
E
Q7
An example of an indirect tax is
A
profit tax
B
sales tax
C
capital gain tax
D
poll tax
E
Q8
One of the ways of correcting a deficit balance of payments is to
A
reduce exports
B
revalue a country's currency
C
devalue a country's currency
D
increase imports
E
Q9
Foreign investment can be attracted to Nigeria through
A
a review of interest rates
B
the revaluation of the naira
C
a review of the naturalization policy
D
a review of the tax policy
E
Q10
The monetization policy is an offshoot of
A
SAP
B
MDGs
C
NEEDS
D
PAYE
E
Q11
The main source of government revenue in Nigeria is
A
rents and royalties
B
company income tax
C
imports duties
D
capital gains tax
E
Q12
Personal income tax as a source of government revenue is increased when the
A
tax based is contracted
B
tax system is proportional
C
retirement age is reduced
D
tax rate is raised
E
Q13
The Revenue Mobilization, Allocation and Fiscal Commission in Nigeria has the primary responsibility for
A
evolving an acceptable revenue-sharing formula
B
maintaining the fiscal supremacy of the central government
C
ensuring equity in the sharing of fiscal responsibilities
D
evolving an acceptable wage for public servants
E
Q14
When the federal government guarantees a loan for a state government, such loan constitutes
A
a transferred debt
B
an inter- government debt
C
a private debt
D
a public debt
E
Q15
The burden of a government tax on a commodity whose demand is inelastic will
A
fall more heavily on consumers
B
be borne only by the government
C
fall more heavily on producers
D
be shared equally between consumers and producers
E
Q16
The rising of funds by selling stocks to the public is called
A
equity financing
B
deficit financing
C
loan financing
D
debt financing
E
Q17
The monetization of policy of the Nigeria government is aimed at
A
encouraging public servants to retire early and become self-employed
B
transferring government's properties to retired public servants
C
reducing government's burden on the provision of fringe benefits to public servants
D
helping government recover properties held by public servants
E
Q18
If government increase its expenditure on public works, the desired effect is
A
a reduction in the use of capital equipment
B
an increase in the level of employment
C
an increase in the level of inflation
D
an increase in the use of capital equipment
E
Q19
The tax levied on goods and services at each stage of production is
A
VAT
B
PAYE
C
surtax
D
ad valorem tax
E
Q20
Fiscal policy is the government's plan to control aggregate demand by manipulating
A
revenue and expenditure
B
the demand and supply of money
C
tastes and preferences of consumers
D
the structure of production and employment
E
Q21
If budget deficits are financed by borrowing, the crowding-out effect can be offset by an increase in
A
savings
B
interest rates
C
government expenditure
D
exchange rates
E
Q22
The effect of an increase in the personal income tax is to
A
reduce unemployment
B
raise the absolute price level
C
reduce the disposable income
D
distort the economy
E
Q23
The major objectives of a revenue allocation formula in a country is to
A
share revenue between the different tiers of government
B
direct revenue from areas of surplus to areas of need
C
ensure the financial viability of the country
D
share revenue between the public and private sectors
E
Q24
A greater burden of the taxes on essential goods is borne by the
A
lower income roup
B
higher income group
C
contract workers
D
newly recuited workers
E
Q25
The distinction between capital and recurrent expenditure lies in the
A
nature of the goods and services to be provided
B
time frame of the expenditure
C
source of the revenue generated
D
amount of expenditure involved
E
Q26
Under a floating exchange rate regime, the determinant of the exchange rate is
A
an Act of the National Assembly
B
the highest denomination of the currency
C
demand for and supply of foreign goods
D
the system of government
E
Q27
Which of the following yields more revenue to Nigeria?
A
Value added tax
B
Royalties
C
Direct tax
D
Indirect
E
Q28
A deficit budget ca be used to
A
starve the economy of funds for economic development
B
protect the economy from inflation
C
stimulate recovery from a trade depression
D
provide measures to remedy the balance of payments
E
Q29
The types, sources and uses of government income are mainly concerned with
A
public budget
B
public finance
C
public expenditure
D
public revenue
E
Q30
The present privatization in Nigeria is aimed at
A
reducing the prices of goods and services
B
increasing efficiency in production
C
poverty alleviation
D
reducing income inequality
E
Q31
In Nigeria, revenue sharing from the Federation Account is between the
A
executive, the judiciary and the legislature
B
federal and state governments and the parastatals
C
federal and state governments and the senate
D
federal, state and local governments
E
Q32
National debt is an expected outcome of a
A
deficit budget
B
consolidated budget
C
balanced budget
D
surplus budget
E
Q33
A country with over-valued currency will
A
expect balance of payments surplus
B
have increased demand for her exports
C
increase her foreign reserve
D
decrease her foreign reserve
E
Q34
The raising of funds by selling stocks to the public is called
A
equity financing
B
stock financing
C
debt financing
D
loan financing
E
Q35
A tax that increases at a higher percentage as income increases is called
A
a proportional tax
B
a regressive tax
C
a progressive tax
D
an income tax
E
Q36
An aspect of taxation that involves normative economics is the
A
tax rate
B
fairness of the tax
C
effect of incentive to work
D
tax burden
E
Q37
Public debt is composed of
A
internal debts and World Bank loans
B
internal and external debts
C
money owned to local and foreign contractors
D
loans granted by IMF and ADB
E
Q38
The concept of privatization presupposes
A
indigenization
B
market price
C
efficiency
D
foreign trade
E
Q39
The price of a good will not be affected by the imposition of a sales tax on it if the
A
supply is inelastic
B
demand is inelastic
C
supply is perfectly elastic
D
demand is perfectly elastic
E
Q40
Fiscal policy involves change in
A
open market operations
B
revenue and expenditure of government
C
money supply to the economy
D
imports and exports
E
Q41
An increase in government expenditure will lead to
A
investment opportunities for foreign investor
B
an increase in the level of aggregate demand
C
an increase in total tax revenue
D
reduction in total revenue
E
Q42
When an indirect tax is levied on the producer of a good, the burden on the consumer will depend largely on the
A
elasticity of demand for the good
B
proportion of the consumer's income spent of the good
C
elasticities of demand and supply of the commodity
D
availability of substitutes for the commodity
E
Q43
The major determinant of the total volume of output in an economy is the
A
level for the labour force
B
size of the labour force
C
level of total expenditure
D
composition of consumer spending
E
Q44
Privatization of government owned companies means the
A
relinquishing of government's equity participation to private individuals
B
recapitalization of distressed government owned companies
C
joint participation of government and private individuals
D
commercialization and deregulation of the economy
E
Q45
The use of legally permissible means to reduce tax liabilities is know as tax
A
evasion
B
avoidance
C
relief
D
exemption
E
Q46
The greatest proportion of government revenue in Nigeria comes from
A
export of raw materials
B
income taxes on individuals and businesses
C
customs duties and excise taxes
D
loans and grants from industrially advanced countries
E
Q47
One of the factors which is likely to check the growth of public debts is
A
bringing the resource gap
B
debt repudiation
C
debt rescheduling
D
debt-equity swap
E
Q48
The active intervention of the central authorities in the management of a country's economy rest upon the
A
failure of the market forces to produce satisfactory results
B
superiority of the centrally planned economy over the private enterprise economy
C
result-oriented nature of the private enterprises economy
D
cost-minimization strategy of a mixed economy
E
Q49
The sharp increase in the prices of most goods and services during the last quarter of 1994 in Nigeria were mainly due to
A
ban on importation of foreign goods
B
population upsurge
C
the introduction of value added tax
D
increase in transport costs
E
Q50
The best method to curb inflation in Nigeria is to
A
reduce importation of commodities
B
increase the general level of production
C
reduce the volume of money supplied
D
set up price control boards
E
Q51
Which of the government in improving the welfare of it citizens?
A
Subsidy
B
Income supplement
C
Donation to specific projects
D
Wage increase
E
Q52
The tax imposed is borne
A
totally by the consumer
B
totally by the producer
C
equally by both the consumer and the producer
D
by the government
E
Q53

The total tax revenue is represented by

A

P1EHP0

B

P0HQ0O

C

P1EQ0O

D

P1ED1P0

E
Q54
Progressive tax structure is designed to
A
take more from the income of the poor
B
take more from the income of the rich
C
take equal proportion of income from both the rich and the poor
D
reduce the problems emanating from tax imposition
E
Q55
Taxes and government expenditure are instruments of
A
monetary policy
B
tax policy
C
economic policy
D
fiscal policy
E
Q56
Which of the following can be considered as being outside the objectives of public finance?
A
The allocation of resources to various sectors of the economy
B
The objective of even distribution of income and wealth
C
The achievement of economic stability
D
The deregulation of the economy
E
Q57
Which of the following are the major disadvantages of direct system of taxation? I. Disincentive to hard work II. Difficulties in assessment and collection III. Imperfections in tax assessment
A
I and II
B
I and III
C
II and III
D
I, II and III
E
Q58
The main reason for the current programme of privatization and commercialization of public enterprises in Nigeria is to
A
reduce public expenditure
B
encourage efficiency in the performance of such enterprises
C
reduce the number of public enterprises
D
raise the prices of prices of goods and services
E
Q59
Monetization refers to the ratio of
A
total transactions to monetary transactions
B
monetary assets to total assets
C
monetary transactions to total transactions
D
money in circulation to total income
E
Q60
The objective of public finance is to promote
A
full employment, national income and price stability
B
government revenue drive and expenditure to a level as high as possible
C
the expansion of government social services
D
government revenue drive and minimize government expenditure
E