Year :
2013
Title :
Economics
Exam :
WASSCE/WAEC MAY/JUNE
Paper 1 | Objectives
21 - 30 of 46 Questions
| # | Question | Ans |
|---|---|---|
| 21. |
Which of the following will enhance productivity in an economy? A. The use of obsolete capital B. Technological change C. Expansion of land under cultivation D. An increase in the labour force Detailed SolutionA technological change is an increase in the efficiency of a product or process that results in an increase in output, without an increase in input. This will result in an increase in productivity |
|
| 22. |
Post harvest losses in West African countries can be reduced if A. the land tenure system could be reformed B. more irrigation schemes could be provided C. better storage facilities could be provided D. erosion is controlled Detailed SolutionPost-harvest losses are losses that occur during transportation, storage, and processing of farm produce. They include on-farm losses, such as when grain is threshed, winnowed, and dried, as well as losses along the chain during. It can be controlled and reduced when good storage facilities are put in place to store harvested produce. |
|
| 23. |
Which of the following best explains what to produce? A. How much goods are to be produced B. The combination of resources to be used C. Which goods and services to be produced D. How many wants are to be satisfied Detailed SolutionThe problem of What to Produce involves selection of goods and services to be produced and the quantity to be produced of each selected commodity. Every economy has limited resources and thus, cannot produce all the goods. |
|
| 24. |
The demand for money is described as a A. competitive demand B. joint demand C. derived demand D. composite demand Detailed SolutionDerived demand is the type of demand for a commodity and service as a result of the demand for something else. Example, You need money to get the necessities of life. Money is considered a derived demand because as a result of buying food items, money will be required to pay for it. |
|
| 25. |
Which of the following is the main outcome of a trade union's interference with the wage rate? Wages are A. lowered but more employment opportunities are created B. lowered but employment level remains unchanged C. increased and employment levels are unchanged D. increased but employment levels are reduced Detailed SolutionTrade union's interference with wage rate are done mainly to advocate for higher and better wage rate for workers. The wage rate is increased while the employment rate increases or remains unchanged. |
|
| 26. |
The introduction of tariffs and quotas A. reduce th prices of imports B. increase the demand for locally made goods C. discourage domestic industries from becoming more efficient D. reduce the prices of locally made goods Detailed SolutionOne of the main reasons for the introduction of tariffs and quotas is to support local industries and discourage imports. When goods are imported at a high cost, they would be exchanged for high prices as well. With this, local industries can easily sell locally produced goods are cheaper rates thereby increasing the market and demand for it. |
|
| 27. |
A government that wants to get more revenue will increase the tax on commodities with a A. high price elasticity of demand B. low price elasticity of demand C. high income elasticity of demand D. low income elasticity of demand Detailed SolutionGoods that have low price elasticity of demand are goods with little or no change in demand as their prices go up. Government can generate revenue by increasing taxes on such goods and the demand for it wont be affected. Example of such goods are luxurious goods. |
|
| 28. |
Which of the following is involved in the money market? A. Building society B. Development banks C. Commercial banks D. Stock exchange Detailed SolutionMoney market is a financial market for the sale and purchase of short term debt instruments.The major participants in the money market are commercial banks, governments, corporations, government-sponsored enterprises, money market mutual funds, futures market exchanges, brokers and dealers, and the Federal Reserve. |
|
| 29. |
Demand pull inflation can aptly be described as A. inflation induced by rising costs of production B. reduction in government expenditure C. persistent rise in prices due to increase in expenditure D. massive importation of goods from a country with hyper inflation Detailed SolutionDemand pull inflation is simply a rise in price as a result of a fall in supply. It is caused by increase in the costs of raw materials or labor that affect the supply of finished goods. |
|
| 30. |
In order to develop the banking habit of rural dwellers, the traditional money lenders should be A. proscribed B. legalized C. subsidized D. heavily taxed Detailed SolutionIn order to inculcate saving culture among rural dwellers, the activities of local money lenders in the area should be supported financially. The government or financial institutions can step in the gap and borne up some of the operational cost of the local lenders by granting credit facilities with little or no interest. |
| 21. |
Which of the following will enhance productivity in an economy? A. The use of obsolete capital B. Technological change C. Expansion of land under cultivation D. An increase in the labour force Detailed SolutionA technological change is an increase in the efficiency of a product or process that results in an increase in output, without an increase in input. This will result in an increase in productivity |
|
| 22. |
Post harvest losses in West African countries can be reduced if A. the land tenure system could be reformed B. more irrigation schemes could be provided C. better storage facilities could be provided D. erosion is controlled Detailed SolutionPost-harvest losses are losses that occur during transportation, storage, and processing of farm produce. They include on-farm losses, such as when grain is threshed, winnowed, and dried, as well as losses along the chain during. It can be controlled and reduced when good storage facilities are put in place to store harvested produce. |
|
| 23. |
Which of the following best explains what to produce? A. How much goods are to be produced B. The combination of resources to be used C. Which goods and services to be produced D. How many wants are to be satisfied Detailed SolutionThe problem of What to Produce involves selection of goods and services to be produced and the quantity to be produced of each selected commodity. Every economy has limited resources and thus, cannot produce all the goods. |
|
| 24. |
The demand for money is described as a A. competitive demand B. joint demand C. derived demand D. composite demand Detailed SolutionDerived demand is the type of demand for a commodity and service as a result of the demand for something else. Example, You need money to get the necessities of life. Money is considered a derived demand because as a result of buying food items, money will be required to pay for it. |
|
| 25. |
Which of the following is the main outcome of a trade union's interference with the wage rate? Wages are A. lowered but more employment opportunities are created B. lowered but employment level remains unchanged C. increased and employment levels are unchanged D. increased but employment levels are reduced Detailed SolutionTrade union's interference with wage rate are done mainly to advocate for higher and better wage rate for workers. The wage rate is increased while the employment rate increases or remains unchanged. |
| 26. |
The introduction of tariffs and quotas A. reduce th prices of imports B. increase the demand for locally made goods C. discourage domestic industries from becoming more efficient D. reduce the prices of locally made goods Detailed SolutionOne of the main reasons for the introduction of tariffs and quotas is to support local industries and discourage imports. When goods are imported at a high cost, they would be exchanged for high prices as well. With this, local industries can easily sell locally produced goods are cheaper rates thereby increasing the market and demand for it. |
|
| 27. |
A government that wants to get more revenue will increase the tax on commodities with a A. high price elasticity of demand B. low price elasticity of demand C. high income elasticity of demand D. low income elasticity of demand Detailed SolutionGoods that have low price elasticity of demand are goods with little or no change in demand as their prices go up. Government can generate revenue by increasing taxes on such goods and the demand for it wont be affected. Example of such goods are luxurious goods. |
|
| 28. |
Which of the following is involved in the money market? A. Building society B. Development banks C. Commercial banks D. Stock exchange Detailed SolutionMoney market is a financial market for the sale and purchase of short term debt instruments.The major participants in the money market are commercial banks, governments, corporations, government-sponsored enterprises, money market mutual funds, futures market exchanges, brokers and dealers, and the Federal Reserve. |
|
| 29. |
Demand pull inflation can aptly be described as A. inflation induced by rising costs of production B. reduction in government expenditure C. persistent rise in prices due to increase in expenditure D. massive importation of goods from a country with hyper inflation Detailed SolutionDemand pull inflation is simply a rise in price as a result of a fall in supply. It is caused by increase in the costs of raw materials or labor that affect the supply of finished goods. |
|
| 30. |
In order to develop the banking habit of rural dwellers, the traditional money lenders should be A. proscribed B. legalized C. subsidized D. heavily taxed Detailed SolutionIn order to inculcate saving culture among rural dwellers, the activities of local money lenders in the area should be supported financially. The government or financial institutions can step in the gap and borne up some of the operational cost of the local lenders by granting credit facilities with little or no interest. |