Which of the following must be true to have a closed economy with no government, and yet the value of the investmet multiplier still increase?

Marginal propensity to save has fallen

Average propensity to invest has fallen

------------- is NOT the cause of balance of payments (BOP) deficits in Nigeria

Poor performance of non-oil sector

No import substitution strategies

An increase in money income with constant price results in

Outward shift in the budget line

Inward parallel shift in the budget line

Public corporation is financed with

Capital raised from shareholders

Capital raised from stock exchange

The "velocity" of money is

The ratio of real GDP to the real money supply

The real money supply divided by the real GDP

The money supply multiplied by the price level

The money supply divided by the price level

The ratio of real GDP to the real money supply

Economics is often described as a science because it

use scientific methods to explain observed phenomena

employs the use of laboratory experiments

use scientific methods to explain observed phenomena

make use of controlled experiments

engages accurate predication of human beings

One major criticism of foreign aid to developing countries is that it

Is capital using rather than capital saving

Gives too much power and control to world bank

Encourages growth in government bureaucracy

Is capital using rather than capital saving

Provides incentives for capital flight

One major problem facing West African countries is

Relations with Colonial Masters

Joint Military operations in Member States

Financial crunch of Member States

Economic problem occurs when

There is scarcity relative to demand

There are no buyers for our goods

Which of the following is the resultant effect of a fall in the profit margin of producers in an economy?

Unemployment will remain constant

JAMB UTME - Economics - 2023 | Green Bridge CBT

Question 1 Report

In a two by two model of international trade, it is assumed that

both countries could gain from trade at the same time, but term of trade is inconsequential for the distribution of the gains

both countries could gain from trade at the same time, but the volume of the gains depends on terms of trade

neither country could ever gain from trade since term of trade is depends on the distribution of the gains from trade

both countries could gain from trade at the same time, and the volume of the gains does not depend on terms of trade

Answer Details

In a two by two model of international trade, it is assumed that **both countries could gain from trade at the same time, but the volume of the gains depends on terms of trade**. This means that both countries can benefit from engaging in trade with each other. Trade allows both countries to specialize in producing and exporting the goods in which they have a comparative advantage, while importing goods that they are less efficient at producing. This leads to increased efficiency and overall economic gains for both countries. However, the volume of the gains from trade depends on the terms of trade between the two countries. The terms of trade refer to the ratio at which the countries exchange their goods. If one country has a higher bargaining power or can produce goods at a lower cost, they may negotiate more favorable terms of trade, leading to a larger volume of gains for that country. On the other hand, if the terms of trade are less favorable, the volume of gains for both countries may be smaller. In summary, while both countries can benefit from trade, the extent of the gains will vary depending on the terms of trade negotiated between them.






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