The exploitation of mineral resources constitutes which form of production?
Primary production
Secondary production
Tertiary production
Services production
Correct answer is A
Primary production involves the exploration and extraction of raw materials.
Each member operates its own barriers against non-members
Factors of production are mobile
Members adopt a common external tariff against non- members
Members adopt common fiscal and economic policies
Correct answer is B
Free trade is a trade policy where goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies.
In order to discourage the importation of manufactured goods, a country should adopt
Import promotion strategy
Export led strategy
Liberal foreign exchange
Import substitution strategy
Correct answer is D
Import substitution industrialization is the idea that blocking imports of manufactured goods can help an economy by increasing the demand for domestically produced goods.
The foremost objective of the International Bank of Reconstruction and Development (IBRD) is to
Help promote private and public investments
Assist members achieve a balance of payments stability
Grant long term loans for infrastructure
Maintain stabilily of foreign exchange
Correct answer is C
The major objective of the International Bank of Reconstruction and Development is to provide long-term capital to members countries for economic reconstruction and development.
The principle of comparative advantage encourages a country to
Produce only consumer goods
Engage in trade if it can produce a commodity at a lower cost
Specializes in the production of all goods
Try as much as possible to be self-sufficient
Correct answer is B
Comparative advantage is the edge a country has over its trading partners in the production of a particular good or service at a lower opportunity cost.