Year :
2010
Title :
Economics
Exam :
WASSCE/WAEC MAY/JUNE
Paper 1 | Objectives
11 - 20 of 48 Questions
| # | Question | Ans |
|---|---|---|
| 11. |
At the highest level of total utility, marginal utility is A. negative B. positive and falling C. positive and rising D. zero |
D |
| 12. |
The law of diminishing marginal utility state that, the more a commodity is consumed the A. higher the satisfaction derived from an additional unit B. higher the price to be paid C. lower the quantity supplied D. lower the rate of increase in the total utility derived |
D |
| 13. |
Greater inter-dependence among workers in production is associated with A. utility B. manufacturing C. division of labour D. factory workers |
C |
| 14. |
If TC, FC and VC represent total cost, fixed cost and variable cost respectively, which of the following is correct? A. TC = FC - VC B. FC = TC + VC C. TC > FC + VC D. TC = FC + VC |
D |
| 15. |
The reward to land as a factor of production is A. profit B. rent C. interest D. wage |
B |
| 16. |
A firm is said to be a public joint stock company when it A. is owned by the government B. sells its shares to members of the public C. operates as a government corporation D. is not legally recognized as a firm Detailed SolutionA public joint stock company is a business association engaged in a business for profit making, with ownership interests represented by sales of shares/stock to the public. This business entity has share capital divided into shares of equal nominal value. |
|
| 17. |
All the following are source of finance to a joint stock company except A. debentures B. cooperative loans C. shares D. bank loans Detailed SolutionIn a joint stock company, funds are raised through the issue of shares and reinvestment or earnings, Borrowed funds which consist of the finance raised from debenture holders, public deposits, financial institutions and commercial banks.cooperative loans are only given to members of a corporative society. It is not a one of the sources of joint stock company |
|
| 18. |
The public sector of an economy includes A. cooperative societies B. nationalized industries C. joint stock companies D. pressure groups Detailed SolutionThe public sector is made up of the part of an economy that is controlled by the state or government and this include nationalized industries.Nationalized industries are formerly private owned companies that were converted to government owned industries. Nationalization or nationalisation, is the process of transforming private assets into public. Since nationalized industries are state owned, the government is responsible for meeting any debts. |
|
| 19. |
One advantage of the Sole Proprietorship over other forms of business organization is that it can A. make very high profits B. employ many workers C. keeps its affair private D. produce on a very large high scale Detailed SolutionSole proprietorships have several advantages over other business entities. They are easy to form, and the owners enjoy sole control of the business profits. This system of business organization also enjoy privacy. Since it is a one man owned business, Its affairs remain private and are not mandated by law to publish its business transactions publicly. |
|
| 20. |
Which of the following is obtainable in a perfect market? A. P = MR > AR B. MP = MC > P C. MR < P D. P = MR = MC Detailed SolutionIn a perfectly competitive market, the firm's demand curve is the firm's marginal revenue curve. The firm maximizes profits by producing where MR = MC. |
| 11. |
At the highest level of total utility, marginal utility is A. negative B. positive and falling C. positive and rising D. zero |
D |
| 12. |
The law of diminishing marginal utility state that, the more a commodity is consumed the A. higher the satisfaction derived from an additional unit B. higher the price to be paid C. lower the quantity supplied D. lower the rate of increase in the total utility derived |
D |
| 13. |
Greater inter-dependence among workers in production is associated with A. utility B. manufacturing C. division of labour D. factory workers |
C |
| 14. |
If TC, FC and VC represent total cost, fixed cost and variable cost respectively, which of the following is correct? A. TC = FC - VC B. FC = TC + VC C. TC > FC + VC D. TC = FC + VC |
D |
| 15. |
The reward to land as a factor of production is A. profit B. rent C. interest D. wage |
B |
| 16. |
A firm is said to be a public joint stock company when it A. is owned by the government B. sells its shares to members of the public C. operates as a government corporation D. is not legally recognized as a firm Detailed SolutionA public joint stock company is a business association engaged in a business for profit making, with ownership interests represented by sales of shares/stock to the public. This business entity has share capital divided into shares of equal nominal value. |
|
| 17. |
All the following are source of finance to a joint stock company except A. debentures B. cooperative loans C. shares D. bank loans Detailed SolutionIn a joint stock company, funds are raised through the issue of shares and reinvestment or earnings, Borrowed funds which consist of the finance raised from debenture holders, public deposits, financial institutions and commercial banks.cooperative loans are only given to members of a corporative society. It is not a one of the sources of joint stock company |
|
| 18. |
The public sector of an economy includes A. cooperative societies B. nationalized industries C. joint stock companies D. pressure groups Detailed SolutionThe public sector is made up of the part of an economy that is controlled by the state or government and this include nationalized industries.Nationalized industries are formerly private owned companies that were converted to government owned industries. Nationalization or nationalisation, is the process of transforming private assets into public. Since nationalized industries are state owned, the government is responsible for meeting any debts. |
|
| 19. |
One advantage of the Sole Proprietorship over other forms of business organization is that it can A. make very high profits B. employ many workers C. keeps its affair private D. produce on a very large high scale Detailed SolutionSole proprietorships have several advantages over other business entities. They are easy to form, and the owners enjoy sole control of the business profits. This system of business organization also enjoy privacy. Since it is a one man owned business, Its affairs remain private and are not mandated by law to publish its business transactions publicly. |
|
| 20. |
Which of the following is obtainable in a perfect market? A. P = MR > AR B. MP = MC > P C. MR < P D. P = MR = MC Detailed SolutionIn a perfectly competitive market, the firm's demand curve is the firm's marginal revenue curve. The firm maximizes profits by producing where MR = MC. |