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

Question 26:

• 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 27:

• JAMB 1983

The meaning of 'Dumping' is selling goods in a foreign market

A. At a low price that recieved in the home market
B. At a price higher than that recieved in the foreign market
C. At a price equal to the cost price in the home market
D. In order to encourage indigenous producers
E. At a price equal to the selling price in the home market

Question 28:

• JAMB 1983

Petroleum 'glut' in international trade means

A. A fall in petroleum production
B. An over supply of petroleum
C. A higher petroleum price offered by the buyer
D. A higher petroleum price demanded by the seller
E. Higher prices for the consumtion of petroleum

Question 29:

• JAMB 1983

International trade is necessary because?

A. No country can live in economic isolation
B. Different countries are differently endowed in natural and man-made resources
C. Some countries have comparative costs advantage in the production of particular commodities over other countries
D. The word demand for and supply of various categories of commodities is expanding very fast
E. Countries want to build up their foreign exchange reservers

Question 30:

• JAMB 1983

The quickest way of achieving an economic union on regional basis is to remove all?

A. Currency barriers
B. Language barriers
C. Politcal barriers
D. Customs barriers
E. Legal barriers