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

Paper Info

Year :

2015

Title :

Economics

Exam :

WASSCE/WAEC MAY/JUNE

Paper 1 | Objectives

31 - 40 of 48 Questions

#	Question	Ans
31.	Location of firms of an industry is not influenced by? A. availability of raw material B. existence of other firms C. nearness to the source of money supply D. government policy Show Content Detailed Solution Industrial locations are complex in nature. These are influenced by the availabilityof many factors. Some of them are: raw material, land, water, labor, capital, power, transport, and market. For ease of convenience, we can classify the location factors into two: geographical factors and non-geographical factors.	B
32.	In national income accounting, the term ''net'' is used to indicate that a value----- A. includes income of foreigners B. includes income of citizens C. includes depreciation D. excludes depreciation Show Content Detailed Solution In national income accounting, net national income (NNI) is the gross domestic product plus net receipts of wages, salaries, and property income from abroad, minus the depreciation of fixed capital assets through wear and tear and obsolescence. NNI = GDP + factor income received from abroad - depreciation of Fixed Capital.	D
33.	Which of the following best describes token money? A. money in the vaults of commercial banks B. currency and coins in circulation C. money with face value higher than its material content D. coins and notes made of poor quality material Show Content Detailed Solution token money; money where the face value of notes or coins is unrelated to the value of the material of which they are composed. In economics, Token money, or Token, is money that has little intrinsic value compared to its face value. The token is a small amount of money (compared to the market value of theproperty) that has to be paid by the buyer as an indication of serious intent to purchase a property.	C
34.	In developing countries, a larger percentage of the labour force is employed in the A. trade sector B. tertiary sector C. primary sector D. secondary sector Show Content Detailed Solution primary sector; the sector of the economy concerned with or relating to primary industry. Examples include mining, quarrying, farming, fishing and forestry, all of which produce raw materials that can be processed in to a finished product.	C
35.	An industry is best described as A. firm that sells a set of closely related commodities B. a factory that produces different lines of product C. a group of firms that sells a closely related set of products D. industrial concern that is into production and selling of goods Show Content Detailed Solution An industry; economic activity concerned with the processing of raw materials and manufacture of goods in factories.	D
36.	The main item traded on a stock exchange market is A. treasury bills B. travellers cheque C. foreign currencies D. new shares Show Content Detailed Solution In financial markets, a share is a unit used as mutual funds, limited partnerships, and real estate investment trusts. The owner of shares in the corporation/company is a shareholder of the corporation. A share is an indivisible unit of capital, expressing the ownership relationship between the company and the shareholder	D
37.	The proportion of commercial banks' total assets kept in the form of highly liquid assets is known as A. demand deposit B. fixed deposit C. cash ratio D. moral suasion Show Content Detailed Solution Demand deposit; is a deposit of money that can be withdrawn without prior notice, e.g. in a current account. A demand deposit is money that you deposit into a bank account from which you can withdraw on demand, at any time, without any advance notice to the bank.	A
38.	Which of the following is not an objective of economic planning A. need to direct economic development of the country towards the desired direction B. desire to ensure a sustained cultural development of the country C. desire to widen the gap between developing countries and the developed world D. management of scarce resources in the face of unlimited wants of the citizens Show Content Detailed Solution Economic planning consist of economic decisions, schemes formed to meet certain pre-determined economic objectives and a road map of directions to achieve specific goals within specific period of time.By the conscious decisions of Central and State Government, based on in-depth study of the existing and potential resources of a country through surveys and a careful study of the needs of the people the planning takes place.	C
39.	In order to control inflation, the government should A. reduce the cost of borrowing B. buy securities in the open market C. adopt restrictive monetary policy D. discourage savings Show Content Detailed Solution One popular method of controlling inflation is through a contractionary monetary policy. The goal of a contractionary policy is to reduce the money supply within an economy by decreasing bond prices and increasing interest rates.	C
40.	When the demand for foreign exchange exceeds its supply, the value of the domestic currency A. appreciates B. depreciates C. remains inchanged D. expands Show Content Detailed Solution if the demand for a foreign currency exceeds its supply, the exchange rate will increase rate will increase. This will cause the local currency to suffer. because more of the local currency will be used to exchange for less of the foreign currency	B

31.	Location of firms of an industry is not influenced by? A. availability of raw material B. existence of other firms C. nearness to the source of money supply D. government policy Show Content Detailed Solution Industrial locations are complex in nature. These are influenced by the availabilityof many factors. Some of them are: raw material, land, water, labor, capital, power, transport, and market. For ease of convenience, we can classify the location factors into two: geographical factors and non-geographical factors.	B
32.	In national income accounting, the term ''net'' is used to indicate that a value----- A. includes income of foreigners B. includes income of citizens C. includes depreciation D. excludes depreciation Show Content Detailed Solution In national income accounting, net national income (NNI) is the gross domestic product plus net receipts of wages, salaries, and property income from abroad, minus the depreciation of fixed capital assets through wear and tear and obsolescence. NNI = GDP + factor income received from abroad - depreciation of Fixed Capital.	D
33.	Which of the following best describes token money? A. money in the vaults of commercial banks B. currency and coins in circulation C. money with face value higher than its material content D. coins and notes made of poor quality material Show Content Detailed Solution token money; money where the face value of notes or coins is unrelated to the value of the material of which they are composed. In economics, Token money, or Token, is money that has little intrinsic value compared to its face value. The token is a small amount of money (compared to the market value of theproperty) that has to be paid by the buyer as an indication of serious intent to purchase a property.	C
34.	In developing countries, a larger percentage of the labour force is employed in the A. trade sector B. tertiary sector C. primary sector D. secondary sector Show Content Detailed Solution primary sector; the sector of the economy concerned with or relating to primary industry. Examples include mining, quarrying, farming, fishing and forestry, all of which produce raw materials that can be processed in to a finished product.	C
35.	An industry is best described as A. firm that sells a set of closely related commodities B. a factory that produces different lines of product C. a group of firms that sells a closely related set of products D. industrial concern that is into production and selling of goods Show Content Detailed Solution An industry; economic activity concerned with the processing of raw materials and manufacture of goods in factories.	D

36.	The main item traded on a stock exchange market is A. treasury bills B. travellers cheque C. foreign currencies D. new shares Show Content Detailed Solution In financial markets, a share is a unit used as mutual funds, limited partnerships, and real estate investment trusts. The owner of shares in the corporation/company is a shareholder of the corporation. A share is an indivisible unit of capital, expressing the ownership relationship between the company and the shareholder	D
37.	The proportion of commercial banks' total assets kept in the form of highly liquid assets is known as A. demand deposit B. fixed deposit C. cash ratio D. moral suasion Show Content Detailed Solution Demand deposit; is a deposit of money that can be withdrawn without prior notice, e.g. in a current account. A demand deposit is money that you deposit into a bank account from which you can withdraw on demand, at any time, without any advance notice to the bank.	A
38.	Which of the following is not an objective of economic planning A. need to direct economic development of the country towards the desired direction B. desire to ensure a sustained cultural development of the country C. desire to widen the gap between developing countries and the developed world D. management of scarce resources in the face of unlimited wants of the citizens Show Content Detailed Solution Economic planning consist of economic decisions, schemes formed to meet certain pre-determined economic objectives and a road map of directions to achieve specific goals within specific period of time.By the conscious decisions of Central and State Government, based on in-depth study of the existing and potential resources of a country through surveys and a careful study of the needs of the people the planning takes place.	C
39.	In order to control inflation, the government should A. reduce the cost of borrowing B. buy securities in the open market C. adopt restrictive monetary policy D. discourage savings Show Content Detailed Solution One popular method of controlling inflation is through a contractionary monetary policy. The goal of a contractionary policy is to reduce the money supply within an economy by decreasing bond prices and increasing interest rates.	C
40.	When the demand for foreign exchange exceeds its supply, the value of the domestic currency A. appreciates B. depreciates C. remains inchanged D. expands Show Content Detailed Solution if the demand for a foreign currency exceeds its supply, the exchange rate will increase rate will increase. This will cause the local currency to suffer. because more of the local currency will be used to exchange for less of the foreign currency	B