Year :
2005
Title :
Economics
Exam :
WASSCE/WAEC MAY/JUNE
Paper 1 | Objectives
31 - 40 of 49 Questions
| # | Question | Ans |
|---|---|---|
| 31. |
A commercial banks deposits are A. liabilities B. assets C. capital D. cash at hand |
A |
| 32. |
The lender of last resort in the banking system is the A. industrial banks B. mortgage banks C. commercial banks D. central banks |
D |
| 33. |
Discounting a bill of exchange means the bill is A. cashed over the counter B. sold on the stock exchange C. bought for less than its face value D. sold to the highest bidder |
C |
| 34. |
The central banks control credit in the economy through the use of A. legal tender B. travellers cheque C. foreign exchange instruments D. open market operation |
D |
| 35. |
Among the principles of taxation propounded by Adam Smith was that A. A tax should be impossible to evade B. A tax should be convenient to pay C. no tax should be levied on food D. there should be no taxation without representation |
B |
| 36. |
Mr. Bala’s income is $800.00 per month while that of Mr. Jatau is $1,200.00. If Messrs. Bala and Jtau pay $80.00 and $120.00 respectively as taxes, the tax system is A. progressive B. regressive C. proportional D. ad-valorem Detailed SolutionA progressive tax is a tax in which the average tax rate increases as the taxable amount increases. The term "progressive" refers to the way the tax rate progresses from low to high, with the result that a taxpayer's average tax rate is less than the person's marginal tax rate. The term can be applied to individual taxes or to a tax system as a whole; a year, multi-year, or lifetime. Progressive taxes are imposed in an attempt to reduce the tax incidence of people with a lower ability to pay, as such taxes shift the incidence increasingly to those with a higher ability-to-pay. The opposite of a progressive tax is a regressive tax, where the average tax rate or burden decreases as an individual's abi |
|
| 37. |
Government revenue from the groundnut industry is from A. licences B. rents C. royalties D. taxes |
D |
| 38. |
The theory of comparative cost advantage is associated with A. Alfred Marshal B. Adam Smith C. David Ricardo D. Say |
C |
| 39. |
When the value of a nation’s export is greater than its imports A. a favourable balance of trade exists B. an unfavourable balance of payment exists C. the net foreign trade is zero D. inflation occurs |
A |
| 40. |
To improve the balance of payment s position in West African countries, there must be A. removal of barriers to importation of goods and services B. increase rate of exportation of goods and services C. increase domestic consumption of foreign produced goods D. the development of the local market |
B |
| 31. |
A commercial banks deposits are A. liabilities B. assets C. capital D. cash at hand |
A |
| 32. |
The lender of last resort in the banking system is the A. industrial banks B. mortgage banks C. commercial banks D. central banks |
D |
| 33. |
Discounting a bill of exchange means the bill is A. cashed over the counter B. sold on the stock exchange C. bought for less than its face value D. sold to the highest bidder |
C |
| 34. |
The central banks control credit in the economy through the use of A. legal tender B. travellers cheque C. foreign exchange instruments D. open market operation |
D |
| 35. |
Among the principles of taxation propounded by Adam Smith was that A. A tax should be impossible to evade B. A tax should be convenient to pay C. no tax should be levied on food D. there should be no taxation without representation |
B |
| 36. |
Mr. Bala’s income is $800.00 per month while that of Mr. Jatau is $1,200.00. If Messrs. Bala and Jtau pay $80.00 and $120.00 respectively as taxes, the tax system is A. progressive B. regressive C. proportional D. ad-valorem Detailed SolutionA progressive tax is a tax in which the average tax rate increases as the taxable amount increases. The term "progressive" refers to the way the tax rate progresses from low to high, with the result that a taxpayer's average tax rate is less than the person's marginal tax rate. The term can be applied to individual taxes or to a tax system as a whole; a year, multi-year, or lifetime. Progressive taxes are imposed in an attempt to reduce the tax incidence of people with a lower ability to pay, as such taxes shift the incidence increasingly to those with a higher ability-to-pay. The opposite of a progressive tax is a regressive tax, where the average tax rate or burden decreases as an individual's abi |
|
| 37. |
Government revenue from the groundnut industry is from A. licences B. rents C. royalties D. taxes |
D |
| 38. |
The theory of comparative cost advantage is associated with A. Alfred Marshal B. Adam Smith C. David Ricardo D. Say |
C |
| 39. |
When the value of a nation’s export is greater than its imports A. a favourable balance of trade exists B. an unfavourable balance of payment exists C. the net foreign trade is zero D. inflation occurs |
A |
| 40. |
To improve the balance of payment s position in West African countries, there must be A. removal of barriers to importation of goods and services B. increase rate of exportation of goods and services C. increase domestic consumption of foreign produced goods D. the development of the local market |
B |