NECO 2002 Economics · Question 18
Which of these is NOT associated with the problem of internal trade?
Options
- A.bargaining
- B.lack of specialization
- C.market trade unions
- D.natural barriers
- E.large number of middlemen
Answer: B. lack of specialization
Explanation written with AI and checked against the answer key
Analyze the question: We need the option that is NOT a problem of internal (domestic/home) trade, which is trade within a country.
Concept: Internal trade (wholesale and retail trade within a country) faces problems such as:
- Middlemen: A large number of intermediaries raises prices, so E is a problem.
- Natural barriers: Rivers, mountains, and poor terrain hinder movement of goods, so D is a problem.
- Poor transport and communication, inadequate storage, and lack of capital.
- Price instability, and bargaining and haggling, which waste time and cause disputes over prices, so A is commonly listed as a problem.
- Market trade unions/associations: These can fix prices, restrict entry, and control supply, so C is also commonly listed.
Lack of specialization: This is more of a feature of subsistence or primitive economies. It is a cause or reason for trade to exist, or a problem of production, rather than a recognized problem of internal trade. In fact, specialization and division of labour are what make trade necessary. Therefore, B is the odd one out.
Checking each option:
- A. Bargaining: associated with internal trade problems.
- B. Lack of specialization: not a typical problem of internal trade.
- C. Market trade unions: associated (price control and restrictions).
- D. Natural barriers: associated.
- E. Large number of middlemen: associated.
Tip: For "NOT associated" questions, test each option against the textbook list of problems. Typical internal trade problems include middlemen, poor transport, bad roads, storage, bargaining, and price fluctuations. Anything about production structure, such as specialization, is usually the odd one out.
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