Which of these does not relate to the law of comparative advantage?
The law of comparative advantage was propounded by David Ricardo
The law stresses the importance of relative efficiency
In order to specialize, a country must have absolute advantage
The law is based on opportunity cost principle
The principle if followed, should increase total world output
Correct answer is C
No explanation has been provided for this answer.
Which of the following statements is true about terms of trade?
Terms of trade shows the difference between the values of export and imports
Terms of trade indicate the rate at which exports exchange for imports
It is the ration of price index of exports to imports
It is usually expressed as percentage
A rise in the price of export relative to imports is an improvement
Correct answer is C
No explanation has been provided for this answer.
Which of the following are the most liquid assets to a commercial bank?
Money at call and short notice
Treasury Bills
Commercial Bills
Stock and Shares
Cash
Correct answer is E
No explanation has been provided for this answer.
Which of these best explains Malthusians theory of population?
Increase in population cause hunger and death
The population increase faster than food supply
The population grows at arithmetic progression while food production grows at geometric progression
People could be sent to ‘No man’s land’ when the population increases
People should produce as many children as they could to because passion cannot be controlled
Correct answer is B
No explanation has been provided for this answer.
Gives loans to member s for legal proceedings
Offer grants and aids for defense
Enhances financial relationship among countries
Offer soft loans for educational and health services
Offer grants and aid to finance private projects
Correct answer is C
No explanation has been provided for this answer.