JAMB Economics Past Questions & Answers - Page 185

921.

An important function of the World Bank is to

A.

Provide short-run loans to members

B.

Encourage trade between members

C.

Promote capital-intensive production

D.

Provide long-time loans to members

Correct answer is D

The world bank provide finance, advice, and research to developing nations to aid their economic advancement.

922.

Guided deregulation as currently practised in Nigeria implies that

A.

Market force determine interest and exchange rates

B.

Government alone determines interests and exchange rates

C.

Market forces and government determine interest and exchange rates

D.

Exchange rate is regulated while interest rate is fixed

Correct answer is C

No explanation has been provided for this answer.

923.

Dumping in international trade means selling a goods at a

A.

Higher price at home than abroad

B.

Lower price at home than abroad

C.

Price that equates marginal cost with marginal revenue

D.

Price above marginal cost abroad

Correct answer is A

Dumping is an international price discrimination in which an exporter firm sells a portion of its output in a foreign market at a very low price and the remaining output at a high price in the home market.

924.

According to the theory of comparative advantage specialization will result in

A.

Labour-intensive method of production

B.

Capital-intensive method of production

C.

Efficient allocation of resources

D.

Efficient distribution of output

Correct answer is C

The theory of comparative advantage simply explains what a country would do best while also giving up the least.

It is an economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners. With this, the economy will enjoy resource allocation optimization and efficiency.

925.

The major reason why countries strive to achieve optimum growth is to

A.

Be self-sufficient

B.

Raise general living standards

C.

Raise the level of production

D.

Reduce aggregate expenditure

Correct answer is A

No explanation has been provided for this answer.