JAMB Economics questions: International trade

16 questions with answers and explanations. Tap an option to check yourself.

1. Question 1· International trade· JAMB

   Nigeria's export price index is 150 and its import price index is 120. Its terms of trade are

   • A80
   • B125
   • C270
   • D30

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   Explanation and discussion

2. Question 2· International trade· JAMB

   A quota in international trade is

   • Aa subsidy
   • Ba tax on imports
   • Ca ban on all trade
   • Da limit on the quantity of a good that may be imported

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3. Question 3· International trade· JAMB

   Invisible trade includes

   • Amachinery
   • Bcrude oil
   • Ccocoa
   • Dshipping, insurance and tourism

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   Explanation and discussion

4. Question 4· International trade· JAMB

   An import quota is

   • Aa tax on exports
   • Ba limit on the quantity of goods imported
   • Ca loan
   • Da subsidy

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   Explanation and discussion

5. Question 5· International trade· JAMB

   Visible trade refers to trade in

   • Acapital
   • Bservices
   • Cgoods
   • Dtourism

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6. Question 6· International trade· JAMB

   A floating exchange rate is determined by

   • Ademand and supply of currencies
   • Bthe government alone
   • Cthe IMF alone
   • Da fixed gold standard

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7. Question 7· International trade· JAMB

   The exchange rate is

   • Athe tax on imports
   • Bthe interest rate on loans
   • Cthe rate of inflation
   • Dthe price of one currency in terms of another

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8. Question 8· International trade· JAMB

   Protectionism is justified on the grounds of

   • Alowering prices for consumers
   • Braising world efficiency
   • Cprotecting infant industries
   • Dencouraging dumping

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9. Question 9· International trade· JAMB

   A tariff is

   • Aa loan from abroad
   • Ba subsidy on exports
   • Ca ban on all trade
   • Da tax on imported goods

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10. Question 10· International trade· JAMB

    A country devalues its currency mainly to

    • Amake its exports cheaper and its imports dearer
    • Bmake imports cheaper
    • Cincrease inflation deliberately
    • Dreduce exports

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11. Question 11· International trade· JAMB

    The balance of payments current account includes

    • Aonly loans
    • Btrade in goods and services and income transfers
    • Conly investment
    • Donly gold

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12. Question 12· International trade· JAMB

    The balance of trade is the difference between a country's

    • Atotal income and expenditure
    • Bvisible exports and visible imports
    • Ccapital inflows and outflows
    • Dinvisible exports and imports

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13. Question 13· International trade· JAMB

    The theory of comparative advantage is associated with

    • AThomas Malthus
    • BAdam Smith
    • CDavid Ricardo
    • DJ. M. Keynes

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14. Question 14· International trade· JAMB

    The current account of the balance of payments includes

    • Aforeign direct investment only
    • Bloans from abroad only
    • Cvisible and invisible trade
    • Dchanges in reserves only

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15. Question 15· International trade· JAMB

    The African Continental Free Trade Area (AfCFTA) aims to

    • Aadopt one currency at once
    • Bban trade outside Africa
    • Ccreate a single market for goods and services across Africa
    • Dfix oil prices

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16. Question 16· International trade· JAMB

    A country's index of export prices is 120 and its index of import prices is 100. Its terms of trade are

    • A120 (favourable)
    • B83 (unfavourable)
    • C100 (neutral)
    • D20

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    Explanation and discussion