JAMB Economics Past Questions & Answers - Page 167

831.

The World Trade Organization is responsible for

A.

Stabilizing and harmonization oil prices

B.

Ensuring equal participation of countries in trade

C.

Modernizing world economies

D.

Minimizing obstacles to international trade and investment

Correct answer is D

The World Trade Organization (WTO) is the only international organization dealing with the global rules of trade. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible.

832.

The money paid per hour for work done is

A.

Salary

B.

Wage rate

C.

Cost

D.

Bonus

Correct answer is B

The wage rate definition is the rate of compensation for a worker. it is based on the amount produced or the number of hours worked.

833.

Trade takes place because of

A.

Marginal utility

B.

Inefficiency in production

C.

Opportunity cost

D.

Comparative advantage

Correct answer is D

A person has a comparative advantage at producing something if he can produce it at lower cost than anyone else. People engage in trade so as to exchange these goods that are produced or services rendered at a cheaper cost between one another.

834.

A change from one industry to another by a worker is an example of

A.

Geographical mobility

B.

Horizontal mobility

C.

Professional advancement

D.

Vertical mobility

Correct answer is D

Vertical mobility is the movement from one  social status to a different social status.  An example of vertical mobility is a factory worker who enrolls in college and becomes an international businessman. From the above example, we can see that a worker moved from being a worker in a factory to becoming an international business man. The mobility here is vertical because the worker moved from a manufacturing industry to a  commercial industry.

835.

In modern economies, the Malthusian theory of population is ineffective because of

A.

Birth control measures

B.

Technical progress

C.

Government policies

D.

Natural disasters

Correct answer is A

One of the criticism of the Malthusians population theory is that the theory couldn't let go of the wrong idea that human beings are no different than a herd of deer when it comes to reproduction. It proffered that birth rates should be limited to increase quality of life. Critics argued that the solution to overpopulation is not to force people to have fewer children.