Year :
2017
Title :
Economics
Exam :
WASSCE/WAEC MAY/JUNE
Paper 1 | Objectives
11 - 20 of 48 Questions
| # | Question | Ans |
|---|---|---|
| 11. |
Effective supply is the total amount of a commodity A. from a single producer B. in the warehouse of producers C. offered for sale at a market place D. produced for the market Detailed SolutionIn economics, effective demand (ED) in a market is the demand for a product or service which occurs when purchasers are constrained in a different market. it is the Quantity of a good or service that consumers are actually buying at the current market price. |
|
| 12. |
Price elasticity of supply can be influenced by the following factors except? A. time period B. cost of production C. size of consumer income D. nature of the product Detailed SolutionIt refers to how the amount supplied of a good or service changes in response to a price or factor change.Factors that Influence the PES. There are numerous factors that impact the price elasticity of supply including the number of producers, spare capacity, ease of switching, ease of storage, length of production period, time period of training, factor mobility, and how costs react. |
|
| 13. |
Increase in the supply of a product can be caused by? A. change and taste and fashion of consumers B. increase in the income of consumers C. a fall in the cost of production D. increase in the price of a product Detailed SolutionAn increase in supply is illustrated by a shift of the supply curve to the right. An increase in supply can be caused by: an increase in the number of producers. a decrease in the costs of production (such as higher prices for oil, labor, or other factors of production). |
|
| 14. |
A rational consumer will purchase a product whose price is? A. greater than his marginal utility B. less than his marginal utility C. equal to his marginal utility D. equal to his total utility Detailed SolutionA consumer is rational if he decides for the option that maximizes his/her utility. When studying the bachelor for Economics, in microeconomics class, the teacher would always tell you that it is assumed that consumers are rational, meaning that they maximize their profits based on their utility payoffs. |
|
| 15. |
Parallel markets are usually the results of A. excess supply B. the activities of rich individuals C. price legislation D. inadequate information Detailed SolutionA parallel market arises when the government limits the amount of foreign exchange that can be bought or sold for particular transactions, causing excess demand or supply to spill over into a parallel market, or authorizes that exchange rates for certain transactions be pegged and for other transactions be floating |
|
| 16. |
Another term for equilibrium price is? A. price floor B. demand price C. market clearing price D. satisfactory price Detailed SolutionMarket-clearing price is another term used interchangeably with equilibrium price. Equilibrium price is a common economics term that refers to the exactprice at which market supply equals market demand. |
|
| 17. |
When a firm is enjoying internal economies of scale, its? A. total cost of production is increasing B. average fixed cost is rising continuously C. average cost of production decreases as output increases D. average revenue and marginal revenue are decreasing Detailed SolutionInternal economies of scale are related to the shift in average production costs for a business as it boosts its overall product output and the average cost per unit falls until maximum efficiency is attained. This means that, the overall production cost decreases, while output increases |
|
| 18. |
The specialization of labour enhances production because people? A. can concentrate on all goods B. can efficiently produce their own needs C. can save time and produce more D. become experts in all areas of production Detailed SolutionDivision of labour is the separation of tasks in any system so that people can specialize in their various fields of expertiseDivision of labour leads to specialization where people can concentrate on task they perform better than others. |
|
| 19. |
Which of the following can be added to a firm's profit to obtain total revenue A. total variable cost B. total fixed cost C. marginal cost D. total revenue Detailed SolutionTotal Revenue (TR) is calculated by multiplying the quantity of goods sold (Q) by the price of the goods (P). For example if you sold 120 pens for 2$ each: To find your Profit: You will have to subtract the Total Cost (TC) from your Total Revenue(TR).Profit Recall that we defined a firm s short-run total costs as: Total Cost = TFC + TVC. Now we can define economic profit: Profit = Total Revenue - Total Cost |
|
| 20. |
The amount of money that a firm recieves from the sales of its output is called A. total profit B. total revenue C. total cost D. average revenue Detailed SolutionTotal revenue in economics refers to the total receipts/ income from sales of a given quantity of goods or services. It is the total income of a business and is calculated by multiplying the quantity of goods sold by the price of the goods. |
| 11. |
Effective supply is the total amount of a commodity A. from a single producer B. in the warehouse of producers C. offered for sale at a market place D. produced for the market Detailed SolutionIn economics, effective demand (ED) in a market is the demand for a product or service which occurs when purchasers are constrained in a different market. it is the Quantity of a good or service that consumers are actually buying at the current market price. |
|
| 12. |
Price elasticity of supply can be influenced by the following factors except? A. time period B. cost of production C. size of consumer income D. nature of the product Detailed SolutionIt refers to how the amount supplied of a good or service changes in response to a price or factor change.Factors that Influence the PES. There are numerous factors that impact the price elasticity of supply including the number of producers, spare capacity, ease of switching, ease of storage, length of production period, time period of training, factor mobility, and how costs react. |
|
| 13. |
Increase in the supply of a product can be caused by? A. change and taste and fashion of consumers B. increase in the income of consumers C. a fall in the cost of production D. increase in the price of a product Detailed SolutionAn increase in supply is illustrated by a shift of the supply curve to the right. An increase in supply can be caused by: an increase in the number of producers. a decrease in the costs of production (such as higher prices for oil, labor, or other factors of production). |
|
| 14. |
A rational consumer will purchase a product whose price is? A. greater than his marginal utility B. less than his marginal utility C. equal to his marginal utility D. equal to his total utility Detailed SolutionA consumer is rational if he decides for the option that maximizes his/her utility. When studying the bachelor for Economics, in microeconomics class, the teacher would always tell you that it is assumed that consumers are rational, meaning that they maximize their profits based on their utility payoffs. |
|
| 15. |
Parallel markets are usually the results of A. excess supply B. the activities of rich individuals C. price legislation D. inadequate information Detailed SolutionA parallel market arises when the government limits the amount of foreign exchange that can be bought or sold for particular transactions, causing excess demand or supply to spill over into a parallel market, or authorizes that exchange rates for certain transactions be pegged and for other transactions be floating |
| 16. |
Another term for equilibrium price is? A. price floor B. demand price C. market clearing price D. satisfactory price Detailed SolutionMarket-clearing price is another term used interchangeably with equilibrium price. Equilibrium price is a common economics term that refers to the exactprice at which market supply equals market demand. |
|
| 17. |
When a firm is enjoying internal economies of scale, its? A. total cost of production is increasing B. average fixed cost is rising continuously C. average cost of production decreases as output increases D. average revenue and marginal revenue are decreasing Detailed SolutionInternal economies of scale are related to the shift in average production costs for a business as it boosts its overall product output and the average cost per unit falls until maximum efficiency is attained. This means that, the overall production cost decreases, while output increases |
|
| 18. |
The specialization of labour enhances production because people? A. can concentrate on all goods B. can efficiently produce their own needs C. can save time and produce more D. become experts in all areas of production Detailed SolutionDivision of labour is the separation of tasks in any system so that people can specialize in their various fields of expertiseDivision of labour leads to specialization where people can concentrate on task they perform better than others. |
|
| 19. |
Which of the following can be added to a firm's profit to obtain total revenue A. total variable cost B. total fixed cost C. marginal cost D. total revenue Detailed SolutionTotal Revenue (TR) is calculated by multiplying the quantity of goods sold (Q) by the price of the goods (P). For example if you sold 120 pens for 2$ each: To find your Profit: You will have to subtract the Total Cost (TC) from your Total Revenue(TR).Profit Recall that we defined a firm s short-run total costs as: Total Cost = TFC + TVC. Now we can define economic profit: Profit = Total Revenue - Total Cost |
|
| 20. |
The amount of money that a firm recieves from the sales of its output is called A. total profit B. total revenue C. total cost D. average revenue Detailed SolutionTotal revenue in economics refers to the total receipts/ income from sales of a given quantity of goods or services. It is the total income of a business and is calculated by multiplying the quantity of goods sold by the price of the goods. |