Question 416:

• JAMB 1978

The expression ‘terms of trade’ is used to describe

A. Quality of export
B. The direction of foreign trade
C. Terms of purchase on deferred payment basis
D. The rate at which export exchange for imports
E. Import licensing

Question 417:

• JAMB 1978

If the demand of a product with perfectly elastic supply increases, there will be

A. An increase in price and quantity offered
B. An increase in quantity offered but price will remain the same
C. A reduction in price and quantity offered
D. An increase in price but a reduction in quantity offered for sale
E. An increase in quantity offered but a reduction in price

Question 418:

• JAMB 1978

Which of these would not be included in the fundamental principle of a free enterprise economy

A. Private ownership of factors of production
B. The right to organize factor for production purposes
C. The right to make private profit
D. Government control of mobility of factor of production
E. Government effort to encourage competitive capitalism within the law of the country

Question 419:

• JAMB 1978

Economics is called a social science because it is

A. A branch of social studies
B. A study of the ways man devises to satisfy his unlimited wants from unlimited resources
C. A dismissal science in the Malthusian sense
D. Governed by scientific law
E. The study of human wants by the means of scientific method of observation

Question 420:

• JAMB 1978

Opportunity cost is a term which describe

A. The initial cost of setting up a business venture
B. Cost of one product in terms of foregone production of others
C. The monetary equivalent of the utility of commodity
D. Cost related to an optimum level of production
E. Implicit cost