Economics, 2010, WASSCE/WAEC MAY/JUNE, Exam, Paper 1 | Objectives

Paper Info

Year :

2010

Title :

Economics

Exam :

WASSCE/WAEC MAY/JUNE

Paper 1 | Objectives

41 - 48 of 48 Questions

#	Question	Ans
41.	A component of the national debt of a country is A. taxation B. bank saving C. the budget D. treasury bills Show Content Detailed Solution treasury bills are government debt securities issued to the public through the central bank, to raise money. What this means is that, when the government sees the need to control the flow of money when there is excess money in circulation in the economy, they issue debt securities to inviting people to invest that excess money and get paid interest when the security matures.	D
42.	When the demand for a good is fairly inelastic, the burden of an indirect tax falls A. more on the consumers of the goods B. more on the sellers of the goods C. on sellers and consumers equally D. completely on the capital Show Content Detailed Solution Relatively or fairly inelastic demand is one where the percentage change in demand is less than the percentage change in the price of a product. This means, a change in price will lead to a lesser change in the quantity demanded. An indirect tax is a tax levied on goods and services. The consumer will bear the extra cost of such goods, because a rise in its price will lead to a lesser change in the quantity the consumers are willing to buy.	A
43.	Dumping means the selling of a good in a foreign market at a price that is A. below the home market price B. above the home market price C. equal to the home market price D. able to clear the home market price Show Content Detailed Solution Dumping is a term used in international trade. It's when a country or company exports a product at a price that is lower in the foreign importing market than the price in the exporter's domestic market. It is the act of charging a lower price for a product in a foreign market than the normal value of the product in the domestic market.	A
44.	Which of the following group of accounts make up the balance of payments? A. the current account multiple account and capital account B. Monetary movement account;company account and international account C. cash acount; double entry account and current account D. Capital account; current account and monetary movement account Show Content Detailed Solution The balance of payments (BOP) is a statement of all transactions made between entities in one country and the rest of the world over a defined period of time. The balance of payments include both the current account and capital account and the financial account.	D
45.	A country's balance of payment is deficit when A. a country's payment for imports of visible goods are greater than her receipts from exports of visible goods B. the total receipts from her exports of visible and invisible goods are greater than her payments for visible and invisible imports C. it can record a surplus on current account of her balance of payment accounts D. the total payment for visible and invisible imports are greater than the total receipts from her exports of visible and invisible goods Show Content Detailed Solution A balance of payments deficit means the country imports more goods, services, and capital than they export. These goods and services could be visible or invisible.	D
46.	In order to stabilize oil price in the world market, there is the need for OPEC members to A. always have budget deficit B. encourage competition among themselves C. adhere to production quotas D. fix the price of non-oil products Show Content Detailed Solution One way OPEC members can work towards stabilizing prices of oil in the market is by obeying production quota set by the organisation. A production quota is a goal for the production of a good. By obeying the various quota set by the organisation, the market can be controlled and prices stabilized. Quotas can be set high to encourage production, or can be set low and used to restrict production to support a certain price level.	C
47.	Which of the following is not a member of the Economic Community of West African State (ECOWAS)? A. Cape Verde B. Senegal C. Cameroon D. Niger Show Content Detailed Solution The 15 members of the Economic Community of West African States (ECOWAS) are Benin, Burkina Faso, Cape Verde, Cote d'Ivoire, The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, and Togo.	C
48.	Which of the following is not an international economic organization? A. Economic Commission for Africa (ECA) B. African Development Bank (ADB) C. World Health Organization (WHO) D. International Monetary Fund (IMF) Show Content Detailed Solution The World Health Organization (WHO) is not an economic organization. It is an organisation that is responsible for international public health within the United Nations and partners in global health responses. International economic organization are organisations that function to resolve trade disputes, observe the global economy, promote fair and successful trade, solve the problems of various countries and encourage trade in developing countries.	C

41.	A component of the national debt of a country is A. taxation B. bank saving C. the budget D. treasury bills Show Content Detailed Solution treasury bills are government debt securities issued to the public through the central bank, to raise money. What this means is that, when the government sees the need to control the flow of money when there is excess money in circulation in the economy, they issue debt securities to inviting people to invest that excess money and get paid interest when the security matures.	D
42.	When the demand for a good is fairly inelastic, the burden of an indirect tax falls A. more on the consumers of the goods B. more on the sellers of the goods C. on sellers and consumers equally D. completely on the capital Show Content Detailed Solution Relatively or fairly inelastic demand is one where the percentage change in demand is less than the percentage change in the price of a product. This means, a change in price will lead to a lesser change in the quantity demanded. An indirect tax is a tax levied on goods and services. The consumer will bear the extra cost of such goods, because a rise in its price will lead to a lesser change in the quantity the consumers are willing to buy.	A
43.	Dumping means the selling of a good in a foreign market at a price that is A. below the home market price B. above the home market price C. equal to the home market price D. able to clear the home market price Show Content Detailed Solution Dumping is a term used in international trade. It's when a country or company exports a product at a price that is lower in the foreign importing market than the price in the exporter's domestic market. It is the act of charging a lower price for a product in a foreign market than the normal value of the product in the domestic market.	A
44.	Which of the following group of accounts make up the balance of payments? A. the current account multiple account and capital account B. Monetary movement account;company account and international account C. cash acount; double entry account and current account D. Capital account; current account and monetary movement account Show Content Detailed Solution The balance of payments (BOP) is a statement of all transactions made between entities in one country and the rest of the world over a defined period of time. The balance of payments include both the current account and capital account and the financial account.	D

45.	A country's balance of payment is deficit when A. a country's payment for imports of visible goods are greater than her receipts from exports of visible goods B. the total receipts from her exports of visible and invisible goods are greater than her payments for visible and invisible imports C. it can record a surplus on current account of her balance of payment accounts D. the total payment for visible and invisible imports are greater than the total receipts from her exports of visible and invisible goods Show Content Detailed Solution A balance of payments deficit means the country imports more goods, services, and capital than they export. These goods and services could be visible or invisible.	D
46.	In order to stabilize oil price in the world market, there is the need for OPEC members to A. always have budget deficit B. encourage competition among themselves C. adhere to production quotas D. fix the price of non-oil products Show Content Detailed Solution One way OPEC members can work towards stabilizing prices of oil in the market is by obeying production quota set by the organisation. A production quota is a goal for the production of a good. By obeying the various quota set by the organisation, the market can be controlled and prices stabilized. Quotas can be set high to encourage production, or can be set low and used to restrict production to support a certain price level.	C
47.	Which of the following is not a member of the Economic Community of West African State (ECOWAS)? A. Cape Verde B. Senegal C. Cameroon D. Niger Show Content Detailed Solution The 15 members of the Economic Community of West African States (ECOWAS) are Benin, Burkina Faso, Cape Verde, Cote d'Ivoire, The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, and Togo.	C
48.	Which of the following is not an international economic organization? A. Economic Commission for Africa (ECA) B. African Development Bank (ADB) C. World Health Organization (WHO) D. International Monetary Fund (IMF) Show Content Detailed Solution The World Health Organization (WHO) is not an economic organization. It is an organisation that is responsible for international public health within the United Nations and partners in global health responses. International economic organization are organisations that function to resolve trade disputes, observe the global economy, promote fair and successful trade, solve the problems of various countries and encourage trade in developing countries.	C