Economics Questions and Answers
Economics questions and answers to help you prepare for JAMB, WAEC, NECO, Post UTME and job aptitude tests or interviews.
Economics questions and answers to help you prepare for JAMB, WAEC, NECO, Post UTME and job aptitude tests or interviews.
A benefit that is present in all forms of economic integration is that
Factors of production are free to move and be moved
Common currency is in use
Common agricultural policy is in place
The size of the market is widened
Correct answer is A
Economic integration forms international co-operation among nations to foster their economic interests. Countries with common interests form themselves into an organisation whose major objectives are to remove trade barriers and other obstacles that reduce the free flow of goods and service between them.
Given that a country's index of export price is 180 and that of import is 200, the terms of trade is
0.09
2.00
90.00
380.00
Correct answer is C
Terms of trade = Index of export/ Index of import x 100
= 180/200 x 100
= 90
Which of the following measures can lead to an increase in exports?
Increase in export duties
Increase in excise duties
Depreciation of currency
Total ban on imports
Correct answer is C
The economic effect is thus, depreciation of currency tends to increase a country's balance of trade ( exports minus imports) by improving the competitiveness of domestic goods in foreign markets while making foreign goods less competitive in the domestic market by becoming more expensive.
An argument for the use of commercial policy rest on the need to
Make imported goods affordable
Reduce domestic unemployment
Encourage the importation of non-essential goods
Make a country enjoy absolute advantage in production of all goods
Correct answer is D
Commercial policy may be defined as one that helps in accelarating the rate of economic development. by enabling the under-developed country to have larger share of the gains from trade, by augmenting the rate of capital formation and by promoting industrialization and maintaining equilibrium in the balance of payments.
Foreign investment and long term securities in the balance of payment accounts are recorded as
Current account transaction
Capital account transaction
Balance of trade account transaction
Invisible balance account transaction
Correct answer is B
Capital account transaction is the net balance of international investments. In order words, it keeps track of the flow of money between a nation and its foreign partners.