passwella.
Menu

JAMB Economics 1993 Question 44

Question 44

International Economic Organisations

Which of the following are the advantages of Nigeria's membership of ECOWAS?
I. A greater opportunity for trade according to comparative cost advantage
II. A larger market for industries producing under conditions of decreasing cost
III. Competition for home based monopoly firms

  1. A.I and II only
  2. B.I and III only
  3. C.II and III only
  4. D.I, II and III
Show the answer and explanation

Answer: D (I, II and III)

Explanation

Economic integration lets members trade according to comparative cost advantage, gives industries a bigger market so they can cut unit costs, and exposes local monopolies to competition. All three are advantages.