Economics, 2018, WASSCE/WAEC MAY/JUNE, Exam, Paper 1 | Objectives

Paper Info

Year :

2018

Title :

Economics

Exam :

WASSCE/WAEC MAY/JUNE

Paper 1 | Objectives

1 - 10 of 49 Questions

#	Question	Ans
1.	Economic problem arise in all society because? A. resources are mismanaged by leaders B. there is no proper planning C. resources are not in adequate supply D. the services of economist are not employed Show Content Detailed Solution Goods and services that satisfy human wants are produced with the help of resources such as land, labour, capital and enterprise. These resources are scarce while wants are unlimited. Due to scarcity of these resources, an economy cannot produce all that goods and services as required by its citizens.	C
2.	Which of the following is not emphasized in a production possibility curve A. scarcity of resources B. economic development C. inefficiency in the use of resources D. unemployment of labour Show Content Detailed Solution In short, production possibility curve is a curve which shows all possible combinations of two goods that can be produced by making full use of given resources and technology in an economy. A production possibility curve measures the maximum output of two goods using a fixed amount of input. The input is any combination of the four factors ofproduction. ... Each point on the curve shows how much of each good will be produced when resources shift from making more of one good and less of the other.	B
3.	The organisation of productive factors is the reponsibility of the? A. management B. entrepreneur C. production manager D. labour union Show Content Detailed Solution entrepreneur is a person who sets up a business or businesses, taking on financial risks in the hope of profit. “one who organizes, manages, and assumes the risks of a business or enterprise and manages the various production factors	B
4.	Producers operating in a free market economy are more efficient as a resulf of? A. the existence of competition B. the very few number of participants C. the commitment of the shareholders D. government regulation of their activities Show Content Detailed Solution Competition leads to efficiency because businesses that have fewer costs are more competitive and make more money. Innovation is encouraged because it provides a competitive edge and increases the chance for wealth.	A
5.	A downward sloping demand curve means that? A. total revenue declines as price is lowered B. demand falls as output rises C. demand falls as output falls D. price must be lowered to sell more Show Content Detailed Solution Downward sloping demand curve means a rational consumer will demand more of a commodity when its price falls. Some of the reasons for.the phenomenon would be: Income Effect : When price of a commodity falls, consumer's real income rises that is he can now purchase more of the commodity with the same income. The law of diminishing marginal utility states that with each increasing quantity of the commodity, its marginal utility declines. For example, when a person is very hungry the first chapatti that he eats will give him the most satisfaction. As he will consume more chapattis, his level of satisfaction will diminish. Thus, when the q	B
6.	If the price of commodity X rises and consumers shift to commodity Y, then commodity X and Y are? A. substitutes B. complements C. inferior goods D. bought goods Show Content Detailed Solution Substitute goods or substitutes are at least two products that could be used for the same purpose by the same consumers. If the price of one of the products rises or falls, then demand for thesubstitute goods or substitute good (if there is just one other) is likely to increase or decline.Substitute goods or substitutes are at least two products that could be used for the same purpose by the same consumers. If the price of one of the products rises or falls, then demand for thesubstitute goods or substitute good	A
7.	Goods whose demand vary directly with money income are called? A. inferior goods B. complementary goods C. substitutes D. normal goods Show Content Detailed Solution Normal goods are a type of goods whose demand shows a direct relationship with a consumer's income. A normal good is one whose demand increases when people's incomes or the economy rise.	D
8.	An exceptional demand curve can result from? A. increase in prices of raw materials B. increase in the size of the population C. expectation of future price increase D. change in taste of the consumer Show Content Detailed Solution A normal demand curve (which when graphed goes down and to the right) shows that when prices go up, the amount of a good that is demanded goes down. Examples are when the price of gas goes up, people buy less of it and do less driving. ... An exceptional demand curve is one wherein the opposite occurs. it is a demand curve rising upwards showing that people buy more when the prices go up. the following are the reasons for an exceptional demand curve; Inferior goods/ Giffen goods Goods having prestige value Price expectation	C
9.	Palm oil and palm kernel are in? A. joint supply B. competitive demand C. competitive supply D. complementary demand Show Content Detailed Solution Joint supply is an economic term referring to a product or process that can yield two or more outputs. Common examples occur within the livestock industry: cows can be utilized for milk, beef and hide; sheep can be utilized for meat, milk products, wool and sheepskin	A
10.	Which of the following is true about supply of land? A. its higher in the urban than rural areas B. varies with time C. rises with demand D. is fixed Show Content Detailed Solution Fixed supply: The total land area of earth (in the sense of the surface area available to men) is fixed. First, supply of land is fixed or inelastic from society's point of view.	D

1.	Economic problem arise in all society because? A. resources are mismanaged by leaders B. there is no proper planning C. resources are not in adequate supply D. the services of economist are not employed Show Content Detailed Solution Goods and services that satisfy human wants are produced with the help of resources such as land, labour, capital and enterprise. These resources are scarce while wants are unlimited. Due to scarcity of these resources, an economy cannot produce all that goods and services as required by its citizens.	C
2.	Which of the following is not emphasized in a production possibility curve A. scarcity of resources B. economic development C. inefficiency in the use of resources D. unemployment of labour Show Content Detailed Solution In short, production possibility curve is a curve which shows all possible combinations of two goods that can be produced by making full use of given resources and technology in an economy. A production possibility curve measures the maximum output of two goods using a fixed amount of input. The input is any combination of the four factors ofproduction. ... Each point on the curve shows how much of each good will be produced when resources shift from making more of one good and less of the other.	B
3.	The organisation of productive factors is the reponsibility of the? A. management B. entrepreneur C. production manager D. labour union Show Content Detailed Solution entrepreneur is a person who sets up a business or businesses, taking on financial risks in the hope of profit. “one who organizes, manages, and assumes the risks of a business or enterprise and manages the various production factors	B
4.	Producers operating in a free market economy are more efficient as a resulf of? A. the existence of competition B. the very few number of participants C. the commitment of the shareholders D. government regulation of their activities Show Content Detailed Solution Competition leads to efficiency because businesses that have fewer costs are more competitive and make more money. Innovation is encouraged because it provides a competitive edge and increases the chance for wealth.	A
5.	A downward sloping demand curve means that? A. total revenue declines as price is lowered B. demand falls as output rises C. demand falls as output falls D. price must be lowered to sell more Show Content Detailed Solution Downward sloping demand curve means a rational consumer will demand more of a commodity when its price falls. Some of the reasons for.the phenomenon would be: Income Effect : When price of a commodity falls, consumer's real income rises that is he can now purchase more of the commodity with the same income. The law of diminishing marginal utility states that with each increasing quantity of the commodity, its marginal utility declines. For example, when a person is very hungry the first chapatti that he eats will give him the most satisfaction. As he will consume more chapattis, his level of satisfaction will diminish. Thus, when the q	B

6.	If the price of commodity X rises and consumers shift to commodity Y, then commodity X and Y are? A. substitutes B. complements C. inferior goods D. bought goods Show Content Detailed Solution Substitute goods or substitutes are at least two products that could be used for the same purpose by the same consumers. If the price of one of the products rises or falls, then demand for thesubstitute goods or substitute good (if there is just one other) is likely to increase or decline.Substitute goods or substitutes are at least two products that could be used for the same purpose by the same consumers. If the price of one of the products rises or falls, then demand for thesubstitute goods or substitute good	A
7.	Goods whose demand vary directly with money income are called? A. inferior goods B. complementary goods C. substitutes D. normal goods Show Content Detailed Solution Normal goods are a type of goods whose demand shows a direct relationship with a consumer's income. A normal good is one whose demand increases when people's incomes or the economy rise.	D
8.	An exceptional demand curve can result from? A. increase in prices of raw materials B. increase in the size of the population C. expectation of future price increase D. change in taste of the consumer Show Content Detailed Solution A normal demand curve (which when graphed goes down and to the right) shows that when prices go up, the amount of a good that is demanded goes down. Examples are when the price of gas goes up, people buy less of it and do less driving. ... An exceptional demand curve is one wherein the opposite occurs. it is a demand curve rising upwards showing that people buy more when the prices go up. the following are the reasons for an exceptional demand curve; Inferior goods/ Giffen goods Goods having prestige value Price expectation	C
9.	Palm oil and palm kernel are in? A. joint supply B. competitive demand C. competitive supply D. complementary demand Show Content Detailed Solution Joint supply is an economic term referring to a product or process that can yield two or more outputs. Common examples occur within the livestock industry: cows can be utilized for milk, beef and hide; sheep can be utilized for meat, milk products, wool and sheepskin	A
10.	Which of the following is true about supply of land? A. its higher in the urban than rural areas B. varies with time C. rises with demand D. is fixed Show Content Detailed Solution Fixed supply: The total land area of earth (in the sense of the surface area available to men) is fixed. First, supply of land is fixed or inelastic from society's point of view.	D