Year :
2011
Title :
Economics
Exam :
WASSCE/WAEC MAY/JUNE
Paper 1 | Objectives
1 - 10 of 44 Questions
| # | Question | Ans |
|---|---|---|
| 1. |
Human wants are A. limited B. scarce C. unlimited D. in grades Detailed SolutionHuman wants are unlimited. It means that people never get enough, that there's always something else that they would want or need. |
|
| 2. |
The difference between the money cost and the real cost of any item is that A. real cost is the alternative forgone while the money cost is the actual amount paid for buying the item B. the real cost is the opportunity cost, while the money cost is the marginal cost C. money cost is the opportunity cost, while the real cost is the actual cost in monetary terms D. money cost is always greater than the real cost Detailed SolutionReal cost is the cost of producing a good or service, including the cost of all resources used and the cost of not employing those resources in alternative uses. While Money cost is the cost of acquiring a product or service in available cash.In summary, Real cost implies an accumulation of various kinds of costs to attain the total costs while "Money" cost is the production cost expressed in monetary terms. |
|
| 3. |
The production possibility curve (PPC) indicates that as more of one good is produced. A. less of the other goods is produced B. the same quantity of the other good is produced C. more of the other good is produced D. none of the other good is produced Detailed SolutionA production possibility curve (PPC) is a curve which shows various combinations of the amounts of two goods which can be produced within the given resources. It shows that, as a firm produces more of a particular good, less of the other combination would be produced.For instance, if two different products say X and Y are meant to be produced from a particular raw material, if the producer produces more of commodity X from the available material, the materials used in the production of commodity Y would be less. The producer can decide to produce equal amount of each product, but if more of one is produced, less of the other product would be produced. |
|
| 4. |
An arrangement of data in rows and columns is referred to as A. graph B. bar chart C. pie chart D. table Detailed SolutionA table is an arrangement of data in rows and columns. Tables are useful for various tasks such as presenting text information and numerical data. |
|
| 5. |
A normal demand curve slopes A. downward from left to right B. upwards from right to left C. downwards from right to left D. upwards from left to right Detailed SolutionA normal demand curve is downward sloping from left to right indicating the negative relationship between the price of a product and the quantity demanded. |
|
| 6. |
The co-efficient of income elasticity of demand for inferior goods is A. positive B. equal to one C. less than one D. negative Detailed SolutionA negative income elasticity of demand is associated with inferior goods; an increase in income will lead to a fall in the demand and may lead to changes to more luxurious substitutes. |
|
| 7. |
If a 20% rise in price of Whiskey leads to a 30% increase in quantity demanded of Schnapps, the cross elasticity of demand is A. 3.0 B. 2.5 C. 2.3 D. 1.5 Detailed SolutionIt is calculated by taking the percentage change in the quantity demanded of one good and dividing it by the percentage change in the price of the other good.Hence we; 30/20 = 1.5 |
|
| 8. |
Palm oil and palm kernel have A. competitive supply B. excess supply C. joint supply D. composite supply Detailed SolutionJoint supply refers to a product or process that can yield two or more outputs. This is when a product can be used to produce more than one output. Palm oil is used for cooking as well as in soap and cream making, while palm kernel is used in making palm oil and kernel oil amongst others.Another Common examples occur within the livestock industry: cows can be utilized for milk, beef, |
|
| 9. |
A supply curve which is vertical has an elasticity co-efficient of A. 0.0 B. 0.5 C. 1.5 D. 2 Detailed SolutionA vertical market supply curve is illustrated by a line running up and down on the graph. When a market supply curve is vertical, it represents that the quantity of that good is fixed no matter what the price of the good is. A vertical curve illustrates a good that has zero elasticity. |
|
| 10. |
If the current price of an apple is twice that of last year, it implies that the value of money is A. stable B. falling C. rising D. getting stronger Detailed SolutionIf the price of the apple was 100 in year 1, and by year 2 it increased to 200. It means the value of the money is falling. The value of money is determined by how much goods it can buy. |
| 1. |
Human wants are A. limited B. scarce C. unlimited D. in grades Detailed SolutionHuman wants are unlimited. It means that people never get enough, that there's always something else that they would want or need. |
|
| 2. |
The difference between the money cost and the real cost of any item is that A. real cost is the alternative forgone while the money cost is the actual amount paid for buying the item B. the real cost is the opportunity cost, while the money cost is the marginal cost C. money cost is the opportunity cost, while the real cost is the actual cost in monetary terms D. money cost is always greater than the real cost Detailed SolutionReal cost is the cost of producing a good or service, including the cost of all resources used and the cost of not employing those resources in alternative uses. While Money cost is the cost of acquiring a product or service in available cash.In summary, Real cost implies an accumulation of various kinds of costs to attain the total costs while "Money" cost is the production cost expressed in monetary terms. |
|
| 3. |
The production possibility curve (PPC) indicates that as more of one good is produced. A. less of the other goods is produced B. the same quantity of the other good is produced C. more of the other good is produced D. none of the other good is produced Detailed SolutionA production possibility curve (PPC) is a curve which shows various combinations of the amounts of two goods which can be produced within the given resources. It shows that, as a firm produces more of a particular good, less of the other combination would be produced.For instance, if two different products say X and Y are meant to be produced from a particular raw material, if the producer produces more of commodity X from the available material, the materials used in the production of commodity Y would be less. The producer can decide to produce equal amount of each product, but if more of one is produced, less of the other product would be produced. |
|
| 4. |
An arrangement of data in rows and columns is referred to as A. graph B. bar chart C. pie chart D. table Detailed SolutionA table is an arrangement of data in rows and columns. Tables are useful for various tasks such as presenting text information and numerical data. |
|
| 5. |
A normal demand curve slopes A. downward from left to right B. upwards from right to left C. downwards from right to left D. upwards from left to right Detailed SolutionA normal demand curve is downward sloping from left to right indicating the negative relationship between the price of a product and the quantity demanded. |
| 6. |
The co-efficient of income elasticity of demand for inferior goods is A. positive B. equal to one C. less than one D. negative Detailed SolutionA negative income elasticity of demand is associated with inferior goods; an increase in income will lead to a fall in the demand and may lead to changes to more luxurious substitutes. |
|
| 7. |
If a 20% rise in price of Whiskey leads to a 30% increase in quantity demanded of Schnapps, the cross elasticity of demand is A. 3.0 B. 2.5 C. 2.3 D. 1.5 Detailed SolutionIt is calculated by taking the percentage change in the quantity demanded of one good and dividing it by the percentage change in the price of the other good.Hence we; 30/20 = 1.5 |
|
| 8. |
Palm oil and palm kernel have A. competitive supply B. excess supply C. joint supply D. composite supply Detailed SolutionJoint supply refers to a product or process that can yield two or more outputs. This is when a product can be used to produce more than one output. Palm oil is used for cooking as well as in soap and cream making, while palm kernel is used in making palm oil and kernel oil amongst others.Another Common examples occur within the livestock industry: cows can be utilized for milk, beef, |
|
| 9. |
A supply curve which is vertical has an elasticity co-efficient of A. 0.0 B. 0.5 C. 1.5 D. 2 Detailed SolutionA vertical market supply curve is illustrated by a line running up and down on the graph. When a market supply curve is vertical, it represents that the quantity of that good is fixed no matter what the price of the good is. A vertical curve illustrates a good that has zero elasticity. |
|
| 10. |
If the current price of an apple is twice that of last year, it implies that the value of money is A. stable B. falling C. rising D. getting stronger Detailed SolutionIf the price of the apple was 100 in year 1, and by year 2 it increased to 200. It means the value of the money is falling. The value of money is determined by how much goods it can buy. |