Absolute Costs Jamb Economics Past Questions

Question 1

Use the table below to answer the question below; The international production set for Nigeria and Austria is;

From the table, it can be deduced that_______

jamb 2021

• A. Nigeria should produce cocoa and lace
• B. Nigeria can benefit from producing lace only
• C. Austria should produce lace and Nigeria should produce cocoa
• D. Austria should produce cocoa and lace

Question 2

Use the table below to answer the question below; The international production set for Nigeria and Austria is;

The Opportunity cost ratio for cocoa and lace for Austria and Nigeria is_______

jamb 2021

• A. 1.5:2
• B. 2:2
• C. 2:1.5
• D. 0.5:1.5

Question 3

Assume that, for a certain country in a given year, the index of import prices stands at 102, the index of export prices stands at 106. The terms of trade are (to the nearest whole number)

jamb 2019

• A. 208
• B. 104
• C. 54
• D. 4

Question 4

An improvement in Nigeria's terms of trade should

jamb 1984

• 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 5

Let Px represent the price of exports and Pm the price of imports. Then the terms of trade (TOT) are said to be favourable if

jamb 1984

• A. \(\frac{Px}{Pm}\)
• B. \(\frac{Px}{Pm}\)=1
• C. \(\frac{Px}{Pm}\)>1
• D. \(\frac{Px}{Pm}\)+1