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

Question 31:

• JAMB 1984

Question 39 and 40 are based on the table below:
The international production set for Nigeria and Austria is:
\(\begin{array}{c|c}
Products & Nigeria & Austria \\
\hline
Cocoa & 20 \text{tonnes} & 12 \text{tonnes}\\
\hline
Lace & 10 \text{meters} & 8 \text{meters} \\
\end{array}\)
The opportunity cost ratio for cocoa and lace for Austria and Nigeria is

A. 2,2
B. 2,1.5
C. 1.5,4
D. 1.5,2
E. 0.5,1.5

Question 32:

• JAMB 1984

The international production set for Nigeria and Austria is:
\(\begin{array}{c|c}
Products & Nigeria & Austria \\
\hline
Cocoa & 20 \text{tonnes} & 12 \text{tonnes}\\
\hline
Lace & 10 \text{meters} & 8 \text{meters} \\
\end{array}\)
from the table, it can be deduced that?

A. Nigeria should produce cocoa and lace
B. Austria should produce cocoa and lace
C. Nigeria can benefit from producing lace only
D. Nigeria should not produce any of the products because of her relative disadvantages
E. Austria should produce lace and Nigeria should produce cocoa

Question 33:

• JAMB 1984

The following except ONE, are the differences between international trade and internal trade?

A. Diferences in currencies
B. Government control
C. Mobility of factors of production
D. Cultural differences
E. Exchange of Goods and services

Question 34:

• 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 35:

• JAMB 1986

In international trade, a country specializes in the production of a commodity or group of commodities for which it has?

A. A buoyant market
B. Plenty of raw materials
C. The greatest relative advantage
D. Executive manpower