Comparative costs - Jamb Economics Past Questions and Answers

Question 1:

• JAMB 2016

If Nigeria has comparative advantage over Ghana in producing cocoa, this means_________?

A. Nigeria produces cocoa more cheaply than Ghana
B. Nigeria and Ghana produce at the same level
C. Ghana produces cocoa more than Nigeria
D. Nigeria produces more cocoa than Ghana

Question 2:

• JAMB 2015

The theory of comparative cost advantage is associated with

A. Adam Smith
B. Reverend Thomas Malthus
C. Professor trum fisher
D. David Ricardo

Question 3:

• JAMB 1979

The principle of comparative advantage or comparative cost is NOT based on one of the following assumptions

A. There are restrictions in trade
B. There are no cost of transportations
C. Ther is perfect competition
D. There are no tariff or import and export quota
E. There are only two countries and only two commodities entering into international trade

Question 4:

• JAMB 1983

Comparative cost doctrine of international trade means specialization in production

A. According to absolute cost advantage
B. According to absolute cost disadvantage
C. According to comparative cost disadvantage
D. According to comparative cost advantage
E. On the basis of the availability of labour

Question 5:

• JAMB 1989

The law of comparative advantage states that a country should specialize in the production of a commodity

A. For which local demand is greatest
B. In which its oportunity cost is lower than that of the trade partner
C. For which foreign demand is greatest
D. For which there is abundant supply of raw materials