Year :
2017
Title :
Economics
Exam :
WASSCE/WAEC MAY/JUNE
Paper 1 | Objectives
31 - 40 of 48 Questions
| # | Question | Ans |
|---|---|---|
| 31. |
Which of the following is a transfer income A. dividends B. rent C. pensions D. interest Detailed SolutionExamples of transfer payments include welfare, financial aid, social security, and government making subsidies for certain businesses. |
|
| 32. |
The value added method used in measuring national income is to A. measure output at factor cost B. avoid multiple counting of output C. deduct depreciation of capital assets D. add net factor income from abroad Detailed SolutionBy adding to its net factor income from abroad, we get NNPFC which is callednational income. |
|
| 33. |
Which of the following is most likely to be of benefit to a debtor A. inflation B. deflation C. revaluation D. monetization Detailed SolutionInflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling.If wages increase with inflation, and if the borrower already owed money before the inflation occurred, the inflation benefits the borrower. This is because the borrower still owes the same amount of money, but now he or she has more money in his or her paycheck to pay off the debt. |
|
| 34. |
A measure of the value of money in an economy is the A. size of workers B. general price C. total level of savings D. total amount of loans granted by the banks Detailed SolutionThe value of any good is determined by its supply and demand and the supply and demand for other goods in the economy. A price for any good is the amount ofmoney it takes to get that good. the value is inherent in its purchasing power which is price |
|
| 35. |
One of the major functions of money is? A. medium of exchange B. stable in value C. store of value D. acceptance by the central bank Detailed SolutionMoney's most important function is as a medium of exchange to facilitate transactions. Without money, all transactions would have to be conducted by barter, which involves direct exchange of one good or service for another. |
|
| 36. |
The function that distinguishes commercial banks from the central bank is that the former A. is a lender of last resort B. accepts deposits from the public C. services the public debt D. regulates foreign exchange Detailed SolutionCommercial banks serve individuals and businesses, while central banks serve the country'sbanking system. They provide money transfers back and forth between banks and governmental institutions both domestically and in cases of transactions with foreign entities.the major difference here is that, the central bank is the government bank and serves the country in a whole while commercial banks accepts deposit from the public |
|
| 37. |
Direct taxes include? A. excise duty B. ad valorem tax C. specific tax D. capital gain tax Detailed SolutionA direct tax is a tax, such as income tax, which is levied on the income or profits of the person who pays it, rather than on goods or services. Some of the different direct taxes are income tax, corporate tax, wealth tax, and capital gains tax. |
|
| 38. |
The control of aggregate demand through changes in government spending and tax rates is referred to as? A. monetary policy B. government policy C. income policy D. fiscal policy Detailed SolutionIn economics and political science, fiscal policy is the use of government revenue collection (mainly taxes) and expenditure (spending) to influence the economy. |
|
| 39. |
Which of the following is not a feature of economic underdevelopment A. monocultural economy B. high productivity C. low life expectancy D. income inequality Detailed SolutionThe term underdevelopment refers to that state of an economy where levels of living of masses are extremely low due to very low levels of per capita income resulting from low levels of productivity and high growth rates of population.there is a set of common characteristics of underdeveloped economies such as low per capita income, low levels of living, high rate of population growth, illiteracy, technical backwardness, capital deficiency, dependence on backward agriculture, high level of unemployment, unfavourable institutions and so on. |
|
| 40. |
One way of speeding up the economic development of a country is by encouraging A. the consumption of consumer goods B. early marriage C. the importation of more consumer goods D. savings and investment Detailed SolutionTypically a higher savings rate, the fraction of GDP not consumed today, results in higher investment rates. Thus, the more a society invests (and saves) results in more production opportunities in the future, implying a higher rate of growth.Saving can therefore be vital to increase the amount of fixed capital available, which contributes to economic growth. However, increased saving does not always correspond to increased investment. In the short term, if sav |
| 31. |
Which of the following is a transfer income A. dividends B. rent C. pensions D. interest Detailed SolutionExamples of transfer payments include welfare, financial aid, social security, and government making subsidies for certain businesses. |
|
| 32. |
The value added method used in measuring national income is to A. measure output at factor cost B. avoid multiple counting of output C. deduct depreciation of capital assets D. add net factor income from abroad Detailed SolutionBy adding to its net factor income from abroad, we get NNPFC which is callednational income. |
|
| 33. |
Which of the following is most likely to be of benefit to a debtor A. inflation B. deflation C. revaluation D. monetization Detailed SolutionInflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling.If wages increase with inflation, and if the borrower already owed money before the inflation occurred, the inflation benefits the borrower. This is because the borrower still owes the same amount of money, but now he or she has more money in his or her paycheck to pay off the debt. |
|
| 34. |
A measure of the value of money in an economy is the A. size of workers B. general price C. total level of savings D. total amount of loans granted by the banks Detailed SolutionThe value of any good is determined by its supply and demand and the supply and demand for other goods in the economy. A price for any good is the amount ofmoney it takes to get that good. the value is inherent in its purchasing power which is price |
|
| 35. |
One of the major functions of money is? A. medium of exchange B. stable in value C. store of value D. acceptance by the central bank Detailed SolutionMoney's most important function is as a medium of exchange to facilitate transactions. Without money, all transactions would have to be conducted by barter, which involves direct exchange of one good or service for another. |
| 36. |
The function that distinguishes commercial banks from the central bank is that the former A. is a lender of last resort B. accepts deposits from the public C. services the public debt D. regulates foreign exchange Detailed SolutionCommercial banks serve individuals and businesses, while central banks serve the country'sbanking system. They provide money transfers back and forth between banks and governmental institutions both domestically and in cases of transactions with foreign entities.the major difference here is that, the central bank is the government bank and serves the country in a whole while commercial banks accepts deposit from the public |
|
| 37. |
Direct taxes include? A. excise duty B. ad valorem tax C. specific tax D. capital gain tax Detailed SolutionA direct tax is a tax, such as income tax, which is levied on the income or profits of the person who pays it, rather than on goods or services. Some of the different direct taxes are income tax, corporate tax, wealth tax, and capital gains tax. |
|
| 38. |
The control of aggregate demand through changes in government spending and tax rates is referred to as? A. monetary policy B. government policy C. income policy D. fiscal policy Detailed SolutionIn economics and political science, fiscal policy is the use of government revenue collection (mainly taxes) and expenditure (spending) to influence the economy. |
|
| 39. |
Which of the following is not a feature of economic underdevelopment A. monocultural economy B. high productivity C. low life expectancy D. income inequality Detailed SolutionThe term underdevelopment refers to that state of an economy where levels of living of masses are extremely low due to very low levels of per capita income resulting from low levels of productivity and high growth rates of population.there is a set of common characteristics of underdeveloped economies such as low per capita income, low levels of living, high rate of population growth, illiteracy, technical backwardness, capital deficiency, dependence on backward agriculture, high level of unemployment, unfavourable institutions and so on. |
|
| 40. |
One way of speeding up the economic development of a country is by encouraging A. the consumption of consumer goods B. early marriage C. the importation of more consumer goods D. savings and investment Detailed SolutionTypically a higher savings rate, the fraction of GDP not consumed today, results in higher investment rates. Thus, the more a society invests (and saves) results in more production opportunities in the future, implying a higher rate of growth.Saving can therefore be vital to increase the amount of fixed capital available, which contributes to economic growth. However, increased saving does not always correspond to increased investment. In the short term, if sav |