Balance of payments problem can be corrected through
Increasing foreign reserves
Increasing domestic borrowing
Import promotion strategies
Export promotion strategies
Correct answer is D
Balance of payment problems can be corrected by Export Promotion strategy. This strategies are aimed at promoting the industries that have potential for developing and competing with foreign rivals.
Which of the following is true about import substitution? It
Helps in increasing exportation
Is meant to reduce exportation
Enables a country to curtail importation
Enables a country to improve on importation
Correct answer is C
Import substitution is a policy advocating for replacing foreign imports with domestic production. It is aimed at reducing the importation of foreign goods.
When there is improvement in a country's terms of trade, it means that the country's
Exports are cheaper relative to imports
Imports are cheaper relative to exports
Volume of imports has declined
Volume of exports has declined
Correct answer is B
Terms of trade (TOT) represent the ratio between a country's export prices and its import prices. If a country's terms of trade improve, it means that for every unit of exports sold it can buy more units of imported goods.
Which of the following will not retard economic development in West Africa?
Dependence on imports
Population control
High level of illiteracy
Low level of savings
Correct answer is B
Population growth directly triggers higher demand for provision of various aspects of human existence including food, healthcare, housing, jobs, infrastructure, access to resources and many other issues. With Population control, resources can be fairly and equitably distributed to individuals.
An excise tax is imposed on goods
Smuggled into the country
Manufactured locally
Imported into the country
Seized by custom officials
Correct answer is B
Excise taxes are internal taxes that are levied on the sale of specific goods and services, such as alcohol, fuel and tobacco. These goods are goods that are manufactured in the country. It is an indirect tax that is not paid by the customers directly instead, the excise tax is imposed on the supplier or the producer, who then includes it in the product price.