Post Utme Economics Past Questions and Answers

Question 6:

An improvement in the 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 7:

By 'trade by barter', we mean ____________

A. Trade done by people in the villages
B. Exchange of goods for money
C. International trade
D. Exchange of goods for goods
E. The trade of the Middle Ages

Question 8:

Gains from trade depends on ____________

A. Comparative advantage
B. Absolute advantage
C. Distributive cost advantage
D. Absolute cost advantage
E. None of the above

Question 9:

International and inter-regional trade differ primarily because

A. Comparative advantage is relevant to the former but not to the latter
B. Products flow easily within regions of a country
C. There are different resource supplies among countries of the world
D. Of regulations from GATT
E. None of the above

Question 10:

Surplus in the balance of payments lead to ____________

A. Inflation or increasing prices generally
B. B Increase in foreign reserves
C. Decrease in foreign reserves
D. Government budget surplus
E. None of the above