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.
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.
Political instability hinders economic growth because it
Scares many people from politics
Prevent politicians from playing effective politics
Discourage entrepreneurs generally
Encourages urban-rural migration
Correct answer is C
Most developing countries are not politically stable e.g frequent changes in government, commnual crises, etc. These generally lead to low economic growth and development. Theferore, political instability, through its adverse influence on investment, accounts for substantial reduction in the economic growth.
Development planning focuses mainly on
Allocation of resources by the entrepreneurs
Mapping out strategies by the government
Developing some areas of the country by the government
Deciding on which types of homes to build
Correct answer is B
Economic development planning is the process government formulate economic policies for the allocation of resources to all sectors of the economy over a period of time. This brings about sustained growth in the economy.