Year :
2016
Title :
Economics
Exam :
WASSCE/WAEC MAY/JUNE
Paper 1 | Objectives
11 - 20 of 50 Questions
| # | Question | Ans |
|---|---|---|
| 11. |
Price elasticity of demand or supply measures how responsive A. consumers are to a change in price B. sellers are to a change in price C. sellers are to a change in price D. buyers are to a change in income Detailed SolutionPrice elasticity of supply or demand measures the responsiveness to the supply of a good or service after a change in its market price. |
|
| 12. |
The tendency for workers to value their leisure hours more than hours of work as wage rate increases gives rise to A. positively sloping supply curve B. perfectly elastic supply curve C. backward bending supply curve D. perfectly inelastic |
A |
| 13. |
The supply of rice in tons is given by the fraction: Qs-80-0.7=0. Where Qs= Quantity supplied, P=price in naira. A. 108ton B. 52tons C. -52tons D. -108tons |
B |
| 14. |
How does producers expectation of a price fall affect the supply curve of a product? There will be A. a moment along the curve B. a leftward shift C. no shift of the supply curve D. a shift to the right Detailed SolutionIf sellers expect that the price of the good will be decreasing in the future, then they are likely to sell more today. This causes an increase in supply and a rightward shift of the supply curve. |
|
| 15. |
A price floor results in A. excess demand B. excess supply C. parallel market D. hoarding of goods Detailed SolutionA price floor is the lowest legal price a commodity can be sold at. Price floors are used by the government to prevent prices from being too low. When a market reaches a price floor, it results in an excess supply because quantity supplied at the price floor exceeds the quantity demanded. |
|
| 16. |
An entrepreneur is encouraged to adopt division of labour in production because it A. provide more employment opportuinities B. leads to increased output and lower cost of production C. brings about equal cost and employment opportuinities D. leads to increased cost of production and lower output Detailed SolutionDivision of labor is immensely important in our economic system because it allows for work to be done much more quickly and efficiently than it would be without the division of labor. Division of labor is when tasks are split up into specialized separate tasks. it brings about increased output and while minimizing cost |
|
| 17. |
The long run is a period when A. only the variable factors can be altered B. all factors become variable C. the firm will cease to exist D. only the fixed factors can be altered Detailed SolutionThe long run is a period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all costs |
|
| 18. |
The necessary condition for a firm to be in equilibrium is that marginal revenue is A. greater than marginal B. equal to marginal C. less than average revenue D. equal to average |
B |
| 19. |
At which stage of production should a firm shut down? when A. AVC=ATC B. AVC C. AVC>price D. AVC=MC Detailed SolutionA firm will choose to implement a shutdown of production when the revenue received from the sale of the goods or services produced cannot even cover the variable costs of production. In that situation, the firm will experience a higher loss when it produces, compared to not producing at all.As long as price is above average variable costs, the firm should stay in business to minimize its losses in the short run. |
|
| 20. |
Charging different prices for the same commodity is a feature of a A. perfect competition B. commodity market C. monopolistic competition D. monopoly market Detailed SolutionIn a perfect competitive market, price discrimination occurs when identical goods and services are sold at different prices by the same provider. In pure pricediscrimination, the seller will charge the buyer the absolute maximum price that he is willing to pay. |
| 11. |
Price elasticity of demand or supply measures how responsive A. consumers are to a change in price B. sellers are to a change in price C. sellers are to a change in price D. buyers are to a change in income Detailed SolutionPrice elasticity of supply or demand measures the responsiveness to the supply of a good or service after a change in its market price. |
|
| 12. |
The tendency for workers to value their leisure hours more than hours of work as wage rate increases gives rise to A. positively sloping supply curve B. perfectly elastic supply curve C. backward bending supply curve D. perfectly inelastic |
A |
| 13. |
The supply of rice in tons is given by the fraction: Qs-80-0.7=0. Where Qs= Quantity supplied, P=price in naira. A. 108ton B. 52tons C. -52tons D. -108tons |
B |
| 14. |
How does producers expectation of a price fall affect the supply curve of a product? There will be A. a moment along the curve B. a leftward shift C. no shift of the supply curve D. a shift to the right Detailed SolutionIf sellers expect that the price of the good will be decreasing in the future, then they are likely to sell more today. This causes an increase in supply and a rightward shift of the supply curve. |
|
| 15. |
A price floor results in A. excess demand B. excess supply C. parallel market D. hoarding of goods Detailed SolutionA price floor is the lowest legal price a commodity can be sold at. Price floors are used by the government to prevent prices from being too low. When a market reaches a price floor, it results in an excess supply because quantity supplied at the price floor exceeds the quantity demanded. |
| 16. |
An entrepreneur is encouraged to adopt division of labour in production because it A. provide more employment opportuinities B. leads to increased output and lower cost of production C. brings about equal cost and employment opportuinities D. leads to increased cost of production and lower output Detailed SolutionDivision of labor is immensely important in our economic system because it allows for work to be done much more quickly and efficiently than it would be without the division of labor. Division of labor is when tasks are split up into specialized separate tasks. it brings about increased output and while minimizing cost |
|
| 17. |
The long run is a period when A. only the variable factors can be altered B. all factors become variable C. the firm will cease to exist D. only the fixed factors can be altered Detailed SolutionThe long run is a period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all costs |
|
| 18. |
The necessary condition for a firm to be in equilibrium is that marginal revenue is A. greater than marginal B. equal to marginal C. less than average revenue D. equal to average |
B |
| 19. |
At which stage of production should a firm shut down? when A. AVC=ATC B. AVC C. AVC>price D. AVC=MC Detailed SolutionA firm will choose to implement a shutdown of production when the revenue received from the sale of the goods or services produced cannot even cover the variable costs of production. In that situation, the firm will experience a higher loss when it produces, compared to not producing at all.As long as price is above average variable costs, the firm should stay in business to minimize its losses in the short run. |
|
| 20. |
Charging different prices for the same commodity is a feature of a A. perfect competition B. commodity market C. monopolistic competition D. monopoly market Detailed SolutionIn a perfect competitive market, price discrimination occurs when identical goods and services are sold at different prices by the same provider. In pure pricediscrimination, the seller will charge the buyer the absolute maximum price that he is willing to pay. |