In a two by two model of international trade, it is assumed that
Both countries could gain from trade at the same time, but term of trade is inconsequential for the distribution of the gains
Both countries could gain from trade at the same time, but the volume of the gains depends on terms of trade
Neither country could ever gain from trade since term of trade is depends on the distribution of the gains from trade
Both countries could gain from trade at the same time, and the volume of the gains does not depend on terms of trade
Correct answer is B
The model emphasizes the export of goods requiring factors of production that a country has in abundance. It also emphasizes the import of goods that a nation cannot produce as efficiently. It takes the position that countries should ideally export materials and resources of which they have an excess, while proportionately importing those resources they need.
Which one of the following measures the natural growth rate of population?
Natural increase - Birth rate + Net migration
Birth rate - Death rate
Birth rate/Death rate
Birth + Net migration = Death
Correct answer is B
The natural growth rate of a population is measured by the difference between the birth rate and the death rate. This is because the birth rate indicates the number of births in a population, while the death rate indicates the number of deaths. The difference between these two rates gives the natural increase or decrease in the population, without considering migration.
Multiplier can be described as
The ratio of change in an endogenous variable to the change spending
The ratio of variables that multiplies autonomous spending plus tax
The ratio of change in output to a change in autonomous spending
The ratio of variables that multiplies autonomous spending
Correct answer is A
A multiplier is a factor of proportionality that measures how much an endogenous variable changes in response to a change in some exogenous variable such as investment, consumption, government expediture etc.
More of commodities are offered for sale at a lower than higher prices
Marginal utility falls as consumption increases
The higher the price, the higher the quantity offered for sale
Prices are usually falling when demand is low
Correct answer is A
A normal demand curve slopes downward from left to right indicating at higher price, less quantity will be demanded and vice versa.
Agriculture accounts for about 60% of the
Commodity market in West Africa
Arable land in West Africa
Active labour force in West Africa
Service sector activities in West Africa
Correct answer is C
Agriculture accounts for about 60% of the active labour force in West Africa. This is because a large portion of the population in West Africa is engaged in farming and other agricultural activities for their livelihood. The other options are incorrect as agriculture does not account for 60% of the arable land, service sector activities, or the commodity market in West Africa.