Year :
2011
Title :
Economics
Exam :
WASSCE/WAEC MAY/JUNE
Paper 1 | Objectives
31 - 40 of 44 Questions
| # | Question | Ans |
|---|---|---|
| 31. |
The following are features of subsistence agriculture except A. little capital B. processing of raw materials C. small allotments of land D. use of crude oil Detailed SolutionThe use of crude oil is not a characteristic of subsistent farming. Crude oil is use in the oil and gas industry, and refined into various patroleum products |
|
| 32. |
Which of the following is not true of small companies ? they A. Cannot benefit from economies of scale B. Are a good source of new jobs C. Can satisfy demand in specialist markets D. Have a good record of technical innovation Detailed SolutionSmall companies do not have a good record of technical innovation because they are mainly a start up whose operations are limited to a small market area, small teams of employee, limited area of locations and lower revenue and profitability. |
|
| 33. |
The effect of privatization on the industrial sector of a country is that it A. ensures efficiency B. discourages efficiency C. leads to decrease in output D. leads to liquidation Detailed SolutionPrivatisation involves selling state-owned assets to the private sector. It leads to efficiency in the sense that, it increases employment and productivity. private market factors can more efficiently deliver many goods or service than governments due to free market competition |
|
| 34. |
The production strategy used in an over-populated country is A. import substitution B. capital intensive C. labour intensive D. first come first employed Detailed SolutionLabour intensive simply refers to a process or an industry that requires a large amount of labor to produce its goods or services. It is suitable for an over-populated economy. |
|
| 35. |
National income is used to measure A. a country's population size B. a country's economic growth C. the human level of development D. the flow of imports to a country Detailed SolutionNational income measures the monetary value of the flow of output of goods and services produced in an economy over a period of time. This is otherwise considered as measuring the economic growth. |
|
| 36. |
A tax is regressive if the A. rate of tax is constant at all income levels B. rate of tax decrease as income increases C. rate of tax increases as income increases D. tax is direct rather than indirect Detailed SolutionA regressive tax is a tax applied uniformly, taking a larger percentage of income from low-income earners than from high-income earners. Regressive taxes place more burden on low-income earners. Since they are flat taxes, they take a higher percentage of income on the poor than on high-income earners.The taxable rate reduces as income increases, and it increases as income decreases. |
|
| 37. |
When a country's net income from abroad is added to its total output, the result is A. gross domestic product B. net national product C. gross national product D. net domestic product Detailed SolutionGross national product is the total value of goods produced and services provided by a country during one year, equal to the gross domestic product plus the net income from foreign investments. GNP calculation includes income earned by domestic residents abroad minus the income of foreigners earned in the domestic economy.GNP is calculated by taking the sum of personal consumption expenditures, private domestic investment, government expenditure, net exports and any income earned by residents from overseas investments, minus income earned within the domestic economy by foreign residents. |
|
| 38. |
A fall in national output will necessitate A. a rise in expenditure on imports B. a rise in the level of savings C. an increase in the consumption of expenditure D. a rise in the standard of living Detailed SolutionAn economy's level of output occurs when all available resources are used efficiently. It equals the highest level of production an economy can sustain. A fall in the level of output will invariably lead to reduced consumption and high savings. When the people do not have products to spend their monies on, they will be forced to safe the leftover after consumption. |
|
| 39. |
The demand for money to take advantage of changes in bond prices is the A. unforeseen motive B. transaction motive C. speculative motive D. precautionary motive Detailed SolutionSpeculative demand for money refers to a desire to hold cash/money in order to be ready to take advantage of any attractive investment opportunity requiring a cash expenditure. Example holding money so as to invest in shares or bonds when opportunity arises. |
|
| 40. |
Cost push inflation is caused by a A. rise in the cost of production B. decrease in the transportation cost C. rise in demand for goods D. decrease in the cost of production Detailed SolutionCost-push inflation occurs when overall prices increase due to increases in the cost of wages and raw materials. An increase in the cost of wages and raw materials means high cost of production. This will cause the prices of goods to rise |
| 31. |
The following are features of subsistence agriculture except A. little capital B. processing of raw materials C. small allotments of land D. use of crude oil Detailed SolutionThe use of crude oil is not a characteristic of subsistent farming. Crude oil is use in the oil and gas industry, and refined into various patroleum products |
|
| 32. |
Which of the following is not true of small companies ? they A. Cannot benefit from economies of scale B. Are a good source of new jobs C. Can satisfy demand in specialist markets D. Have a good record of technical innovation Detailed SolutionSmall companies do not have a good record of technical innovation because they are mainly a start up whose operations are limited to a small market area, small teams of employee, limited area of locations and lower revenue and profitability. |
|
| 33. |
The effect of privatization on the industrial sector of a country is that it A. ensures efficiency B. discourages efficiency C. leads to decrease in output D. leads to liquidation Detailed SolutionPrivatisation involves selling state-owned assets to the private sector. It leads to efficiency in the sense that, it increases employment and productivity. private market factors can more efficiently deliver many goods or service than governments due to free market competition |
|
| 34. |
The production strategy used in an over-populated country is A. import substitution B. capital intensive C. labour intensive D. first come first employed Detailed SolutionLabour intensive simply refers to a process or an industry that requires a large amount of labor to produce its goods or services. It is suitable for an over-populated economy. |
|
| 35. |
National income is used to measure A. a country's population size B. a country's economic growth C. the human level of development D. the flow of imports to a country Detailed SolutionNational income measures the monetary value of the flow of output of goods and services produced in an economy over a period of time. This is otherwise considered as measuring the economic growth. |
| 36. |
A tax is regressive if the A. rate of tax is constant at all income levels B. rate of tax decrease as income increases C. rate of tax increases as income increases D. tax is direct rather than indirect Detailed SolutionA regressive tax is a tax applied uniformly, taking a larger percentage of income from low-income earners than from high-income earners. Regressive taxes place more burden on low-income earners. Since they are flat taxes, they take a higher percentage of income on the poor than on high-income earners.The taxable rate reduces as income increases, and it increases as income decreases. |
|
| 37. |
When a country's net income from abroad is added to its total output, the result is A. gross domestic product B. net national product C. gross national product D. net domestic product Detailed SolutionGross national product is the total value of goods produced and services provided by a country during one year, equal to the gross domestic product plus the net income from foreign investments. GNP calculation includes income earned by domestic residents abroad minus the income of foreigners earned in the domestic economy.GNP is calculated by taking the sum of personal consumption expenditures, private domestic investment, government expenditure, net exports and any income earned by residents from overseas investments, minus income earned within the domestic economy by foreign residents. |
|
| 38. |
A fall in national output will necessitate A. a rise in expenditure on imports B. a rise in the level of savings C. an increase in the consumption of expenditure D. a rise in the standard of living Detailed SolutionAn economy's level of output occurs when all available resources are used efficiently. It equals the highest level of production an economy can sustain. A fall in the level of output will invariably lead to reduced consumption and high savings. When the people do not have products to spend their monies on, they will be forced to safe the leftover after consumption. |
|
| 39. |
The demand for money to take advantage of changes in bond prices is the A. unforeseen motive B. transaction motive C. speculative motive D. precautionary motive Detailed SolutionSpeculative demand for money refers to a desire to hold cash/money in order to be ready to take advantage of any attractive investment opportunity requiring a cash expenditure. Example holding money so as to invest in shares or bonds when opportunity arises. |
|
| 40. |
Cost push inflation is caused by a A. rise in the cost of production B. decrease in the transportation cost C. rise in demand for goods D. decrease in the cost of production Detailed SolutionCost-push inflation occurs when overall prices increase due to increases in the cost of wages and raw materials. An increase in the cost of wages and raw materials means high cost of production. This will cause the prices of goods to rise |