Balance of trade and balance of payments - Jamb Economics Past Questions and Answers

Question 1:

• JAMB 2018

Assume that, for a certain country in a given year, the index of import prices stands at 102, the index of export prices stands at 106. The terms of trade are (to the nearest whole number)

A. 208
B. 104
C. 54
D. 4

Question 2:

• JAMB 2017

A country's terms of trade can be improved by ____?

A. Collective bargaining
B. Imposing lower export duties
C. Revelation of currency
D. Reducing demand for imported goods

Question 3:

• JAMB 2016

Which of the following can cause oil glut in the International market?

A. Excess demand over supply
B. Under- capacity utilization
C. Excess supply over demand
D. Economic boom

Question 4:

• JAMB 2015

The term of trade can be expressed as

A. (Price index of export à· Price index of export)à— 100
B. (price index of import ÷ price index of export) × 100
C. (Price index of export à· Price index of import)à— 100
D. (Price index of export à· Price index of import)à— 100

Question 5:

• JAMB 1978

Which is an example of an invisible item in the trade Account of Ghana?

A. Export of Cocoa from Ghana
B. Import of oil from Nigeria
C. A gift of a Peugout 504 by a firm in Nigeria to a firm in Ghana
D. Payment for shipping and insurance by a Ghanaian company to companies outside Ghana
E. None of the above