International Trade - Jamb Economics Past Questions and Answers

Question 61:

• JAMB 1984

An improvement in Nigeria's terms of trade should

A. Lead to a fall in cost of her imports in terms of what she must sacrifice to obtain them
B. Make made in Nigeria goods cheaper to buy
C. Increase Nigeria's domestic output of commodities
D. Lead to an increase in her exchange rates
E. Lead to an increase in Nigeria's exports of petroleum

Question 62:

• JAMB 1984

Let P _x represent the price of exports and P_m the price of imports. Then the terms of trade (TOT) are said to be favourable if

A. \(\frac{Px}{Pm}\)
B. \(\frac{Px}{Pm}\)=1
C. \(\frac{Px}{Pm}\)>1
D. \(\frac{Px}{Pm}\)+1

Question 63:

• JAMB 1985

Which of the following is a necessary prerequisite for trade by barter?

A. Needs for double coincidence of wants
B. Multiple exchange rate
C. Impossibility of future trade
D. Impossibility of large scale production
E. Indivisibility of commodities

Question 64:

• JAMB 1985

By terms of trade, we mean the?

A. Ratio of exports and imports
B. Differences between exports and imports
C. Differences between current account and capital account
D. Index of export prices to import prices expressed as a percentage
E. Ratio of short-term capital movements to long-term capital movements

Question 65:

• JAMB 1985

The argument of tariff protection in less developed economies is that such a measure would

A. Raise the price of goods affected abroad
B. Make consumers pay a higher price for the domestically produced output
C. Protect young industries from ruinous competition from abroad
D. Help reduced excess capacity in domestic industries
E. Stifle private investment intiatives