The rate at which a country's export is exchanged for her imports is
Trade balance
Balance of payment
Term of trade
Balance on current account
Correct answer is C
Terms of trade, relationship between the prices at which a country sells its exports and the prices paid for its imports.
The principle of comparative cost advantage was propounded by
David Ricardo
Alfred Marshal
J. S Mill
Adam Smith
Correct answer is A
David Ricardo developed the classical theory of comparative advantage in 1817 to explain why countries engage in international trade even when one country's workers are more efficient at producing every single good than workers in other countries.
Which of the following is not a major problem of development?
Shortage of skilled manpower
Inadequate data for planning
Political instability
Poor identification of projects
Correct answer is D
Common constraints on development are high economic poverty, hunger, high mortality rates, unsafe water supplies, poor education systems, corrupt governments, war, and poor sanitation.
Which is following is a cause of under-development in West Africa?
Availability of manpower
Increasing population
High rate of capital formation
Large size of market places
Correct answer is B
Underdevelopment in Africa is as a result of many contributing factors which include poverty, illiteracy, very large extended families, corruption and lack of accountability. Poverty is one of the causes of underdevelopment in Africa. Unfortunate events such as slave trade, wars and other bad incidents
Fiscal policy that can control inflation will include the use of
Balanced budgeting
Tax holidays
Budget deficit
Budget surplus
Correct answer is C
Fiscal policy involves the government changing tax and spending levels in order to influence the level of Aggregate Demand. To reduce inflationary pressures the government can increase tax and reduce government spending.
The two main components of fiscal policy are government revenue and government expenditure. In fiscal policy, the government controls inflation either by reducing private spending or by decreasing government expenditure, or by using both. It reduces private spending by increasing taxes on private businesses.