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

Question 41:

• JAMB 1990

If the same basket of goods which cost N12.00 in 1985 cost N15.00 in 1987, price index for 1987 is?

A. 25
B. 80
C. 100
D. 125

Question 42:

• JAMB 1990

Which of the following is a tariff?

A. Limit on the amount of goods which can be imported
B. Inteest rate on foreign loans
C. Government payment to domestic producers for exports
D. Tax on imported goods

Question 43:

• JAMB 1990

Import duties will increase total expenditure on imports if the demand for imports is?

A. Elastic
B. Inelastic
C. Infinitely elastic
D. Derived

Question 44:

• JAMB 1991

One disadvantage of trade by barter is that?

A. People are happier when they exchange the same quantities of goods through the medium of money rather than by barter
B. The person wishing to buy good X may not have good Y which is what the other wants
C. One person must always be cheated when trade takes place by barter
D. It increases the intial cost of producing goods

Question 45:

• JAMB 1991

One of the advantages of international trade is that it?

A. Increases world output
B. Encourages economic independence among nations
C. Restricts spread of technical knowledge
D. Promotes self-reliance and satisfaction with only what can be produced internally