Economics, 2019, WASSCE/WAEC MAY/JUNE, Exam, Paper 1 | Objectives

Paper Info

Year :

2019

Title :

Economics

Exam :

WASSCE/WAEC MAY/JUNE

Paper 1 | Objectives

21 - 30 of 50 Questions

#	Question	Ans
21.	In perfect competition, the average revenue curve of a firm is A. below the marginal revenue curve B. downward sloping C. the marginal revenue curve D. convex to the origin Show Content Detailed Solution For a perfectly competitive firm, the average revenue curve is a horizontal, or perfectly elastic, line. It is the same as a marginal revenue curve which is also a horizontal line at the market price, implying perfectly elastic demand.	C
22.	Which of the following means of funding a business is very reliable and cheap? A. Bank loans B. Loans from friends C. Plough back profits D. Debentures Show Content Detailed Solution Plough back profits also known as retained earnings are profits earned by a business, and reinvested in the business. What this means is that the business doesn't spend its profits, but put it back in the business. It is considered one of the cheapest sources of business financing as it does not require interest to be paid.	C
23.	Govermment in most cases influences the location of firms to A. discourage private investors B. ensure equitable distribution C. reduce the cost of production D. make the firms enjoy economies of scale Show Content Detailed Solution Governments influence the location of industry, by giving tax incentives, cheap rent, and other benefits to companies locating in certain areas of the country. These are often done in places which the government wants to develop economically.	B
24.	Middlemen are made up of A. manufacturers, wholesalers, and consumers B. manufacturers, wholesalers, and retailers C. wholesalers, retailers and hawkers D. wholesalers, retailers, and consumers Show Content Detailed Solution Middlemen are agents who play the role of an intermediary in a distribution or transaction chain that facilitates interaction between the involved parties. They include wholesalers, retailers, agents, and brokers.	C
25.	Malthusian theory of population was proved wrong because A. the practice of subsistence farming was encouraged B. Malthus view was seen as an exaggeration C. developing countries adopted birth control method D. new lands and new methods of production were discovered Show Content Detailed Solution The Malthusian theory was criticized based on the observations that the population was rising at a rapid rate in some parts of the world. At the same time, the food supply had also increased due to technological developments. Many times, food production had increased more than the population.	C
26.	Human development can be improved if A. banks give more loans to businessmen B. large family sizes are encouraged C. general education and training are encouraged D. it is handled by the private sector only Show Content Detailed Solution Human development can be improved when people are encouraged to get educated and trained on various skills	C
27.	The use of interest rates to control the money supply is a A. control policy B. monetary policy C. developmental policy D. fiscal policy Show Content Detailed Solution Monetary policy is made up of policies drafted by the central bank to manage the supply of money and interest rates, aimed at controlling inflation, consumption, growth, and liquidity.	B
28.	Agricultural productivity may be increased if A. educational institutions are established in rural areas B. commercial banks are established in rural areas C. more infrastructural facilities are provided in rural areas D. labour intensive method of agriculture is encouraged Show Content Detailed Solution Increased agricultural productivity leads to agricultural growth and can help to alleviate poverty. Intensive agriculture is a system of cultivation using large amounts of labor and capital relative to land area. This is one way productivity can be encouraged in agriculture	D
29.	Which of the following is a major advantage of establishing a tomato-processing factory in a country? A. Local consumption will decrease B. More unskilled labour will be employed C. Foreign exchange will be conserved D. It will attract more tourists	C
30.	A country is described as industrialized if A. the contributions of industries to national income are high B. traditional and modern sectors coexist C. the country adopts an import promotion strategy D. primary industries dominate the economy Show Content Detailed Solution An industrialized country is a developed country with a highly mature and sophisticated economy, that has advanced technological infrastructure and have diverse industrial and service sectors. It is usually measured by gross domestic product (GDP) and/or average income per resident.	A

21.	In perfect competition, the average revenue curve of a firm is A. below the marginal revenue curve B. downward sloping C. the marginal revenue curve D. convex to the origin Show Content Detailed Solution For a perfectly competitive firm, the average revenue curve is a horizontal, or perfectly elastic, line. It is the same as a marginal revenue curve which is also a horizontal line at the market price, implying perfectly elastic demand.	C
22.	Which of the following means of funding a business is very reliable and cheap? A. Bank loans B. Loans from friends C. Plough back profits D. Debentures Show Content Detailed Solution Plough back profits also known as retained earnings are profits earned by a business, and reinvested in the business. What this means is that the business doesn't spend its profits, but put it back in the business. It is considered one of the cheapest sources of business financing as it does not require interest to be paid.	C
23.	Govermment in most cases influences the location of firms to A. discourage private investors B. ensure equitable distribution C. reduce the cost of production D. make the firms enjoy economies of scale Show Content Detailed Solution Governments influence the location of industry, by giving tax incentives, cheap rent, and other benefits to companies locating in certain areas of the country. These are often done in places which the government wants to develop economically.	B
24.	Middlemen are made up of A. manufacturers, wholesalers, and consumers B. manufacturers, wholesalers, and retailers C. wholesalers, retailers and hawkers D. wholesalers, retailers, and consumers Show Content Detailed Solution Middlemen are agents who play the role of an intermediary in a distribution or transaction chain that facilitates interaction between the involved parties. They include wholesalers, retailers, agents, and brokers.	C
25.	Malthusian theory of population was proved wrong because A. the practice of subsistence farming was encouraged B. Malthus view was seen as an exaggeration C. developing countries adopted birth control method D. new lands and new methods of production were discovered Show Content Detailed Solution The Malthusian theory was criticized based on the observations that the population was rising at a rapid rate in some parts of the world. At the same time, the food supply had also increased due to technological developments. Many times, food production had increased more than the population.	C

26.	Human development can be improved if A. banks give more loans to businessmen B. large family sizes are encouraged C. general education and training are encouraged D. it is handled by the private sector only Show Content Detailed Solution Human development can be improved when people are encouraged to get educated and trained on various skills	C
27.	The use of interest rates to control the money supply is a A. control policy B. monetary policy C. developmental policy D. fiscal policy Show Content Detailed Solution Monetary policy is made up of policies drafted by the central bank to manage the supply of money and interest rates, aimed at controlling inflation, consumption, growth, and liquidity.	B
28.	Agricultural productivity may be increased if A. educational institutions are established in rural areas B. commercial banks are established in rural areas C. more infrastructural facilities are provided in rural areas D. labour intensive method of agriculture is encouraged Show Content Detailed Solution Increased agricultural productivity leads to agricultural growth and can help to alleviate poverty. Intensive agriculture is a system of cultivation using large amounts of labor and capital relative to land area. This is one way productivity can be encouraged in agriculture	D
29.	Which of the following is a major advantage of establishing a tomato-processing factory in a country? A. Local consumption will decrease B. More unskilled labour will be employed C. Foreign exchange will be conserved D. It will attract more tourists	C
30.	A country is described as industrialized if A. the contributions of industries to national income are high B. traditional and modern sectors coexist C. the country adopts an import promotion strategy D. primary industries dominate the economy Show Content Detailed Solution An industrialized country is a developed country with a highly mature and sophisticated economy, that has advanced technological infrastructure and have diverse industrial and service sectors. It is usually measured by gross domestic product (GDP) and/or average income per resident.	A