Year :
2012
Title :
Economics
Exam :
WASSCE/WAEC MAY/JUNE
Paper 1 | Objectives
1 - 10 of 49 Questions
| # | Question | Ans |
|---|---|---|
| 1. |
Which of the following problems arises where there are more than one technically possible methods of production A. Where to produce B. for whom to produce C. how to produce D. what to produce Detailed SolutionThe problem of how to produce refers to selection of techniques to be used for production of goods and services. By technique we mean labour or capital intensive techniques. That is knowing the input combination to be used. |
|
| 2. |
Visible balance is also known as A. terms of trade B. balance of payments C. balance of trade D. capital balance Detailed SolutionThe visible trade balance is that part of the balance of trade figures that refers to international trade in physical goods, but not trade in services. It is also known as balance of payment in the current account balance. |
|
| 3. |
A shift in the demand curve indicates A. exceptional demand B. change in demand C. change in quantity demanded D. elasticity of demand Detailed SolutionA shift in the demand curve means that other determinants of demand other than price causes demand to change. They include changes in tastes, population, income, prices of substitute or complementary goods, and expectations about future conditions and prices. This is usually an indication of a change in demand.A change in demand describes a shift in consumer desire to purchase a particular good or service, irrespective of the price difference. |
|
| 4. |
If a 6% decrease in price results in more than 6% decrease in quantity supplied, supply can be regarded as A. elastic B. unitary elastic C. perfectly inelastic D. perfectly elastic Detailed SolutionThe law of supply states that there is a direct relationship between the quantity supplied and the price of a commodity. If a change in price causes a change in the quantity supplied, this means the supply is elastic. |
|
| 5. |
A condition for consumer utility maximization is A. equality of the ratio of marginal utilities and the ratio of prices B. equality of the ratio of average utilities and the ratio of prices C. equality of the marginal utility to total utility ratio for both commodities D. total utility and marginal utility must be zero Detailed SolutionIn Utility Maximization, the consumers decide to spend their money so that the amount spent on each product purchased yields the same amount of extra marginal utility. The consumer would maximize its utility when marginal utility equals the price paid for the commodities. |
|
| 6. |
Which of the following best describes the mode? the A. observation with the highest frequency B. average of two middle numbers C. item that occupies the middle position D. difference of two extreme values Detailed SolutionA number that appears most often in a set of data is the mode. |
|
| 7. |
Where a commodity takes an insignificant proportion of the consumer's income, demand for it will be A. unitary elastic B. price inelastic C. fairly elatic D. income inelastic Detailed SolutionIncome inelastic means that consumer demand would not change in response to a change in income. |
|
| 8. |
A demand schedule shows the quantities of goods that are A. bought at given price at a time B. supplied at given prices at a time C. produced at given prices at a time D. reserved for future consumption Detailed SolutionA demand schedule is a table that shows the quantity demanded of a good or service at different price levels. |
|
| 9. |
The demand curve for a commodity is downward sloping because the consumer will pay A. less as the marginal utility falls B. more as the marginal utility falls C. less as the total utility falls D. more as the average utility falls Detailed SolutionThe demand curve is downward sloping, indicating the negative relationship between the price of a product and the quantity demanded. This means that, consumers consume more or less of the commodity. The consumer will be unwilling to pay for a commodity whose total utility is declining |
|
| 10. |
A decrease in the demand for a product X resulted in a decrease in the demand for another product Y. The demand for X and Y is A. derived B. composite C. joint D. competitive Detailed SolutionJoint demand is When two or more goods are jointly demanded to satisfy single need. Example demand for cars and petrol, pens and ink, tea and sugar, etc, computers and software. If the demand for car decreases, it will also affect the demand for petrol. |
| 1. |
Which of the following problems arises where there are more than one technically possible methods of production A. Where to produce B. for whom to produce C. how to produce D. what to produce Detailed SolutionThe problem of how to produce refers to selection of techniques to be used for production of goods and services. By technique we mean labour or capital intensive techniques. That is knowing the input combination to be used. |
|
| 2. |
Visible balance is also known as A. terms of trade B. balance of payments C. balance of trade D. capital balance Detailed SolutionThe visible trade balance is that part of the balance of trade figures that refers to international trade in physical goods, but not trade in services. It is also known as balance of payment in the current account balance. |
|
| 3. |
A shift in the demand curve indicates A. exceptional demand B. change in demand C. change in quantity demanded D. elasticity of demand Detailed SolutionA shift in the demand curve means that other determinants of demand other than price causes demand to change. They include changes in tastes, population, income, prices of substitute or complementary goods, and expectations about future conditions and prices. This is usually an indication of a change in demand.A change in demand describes a shift in consumer desire to purchase a particular good or service, irrespective of the price difference. |
|
| 4. |
If a 6% decrease in price results in more than 6% decrease in quantity supplied, supply can be regarded as A. elastic B. unitary elastic C. perfectly inelastic D. perfectly elastic Detailed SolutionThe law of supply states that there is a direct relationship between the quantity supplied and the price of a commodity. If a change in price causes a change in the quantity supplied, this means the supply is elastic. |
|
| 5. |
A condition for consumer utility maximization is A. equality of the ratio of marginal utilities and the ratio of prices B. equality of the ratio of average utilities and the ratio of prices C. equality of the marginal utility to total utility ratio for both commodities D. total utility and marginal utility must be zero Detailed SolutionIn Utility Maximization, the consumers decide to spend their money so that the amount spent on each product purchased yields the same amount of extra marginal utility. The consumer would maximize its utility when marginal utility equals the price paid for the commodities. |
| 6. |
Which of the following best describes the mode? the A. observation with the highest frequency B. average of two middle numbers C. item that occupies the middle position D. difference of two extreme values Detailed SolutionA number that appears most often in a set of data is the mode. |
|
| 7. |
Where a commodity takes an insignificant proportion of the consumer's income, demand for it will be A. unitary elastic B. price inelastic C. fairly elatic D. income inelastic Detailed SolutionIncome inelastic means that consumer demand would not change in response to a change in income. |
|
| 8. |
A demand schedule shows the quantities of goods that are A. bought at given price at a time B. supplied at given prices at a time C. produced at given prices at a time D. reserved for future consumption Detailed SolutionA demand schedule is a table that shows the quantity demanded of a good or service at different price levels. |
|
| 9. |
The demand curve for a commodity is downward sloping because the consumer will pay A. less as the marginal utility falls B. more as the marginal utility falls C. less as the total utility falls D. more as the average utility falls Detailed SolutionThe demand curve is downward sloping, indicating the negative relationship between the price of a product and the quantity demanded. This means that, consumers consume more or less of the commodity. The consumer will be unwilling to pay for a commodity whose total utility is declining |
|
| 10. |
A decrease in the demand for a product X resulted in a decrease in the demand for another product Y. The demand for X and Y is A. derived B. composite C. joint D. competitive Detailed SolutionJoint demand is When two or more goods are jointly demanded to satisfy single need. Example demand for cars and petrol, pens and ink, tea and sugar, etc, computers and software. If the demand for car decreases, it will also affect the demand for petrol. |