Year :
2018
Title :
Economics
Exam :
WASSCE/WAEC MAY/JUNE
Paper 1 | Objectives
31 - 40 of 49 Questions
| # | Question | Ans |
|---|---|---|
| 31. |
Holding money to take care of contigencies is? A. a speculative motive B. a transaction motive C. a precautionary motive D. an expansionary motive Detailed SolutionPrecautionary Motive. A desire to hold cash in order to be able to deal effectively with unexpected events that require cash outlay. |
|
| 32. |
If a housewife has meat and tomatoes, she must find someone who wants meat and has tomatoes to give. this concept is described as? A. opportunity cost B. scale of preference C. complementary demand D. double of coincidence of wants Detailed SolutionThis occurs when two people have goods they are both happy to swap in exchange. i.e. a perfect barter exchange. a requirement that must be met before a trade can be made. It specifies that a trader must find another trader who is willing to trade what the first trader wants and at the same time wants what the first trader has. |
|
| 33. |
The stock exchange is an example of the? A. labour market B. money market C. commodity market D. capital market Detailed SolutionA capital market is a financial market in which long-term debt (over a year) or equity-backed securities are bought and sold. Capital markets channel the wealth of savers to those who can put it to long-term productive use, such as companies or governments making long-term investments. |
|
| 34. |
What happens when the central bank increases bank rate in an economy A. borrowing is discouraged B. customers increase their borrowing C. banks can increase their lending D. money supply increases Detailed SolutionWhen the central bank increases the bank rate , the banks and individuals are discouraged from borrowing money because of increase in interest rates. this is used as a monetary policy tool to reduce circulation of money in the economy. people would rather invest their monies to be paid high interest rates than borrow from banks and pay the bank interest |
|
| 35. |
Income is redistributed when the rich are progressively taxed and? A. more private schools are established B. subsidy is provided on petroleum products C. more public goods are provided D. farmers are given guaranteed prices Detailed SolutionIncome Redistribution is an economic practice which is aimed at leveling the distribution of wealth or income in a society through a direct or indirect transfer of income from the rich to the poor. Economists or Governments adopt economic policies and strategies like progressive taxation to implement this phenomenon. the tax is used to build public infrastructure |
|
| 36. |
In order to increase revenue, government should tax commodities for which demand is? A. perfectly price inelastic B. price inelastic C. price elastic D. unitary elastic Detailed SolutionAn economic situation in which the price of a product will have no effect on the supply. In a perfectly inelastic situation regardless of the amount of a product on the market, the price of the product remains the same. |
|
| 37. |
Which of the following activities will not lead to economic growth? A. massive importation of capital goods B. intensive capital formation locally C. use of modern technology D. massive importation of consumer goods Detailed SolutionActivities that lead to economic growth |
|
| 38. |
The poorer the country, the larger the percentage of labour force engaged in? A. Agricultural B. mining C. trading D. manufacturing |
A |
| 39. |
Which of the following measure can be adopted to stabilize the external value of the local currency? A. reduce the volume of export B. increase the demand for imports C. increase domestic money supply D. reduce the demand for imports Detailed SolutionA rise in imports has a negative effect on the balance of trade, that is, it will tend to increase the trade deficit or reduce the trade surplus. |
|
| 40. |
Which of the following is not a measure for reducing balance of payments deficits? A. export drive B. reducing tarriffs C. adding to export goods D. increasing local production Detailed SolutionTariffs are duties (taxes) imposed on imports. When tariffs are imposed, the prices of imports would increase to the extent of tariff. The increased prices will reduced the demand for imported goods and at the same time induce domestic producers to produce more of import substitutes. Non-essential imports can be drastically reduced by imposing a very high rate of tariff. Therefor, reducing tariffs will further increase balance of payment deficits. |
| 31. |
Holding money to take care of contigencies is? A. a speculative motive B. a transaction motive C. a precautionary motive D. an expansionary motive Detailed SolutionPrecautionary Motive. A desire to hold cash in order to be able to deal effectively with unexpected events that require cash outlay. |
|
| 32. |
If a housewife has meat and tomatoes, she must find someone who wants meat and has tomatoes to give. this concept is described as? A. opportunity cost B. scale of preference C. complementary demand D. double of coincidence of wants Detailed SolutionThis occurs when two people have goods they are both happy to swap in exchange. i.e. a perfect barter exchange. a requirement that must be met before a trade can be made. It specifies that a trader must find another trader who is willing to trade what the first trader wants and at the same time wants what the first trader has. |
|
| 33. |
The stock exchange is an example of the? A. labour market B. money market C. commodity market D. capital market Detailed SolutionA capital market is a financial market in which long-term debt (over a year) or equity-backed securities are bought and sold. Capital markets channel the wealth of savers to those who can put it to long-term productive use, such as companies or governments making long-term investments. |
|
| 34. |
What happens when the central bank increases bank rate in an economy A. borrowing is discouraged B. customers increase their borrowing C. banks can increase their lending D. money supply increases Detailed SolutionWhen the central bank increases the bank rate , the banks and individuals are discouraged from borrowing money because of increase in interest rates. this is used as a monetary policy tool to reduce circulation of money in the economy. people would rather invest their monies to be paid high interest rates than borrow from banks and pay the bank interest |
|
| 35. |
Income is redistributed when the rich are progressively taxed and? A. more private schools are established B. subsidy is provided on petroleum products C. more public goods are provided D. farmers are given guaranteed prices Detailed SolutionIncome Redistribution is an economic practice which is aimed at leveling the distribution of wealth or income in a society through a direct or indirect transfer of income from the rich to the poor. Economists or Governments adopt economic policies and strategies like progressive taxation to implement this phenomenon. the tax is used to build public infrastructure |
| 36. |
In order to increase revenue, government should tax commodities for which demand is? A. perfectly price inelastic B. price inelastic C. price elastic D. unitary elastic Detailed SolutionAn economic situation in which the price of a product will have no effect on the supply. In a perfectly inelastic situation regardless of the amount of a product on the market, the price of the product remains the same. |
|
| 37. |
Which of the following activities will not lead to economic growth? A. massive importation of capital goods B. intensive capital formation locally C. use of modern technology D. massive importation of consumer goods Detailed SolutionActivities that lead to economic growth |
|
| 38. |
The poorer the country, the larger the percentage of labour force engaged in? A. Agricultural B. mining C. trading D. manufacturing |
A |
| 39. |
Which of the following measure can be adopted to stabilize the external value of the local currency? A. reduce the volume of export B. increase the demand for imports C. increase domestic money supply D. reduce the demand for imports Detailed SolutionA rise in imports has a negative effect on the balance of trade, that is, it will tend to increase the trade deficit or reduce the trade surplus. |
|
| 40. |
Which of the following is not a measure for reducing balance of payments deficits? A. export drive B. reducing tarriffs C. adding to export goods D. increasing local production Detailed SolutionTariffs are duties (taxes) imposed on imports. When tariffs are imposed, the prices of imports would increase to the extent of tariff. The increased prices will reduced the demand for imported goods and at the same time induce domestic producers to produce more of import substitutes. Non-essential imports can be drastically reduced by imposing a very high rate of tariff. Therefor, reducing tariffs will further increase balance of payment deficits. |