WAEC Past Questions and Answers - Page 3036

15,176.

Which of the following terms of trade is recorded in a country's current account section of the balance of payments?

A.

Investment income

B.

Foreign direct investment

C.

Longterm capital flows

D.

Long-term loans

Correct answer is A

The current account on the balance of payments measures the inflow and outflow of goods, services, investment incomes and transfer payments.

 

15,177.

Modern international trade is based on the principle of

A.

Absolute cost advantage

B.

Comparative advantage

C.

Terms of trade

D.

Balance of trade

Correct answer is B

Comparative advantage is an economic term that refers to an economy's ability to produce goods and services at a lower opportunity cost than that of trade partners. A comparative advantage gives a company the ability to sell goods and services at a lower price than its competitors and realize stronger sales margins.

15,178.

Infant industries can be described as

A.

Newly established industries

B.

Industries enjoying tax holidays

C.

Industries producing baby products

D.

Newly commercialized industries

Correct answer is A

In economics, an infant industry is a new industry, which in its early stages experiences relative difficulty or is absolutely incapable in competing with established competitors abroad.

15,179.

Dumping in international occurs when a foreign firm sells

A.

Above its cost of production at home and abroad

B.

Below its cost of production at home and abroad

C.

More goods to a country than the country has need of

D.

Below its cost of production in a foreign market

Correct answer is D

Dumping is a term used in the context of international trade. It's when a country or company exports a product at a price that is lower in the foreign importing market than the price in the exporter's domestic market. it means exported goods are sold cheaper in the foreign market than the the exporter's domestic. that means the goods are sold below its cost of production.

15,180.

Which of the following is not an obligation of a citizen?

A.

payment of taxes

B.

voting in an election

C.

protecting public property

D.

attending religious gathering

Correct answer is D

No explanation has been provided for this answer.