The International bank for reconstruction and development (IBRD) performs the following functions except?
- A. granting long-term loans
- B. assisting with technical expertise
- C. reducing tariff among members
- D. developing human resource
which of the following forms of economic integration is a member nation free to impose duty against
- A. custom union
- B. free trade area
- C. common market
- D. economic community
one advantage of international trade is that
- A. prices of goods become stable
- B. countries become self-sufficient
- C. goods consumed are produced at a very high cost
- D. it makes possible the consumption of variety of goods
Nations engage in international trade because of difference in?
- A. absolute cost
- B. comparative cost
- C. fixed cost
- D. variable cost
which of the following is not a measure for reducing balance of payments deficits?
- A. export drive
- B. reducing tarriffs
- C. adding to export goods
- D. increasing local production
which of the following measure can be adopted to stabilize the external value of the local currency?
- A. reduce the volume of export
- B. increase the demand for imports
- C. increase domestic money supply
- D. reduce the demand for imports
the poorer the country, the larger the percentage of labour force engaged in?
- A. Agricultural
- B. mining
- C. trading
- D. manufacturing
which of the following activities will not lead to economic growth?
- A. massive importation of capital goods
- B. intensive capital formation locally
- C. use of modern technology
- D. massive importation of consumer goods
in order to increase revenue, government should tax commodities for which demand is?
- A. perfectly price inelastic
- B. price inelastic
- C. price elastic
- D. unitary elastic
income is redistributed when the rich are progressively taxed and?
- A. more private schools are established
- B. subsidy is provided on petroleum products
- C. more public goods are provided
- D. farmers are given guaranteed prices
what happens when the central bank increases bank rate in an economy
- A. borrowing is discouraged
- B. customers increase their borrowing
- C. banks can increase their lending
- D. money supply increases
the stock exchange is an example of the?
- A. labour market
- B. money market
- C. commodity market
- D. capital market
if a housewife has meat and tomatoes, she must find someone who wants meat and has tomatoes to give. this concept is described as?
- A. opportunity cost
- B. scale of preference
- C. complementary demand
- D. double of coincidence of wants
Holding money to take care of contigencies is?
- A. a speculative motive
- B. a transaction motive
- C. a precautionary motive
- D. an expansionary motive
demand pull inflation is likely to be caused by?
- A. an increase in the cost of factors inputs
- B. increase in the income tax rate
- C. increase in bank lending rates
- D. increasingly large budget deficit
in a country with large population of full-time housewives, national income
- A. will be composed of goods produced by women
- B. figures will be grossly over-stated
- C. statistics will be difficult to calculate
- D. figures will be grossly under-stated
A baker bought flour and other ingredients for $250.00, spent $52.00 on distribution, sold the bread for $320.00. the value added by the baker is?
- A. $302.00
- B. $52.00
- C. $18.00
- D. $622.00
The largest component of national income in developing countries consist of?
- A. profits
- B. profit and rent
- C. rent
- D. wages and salaries
an industry is described as a group of firms
- A. that provides jobs for many people
- B. which uses advance technology in production
- C. which produces similar products
- D. that provides jobs for few people
local firms can help in reducing unemployment in a country when?
- A. land acquisition becomes centralized
- B. imports of substitutes are reduced
- C. waste in the firm is eliminated
- D. subsidies to firms are decreased
which of the following factors is not a reason for farmer’s unstable incomes
- A. dependence on too many crops
- B. poor storage facilities
- C. adverse weather condition
- D. recession in the world economy