Economics, 2008, WASSCE/WAEC MAY/JUNE, Exam, Paper 1 | Objectives

Paper Info

Year :

2008

Title :

Economics

Exam :

WASSCE/WAEC MAY/JUNE

Paper 1 | Objectives

11 - 20 of 47 Questions

#	Question	Ans
11.	If the co-efficient of elasticity of demand is 1.5, then the demand is A. fairly inelastic B. perfectly elastic C. elastic D. inelastic Show Content Detailed Solution A 1.5 co-efficient of elasticity of demand means that the demand is elastic. This means that a small change in price leads to a large change in quantity demanded. Meaning the product is elastic (or sensitive to price changes).	C
12.	Small scale enterprises are important in a country because A. they usually produce goods for the dependants B. they provide after-sales service only to the rich C. the price of their products are fixed D. they render personalized service to the consumers Show Content Detailed Solution Small scale enterprises are important as they offer personalized customer service. These servoces refers to delivering customized services that cater to the exact needs and wants of the customer.	D
13.	In the long run all factors of production are A. expensive B. variable C. durable D. fixed Show Content Detailed Solution The long run is a period in production where factors of production are variable / changes.	B
14.	The transformation curve slopes indicate that A. opportunity cost of producing one commodity for another B. opportunity cost of producing two commodities at a time C. sales of the plants to other investors D. decrease in the cost of production Show Content Detailed Solution The transformation curve shows the amount of commodity X that the economy has to give up to obtain an additional unit of commodity Y (and vice versa). It simply shows the opportunity cost of producing one thing against another (the forgone alternative to get something else).	A
15.	Which of the following is regarded as fixed cost? A. expenditure on raw materials B. expenditure on fuel C. expenditure on power D. rent on land Show Content Detailed Solution A fixed cost is a cost that does not change with an increase or decrease in the number of goods or services. From the above options, rents paid on land is the only cost that does not change at different production levels.	D
16.	Revenue is the A. cost of good multiplied by the quantity sold B. price of goods multiplied by the quantity sold C. quantity of goods plus purchase price D. quantity supplied less quantity sold Show Content Detailed Solution Revenue = Sales x Average Price of Service or Sales Price	B
17.	A business outfit is said to be a public limited company when it A. is owned by the government B. operates as a public corporations C. is run by the public D. sells its shares to members of the public Show Content Detailed Solution A public limited company is a company that sells its shares to members of the public and whose liabilities don't affect the private properties of its owners in the event of a liquidation. It means that the liability is limited to the amount invested	D
18.	The main characteristics of an ordinary shares are A. maximum risk, fixed dividends, voting rights B. minimum risks, fixed dividends, no voting rights C. maximum risks, variable dividends, voting rights D. fixed dividends, no voting rights Show Content Detailed Solution Ordinary shareholders are owners of the company, hence possess voting rights in the selection of board members, they take the maximum risks of the business, and their dividends vary and mostly paid only after all other classes of shares have been paid.	C
19.	The monopolist can determine A. price and output B. price only C. output only D. price or output	D
20.	A market situation with a larger number of firms selling closely related but, differentiated products is A. monopolistic competition B. perfect competition C. monopoly D. monopsony	A

11.	If the co-efficient of elasticity of demand is 1.5, then the demand is A. fairly inelastic B. perfectly elastic C. elastic D. inelastic Show Content Detailed Solution A 1.5 co-efficient of elasticity of demand means that the demand is elastic. This means that a small change in price leads to a large change in quantity demanded. Meaning the product is elastic (or sensitive to price changes).	C
12.	Small scale enterprises are important in a country because A. they usually produce goods for the dependants B. they provide after-sales service only to the rich C. the price of their products are fixed D. they render personalized service to the consumers Show Content Detailed Solution Small scale enterprises are important as they offer personalized customer service. These servoces refers to delivering customized services that cater to the exact needs and wants of the customer.	D
13.	In the long run all factors of production are A. expensive B. variable C. durable D. fixed Show Content Detailed Solution The long run is a period in production where factors of production are variable / changes.	B
14.	The transformation curve slopes indicate that A. opportunity cost of producing one commodity for another B. opportunity cost of producing two commodities at a time C. sales of the plants to other investors D. decrease in the cost of production Show Content Detailed Solution The transformation curve shows the amount of commodity X that the economy has to give up to obtain an additional unit of commodity Y (and vice versa). It simply shows the opportunity cost of producing one thing against another (the forgone alternative to get something else).	A
15.	Which of the following is regarded as fixed cost? A. expenditure on raw materials B. expenditure on fuel C. expenditure on power D. rent on land Show Content Detailed Solution A fixed cost is a cost that does not change with an increase or decrease in the number of goods or services. From the above options, rents paid on land is the only cost that does not change at different production levels.	D

16.	Revenue is the A. cost of good multiplied by the quantity sold B. price of goods multiplied by the quantity sold C. quantity of goods plus purchase price D. quantity supplied less quantity sold Show Content Detailed Solution Revenue = Sales x Average Price of Service or Sales Price	B
17.	A business outfit is said to be a public limited company when it A. is owned by the government B. operates as a public corporations C. is run by the public D. sells its shares to members of the public Show Content Detailed Solution A public limited company is a company that sells its shares to members of the public and whose liabilities don't affect the private properties of its owners in the event of a liquidation. It means that the liability is limited to the amount invested	D
18.	The main characteristics of an ordinary shares are A. maximum risk, fixed dividends, voting rights B. minimum risks, fixed dividends, no voting rights C. maximum risks, variable dividends, voting rights D. fixed dividends, no voting rights Show Content Detailed Solution Ordinary shareholders are owners of the company, hence possess voting rights in the selection of board members, they take the maximum risks of the business, and their dividends vary and mostly paid only after all other classes of shares have been paid.	C
19.	The monopolist can determine A. price and output B. price only C. output only D. price or output	D
20.	A market situation with a larger number of firms selling closely related but, differentiated products is A. monopolistic competition B. perfect competition C. monopoly D. monopsony	A