Meaning and basis for international trade - Jamb Economics Past Questions and Answers

Question 11:

• 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 12:

• JAMB 1978

Less developed countries obtain foreign exchange reserve mainly from the export of

A. Manufactured goods
B. Processed and semi processed commodities
C. Invisible items
D. Primary product
E. All of the above

Question 13:

• JAMB 1978

By ‘trade by barter’, we mean

A. Trade done by people in the village
B. Exchange of goods for money
C. International trade
D. Exchange of goods for goods
E. The trade of the middle ages

Question 14:

• 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 15:

• JAMB 1979

The foreign exchange rate of a country is

A. The interest rate fixed by the central bank
B. The price of one national currency in terms of another
C. The rate at which the central bank issues money
D. The rate of interest on government bonds
E. None of the above