Economics Past Questions and Answers

Which of the following is NOT a major function of a Central Bank?

A Serving as Goverment''s bank
B Serving as bankers bank
C Acceptance of deposit from the public
D Responsibility for monetary policy
E Serving as lender of last resort

Question 547:

Summary of product condition in countries i and ii<br/>Amount of labour days, cocoa(tons) Cloth(tons) <br/>Country i 200 600 900<br/>country ii 200 300 800<br/>From the above table, we can correctly say in respect of international trade that

A Country I has absolute disadvantage in the production of both cocoa cloth
B Country I has absolute advantage in the production of both cocoa and cloth
C Country II has absolute advantage in the production of both cocoa and cloth
D Country II has comparative advantage in the production of cocoa
E Country II should leave the production of both cocoa and cloth to country I

Question 548:

The infant industry argument for protection in developing countries recognizes the needs to employ tariffs to protect

A Industries producing baby food and clothing
B Industries owned by infants
C Newly set-up industries
D Industries in which infants will be taken care of
E Industries that behave like infants

Question 549:

Invisible trade refers to trade in?

A Services
B Goods and services
C Tangible goods
D Short-term and long-term capital
E Goods that cannot be seen

Question 550:

Indirect taxes are taxes?

A Which are levied on the incomes and profits of individuals and firms
B Whose incidence always falls on the consumer
C Which are based on the progressive principle
D On casinos, airports and capitals gains
E Which are levied on people and economic units through the goods and services they purchase