Year :
2013
Title :
Economics
Exam :
WASSCE/WAEC MAY/JUNE
Paper 1 | Objectives
31 - 40 of 46 Questions
| # | Question | Ans |
|---|---|---|
| 31. |
All rates of interest in a country are influenced by the A. bank rate B. population growth rate C. wage rate D. mortgage rate Detailed SolutionA bank rate is the interest rate at which a nation's central bank lends money to domestic banks, often in the form of very short-term loans. Interest rates charged by money lenders and financial institutions are influenced by the official bank rates. Banks are prohibited from setting their own interest rates. |
|
| 32. |
Exchange control is a weapon used in regulating A. barter trade B. stock exchange C. foreign trade D. internal trade Detailed SolutionExchange control is a governmental restriction on the movement of currency between countries. It is means of controlling and regulating foreign trade. With this, the value of a currency is upheld and made to compete with other international currencies |
|
| 33. |
When the marginal product is negative,the total product will be A. constant B. at a maximum C. increasing D. decreasing Detailed SolutionWhen marginal product is at zero, total product is at maximum and when Marginal Product is negative(-) Total Product is decreasing. |
|
| 34. |
Physical productivity is affected by all the under listed factors except the A. state of technology B. quantity of inputs C. quality of inputs D. price of output Detailed SolutionThe amount of products a firm would manufacture does not depend on the price of the output. The price of the output is the rate at which the firm will exchange the product in the market. It does not affect the physical production. |
|
| 35. |
If a commodity has a high marginal utility, its market price will be A. stable B. high C. zero D. constant Detailed SolutionThe price a consumer is willing to pay for a good depends on his marginal utility, which declines with each additional unit of consumption. The price decreases for a normal good when consumption increases. A good with a high marginal utility will have a zero market price. For example,water has a higher MU than gold, but gold cost more than water. The higher the utility, the lower the price. |
|
| 36. |
Price fluctuation is a feature of A. common market B. imperfect market C. supermarkets D. market failure Detailed SolutionPrice fluctuation refers to the frequents rise and fall of commodity prices in the market as a result of changes in the market situations. price fluctuation can be seasonal whereby prices of commodities changes during certain season of the year due to the increase in supply and demand. It is a feature of imperfect market where buyers and sellers can influence prices and production |
|
| 37. |
Which of the following statements is not a feature of a monopoly? A. Seller is allowed to fix his own price B. Buyers and sellers are price takers C. New entrances are restricted D. There is only one seller of the commodity Detailed SolutionA monopoly market is characterized by the profit maximizer, the seller is the price maker, high barriers to entry, single seller, and price discrimination. |
|
| 38. |
The following are advantages of sole proprietorship except A. quick and easy decision-making B. keeping its business affairs private C. assurance of raising huge capital for expansion D. high level of commitment Detailed SolutionA sole proprietorship business does not have an assurance of raising huge capital for expansion, as a matter of fact, they rely on grants and loans from friends and family, plough back profit and personal savings for expansion. |
|
| 39. |
Which of the following controls a limited liability company? A. the general manager B. the managing director C. tax payers D. the board of directors Detailed SolutionManagers or managing members or Managing Director are responsible for the management of the company, rather than a board of directors. Managing members of an LLC operate like a corporate board of directors. |
|
| 40. |
Given that Qd = 80 - 2p where Qd is quantity demanded and P is the price, what quantity would be demanded when the price (P) is $3? A. 86 units B. 80 units C. 76 units D. 74 units |
D |
| 31. |
All rates of interest in a country are influenced by the A. bank rate B. population growth rate C. wage rate D. mortgage rate Detailed SolutionA bank rate is the interest rate at which a nation's central bank lends money to domestic banks, often in the form of very short-term loans. Interest rates charged by money lenders and financial institutions are influenced by the official bank rates. Banks are prohibited from setting their own interest rates. |
|
| 32. |
Exchange control is a weapon used in regulating A. barter trade B. stock exchange C. foreign trade D. internal trade Detailed SolutionExchange control is a governmental restriction on the movement of currency between countries. It is means of controlling and regulating foreign trade. With this, the value of a currency is upheld and made to compete with other international currencies |
|
| 33. |
When the marginal product is negative,the total product will be A. constant B. at a maximum C. increasing D. decreasing Detailed SolutionWhen marginal product is at zero, total product is at maximum and when Marginal Product is negative(-) Total Product is decreasing. |
|
| 34. |
Physical productivity is affected by all the under listed factors except the A. state of technology B. quantity of inputs C. quality of inputs D. price of output Detailed SolutionThe amount of products a firm would manufacture does not depend on the price of the output. The price of the output is the rate at which the firm will exchange the product in the market. It does not affect the physical production. |
|
| 35. |
If a commodity has a high marginal utility, its market price will be A. stable B. high C. zero D. constant Detailed SolutionThe price a consumer is willing to pay for a good depends on his marginal utility, which declines with each additional unit of consumption. The price decreases for a normal good when consumption increases. A good with a high marginal utility will have a zero market price. For example,water has a higher MU than gold, but gold cost more than water. The higher the utility, the lower the price. |
| 36. |
Price fluctuation is a feature of A. common market B. imperfect market C. supermarkets D. market failure Detailed SolutionPrice fluctuation refers to the frequents rise and fall of commodity prices in the market as a result of changes in the market situations. price fluctuation can be seasonal whereby prices of commodities changes during certain season of the year due to the increase in supply and demand. It is a feature of imperfect market where buyers and sellers can influence prices and production |
|
| 37. |
Which of the following statements is not a feature of a monopoly? A. Seller is allowed to fix his own price B. Buyers and sellers are price takers C. New entrances are restricted D. There is only one seller of the commodity Detailed SolutionA monopoly market is characterized by the profit maximizer, the seller is the price maker, high barriers to entry, single seller, and price discrimination. |
|
| 38. |
The following are advantages of sole proprietorship except A. quick and easy decision-making B. keeping its business affairs private C. assurance of raising huge capital for expansion D. high level of commitment Detailed SolutionA sole proprietorship business does not have an assurance of raising huge capital for expansion, as a matter of fact, they rely on grants and loans from friends and family, plough back profit and personal savings for expansion. |
|
| 39. |
Which of the following controls a limited liability company? A. the general manager B. the managing director C. tax payers D. the board of directors Detailed SolutionManagers or managing members or Managing Director are responsible for the management of the company, rather than a board of directors. Managing members of an LLC operate like a corporate board of directors. |
|
| 40. |
Given that Qd = 80 - 2p where Qd is quantity demanded and P is the price, what quantity would be demanded when the price (P) is $3? A. 86 units B. 80 units C. 76 units D. 74 units |
D |