Economics, 2017, WASSCE/WAEC MAY/JUNE, Exam, Paper 1 | Objectives

Paper Info

Year :

2017

Title :

Economics

Exam :

WASSCE/WAEC MAY/JUNE

Paper 1 | Objectives

21 - 30 of 48 Questions

#	Question	Ans
21.	Which of the following is trueof the monopolist A. his average revenue curve is horizontal B. He determines both price and output C. his demand and marginal revenue curve are the same D. he determines either price or output Show Content Detailed Solution Monopoly refers to a market situation where there is only single seller of a commodity and there are no close substitutes of that commodity. the following are features of a monopolist 1. Single seller: The producer or seller of the commodity is a single person, firm or an individual and that firm has complete control on the output of the commodity. 2. No Close Substitutes: All the units of a commodity are similar and there are no substitutes to that commodity. 3. No Entry for New Firms: Monopoly situation in a market can continue only when other firms do not enter the industry. If new firms	B
22.	Equity shares form the bulk of the capital of a? A. private firm B. public company C. statutory company D. limited partnership Show Content Detailed Solution An equity share, commonly referred to as ordinary share also represents the form of fractional or part ownership in which a shareholder, as a fractional owner, undertakes the maximum entrepreneurial risk associated with a business venture. The holders of such shares are members of the company and have voting rights. This is mainly associated with a public limited liability company	B
23.	If a state owned firm is sold through the stock market, the organisation becomes? A. partnership B. private company C. public limited company D. public corporation Show Content Detailed Solution A state-owned enterprise (SOE) is a business enterprise where the government or state has significant control through full, majority, or significant minority ownership. Defining characteristics of SOEs are their distinct legal form and operation in commercial affairs and activities. When a state owned stocks are traded in the stock exchange, they become a public limited company.	C
24.	The total number of people of working age who are willing and prepared to work at a given wage rate is the A. labour force B. supply of labour C. demand of labour D. occupational demand for labour Show Content Detailed Solution The labor force is defined simply as the people who are willing and able to work. The size of the labor force is used to determine the unemployment rate.The percentage of the unemployed in the labor force is called the unemployment rate. The labour force is the sum of persons in employment plus persons in unemployment. Together these two groups of the population represent the current supply of labour for the production of goods and services taking place in a countrythrough market transactions in exchange for remuneration.	A
25.	A civil engineer who accepts to teach elementary science in a primary school because he cannot get a paid engineering job is an example of? A. structural unemployment B. disguised unemployment C. residual unemployment D. frictional unemployment Show Content Detailed Solution Structural unemployment is a form of involuntary unemployment caused by a mismatch between the skills that workers in the economy can offer, and the skills demanded of workers by employers. Structural unemployment is often brought about by technological changes that make the job skills of many workers obsolete. it is simply unemployment caused by a mismatch between jobs and skills, or other long-term changes in the economy.	A
26.	Which of the following is an implication of a large population A. decrease in crime rate B. increase in food supply C. decrease in standard of living D. decrease in cost of living Show Content Detailed Solution A high population means More problems with the distribution of wealth and resources. Problems with food security as pressure on the land due to larger populationincreases. Increased pressure on the forest covered area which leads to deforestation. This wll affect the living standard of people with many scampering for the limited available resources	C
27.	The system of agriculture which involves the cultivation of crops and rearing of animals for family consumption only is termed? A. peasant farming B. plantation agriculture C. commercial farming D. subsistent farming Show Content Detailed Solution Subsistence agriculture occurs when farmers grow food crops to feed themselves and their families. In subsistence agriculture, farm output is targeted to survival and is mostly for local requirements with little or no surplus trade. The typical subsistence farm has a range of crops and animals needed by the family to feed and clothe themselves during the year.	D
28.	Which of the following is a threat to the existence of middlemen A. consumers cooperative society B. producers cooperative society C. sales agents D. large scale producers Show Content Detailed Solution consumers cooperative society is an autonomous association of consumers united voluntarily to meet their common needs and aspirations. The cooperative society purchases in bulk directly from the producers which avails them discounts and in return, sells in small lots to their members, thereby eliminating the middlemen (both the wholesaler and retailer)	A
29.	Which of the following is a threat to the existence of middlemen A. consumers cooperative society B. producers cooperative society C. sales agents D. large scale producers Show Content Detailed Solution consumers cooperative society is an autonomous association of consumers united voluntarily to meet their common needs and aspirations. The cooperative society purchases in bulk directly from the producers which avails them discounts and in return, sells in small lots to their members, thereby eliminating the middlemen (both the wholesaler and retailer)	A
30.	In an industrial area, the location of industries is particularly influenced by ? A. extent of the division of labour B. external economies C. internal economies D. nearness to financial institution Show Content Detailed Solution External economies of scale imply that as the size of an industry grows larger or more clustered, the average costs of doing business within the industry fall. This may occur due to increased specialization or training of workers, faster innovation or shared supplier relationships. Following are the types of external economies of scale	B

21.	Which of the following is trueof the monopolist A. his average revenue curve is horizontal B. He determines both price and output C. his demand and marginal revenue curve are the same D. he determines either price or output Show Content Detailed Solution Monopoly refers to a market situation where there is only single seller of a commodity and there are no close substitutes of that commodity. the following are features of a monopolist 1. Single seller: The producer or seller of the commodity is a single person, firm or an individual and that firm has complete control on the output of the commodity. 2. No Close Substitutes: All the units of a commodity are similar and there are no substitutes to that commodity. 3. No Entry for New Firms: Monopoly situation in a market can continue only when other firms do not enter the industry. If new firms	B
22.	Equity shares form the bulk of the capital of a? A. private firm B. public company C. statutory company D. limited partnership Show Content Detailed Solution An equity share, commonly referred to as ordinary share also represents the form of fractional or part ownership in which a shareholder, as a fractional owner, undertakes the maximum entrepreneurial risk associated with a business venture. The holders of such shares are members of the company and have voting rights. This is mainly associated with a public limited liability company	B
23.	If a state owned firm is sold through the stock market, the organisation becomes? A. partnership B. private company C. public limited company D. public corporation Show Content Detailed Solution A state-owned enterprise (SOE) is a business enterprise where the government or state has significant control through full, majority, or significant minority ownership. Defining characteristics of SOEs are their distinct legal form and operation in commercial affairs and activities. When a state owned stocks are traded in the stock exchange, they become a public limited company.	C
24.	The total number of people of working age who are willing and prepared to work at a given wage rate is the A. labour force B. supply of labour C. demand of labour D. occupational demand for labour Show Content Detailed Solution The labor force is defined simply as the people who are willing and able to work. The size of the labor force is used to determine the unemployment rate.The percentage of the unemployed in the labor force is called the unemployment rate. The labour force is the sum of persons in employment plus persons in unemployment. Together these two groups of the population represent the current supply of labour for the production of goods and services taking place in a countrythrough market transactions in exchange for remuneration.	A
25.	A civil engineer who accepts to teach elementary science in a primary school because he cannot get a paid engineering job is an example of? A. structural unemployment B. disguised unemployment C. residual unemployment D. frictional unemployment Show Content Detailed Solution Structural unemployment is a form of involuntary unemployment caused by a mismatch between the skills that workers in the economy can offer, and the skills demanded of workers by employers. Structural unemployment is often brought about by technological changes that make the job skills of many workers obsolete. it is simply unemployment caused by a mismatch between jobs and skills, or other long-term changes in the economy.	A

26.	Which of the following is an implication of a large population A. decrease in crime rate B. increase in food supply C. decrease in standard of living D. decrease in cost of living Show Content Detailed Solution A high population means More problems with the distribution of wealth and resources. Problems with food security as pressure on the land due to larger populationincreases. Increased pressure on the forest covered area which leads to deforestation. This wll affect the living standard of people with many scampering for the limited available resources	C
27.	The system of agriculture which involves the cultivation of crops and rearing of animals for family consumption only is termed? A. peasant farming B. plantation agriculture C. commercial farming D. subsistent farming Show Content Detailed Solution Subsistence agriculture occurs when farmers grow food crops to feed themselves and their families. In subsistence agriculture, farm output is targeted to survival and is mostly for local requirements with little or no surplus trade. The typical subsistence farm has a range of crops and animals needed by the family to feed and clothe themselves during the year.	D
28.	Which of the following is a threat to the existence of middlemen A. consumers cooperative society B. producers cooperative society C. sales agents D. large scale producers Show Content Detailed Solution consumers cooperative society is an autonomous association of consumers united voluntarily to meet their common needs and aspirations. The cooperative society purchases in bulk directly from the producers which avails them discounts and in return, sells in small lots to their members, thereby eliminating the middlemen (both the wholesaler and retailer)	A
29.	Which of the following is a threat to the existence of middlemen A. consumers cooperative society B. producers cooperative society C. sales agents D. large scale producers Show Content Detailed Solution consumers cooperative society is an autonomous association of consumers united voluntarily to meet their common needs and aspirations. The cooperative society purchases in bulk directly from the producers which avails them discounts and in return, sells in small lots to their members, thereby eliminating the middlemen (both the wholesaler and retailer)	A
30.	In an industrial area, the location of industries is particularly influenced by ? A. extent of the division of labour B. external economies C. internal economies D. nearness to financial institution Show Content Detailed Solution External economies of scale imply that as the size of an industry grows larger or more clustered, the average costs of doing business within the industry fall. This may occur due to increased specialization or training of workers, faster innovation or shared supplier relationships. Following are the types of external economies of scale	B