Year :
2017
Title :
Economics
Exam :
WASSCE/WAEC MAY/JUNE
Paper 1 | Objectives
1 - 10 of 48 Questions
| # | Question | Ans |
|---|---|---|
| 1. |
Economics is regarded as a science because? A. its issues can be easily verified by reference to facts B. it adopts scientific methods in making its analysis C. its issues are relevant for national development D. its subject matter studies human behaviour Detailed SolutionEconomics is regarded as a social science because it uses scientific methods to build theories that can help explain the behavior of individuals, groups, and organizations. |
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| 2. |
The opportunity cost of a worker going to the university is A. tuition, fees and books B. boarding and lodging C. the wages given up to attend the university D. transportation and entertainment Detailed SolutionOpportunity cost is the value of the next best thing you give up whenever you make a decision. It is "the loss of potential gain from other alternatives when onealternative is chosen". it is simply the forgone alternativeIf, for example, you spend time and money going to a movie, you cannot spend that time at home reading a book, and you can't spend the money on something else. |
|
| 3. |
Which of the following items is not an example of circulating capital A. raw material B. money C. fuel D. machinery Detailed SolutionCirculating capital can consist of cash, operating expenses, raw materials, inventory in process, finished goods inventory and accounts receivable.Circulating capital is frequently referred to as working capital or alternatively, revolving capital. |
|
| 4. |
In a market economy, the problem of what goods to produced is solved primarily by A. directives of the government B. the pattern of consumers spending C. producers of consumer goods D. people producing what they want Detailed SolutionConsumer preferences and resource scarcity determine which goods are produced and in what quantity; the prices in a market economy act as signals to producers and consumers who use these price signals to help make decisions. Governments play a minor role in the direction of economic activity. |
|
| 5. |
If the weight of five puppies in kilograms are 3.5, 3.0, 4.2, 5.0 and 4.3, then mean weight of the puppies is? A. 3.5 kg B. 4.0 kg C. 4.2 kg D. 5.0 kg Detailed SolutionThe mean is the average of the numbers. It is easy to calculate: add up all the numbers, then divide by how many numbers there are. In other words it is the sum divided by the count.thus we have; mean = 3.5 + 3.0 + 4.2 + 5.0 + 4.3 = 20 / 5 = 4 |
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| 6. |
If the coefficient of cross elasticity of demand for goods Y and Z is positive, the two goods are? A. complements B. substitutes C. luxurious D. inferior Detailed SolutionA positive cross-price elasticity value indicates that the two goods are substitutes.Two goods that complement each other have a negative cross elasticity of demand: as the price of goodY rises, the demand for good X falls. |
|
| 7. |
The difference between demand and wants is in the A. desire for the commodity B. significance of the commodity C. ability to pay for the commodity D. economic value of the commodity Detailed SolutionWant is the desire to have something or to buy a product. Demands on the other hand are requests for specific products that the buyer is willing to and able to pay for.So, the key difference between wants and demand is the ability of the consumer to pay for the product. In other words, if a customer is willing and able to buy a product, that is demand while wishing to buy a product is simply a want. |
|
| 8. |
A demand curve parallel to the Y-axis indicates A. fairly elastic demand B. perfectly elastic demand C. perfectly inelastic D. fairly inelastic demand Detailed SolutionWhen the demand curve is parallel to the vertical axis, it means, that the same amount of goods are demanded at any price level. Which further means that there is no effect of change in price on the quantity demanded. Hence, the product is perfectly Inelastic and quantitatively, elasticity of demand is 0. |
|
| 9. |
Which of the following is an example of derived demand A. textbook B. labour C. staple food D. mobile phone Detailed SolutionDerived demand is an economic term describing the demand for a good/service resulting from the demand for an intermediate or related good/service. It is a demand for some physical or intangible thing where a market exists for both related goods and services in question.Examples. Producers have a derived demand for employees. For another example, demand for steel leads to derived demand for steel workers, as steel workers are necessary for the p |
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| 10. |
A rightward shift in the supply curve of a commodity is brought about by an increase in? A. the level of technology B. the price of the commodity C. cost of production D. taxation Detailed SolutionA shift towards the right in the supply curve indicates that there is an increase in the quantity supplied at the existing price. |
| 1. |
Economics is regarded as a science because? A. its issues can be easily verified by reference to facts B. it adopts scientific methods in making its analysis C. its issues are relevant for national development D. its subject matter studies human behaviour Detailed SolutionEconomics is regarded as a social science because it uses scientific methods to build theories that can help explain the behavior of individuals, groups, and organizations. |
|
| 2. |
The opportunity cost of a worker going to the university is A. tuition, fees and books B. boarding and lodging C. the wages given up to attend the university D. transportation and entertainment Detailed SolutionOpportunity cost is the value of the next best thing you give up whenever you make a decision. It is "the loss of potential gain from other alternatives when onealternative is chosen". it is simply the forgone alternativeIf, for example, you spend time and money going to a movie, you cannot spend that time at home reading a book, and you can't spend the money on something else. |
|
| 3. |
Which of the following items is not an example of circulating capital A. raw material B. money C. fuel D. machinery Detailed SolutionCirculating capital can consist of cash, operating expenses, raw materials, inventory in process, finished goods inventory and accounts receivable.Circulating capital is frequently referred to as working capital or alternatively, revolving capital. |
|
| 4. |
In a market economy, the problem of what goods to produced is solved primarily by A. directives of the government B. the pattern of consumers spending C. producers of consumer goods D. people producing what they want Detailed SolutionConsumer preferences and resource scarcity determine which goods are produced and in what quantity; the prices in a market economy act as signals to producers and consumers who use these price signals to help make decisions. Governments play a minor role in the direction of economic activity. |
|
| 5. |
If the weight of five puppies in kilograms are 3.5, 3.0, 4.2, 5.0 and 4.3, then mean weight of the puppies is? A. 3.5 kg B. 4.0 kg C. 4.2 kg D. 5.0 kg Detailed SolutionThe mean is the average of the numbers. It is easy to calculate: add up all the numbers, then divide by how many numbers there are. In other words it is the sum divided by the count.thus we have; mean = 3.5 + 3.0 + 4.2 + 5.0 + 4.3 = 20 / 5 = 4 |
| 6. |
If the coefficient of cross elasticity of demand for goods Y and Z is positive, the two goods are? A. complements B. substitutes C. luxurious D. inferior Detailed SolutionA positive cross-price elasticity value indicates that the two goods are substitutes.Two goods that complement each other have a negative cross elasticity of demand: as the price of goodY rises, the demand for good X falls. |
|
| 7. |
The difference between demand and wants is in the A. desire for the commodity B. significance of the commodity C. ability to pay for the commodity D. economic value of the commodity Detailed SolutionWant is the desire to have something or to buy a product. Demands on the other hand are requests for specific products that the buyer is willing to and able to pay for.So, the key difference between wants and demand is the ability of the consumer to pay for the product. In other words, if a customer is willing and able to buy a product, that is demand while wishing to buy a product is simply a want. |
|
| 8. |
A demand curve parallel to the Y-axis indicates A. fairly elastic demand B. perfectly elastic demand C. perfectly inelastic D. fairly inelastic demand Detailed SolutionWhen the demand curve is parallel to the vertical axis, it means, that the same amount of goods are demanded at any price level. Which further means that there is no effect of change in price on the quantity demanded. Hence, the product is perfectly Inelastic and quantitatively, elasticity of demand is 0. |
|
| 9. |
Which of the following is an example of derived demand A. textbook B. labour C. staple food D. mobile phone Detailed SolutionDerived demand is an economic term describing the demand for a good/service resulting from the demand for an intermediate or related good/service. It is a demand for some physical or intangible thing where a market exists for both related goods and services in question.Examples. Producers have a derived demand for employees. For another example, demand for steel leads to derived demand for steel workers, as steel workers are necessary for the p |
|
| 10. |
A rightward shift in the supply curve of a commodity is brought about by an increase in? A. the level of technology B. the price of the commodity C. cost of production D. taxation Detailed SolutionA shift towards the right in the supply curve indicates that there is an increase in the quantity supplied at the existing price. |