JAMB and WAEC Economics questions: International trade

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

1. Question 1· International trade· WAEC

   International trade arises mainly because

   • Acountries differ in their resources
   • Ball countries produce the same goods
   • Cthere is no transport
   • Dprices are the same everywhere

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   Explanation and discussion

2. Question 2· 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

3. Question 3· International trade· WAEC

   A deficit in the balance of payments can be corrected by

   • Aborrowing forever
   • Bincreasing imports
   • Creducing exports
   • Dreducing imports and increasing exports

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   Explanation and discussion

4. Question 4· 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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5. Question 5· International trade· JAMB

   Invisible trade includes

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

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6. Question 6· 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

7. Question 7· International trade· JAMB

   Visible trade refers to trade in

   • Acapital
   • Bservices
   • Cgoods
   • Dtourism

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8. Question 8· 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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9. Question 9· 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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10. Question 10· International trade· WAEC

    The balance of trade is the difference between

    • Ainvisible exports and imports
    • Ball receipts and all payments
    • Ccapital inflows and outflows
    • Dvisible exports and visible imports

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11. Question 11· International trade· WAEC

    Dumping means

    • Abanning imports
    • Bimporting raw materials
    • Cselling goods abroad below cost or home price
    • Dexporting at high prices

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12. Question 12· International trade· WAEC

    Comparative cost advantage means a country should specialise in goods it produces at

    • Alower opportunity cost
    • Bhigher cost
    • Cno cost
    • Dthe same cost as others

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13. Question 13· 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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14. Question 14· International trade· WAEC

    A country should specialise in producing the goods in which it has

    • Athe highest import duty
    • Ban absolute disadvantage
    • Ca comparative advantage
    • Dthe fewest workers

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15. Question 15· International trade· WAEC

    Devaluation of a currency is intended to

    • Amake imports cheaper
    • Bmake exports cheaper abroad
    • Craise inflation
    • Dreduce exports

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16. Question 16· International trade· WAEC

    Devaluation of the naira is expected to

    • Araise the external value of the naira
    • Bmake imports cheaper
    • Creduce exports
    • Dmake Nigerian exports cheaper abroad

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17. Question 17· International trade· WAEC

    Nigeria places a 35% duty on imported finished textiles. This duty is

    • Aa subsidy
    • Ba quota
    • Can embargo
    • Da tariff

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18. Question 18· 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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19. Question 19· 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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20. Question 20· International trade· WAEC

    A country's terms of trade improve when

    • Aits export prices rise relative to its import prices
    • Bits import prices rise relative to its export prices
    • Cits exports fall
    • Dits currency is devalued

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    Explanation and discussion