Year :
2011
Title :
Economics
Exam :
WASSCE/WAEC MAY/JUNE
Paper 1 | Objectives
21 - 30 of 44 Questions
| # | Question | Ans |
|---|---|---|
| 21. |
In which of the following markets does a firm have power to make super normal profits both in the short run and long run? A. Monopoly B. Duopoly C. Oligopoly D. Monopsony Detailed SolutionIf a firm makes more than normal profit it is called super-normal profit.The monopoly is able to make supernormal profits in the short run and long run because the price (AR) is greater than AC. |
|
| 22. |
If there are no barriers to entering a market, it means that A. anyone can become a buyer or a seller B. unwanted goods can always enter the market C. the market becomes a dumping ground D. the goods are not inspected Detailed SolutionThis means that the firms can enter or quit the industry as they wish |
|
| 23. |
A firm's main aim is to A. survive the business B. maximize profits C. increase its market share D. satisfy the ambition of its managers Detailed SolutionThe main objective of every firm in business is to maximize profits while minimizing cost. |
|
| 24. |
One good reason for the elimination of middle men is that they A. cause increase in price B. help in price stability C. grade and blend goods D. are too many Detailed SolutionThe main reason that many will argue that middlemen should be elimination from the channel of distribution is related to the extra costs involved in employing them. Everyone is in business to make profits. The middle men would add a portion of their profits before selling to retailers, the retailers would also increase the price in order to profit off it before selling to the final consumer.This process makes the price of goods high and expensive. |
|
| 25. |
The increase in population growth in big cities is referred to as A. settlement B. migration C. industrialization D. urbanization Detailed SolutionUrbanization is a word for becoming more like a city. When populations of people grow, the population of a place may spill over from city to nearby areas. This is called urbanization. |
|
| 26. |
Frictional unemployment can be reduced by A. encouraging the use of retaining schemes B. removing barriers to labour mobility C. restricting the introduction of new technology D. lowering the level of wages paid to young people Detailed SolutionFrictional unemployment is the type of unemployment which exists in any economy due to people being in the process of moving from one job to another. It occur when people are switching between jobs or are redundant and searching for jobs.For example, if you graduate from university, you can’t necessarily expect to find a job straight away which matches your skills. This period of searching for a job is known as frictional unemployment. One way this type of unemployment can be reduced is by retaining workers. They are some jobs that are temporary and considered part time. Workers are laid off at completion of the job, which means the workers are back to being unemployed. But by retaining workers after completion |
|
| 27. |
If the labour force of a country is 2.5 million and 2 million are employed , what is the unemployment rate? A. 0.2% B. 20% C. 200% D. 250% Detailed SolutionUnemployment Rate = Number of Unemployed Persons / Labor Force.Labour force = 2.5million Employed = 2 million unemployed = 2,500,000 - 2,000,000 = 500,000 \(\frac{500,000}{2,500,000}\) = 0.2 percentage = 0.2 x 100 = 20 20% |
|
| 28. |
The grouping of the population according to the economic activities people engage in is A. age distribution B. sex distribution C. geographical distribution D. occupational distribution Detailed SolutionOccupational distribution of labour refers to the aggregate distribution of occupations in society, classified according to skill level, economic function, or social status. It is simply grouping of individuals based on the economic activities they are involved in. |
|
| 29. |
Natural growth rate of population can be defined as the A. difference between birth rate and death rate B. number of births in a year C. increase in the population growth in a year D. difference between the total population and the death rate Detailed SolutionThe natural growth rate or increase is the difference between the numbers of births and deaths in a population |
|
| 30. |
Which of the following is not a consequence of increased unemployment? A. a fall in tax revenue for the government B. a reduction in trade union's influence C. a fall in death rate D. an increase in the labour force |
C |
| 21. |
In which of the following markets does a firm have power to make super normal profits both in the short run and long run? A. Monopoly B. Duopoly C. Oligopoly D. Monopsony Detailed SolutionIf a firm makes more than normal profit it is called super-normal profit.The monopoly is able to make supernormal profits in the short run and long run because the price (AR) is greater than AC. |
|
| 22. |
If there are no barriers to entering a market, it means that A. anyone can become a buyer or a seller B. unwanted goods can always enter the market C. the market becomes a dumping ground D. the goods are not inspected Detailed SolutionThis means that the firms can enter or quit the industry as they wish |
|
| 23. |
A firm's main aim is to A. survive the business B. maximize profits C. increase its market share D. satisfy the ambition of its managers Detailed SolutionThe main objective of every firm in business is to maximize profits while minimizing cost. |
|
| 24. |
One good reason for the elimination of middle men is that they A. cause increase in price B. help in price stability C. grade and blend goods D. are too many Detailed SolutionThe main reason that many will argue that middlemen should be elimination from the channel of distribution is related to the extra costs involved in employing them. Everyone is in business to make profits. The middle men would add a portion of their profits before selling to retailers, the retailers would also increase the price in order to profit off it before selling to the final consumer.This process makes the price of goods high and expensive. |
|
| 25. |
The increase in population growth in big cities is referred to as A. settlement B. migration C. industrialization D. urbanization Detailed SolutionUrbanization is a word for becoming more like a city. When populations of people grow, the population of a place may spill over from city to nearby areas. This is called urbanization. |
| 26. |
Frictional unemployment can be reduced by A. encouraging the use of retaining schemes B. removing barriers to labour mobility C. restricting the introduction of new technology D. lowering the level of wages paid to young people Detailed SolutionFrictional unemployment is the type of unemployment which exists in any economy due to people being in the process of moving from one job to another. It occur when people are switching between jobs or are redundant and searching for jobs.For example, if you graduate from university, you can’t necessarily expect to find a job straight away which matches your skills. This period of searching for a job is known as frictional unemployment. One way this type of unemployment can be reduced is by retaining workers. They are some jobs that are temporary and considered part time. Workers are laid off at completion of the job, which means the workers are back to being unemployed. But by retaining workers after completion |
|
| 27. |
If the labour force of a country is 2.5 million and 2 million are employed , what is the unemployment rate? A. 0.2% B. 20% C. 200% D. 250% Detailed SolutionUnemployment Rate = Number of Unemployed Persons / Labor Force.Labour force = 2.5million Employed = 2 million unemployed = 2,500,000 - 2,000,000 = 500,000 \(\frac{500,000}{2,500,000}\) = 0.2 percentage = 0.2 x 100 = 20 20% |
|
| 28. |
The grouping of the population according to the economic activities people engage in is A. age distribution B. sex distribution C. geographical distribution D. occupational distribution Detailed SolutionOccupational distribution of labour refers to the aggregate distribution of occupations in society, classified according to skill level, economic function, or social status. It is simply grouping of individuals based on the economic activities they are involved in. |
|
| 29. |
Natural growth rate of population can be defined as the A. difference between birth rate and death rate B. number of births in a year C. increase in the population growth in a year D. difference between the total population and the death rate Detailed SolutionThe natural growth rate or increase is the difference between the numbers of births and deaths in a population |
|
| 30. |
Which of the following is not a consequence of increased unemployment? A. a fall in tax revenue for the government B. a reduction in trade union's influence C. a fall in death rate D. an increase in the labour force |
C |