Absolute Costs Jamb Economics Past Questions
Question 11
The practice of selling goods overseas and often below the cost of production is known as
- A. retailing
- B. dumping
- C. internal trade
- D. advertising
Question 12
The theory of comparative cost advantage is associated with
- A. Adam Smith
- B. Reverend Thomas Malthus
- C. Professor trum fisher
- D. David Ricardo
Question 13
The terms of trade are said to be favorable only if
- A. Value of total exports equals value of total imports
- B. Value of merchandise exports is greater than value of merchandise imports
- C. There are no balance of payments problems
- D. There is an increase in the value of a unit of export in terms of imports
- E. Foreign exchange reserves do not change
Question 14
If the importation of a commodity is limited to a definite quantity, the trade control measure imposed is
- A. excise duties
- B. import duties
- C. quotas
- D. tariff
Question 15
According to the theory of comparative advantage specialization will result in
- A. labour-intensive method of production
- B. capital-intensive method of production
- C. efficient allocation of resources
- D. efficient distribution of output
