Economics, 2015, WASSCE/WAEC MAY/JUNE, Exam, Paper 1 | Objectives

Paper Info

Year :

2015

Title :

Economics

Exam :

WASSCE/WAEC MAY/JUNE

Paper 1 | Objectives

21 - 30 of 48 Questions

#	Question	Ans
21.	Which of the following business organisations is likely to experience disagreements between management and shareholders A. co-operative society B. sole trader C. partnership D. joint-stock company Show Content Detailed Solution joint-stock company is a company whose stock is owned jointly by the shareholders. A joint-stock company is a business entity in which shares of the company's stock can be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their shares.	D
22.	Which of the following is not a method of controlling monopoly A. preventing mergers B. indigenization C. privatization D. imposing high profit tax Show Content Detailed Solution Monopoly can be prevented through the following ways 1. By regulation through taxation.; The Govt. can regulate monopoly through taxation. Govt. can levy a tax per unit of output (Specific Tax) or impose a lump sum tax irrespective to its output. 2. By regulation of conditions of monopoly, as in case of natural and regulated monopolies (MC pricing).; The term “public utilities” is applied to such essential services such as water supply, power supply, passenger transport facilities, communication facilities and railway facility. These services should be made available to the society at reasonable prices. Most public ut	A
23.	Which of the following features distinguishes a public limited company from a private limited company A. perpetual existence B. limited liability C. legal entity D. sales of shares to the public Show Content Detailed Solution A private limited company is a business entity that is held by private owners. However, private limited companies do not need to issue a prospectus because the public is not invited to subscribe for the shares of the company. A private limited company needs a minimum of only 2 directors. private company, the number of shares traded is relatively smaller and also the traded shares are owned by limited individuals. On the other hand, the shareholders in a public	D
24.	Inflation may occur if there is? A. excess supply over demand B. increase in productivity C. excessive demand with limited supply D. increased government spending in a depressed economy Show Content Detailed Solution excessive demand with limited supply; it causes rise in prices and increases in equalities: Generally, excess demand results in inflation (continuous rise in prices) without increase in output and employment. people will be will to pay high prices for few goods. which is generally what in flation is about. a fall in the purchasing power of money as more money will be chasing few goods	C
25.	Frictional unemployment occurs when? A. there is a change in the technique of production B. job seekers lack information where jobs exist C. bad weather prevents work from progressing D. job seekers have disabilities Show Content Detailed Solution Frictional unemployment is a type of unemployment that arises when workers are searching for new jobs or are transitioning from one job to another Frictional unemployment refers to people who are simply moving from one job to another, but are taking their time. It is part of the jobless total caused by individuals who are spending time searching for another job, or perhaps are taking a break before beginning with a new employer. Even in a country where there is technically full employment, there will always be some frictional employment, simply because employees change jobs occasionally.	B
26.	Which of the following will increase the demand for labour A. Increase wage rate B. labour's demand for output C. low wage rate D. low marginal productivity Show Content Detailed Solution Factors that can shift the demand curve for labor include: a change in the quantity demanded of the product that the labor produces; a change in the production process that uses more or less labor; and a change in government policy thataffects the quantity of labor that firms wish to hire at a given wage. When the payment for labour is low, fills will be willing to employ more people than with an increased wage rate	C
27.	One reason for low agrictural productivity in most west African countries is that? A. farmers are not capable of producing cash crops B. it does not provide income to farmers with large families C. farmers find it difficult getting help from financial institutions D. it is not the only source of raw materials for agro-based industries	C
28.	The movement of labour from one grade to an entirely different grade is an example of? A. industrial labour mobility B. horizontal occupational mobility C. vertical occupational mobility D. geographical mobility Show Content Detailed Solution When a worker of a lower grade and status in an occupation moves to another occupation in a higher grade and status, it is vertical mobility. Just as a school lecturer becomes a college lecturer, a clerk becomes a manager, etc.	C
29.	Which of the following is not a strong basis for trade unions demand for higher wages A. company is making higher profit B. productivity of workers has increased C. members of the union have high qualifications D. commodity produced by the workers is very essential	C
30.	The difference between the gross domestic product (GDP) and gross national product (GNP) IS? A. depreciation B. transfer payment C. net income from abroad D. direct taxes Show Content Detailed Solution The most important distinguishing point between these two is that while we calculate GDP, we take into consideration whatever is produced within the local borders of the country and so it includes the goods and services produced by the foreign nationals also but if we talk about GNP, only the production done by the country’s citizens is considered whether they are inside or outside the country and the contribution of foreign citizens are completely excluded. Net income from abroad is income earned by ANY person {including Artificial} i.e citizen of that country, earned even outside political boundaries i.e land + 20 nautical miles of water. This is GNP. Income earned by anyone {including foreign citizen} within the countr	C

21.	Which of the following business organisations is likely to experience disagreements between management and shareholders A. co-operative society B. sole trader C. partnership D. joint-stock company Show Content Detailed Solution joint-stock company is a company whose stock is owned jointly by the shareholders. A joint-stock company is a business entity in which shares of the company's stock can be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their shares.	D
22.	Which of the following is not a method of controlling monopoly A. preventing mergers B. indigenization C. privatization D. imposing high profit tax Show Content Detailed Solution Monopoly can be prevented through the following ways 1. By regulation through taxation.; The Govt. can regulate monopoly through taxation. Govt. can levy a tax per unit of output (Specific Tax) or impose a lump sum tax irrespective to its output. 2. By regulation of conditions of monopoly, as in case of natural and regulated monopolies (MC pricing).; The term “public utilities” is applied to such essential services such as water supply, power supply, passenger transport facilities, communication facilities and railway facility. These services should be made available to the society at reasonable prices. Most public ut	A
23.	Which of the following features distinguishes a public limited company from a private limited company A. perpetual existence B. limited liability C. legal entity D. sales of shares to the public Show Content Detailed Solution A private limited company is a business entity that is held by private owners. However, private limited companies do not need to issue a prospectus because the public is not invited to subscribe for the shares of the company. A private limited company needs a minimum of only 2 directors. private company, the number of shares traded is relatively smaller and also the traded shares are owned by limited individuals. On the other hand, the shareholders in a public	D
24.	Inflation may occur if there is? A. excess supply over demand B. increase in productivity C. excessive demand with limited supply D. increased government spending in a depressed economy Show Content Detailed Solution excessive demand with limited supply; it causes rise in prices and increases in equalities: Generally, excess demand results in inflation (continuous rise in prices) without increase in output and employment. people will be will to pay high prices for few goods. which is generally what in flation is about. a fall in the purchasing power of money as more money will be chasing few goods	C
25.	Frictional unemployment occurs when? A. there is a change in the technique of production B. job seekers lack information where jobs exist C. bad weather prevents work from progressing D. job seekers have disabilities Show Content Detailed Solution Frictional unemployment is a type of unemployment that arises when workers are searching for new jobs or are transitioning from one job to another Frictional unemployment refers to people who are simply moving from one job to another, but are taking their time. It is part of the jobless total caused by individuals who are spending time searching for another job, or perhaps are taking a break before beginning with a new employer. Even in a country where there is technically full employment, there will always be some frictional employment, simply because employees change jobs occasionally.	B

26.	Which of the following will increase the demand for labour A. Increase wage rate B. labour's demand for output C. low wage rate D. low marginal productivity Show Content Detailed Solution Factors that can shift the demand curve for labor include: a change in the quantity demanded of the product that the labor produces; a change in the production process that uses more or less labor; and a change in government policy thataffects the quantity of labor that firms wish to hire at a given wage. When the payment for labour is low, fills will be willing to employ more people than with an increased wage rate	C
27.	One reason for low agrictural productivity in most west African countries is that? A. farmers are not capable of producing cash crops B. it does not provide income to farmers with large families C. farmers find it difficult getting help from financial institutions D. it is not the only source of raw materials for agro-based industries	C
28.	The movement of labour from one grade to an entirely different grade is an example of? A. industrial labour mobility B. horizontal occupational mobility C. vertical occupational mobility D. geographical mobility Show Content Detailed Solution When a worker of a lower grade and status in an occupation moves to another occupation in a higher grade and status, it is vertical mobility. Just as a school lecturer becomes a college lecturer, a clerk becomes a manager, etc.	C
29.	Which of the following is not a strong basis for trade unions demand for higher wages A. company is making higher profit B. productivity of workers has increased C. members of the union have high qualifications D. commodity produced by the workers is very essential	C
30.	The difference between the gross domestic product (GDP) and gross national product (GNP) IS? A. depreciation B. transfer payment C. net income from abroad D. direct taxes Show Content Detailed Solution The most important distinguishing point between these two is that while we calculate GDP, we take into consideration whatever is produced within the local borders of the country and so it includes the goods and services produced by the foreign nationals also but if we talk about GNP, only the production done by the country’s citizens is considered whether they are inside or outside the country and the contribution of foreign citizens are completely excluded. Net income from abroad is income earned by ANY person {including Artificial} i.e citizen of that country, earned even outside political boundaries i.e land + 20 nautical miles of water. This is GNP. Income earned by anyone {including foreign citizen} within the countr	C