Comparative Costs Jamb Economics Past Questions
Question 1
The difference between payments and receipts for visible trade is called
- A. bilateral trade
- B. current balance
- C. balance of payments
- D. balance of trade
Question 2
Under a system of freely floating exchange rates an increase in the international value of a country's currency will cause?
- A. its exports to rise
- B. its imports to rise
- C. gold to flow into that country
- D. its currency to be in surplus
Question 3
The process by which a country attempts to reduce the import of manufactured goods at home is described as?
- A. export-promotion
- B. import-substitution
- C. industrialization
- D. export-diversification
- E. import-creation
Question 4
The principle of comparative advantage or comparative cost is NOT based on one of the following assumptions
- A. there are restrictions in trade
- B. there are no cost of transportations
- C. ther is perfect competition
- D. there are no tariff or import and export quota
- E. there are only two countries and only two commodities entering into international trade
