JAMB Economics Past Questions & Answers - Page 417

2,081.

Summary of product condition in countries I and II:

Amount of labour days, cocoa (tons) cloth (tons)
Country I: 200 600 900
country II: 200 300 800

From the above table, we can correctly say with respect to international trade that

 

A.

Country I, has an absolute disadvantage in the production of both cocoa cloth

B.

Country I, has an absolute advantage in the production of both cocoa and cloth

C.

Country II, has an absolute advantage in the production of both cocoa and cloth

D.

Country II, has a comparative advantage in the production of cocoa

E.

Country II, should leave the production of both cocoa and cloth to Country I

Correct answer is B

No explanation has been provided for this answer.

2,082.

Which of the following is NOT a major function of a Central Bank?

A.

Serving as the government's bank

B.

Serving as banker's bank

C.

Acceptance of deposit from the public

D.

Responsibility for monetary policy

E.

Serving as lender of last resort

Correct answer is C

No explanation has been provided for this answer.

2,083.

The function of money as a standard of deferred payment

A.

Make possible for an individual to build up stores of many things for future use

B.

Makes it possible for payment to be postponed from the present to a future date

C.

Facilitate the exchange of goods

D.

Makes easy calculations possible

E.

None of the above

Correct answer is B

No explanation has been provided for this answer.

2,084.

Governments in West African countries engage in running several enterprises because?

A.

 Large amount of capital is needed and key industries should not be left in private hands

B.

Private capital would not establish an adequate infrastructure

C.

It brings about a more even distribution of the country’s wealth

D.

The social costs of some enterprises make the government the most suitable body to set them up

E.

All of the above

Correct answer is E

No explanation has been provided for this answer.

2,085.

Money becomes a very poor store of value in a period of

A.

Deflation

B.

Stable prices

C.

Recession

D.

Inflation

E.

Harvest

Correct answer is D

No explanation has been provided for this answer.