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.
In order to discourage the importation of manufactured goods, a country should adopt
Import promotion strategy
Export led strategy
Liberal foreign exchange
Import substitution strategy
Correct answer is D
Import substitution industrialization is the idea that blocking imports of manufactured goods can help an economy by increasing the demand for domestically produced goods.
The foremost objective of the International Bank of Reconstruction and Development (IBRD) is to
Help promote private and public investments
Assist members achieve a balance of payments stability
Grant long term loans for infrastructure
Maintain stabilily of foreign exchange
Correct answer is C
The major objective of the International Bank of Reconstruction and Development is to provide long-term capital to members countries for economic reconstruction and development.
The principle of comparative advantage encourages a country to
Produce only consumer goods
Engage in trade if it can produce a commodity at a lower cost
Specializes in the production of all goods
Try as much as possible to be self-sufficient
Correct answer is B
Comparative advantage is the edge a country has over its trading partners in the production of a particular good or service at a lower opportunity cost.
Dumping is selling goods in a foreign market at a price
Below what is sold at the home market
Above what is sold at the home market
Equal to what is sold at the home market
Equal to the cost of producing the goods
Correct answer is A
In international trade, dumping simply refers to a situation where a product is sold at a cheaper price to a foreign country (importing country), than in the domestic market that produced it (exporting country).
A country is allowed to import just 50,000 tonnes of rice annually. This describes
Devaluation
Tariff
Embargo
Quota
Correct answer is D
A quota is a government-imposed restriction that limits the quantity or the monetary value of goods that a country can import or export during a particular period.