A country's terms of trade can be improved by ____?
Collective bargaining
Imposing lower export duties
Revelation of currency
Reducing demand for imported goods
Correct answer is B
Tariffs are taxes or duties imposed on imports and exports by the government of a country. The idea behind tariffs is to restrict the volume of trade or improve the international terms of trade.
Given that Qd = 10 - 2p while Qs = 5 + 3P, if P = N 1 determine the equilibrium quantity.
7
6
5
8
Correct answer is D
To get equilibrium price and quantity:
i) Get function solved for Qs and Qd (quantity supplied) and Qd (quantity demanded)
ii) Set Qs equal to Qd
iii) Solve for P (equilibrium price)
iv) Plug your P back into your Qs and Qd function to get the quantity.
when, Qd = 10 − 2p and Qs = 5 + 3p
if Qd = Qs then,
10 − 2p = 5 + 3p
solving for p: 10 − 5 = 3p + 2p
5 = 5p
p = 1 (given in the equation)
Equilibrium Quantity will be gotten by plugging P into Qd and Qs respectively;
If P = 1
Qd = 10 − 2p Qs = 5 + 2p
= 10 − 2(1) = 5 + 3(1)
= 10 − 2 = 5 + 3
= 8
Which of the following is NOT an instrument in the money market?
Treasury bill
Bill of exchange
Stocks and shares
Call money fund
Correct answer is C
Stocks and shares are securities purchase by individuals, which is evidence of contributing part of the total capital used in running an existing industry. Stocks and shares are instruments used in capital market.
20
13
15
10
Correct answer is C
In this case, 4 workers produce 60kg of output therefore, the Average product of labour for the 3rd unit is 15kg. Given by:
Average product = Total product/Variable product
= 60/4
= 15kg
One of the reasons why Nigeria is a mono-economy is because of her _______
Huge volume of petroleum activities in the country
Diversification system of economic activities
High demand for foreign commodities
High rate of unemployment
Correct answer is A
A mono-economy is an economy relying on one major export or natural resources to bring most of the currency into the country.
Nigeria is dependent on crude oil. Before now, agriculture and mining were the primary drivers of Nigeria’s economy but these has been abandoned since the 70’s as a result of the discovery of oil.
Nigeria is now a mono-economic country that is, now relies solely on crude oil as her major source
of revenue.