WAEC SSCE - Economics - 2021 (Objective)

Question 1 Report

A country may be able to earn more from exports if she_____________

increase her export duty

devalues her currency

increases her import duty

allows her currency to appreciate

Answer Details

Read lesson note on International Trade (JAMB)

Read lesson note on Business Organizations (JAMB)

International Trade

Business Organizations

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Question 2 Report

An increase in market supply is caused by the following factors except_________

An improvement in innovation and technology.

An increase in the price of the commodity

A reduction in the cost of raw materials.

A favourable weather condition.

Answer Details

Read lesson note on The Theory Of Supply (JAMB)

Read lesson note on Theory Of Price Determination (WAEC)

The Theory Of Supply

Theory Of Price Determination

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Question 3 Report

Demand-pull inflation can be as a result of___________

increase in the cost of production.

excessive supply of foodstuff

deficit financing by the government.

increase in import duties.

Answer Details

Demand-pull inflation refers to a situation where the demand for goods and services in an economy exceeds the available supply, leading to an increase in prices. This type of inflation can be caused by several factors, but it is not caused by an increase in the cost of production or an increase in import duties. One of the main causes of demand-pull inflation is excessive demand in an economy, which can result from factors such as an increase in consumer confidence, higher disposable income, or increased government spending. When demand outstrips supply, sellers can increase their prices, leading to inflation. Another factor that can contribute to demand-pull inflation is deficit financing by the government. When a government spends more than it collects in taxes, it can create a situation where there is more money in circulation, which can drive up demand and prices. Excessive supply of foodstuff, on the other hand, can lead to a decrease in prices, known as deflation. Therefore, it is not a cause of demand-pull inflation. In summary, demand-pull inflation is caused by excess demand in an economy or deficit financing by the government. An increase in the cost of production or import duties is not a cause of demand-pull inflation.

Read lesson note on Money And Inflation (WAEC)

Read lesson note on Financial Institutions (WAEC)

Money And Inflation

Financial Institutions

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Question 4 Report

Examples of land that are non-renewable include___________

marshy and water-logged land.

farmland already used tor many years.

some natural resources such as natural gas.

oxygen and carbon dioxide in the atmosphere

Answer Details

The examples of land that are non-renewable are farmland already used for many years and some natural resources such as natural gas. Farmland that has been used for many years can become degraded and depleted of nutrients, making it difficult to grow crops. This land may take a very long time, if ever, to recover its fertility, making it non-renewable. Natural gas is a non-renewable resource because it is formed over millions of years from the remains of dead plants and animals. Once it is extracted from the ground and used, it cannot be replaced. Marshy and water-logged land and oxygen and carbon dioxide in the atmosphere are not examples of non-renewable land. Marshy and water-logged land can be restored through land management practices, and oxygen and carbon dioxide in the atmosphere are constantly being replenished through natural processes such as photosynthesis.

Read lesson note on Major Natural Resources (WAEC)

Major Natural Resources

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Question 5 Report

The age distribution of a country's population is shown below. Use the information is answer the question below.

Age group (YEARS)	Population
0 - 15	30%
16 - 40	45%
41 - 60	15%
Over 60	10%

What is the percentage of the working population?

75%

60%

45%

15%

Answer Details

The working population can be defined as the population aged between 16 to 60 years old, as they are typically considered to be of working age. Using the age distribution table, we can see that the percentage of the population aged between 16 to 40 years old is 45%, while the percentage of the population aged between 41 to 60 years old is 15%. Adding these two percentages gives us a total of 60% of the population aged between 16 to 60 years old, which represents the working population. Therefore, the correct answer is 60%.

Read lesson note on Population (JAMB)

Population

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Question 6 Report

Functions of money does not include_______

store of value.

medium of exchange

standard of deferred payment.

general acceptability.

Answer Details

The function of money that is not typically considered is "general acceptability". This is because general acceptability is not actually a function of money, but rather a characteristic of money that enables it to serve its functions effectively. The three primary functions of money are: 1. Medium of exchange: Money is used to facilitate transactions by acting as a medium of exchange, allowing people to trade goods and services without having to rely on barter. 2. Store of value: Money serves as a store of value, meaning that it can be saved and used to make future purchases. 3. Standard of deferred payment: Money can also be used as a standard of deferred payment, meaning that it can be used to settle debts and make payments at a later time. General acceptability is a characteristic of money that ensures that it is widely accepted by people in an economy as a means of payment for goods and services. This means that money needs to be trusted and recognized as having value by everyone in the economy. Without general acceptability, money would not be able to function effectively as a medium of exchange, store of value, or standard of deferred payment.

Read lesson note on Banking (JAMB)

Read lesson note on Money And Inflation (JAMB)

Banking

Money And Inflation

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Question 7 Report

A consumer with $10 needs a dress, a pair of shoes, a handbag and jewelry costing $20, $10, $7 and $3 respectively. The opportunity cost of buying the pair of shoes Is the________

Dress.

Jewelry.

Handbag and Jewelry.

Dress and Jewelry

Answer Details

The opportunity cost of buying the pair of shoes is the next best alternative that the consumer must give up in order to buy the shoes. In this case, the consumer has a budget of $10, and they want to buy a dress, a pair of shoes, a handbag, and jewelry, but they can only afford to buy some of these items. To buy the shoes, the consumer must spend $10, which leaves them with no money to buy the dress or the handbag. Therefore, the opportunity cost of buying the pair of shoes is the value of the dress and the handbag, which is $20 + $7 = $27. In other words, the consumer must give up the opportunity to buy the dress and the handbag, which are their next best alternatives, in order to buy the shoes. So, the correct answer is option number 3, which is "Handbag and Jewelry".

Read lesson note on Theory Of Price Determination (WAEC)

Read lesson note on The Theory Of Demand (JAMB)

Theory Of Price Determination

The Theory Of Demand

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Question 8 Report

Records of a country's invisible trade are recorded in her_____________-

Trade account.

Capital account.

Current account

Financial account.

Answer Details

Read lesson note on National Income (WAEC)

Read lesson note on International Trade And Balance Of Payments (WAEC)

National Income

International Trade And Balance Of Payments

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Question 9 Report

The output of an extra unit of an input is referred to as________

Output of the input.

Marginal product of the input

Average product of the input

Utility of the input employed

Answer Details

Read lesson note on The Theory Of Production (JAMB)

Read lesson note on Theory Of Production (WAEC)

The Theory Of Production

Theory Of Production

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Question 10 Report

The relationship between the marginal revenue (MR) and the average revenue(AR) of a monopolist is that the marginal revenue curve____

is above the average revenue curve

slopes down to the right and is below the AR curve.

and the AR curve are downward sloping and are identical.

is vertical while the average revenue curve is horizontal.

Answer Details

The relationship between the marginal revenue (MR) and the average revenue (AR) of a monopolist can be described as follows: The MR curve slopes down to the right and is below the AR curve. This means that as a monopolist increases the quantity of goods sold, the marginal revenue (the extra revenue earned from selling one more unit) decreases, while the average revenue (the total revenue divided by the number of goods sold) also decreases, but at a slower rate. The reason for this is that, in a monopoly, the monopolist has the market power to set the price for their goods, so as they sell more, they may have to lower the price to entice more customers to buy. This leads to a decrease in the marginal revenue earned from each additional unit sold, and a decrease in the average revenue earned from all units sold. In simple terms, as a monopolist sells more goods, they will earn less from each additional unit they sell, causing both the marginal and average revenue to decrease, but the MR will decrease faster than the AR.

Read lesson note on The Theory Of Demand (JAMB)

The Theory Of Demand

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Question 11 Report

Which of the following is not an argument for the policy of privatization in West Africa?

To make businesses more profitable

Government is able to participate and control the operation of the privatized businesses

Members of the public are able to acquire shares

It encourages the inflow of capital and expertise from local and foreign sources

Answer Details

The argument that "Government is able to participate and control the operation of the privatized businesses" is not an argument for the policy of privatization in West Africa because the whole idea behind privatization is to transfer ownership and control of a government-owned asset or service to the private sector. Privatization is meant to reduce government involvement in business operations and to promote competition, efficiency, and accountability. If the government is still able to participate and control the operation of the privatized businesses, then it would not be considered a true privatization.

Read lesson note on Public Finance (JAMB)

Read lesson note on Financial Institutions (WAEC)

Read lesson note on Economic Systems (JAMB)

Public Finance

Financial Institutions

Economic Systems

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Question 12 Report

Separation of ownership of resources and their control is mostly found in a __________

sole proprietorship

partnership

joint stock company

consumer co-operative

Answer Details

The separation of ownership of resources and their control is mostly found in a joint stock company. A joint stock company is a type of business organization where ownership is divided into small units called shares. These shares are owned by individual investors who are known as shareholders. Shareholders have limited liability, meaning that they are only liable for the amount of money they have invested in the company, and are not personally responsible for the company's debts or obligations. In a joint stock company, shareholders elect a board of directors who are responsible for making important decisions about the company's operations and strategy. The board of directors hires managers to run the day-to-day operations of the company, but the ultimate authority still rests with the shareholders. This separation of ownership and control is not as prominent in other forms of business organizations such as sole proprietorship, partnership, or consumer co-operative. In a sole proprietorship, the owner has complete control over the business and is personally liable for its debts. In a partnership, control is shared between the partners and they are jointly liable for the business's debts. In a consumer co-operative, ownership and control are in the hands of the members who use the co-operative's services, and they have equal voting rights in the decision-making process.

Read lesson note on Business Organizations (JAMB)

Read lesson note on Distributive Trade (WAEC)

Business Organizations

Distributive Trade

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Question 13 Report

An increase in cash ratio by the central bank will_______

Increase the supply of money.

Increase banks lending

Encourage borrowing.

Reduce the supply of money.

Answer Details

An increase in cash ratio by the central bank will reduce the supply of money. Cash ratio refers to the proportion of cash that commercial banks are required to hold in reserve with the central bank. When the central bank increases the cash ratio, it is essentially increasing the amount of cash that commercial banks must hold in reserve, which in turn reduces the amount of money available for lending and other economic activities. This reduction in the amount of money available in the economy reduces the supply of money. Therefore, an increase in the cash ratio by the central bank will not increase the supply of money, increase bank lending or encourage borrowing, but will reduce the supply of money available in the economy.

Read lesson note on Money And Inflation (WAEC)

Read lesson note on Financial Institutions (WAEC)

Money And Inflation

Financial Institutions

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Question 14 Report

Abundant natural resources do not contribute to economic growth in developing countries because of_________

high rate of inflation

urban congestion.

over-reliance on multiple commodities.

mismanagement and corruption.

Answer Details

Abundant natural resources do not contribute to economic growth in developing countries because of mismanagement and corruption. While natural resources can provide significant opportunities for economic development, their abundance alone does not guarantee success. In many developing countries, mismanagement and corruption are major obstacles to realizing the full potential of natural resources. Corruption can take many forms, such as bribery, embezzlement, and nepotism, and can occur at all levels of government and industry. This can lead to inefficiencies, waste, and a lack of accountability, which can undermine the effective management and use of natural resources. Similarly, mismanagement can also impede economic growth. Poor planning, inadequate infrastructure, and insufficient investment in education and training can limit the capacity of a country to effectively exploit its natural resources. In addition, over-reliance on a single commodity can leave a country vulnerable to fluctuations in global prices, which can have a negative impact on economic growth. Therefore, to fully benefit from their natural resources, developing countries need effective governance, sound economic policies, and investment in human capital. This can help to ensure that natural resources are managed efficiently, transparently, and sustainably, and that the benefits of resource wealth are shared more widely across society.

Read lesson note on Major Natural Resources (WAEC)

Read lesson note on Economic Growth And Development (JAMB)

Major Natural Resources

Economic Growth And Development

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Question 15 Report

The standard of living in two countries can be compared using the___________

number of industries in each country

size of their arms and ammunition

size of their national incomes only

gross national product per head

Answer Details

The standard of living in two countries can be compared using the gross national product (GNP) per head. GNP per head is a measure of a country's average economic output per person. It takes into account the total income generated by a country, divided by the number of people living there. This gives us a good idea of the average standard of living in a country, and allows us to compare the standard of living between two countries. For example, if two countries have the same total national income, but one country has a smaller population, its GNP per head will be higher, indicating a higher standard of living for its citizens.

Read lesson note on National Income (WAEC)

Read lesson note on Population (JAMB)

National Income

Population

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Question 16 Report

A floating exchange rate means that the exchange rate is fixed by the __________

Central bank of the country

Forces of demand and supply

International monetary fund (IMF)

Ministry of Finance

Answer Details

Read lesson note on Economics As A Science (JAMB)

Read lesson note on Economic Systems (JAMB)

Economics As A Science

Economic Systems

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Question 17 Report

A firm incurred the following costs in production. Use the information in the table to answer the question below.

Output (bags of rice	0	10	20	30	40	50	60
Total Cost ($)	100	200	300	380	440	520	600

The average cost of producing 40 bags of rice is_____

$10

$11

$60.

$80

Answer Details

The average cost of producing 40 bags of rice is $11. To find the average cost, we divide the total cost by the output. In this case, the total cost of producing 40 bags of rice is $440. Therefore, the average cost of producing 40 bags of rice is: $440 / 40 = $11 So the answer is $11. It's important to note that the average cost is calculated by taking the total cost and dividing it by the output, not by taking the average of the total costs for each level of output. This is because the cost per unit of output can change as production levels increase or decrease, and taking the average of the total costs for each level of output could result in an inaccurate average cost.

Read lesson note on Theory Of Costs (JAMB)

Theory Of Costs

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Question 18 Report

If a country's import bill is high, she can encourage exports by___________

Allowing her currency to depreciate

Allowing her currency to appreciate

Liberalizing importation

Increasing taxes on all locally produced goods

Answer Details

If a country's import bill is high, that means the country is spending more money on importing goods from other countries than it is earning from exporting its own goods to other countries. To encourage exports and reduce the trade deficit, the country can take several measures. One such measure is to allow its currency to depreciate. When a country's currency depreciates, its goods become relatively cheaper compared to other countries. As a result, other countries may be more willing to buy goods from that country, increasing its exports. Additionally, when the country's currency depreciates, its own citizens may also be more inclined to buy locally produced goods instead of imported goods because imported goods will become relatively more expensive. Allowing the country's currency to appreciate, on the other hand, would make its goods more expensive compared to other countries. This could lead to a decrease in exports and an increase in imports, exacerbating the trade deficit. Liberalizing importation could make it easier for foreign goods to enter the country, which could increase competition for local producers. This may lead to an increase in imports, but it may not necessarily encourage exports. Increasing taxes on all locally produced goods would likely decrease demand for those goods, leading to a decrease in production and potentially leading to higher unemployment. This measure would not encourage exports and would not necessarily reduce imports either.

Read lesson note on International Economic Organizations (JAMB)

Read lesson note on Economics As A Science (JAMB)

Read lesson note on Financial Institutions (WAEC)

International Economic Organizations

Economics As A Science

Financial Institutions

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Question 19 Report

Use this data below to answer the question

The following data relates to the national income of a country.
Gross domestic product = $2800
Net factor income from abroad = $250
Depreciation = $700
Indirect taxes = $120

What is the country's Net National Product (NNP) at factor cost?

$3.050

$2,680

$2,230

$2.220

Answer Details

Net National Product (NNP) is the total value of all goods and services produced by the residents of a country in a given period, minus the value of capital that has been used up in the process of production. To calculate NNP at factor cost, we need to start with Gross Domestic Product (GDP) and make adjustments for net factor income from abroad, depreciation, and indirect taxes. Using the given data, we can calculate NNP at factor cost as follows: NNP at factor cost = GDP - depreciation + net factor income from abroad - indirect taxes NNP at factor cost = $2800 - $700 + $250 - $120 NNP at factor cost = $2,230 Therefore, the country's Net National Product (NNP) at factor cost is $2,230.

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Question 20 Report

The study of economics IS Important to every society because it______

Enables individuals to satisfy all their wants

Helps in the utilization of scarce resources.

Helps producers to know what to produce.

Restores equilibrium between producers and consumers

Answer Details

Read lesson note on The Theory Of Demand (JAMB)

Read lesson note on Market Structure (JAMB)

Read lesson note on Economics As A Science (JAMB)

Read lesson note on Economic Systems (JAMB)

The Theory Of Demand

Market Structure

Economics As A Science

Economic Systems

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Question 21 Report

One way of obtaining the median of a given data is to__________

Sum the value and divide by the number of items.

Arrange the data in ascending order and subtract each item from the mean.

Arrange the data in descending order and add each item to the least.

Arrange the data in either ascending or descending order and find what item divides the set in two equal parts.

Answer Details

To obtain the median of a given data, we need to find the middle value that separates the data into two equal parts. One simple way to do this is by arranging the data in either ascending or descending order and finding the item that falls in the middle. If there is an odd number of items, the median is simply the middle value. For example, if we have the following set of data: {2, 4, 5, 7, 9} We can arrange it in ascending order as: {2, 4, 5, 7, 9} The middle value is 5, which is the median of the data set. If there is an even number of items, we need to find the average of the two middle values. For example, if we have the following set of data: {1, 3, 4, 6, 8, 9} We can arrange it in ascending order as: {1, 3, 4, 6, 8, 9} The middle values are 4 and 6. To find the median, we take the average of 4 and 6 which is (4+6)/2=5. Therefore, the correct option to obtain the median of a given data is to arrange the data in either ascending or descending order and find what item divides the set into two equal parts.

Read lesson note on Methods And Tools Of Economic Analysis (JAMB)

Methods And Tools Of Economic Analysis

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Question 22 Report

By passing the middlemen in the chain of distribution can lead to _________

a problem of unemployment of labour

the creation of artificial scarcity

high prices of goods and services

an increase in government tax revenue

Answer Details

Read lesson note on Distributive Trade (WAEC)

Distributive Trade

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Question 23 Report

A major source of finance to the Railway Corporation in West African countries is_______

sale of shares

government subvention

trade credit

surplus

Answer Details

The major source of finance to the Railway Corporation in West African countries is government subvention. This means that the government provides financial support to the Railway Corporation in order to help them fund their operations, maintain and upgrade their infrastructure, and purchase new equipment. This support can come in the form of direct funding, grants, or loans, and is usually included in the national budget. The government subvention is important for the Railway Corporation because it allows them to continue providing transportation services to the public, without having to rely solely on revenue from ticket sales or other sources. Other sources of finance, such as sale of shares or trade credit, may also be used by the Railway Corporation, but they are typically less significant compared to government subvention. Surplus, on the other hand, is a financial term used to describe a situation where the Railway Corporation's revenues exceed its expenses, which can then be reinvested in the company or distributed to shareholders as dividends. However, surplus is not a reliable or consistent source of finance, and is not something that can be relied on to fund the Railway Corporation's operations.

Read lesson note on Public Finance (WAEC)

Public Finance

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Question 24 Report

The age distribution of a country's population is shown below. Use the information is answer the question below.

Age group (YEARS)	Population
0 - 15	30%
16 - 40	45%
41 - 60	15%
Over 60	10%

What is the dependency ratio?

2:3

3:2

1:2

6:1

Answer Details

The dependency ratio is a measure of the number of people who are not of working age (0-15 and over 60) compared to the number of people who are of working age (16-60). In this case, 30% of the population is 0-15 and 10% is over 60, so 40% are not of working age. The remaining 60% of the population is of working age. So, the dependency ratio can be calculated as the number of people who are not of working age divided by the number of people who are of working age, or 40% divided by 60% which is 2:3. In simple terms, for every 3 people of working age, there are 2 people who are not of working age.

Read lesson note on Population (JAMB)

Population

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Question 25 Report

When a commodity market operates without government interference, commodities are distributed through_______

A government distribution agencies.

The operation of price mechanism.

A central planning committee

Retailers only.

Answer Details

When a commodity market operates without government interference, commodities are distributed through the operation of price mechanism. This means that the price of the commodity is determined by the interaction of supply and demand in the market, without any intervention from the government. As the demand for a commodity increases, the price of the commodity increases, leading to a decrease in demand and an increase in supply. On the other hand, when the supply of a commodity increases, the price decreases, leading to an increase in demand and a decrease in supply. In this way, the price mechanism helps to ensure that commodities are distributed efficiently, with those who are willing to pay the most for the commodity receiving it first.

Read lesson note on Economics As A Science (JAMB)

Read lesson note on Economic Systems (JAMB)

Economics As A Science

Economic Systems

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Question 26 Report

The law of diminishing returns is applicable to the__________

fixed inputs of production.

variable factors of production.

plants and machinery of the firm.

equipment and other capital.

Answer Details

The law of diminishing returns is applicable to the variable factors of production. This law states that as more and more of a variable input, such as labor or raw materials, is added to a fixed input, such as capital or land, the marginal product of the variable input will eventually decline. This means that each additional unit of the variable input will add less to the total output than the previous unit did. To put it simply, imagine you're making pizzas in a small restaurant with a fixed amount of oven space (fixed input). As you add more and more pizza makers (variable input), each additional pizza maker will help to increase production, but only up to a certain point. After a certain number of pizza makers, adding more won't increase production as much because they'll start getting in each other's way or not enough oven space to cook more pizzas. This is an example of the law of diminishing returns in action.

Read lesson note on The Theory Of Supply (JAMB)

Read lesson note on The Theory Of Production (JAMB)

The Theory Of Supply

The Theory Of Production

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Question 27 Report

The price of soap rose from $10 to $20 causing a trader to increase her supply from 50 to 120 boxes per week. This makes supply_________

Unitary elastic.

Perfectly inelastic.

Fairly elastic.

Inelastic.

Answer Details

The trader increased her supply from 50 to 120 boxes per week when the price of soap rose from $10 to $20. To determine whether the supply is unitary elastic, perfectly inelastic, fairly elastic, or inelastic, we need to look at the responsiveness of the quantity supplied to the change in price. If the quantity supplied changes proportionally to the change in price, then supply is unitary elastic. If the quantity supplied does not change at all despite the change in price, then supply is perfectly inelastic. If the quantity supplied changes significantly in response to the change in price, then supply is fairly elastic. If the quantity supplied changes only slightly in response to the change in price, then supply is inelastic. In this case, the trader increased her supply from 50 to 120 boxes per week, which is a significant increase. This suggests that the supply is fairly elastic, meaning that the quantity supplied is responsive to changes in price. Therefore, the correct answer is "fairly elastic".

Read lesson note on The Theory Of Supply (JAMB)

Read lesson note on Theory Of Price Determination (WAEC)

Read lesson note on Theory Of Production (WAEC)

The Theory Of Supply

Theory Of Price Determination

Theory Of Production

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Question 28 Report

The leftward shift in the supply curve for a commodity indicates_________

An increase in quantity supplied

A decrease in supply.

A reduction in quantity supplied.

An increase in supply.

Answer Details

A leftward shift in the supply curve for a commodity indicates a decrease in supply. In economics, the supply curve shows the relationship between the price of a commodity and the quantity that suppliers are willing and able to provide. When the supply curve shifts to the left, it means that at each price level, the quantity supplied is lower than before. This could be due to a number of factors such as a decrease in the number of suppliers, an increase in the cost of production, or a decrease in the quality of the commodity. In simpler terms, a leftward shift in the supply curve means that there is less of the commodity available for sale, and as a result, the price is likely to increase.

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Question 29 Report

If a country imposes a barrier on trade, the resultant effect will be _________

a halt in buying and selling

high quality goods from local industries

an increase in the demand for locally produced goods

shutdown of infant industries

Answer Details

If a country imposes a barrier on trade, such as tariffs or quotas, it will result in an increase in the cost of imported goods. This makes them less competitive compared to domestically produced goods, leading to an increase in demand for locally produced goods. As a result, local industries will experience a boost in sales and may expand to meet the growing demand. This can result in the growth of infant industries, which may not have been able to compete with cheaper imports before the trade barrier was imposed. However, the downside is that it can also lead to higher prices for consumers and potentially limit the variety of goods available in the market.

Read lesson note on Agriculture (WAEC)

Read lesson note on International Trade (JAMB)

Agriculture

International Trade

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Question 30 Report

The demand for wood and labour is an example of______

Effective demand.

Complementary demand

Derived demand

Competitive demand

Answer Details

The demand for wood and labor is an example of "derived demand." This means that the demand for these goods and services is derived from the demand for another product or service that they are used to produce. For example, if there is an increase in demand for housing, there will be a derived demand for wood and labor to build the houses. The demand for wood and labor is not a direct demand from consumers, but rather a demand that is derived from the demand for housing. Similarly, the demand for coal is derived from the demand for electricity, and the demand for steel is derived from the demand for construction and manufacturing. Derived demand is an important concept in economics, as it helps to explain the interdependence of different industries and the ripple effects that changes in one industry can have on others.

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Read lesson note on Demand (WAEC)

Banking

Demand

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Question 31 Report

In order to enable the government of a country to increase its tax revenue, it will be advisable for it to increase taxes on_______

Textile materials with elastic demand

Alcoholic beverages with inelastic demand

Agricultural products with inelastic supply

Luxury goods with elastic supply

Answer Details

Read lesson note on The Theory Of Production (JAMB)

The Theory Of Production

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Question 32 Report

A measure that can be adopted to correct a country 's balance of payments deficit is ____________

Allow the currency to appreciate to encourage imports.

Allow the currency to depreciate to encourage imports

Adopt import substitution strategy

Restrict trade with all countries

Answer Details

Read lesson note on Economic Integration (WAEC)

Read lesson note on International Trade And Balance Of Payments (WAEC)

Economic Integration

International Trade And Balance Of Payments

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Question 33 Report

What will be the reaction of consumers in a market if there is a fall in the price of the substitute commodity X?

Price of commodity X will increase

Demand for the substitute of commodity X will decrease

Demand for commodity X will decrease

Supply of both commodity X and its substitute will increase.

Answer Details

Read lesson note on Theory Of Consumer Behaviour (WAEC)

Read lesson note on The Theory Of Demand (JAMB)

Theory Of Consumer Behaviour

The Theory Of Demand

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Question 34 Report

Two factors which can improve the efficiency of labour are_________

population size and age of retirement

school leaving age and number of disabled workers

work environment and health status of workers

school leaving age and number of part-time workers

Answer Details

Two factors that can improve the efficiency of labor are the work environment and the health status of workers. A good work environment can include factors such as comfortable temperature, proper lighting, and ergonomic design of work spaces and equipment. This can reduce stress and fatigue among workers, leading to higher levels of productivity and motivation. A worker's health status can also play a role in their efficiency at work. A healthy worker is more likely to be productive and able to perform their job tasks effectively. Employers can encourage healthy habits among workers through benefits such as on-site fitness facilities or wellness programs. It's important to note that both of these factors can have a significant impact on worker satisfaction and motivation, which can lead to higher levels of productivity and efficiency in the long term.

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Agriculture

Population And Labour Market

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Question 35 Report

When market supply increases , the equilibrium price_________

Rises and quantity falls.

Falls and quantity rises.

And quantity increase

And quantity fall.

Answer Details

Read lesson note on The Theory Of Supply (JAMB)

Read lesson note on Theory Of Price Determination (WAEC)

The Theory Of Supply

Theory Of Price Determination

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Question 36 Report

Balance of payments and trade problems that arose after the world wars were resolved by the____________

International Bank tor Reconstruction and Development.

International Monetary Fund.

African Development Bank.

Organization of Petroleum Exporting Countries.

Answer Details

Read lesson note on International Trade And Balance Of Payments (WAEC)

International Trade And Balance Of Payments

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Question 37 Report

The supply of land for agricultural purpose can be increased through _______

The introduction of mechanized farming

reclamation and irrigation

increase in prices of land

conversion of building sites to farmlands

Answer Details

The supply of land for agricultural purposes can be increased through the processes of reclamation and irrigation. Reclamation involves making land that is unsuitable for farming, such as swamps and deserts, usable for agricultural purposes. Irrigation involves providing water to farmland to increase productivity. These processes increase the amount of land that can be used for agriculture and help to improve crop yields. The other options mentioned are not effective ways to increase the supply of land for agriculture. Mechanized farming can improve productivity, but it does not increase the amount of land available for farming. An increase in land prices may encourage more people to sell their land, but it does not increase the overall amount of land. Converting building sites to farmland may be possible in some cases, but it is not a scalable or sustainable solution for increasing the supply of agricultural land.

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Agriculture

Business Organizations

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Question 38 Report

A customs union is an economic grouping which has___________

free movement of factors of production

common tariffs against non-Members.

common currency for trading

common military defence

Answer Details

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Question 39 Report

Non-economic factors that influence the location of firms include ________

the existence of required materials for production

availability of population of buyers

adequate supply of power, good road and rail network

the activities of politicians in deciding location of firms

Answer Details

Non-economic factors that influence the location of firms are factors that are not necessarily related to profit or financial gain. These factors can include social, political, and environmental considerations. For example, the existence of required materials for production may be a key consideration for a firm when deciding where to locate. If a particular area has a rich supply of the raw materials that a company needs to produce its goods or services, it may make sense for that company to locate its operations in that area. The availability of a population of buyers is another factor that can influence where a firm decides to locate. If a particular area has a large and accessible population of potential customers, it may make sense for a company to locate its operations in that area to take advantage of this market. Adequate supply of power, good road and rail network can also be a key consideration for firms when deciding where to locate. These infrastructure considerations can impact a company's ability to transport goods and services to customers, as well as its ability to access the resources it needs to operate. The activities of politicians in deciding location of firms is not a common factor. However, sometimes government policies and regulations can have an impact on where firms decide to locate. For example, tax incentives or other government subsidies may be offered to companies that locate in certain areas, which can influence their decision-making process.

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Factors Of Production And Their Theories

Population And Labour Market

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Question 40 Report

When a government cuts down her expenditure to reduce inflation, she has embarked on___________

A restrictive Fiscal policy.

An expansionary monetary policy.

Physical policy.

Implementing budget deficit

Answer Details

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Public Finance

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Question 41 Report

Use this data below to answer the question

The following data relates to the national income of a country.
Gross domestic product = $2800
Net factor income from abroad = $250
Depreciation = $700
Indirect taxes = $120

What is the country's Gross National (GNP)?

$ 3.050

$ 2.680

$ 2,350

$2,100

Answer Details

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National Income

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Question 42 Report

The coefficient of price elasticity of supply of land is usually____________

One

Greater than one

Zero

Less than one.

Answer Details

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The Theory Of Supply

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Question 43 Report

Government can increase farmers' incomes by__________

Fixing maximum prices.

Fixing minimum prices.

Encouraging them to produce surplus output.

Increasing taxes on inputs.

Answer Details

One way that government can increase farmers' incomes is by fixing minimum prices for their crops. This means that the government sets a floor price below which the farmers cannot sell their produce. By doing so, farmers are guaranteed a certain level of income even if the market prices fall due to oversupply or other factors. Fixing maximum prices is unlikely to increase farmers' incomes as it would limit the amount they can earn for their crops, while encouraging them to produce surplus output may lead to lower prices due to oversupply. Increasing taxes on inputs could also have a negative effect on farmers' incomes by increasing their production costs, which may lead to lower profits. Therefore, fixing minimum prices is generally considered the most effective way to increase farmers' incomes, as it ensures they receive a fair price for their produce and incentivizes them to continue farming.

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Economics As A Science

Economic Systems

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Question 44 Report

The distinguishing function of an entrepreneur is_______

Planning.

Control.

Risk-bearing.

Management.

Answer Details

The distinguishing function of an entrepreneur is risk-bearing. Entrepreneurs are individuals who take on financial risks and uncertainties to create new businesses or bring innovative ideas to the market. They are willing to invest their own money, time, and resources into a venture without any guarantee of success. This risk-taking behavior sets them apart from other business professionals. Entrepreneurs must also have the ability to identify and evaluate potential risks and opportunities, develop and execute business plans, and adapt to changes in the market. However, while planning, control, and management are all important aspects of entrepreneurship, it is the willingness to take on risk that distinguishes an entrepreneur from other business professionals.

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Business Organizations

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Question 45 Report

The supply of mangoes is represented as P=0.3Q, where P is the price ($) and Q is the quantity. What is P when Q is 50?

$1.50

$15.00

$150.03

$166.67

Answer Details

To find the price (P) when the quantity (Q) is 50, we can substitute Q = 50 into the given equation P = 0.3Q. P = 0.3 x Q P = 0.3 x 50 P = 15 Therefore, when the quantity of mangoes supplied is 50, the price is $15. This means that if a buyer wants to purchase 50 mangoes, they would need to pay $15 in total. Hence, the correct answer is option B: $15.00.

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Theory Of Price Determination

Supply

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Question 46 Report

A firm incurred the following costs in production. Use the information in the table to answer the question below.

Output (bags of rice	0	10	20	30	40	50	60
Total Cost ($)	100	200	300	380	440	520	600

The fixed cost of production is___________

$I00.

$200.

$300.

$600

Answer Details

The fixed cost of production is $100. This is because the fixed cost is the portion of the total cost that does not change with the level of output. Looking at the table, we can see that when the output is zero, the total cost is $100. This means that even if the firm produces zero bags of rice, they still have to pay this $100 fixed cost. As the level of output increases, the total cost also increases. However, the increase in total cost is due to the variable cost, which is the cost that varies with the level of output (e.g. cost of raw materials, labor, etc.). Therefore, based on the given information, the fixed cost of production is $100.

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Theory Of Costs

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Question 47 Report

An increase in the rice harvest, all things being equal, may cause____________

Price to increase substantially.

Price to fall substantially.

Demand to fall substantially.

Farmer's incomes to be more than doubled

Answer Details

An increase in the rice harvest, all things being equal, is likely to cause the price of rice to fall substantially. This is because an increase in the supply of rice will result in a surplus, which will lead to a decrease in price as producers try to sell their excess rice. Conversely, if there is a decrease in the rice harvest, all things being equal, the price of rice is likely to increase due to a shortage of supply. Therefore, the law of supply and demand states that an increase in supply results in a decrease in price, while a decrease in supply results in an increase in price.

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Theory Of Production

Supply

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Question 48 Report

Market supply may increase if there is an increase in the________

Price of the product

Prices of factors of production.

Tax paid on raw materials

Subsidies on raw materials.

Answer Details

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The Theory Of Supply

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Question 49 Report

People who dispose of their assets are expected to pay ______________

value added tax

capital gains tax

expenditure tax

sales tax

Answer Details

When people dispose of their assets, such as by selling them, they may be required to pay a tax on any profit they made from the sale. This tax is known as a capital gains tax. The capital gains tax is a tax on the increase in value of an asset between the time it was acquired and the time it was disposed of. For example, if someone bought a piece of real estate for $100,000 and sold it for $150,000, they would have a capital gain of $50,000. The capital gains tax would be calculated based on that $50,000 gain. The capital gains tax is not a tax on the total amount received from the sale of the asset, but only on the profit made from the sale. This is different from a sales tax or an expenditure tax, which are taxes on the total amount spent on a good or service. A value added tax is a type of sales tax that is applied at each stage of production, from the raw materials to the final product, based on the value added at each stage. This tax is not directly related to the sale of an asset. Therefore, the correct answer is "capital gains tax."

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Economics As A Science

Economic Systems

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Question 50 Report

Government can curb inflation by_________

encouraging banks to lend for any purpose.

increasing her own expenditure.

buying treasury bills in the open market.

selling securities in the open market

Answer Details

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Money And Inflation

The Theory Of Consumer Behaviour

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