Absolute Costs Jamb Economics Past Questions
Question 6
The theory of comparative advantage states that a commodity should be produced in that nation where the
- A. Absolute cost is least
- B. Absolute money cost is least
- C. Opportunity cost is least
- D. Production possibility curve increases
Question 7
If Nigeria has comparative advantage over Ghana in producing cocoa, this means_________?
- A. Nigeria produces cocoa more cheaply than Ghana
- B. Nigeria and Ghana produce at the same level
- C. Ghana produces cocoa more than Nigeria
- D. Nigeria produces more cocoa than Ghana
Question 8
A country's terms of trade can be improved by ____?
- A. collective bargaining
- B. imposing lower export duties
- C. revelation of currency
- D. reducing demand for imported goods
Question 9
Applying the law of comparative costs, how many units of groundnuts will Nigeria produce?
- A. 7000 units
- B. 16000 units
- C. 9000 units
- D. 8000 units
Question 10
The term of trade can be expressed as
- A. (Price index of export ÷ Price index of export)à 100
- B. (price index of import ÷ price index of export) à 100
- C. (Price index of export ÷ Price index of import)à 100
- D. (Price index of export + Price index of import)Ã 100
