A major characteristic of natural resources is that they
Are unlimited in supply
Have high cost of production
Are free gifts of nature
Do not command any price
Correct answer is C
Natural resources exist naturally unlike man made resources that are created by human beings. The existence of natural resources is not attributed to any human activities, they are acts of nature.
If petrol is no longer needed to produce energy, then demand for crude oil
Will increase
Will remain constant
May be limited to chemical industries
Will make producing countries richer
Correct answer is C
The transportation industry is the highest demand for petrol while the chemical industry a close second.
The main function of the African Development Bank (AFDB) is to
Promote free trade and development among members
Provide loans to finance balance of payment problems
Provide loans to members to finance viable projects
Help members overcome their internal problems
Correct answer is C
African Development Bank is a bank owned by African countries which belonged to the African Union. The objective are:
- Provision of loans to aid social and economic development of member nations.
- Provision of technical assistance for development projects and programms embarked upon by member nations.
- It fosters economic integration among member nations.
Given that a country's index of export price is 180 and that of import is 200, the terms of trade is
0.09
2.00
90.00
380.00
Correct answer is C
Terms of trade = Index of export/ Index of import x 100
= 180/200 x 100
= 90
Which of the following measures can lead to an increase in exports?
Increase in export duties
Increase in excise duties
Depreciation of currency
Total ban on imports
Correct answer is C
The economic effect is thus, depreciation of currency tends to increase a country's balance of trade ( exports minus imports) by improving the competitiveness of domestic goods in foreign markets while making foreign goods less competitive in the domestic market by becoming more expensive.