International trade is desirable because it
May lead to overproduction
Brings about over-dependence of countries on one another
Provides foreign market for local goods
Brings about unhealthy competition and rivalries
Correct answer is C
International trade allows countries, states, brands, and businesses to buy and sell in foreign markets. This trade diversifies the products and services that various countries offer thereby providing an international market for local goods.
The likely implication of the devaluation of a country's currency is that
Exports of such a country become cheaper
Importation of goods into such a country becomes cheaper
The value of such a country's currency rises
Foreign goods are attracted into the country
Correct answer is A
The devaluation or depreciation of currency tends to raise the price level in the country and thus increase the rate of inflation. This causes the exports of goods to increase and reduces the supply and availability of goods in the domestic market which tends to raise the domestic price level.
Which of the following statements is correct?
As total utility increases, the marginal utility also increases
The marginal utility is a always zero whenever the total utility reaches the maximum
The total utility is at maximum whenever marginal utility is at it's maximum
There is no relationship between total utility and the marginal utility
Correct answer is B
Marginal utility is the slope of the total utility curse. At maximum point slope of total utility is equal to zero. Therefore the marginal utility is also zero when total utility reaches its maximum level. Total utility is the sum of utility which consumer gains from consumption of certain goods and services.
West African countries are experiencing worsening terms of trade because
They are primary producers
Their currencies are overvalued
They import less machines
They are tertiary producers
Correct answer is A
No explanation has been provided for this answer.
Provision of short-term loans to solve balance of payments problems is done by the
International Finance Corporation
International Monetary Fund
International Bank for Reconstruction and Development
African Development Bank
Correct answer is B
It strives to ensure the international monetary system's stability. The IMF functions in three main areas: overseeing the economies of member countries, lending to countries with balance of payments issues and offering technical assistance to its member countries.