WAEC SSCE - Economics - 2010

Equilibrium price is the price at which quantity

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Equilibrium price is the price at which quantity demanded is equal to quantity supplied. In other words, it is the point where the demand and supply curves intersect. At this price, there is no excess supply or excess demand in the market, and the market is said to be in a state of equilibrium. If the price is set above the equilibrium price, then the quantity supplied will be greater than the quantity demanded, leading to a surplus. Conversely, if the price is set below the equilibrium price, then the quantity demanded will be greater than the quantity supplied, leading to a shortage. Thus, the equilibrium price is the point of balance in the market where both buyers and sellers are satisfied.

The total stock of money available for use in an economy is

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The total stock of money available for use in an economy is the supply of money. The supply of money refers to the total amount of money available for use in an economy at a given time. This includes physical currency, such as banknotes and coins, as well as digital forms of money, such as bank deposits and electronic transfers. The supply of money is an important concept in economics because it affects the level of economic activity, inflation, and interest rates. Central banks are responsible for managing the supply of money in an economy to promote economic growth and stability.

One of the functions of the Central Bank is

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The Central Bank is responsible for managing a country's monetary policy and financial system. One of its primary functions is the issuance and regulation of the nation's currency. The Central Bank ensures that there is sufficient currency in circulation and that the money supply is stable. It also acts as a banker to the government, manages the country's foreign reserves, supervises commercial banks, and acts as a lender of last resort during financial crises. However, the Central Bank is not involved in the production of goods, presenting budgets, or printing of cheque books.

In order to stabilize oil price in the world market, there is the need for OPEC members to

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In order to stabilize oil prices in the world market, there is a need for OPEC members to adhere to production quotas. This means that OPEC members agree to limit their oil production to a certain amount, which helps to control the overall supply of oil in the market. When the supply of oil is limited, prices tend to increase due to higher demand. By working together to limit production, OPEC members can help to prevent wild fluctuations in oil prices, which can be beneficial for both producers and consumers. Encouraging competition among themselves or fixing the price of non-oil products would not necessarily address the issue of stabilizing oil prices. Additionally, always having a budget deficit is not a requirement or a solution for stabilizing oil prices.

Which of the following is not a concept in National Income Accounting?

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The concept of "Domestic National Products (DNP)" is not a concept in National Income Accounting. In National Income Accounting, GDP (Gross Domestic Product), GNP (Gross National Product), and NDP (Net Domestic Product) are measures of a country's economic performance. GDP is the total value of goods and services produced within a country's borders, GNP includes the total value of goods and services produced by a country's citizens and businesses, regardless of their location, and NDP is the total value of goods and services produced within a country's borders minus depreciation. Therefore, the correct option is "Domestic National Products (DNP)".

The Central Bank controls money supply through all the following except

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The Central Bank is responsible for controlling the money supply in an economy to achieve its monetary policy objectives. This is done through a variety of tools, including lending to the public, setting the bank rate, imposing legal reserve requirements, and conducting open market operations. Out of the options provided, the Central Bank does not control money supply through lending to the public. While the Central Bank may lend money to commercial banks or other financial institutions, it does not directly lend to the public. Instead, the Central Bank controls the money supply through the other options listed. The bank rate is the interest rate at which the Central Bank lends money to commercial banks, and changes to the bank rate can influence the cost of borrowing and the level of economic activity. Legal reserve requirements are the amount of money that banks are required to hold in reserve, and changes to these requirements can affect the amount of money that banks have available to lend. Finally, open market operations involve the buying and selling of government securities, which can influence the amount of money in circulation in the economy. Therefore, the Central Bank controls money supply through bank rate, legal reserve requirements, and open market operations, but not through lending directly to the public.

In which of the following economic system do we have mostly private ownership of resources and individual decision making?

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The economic system that is characterized by mostly private ownership of resources and individual decision making is the capitalist system. In a capitalist system, resources such as land, labor, and capital are privately owned and individuals have the freedom to make their own economic decisions, including what to produce, how to produce it, and how to distribute it. The market forces of supply and demand determine prices and the allocation of resources, and the government plays a limited role in the economy.

Excise duty is levied on

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Which of the following is not an international economic organization?

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The World Health Organization (WHO) is not an international economic organization. The WHO is a specialized agency of the United Nations that is primarily focused on international public health issues, such as disease control and prevention, health promotion, and health system development. On the other hand, the Economic Commission for Africa (ECA), African Development Bank (ADB), and International Monetary Fund (IMF) are all international economic organizations. The ECA is a regional body of the United Nations that aims to promote economic and social development in Africa. The ADB is a multilateral development finance institution that provides loans, grants, and technical assistance to support economic development in Africa. The IMF is an international organization that works to promote global financial stability and facilitate international trade by providing financial assistance to member countries and promoting economic cooperation.

Greater inter-dependence among workers in production is associated with

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Greater inter-dependence among workers in production is associated with division of labour. Division of labour refers to the separation of a work process into a number of tasks, with each task performed by a separate worker or group of workers. When each worker specializes in a particular task, they become highly skilled and efficient in that task, and the result is increased productivity and greater inter-dependence among workers. This allows for the efficient use of resources, time, and expertise, leading to increased output and economic growth.

One disadvantages of direct taxes is that they

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One disadvantage of direct taxes is that they can be evaded. Direct taxes are taxes that are levied directly on individuals or organizations, such as income tax or property tax. One way in which direct taxes can be evaded is through tax evasion, which is the illegal non-payment or underpayment of taxes. People may try to evade taxes by hiding income or assets, underreporting income, or claiming false deductions, for example. Tax evasion can lead to a loss of revenue for the government, which can have negative impacts on public services and infrastructure. Additionally, it can create an unfair burden on those who do pay their taxes, as they may end up paying more to make up for the lost revenue from tax evaders. While efforts can be made to reduce tax evasion, such as through increased enforcement and penalties, it remains a potential disadvantage of direct taxes.

Which of the following is obtainable in a perfect market?

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In a perfect market, the price of a product is determined by the intersection of the demand and supply curve, and all firms produce an identical product. In such a market, there is perfect information, no barriers to entry or exit, and no externalities. Also, there are a large number of buyers and sellers in the market. Based on these assumptions, the only option that is obtainable in a perfect market is P = MR = MC. This is because in a perfect market, firms are price takers, and the price (P) is equal to the marginal revenue (MR) of the firm, which is also equal to the marginal cost (MC) of production.

The role of government in promoting agricultural development includes the following except

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The role of government in promoting agricultural development does not include paying the wages of farmers. This is because paying the wages of farmers is not a sustainable way of promoting agricultural development, as it does not address the root causes of agricultural challenges. Instead, the government focuses on establishing and funding research, formulation of policies, and provision of rural infrastructures, among other measures, to promote agricultural development. These measures aim to improve productivity, increase yields, and enhance the overall efficiency of the agricultural sector. Ultimately, the government's goal is to ensure food security and promote economic growth through agriculture.

The function of the Central Bank as the lender of last resort means that when all other sources fail,

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The function of the Central Bank as the lender of last resort means that when all other sources fail, commercial banks can raise loans from the Central Bank. This is because commercial banks sometimes face temporary liquidity shortages or runs by depositors, which can threaten their solvency. As a result, the Central Bank acts as the lender of last resort by providing emergency loans to these banks to meet their short-term liquidity needs and avoid a systemic crisis. The Central Bank charges a high interest rate for such loans to discourage commercial banks from making a habit of borrowing from the Central Bank, and to encourage them to maintain adequate liquidity levels.

An efficient weapon used in resolving dispute between employers and employees is

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Collective bargaining is an efficient weapon used in resolving disputes between employers and employees. Collective bargaining is a process of negotiation between employers and a group of employees aimed at reaching agreements that regulate working conditions. It involves discussions and negotiations between the representatives of the employees and the employers, usually mediated by a neutral third party. The aim is to reach a mutually acceptable agreement that addresses the concerns of both parties. Collective bargaining is a more effective and peaceful way of resolving disputes because it involves a negotiation process that allows both parties to discuss their concerns and come to a mutual understanding. Display of placards and legal action, on the other hand, may be seen as confrontational and may lead to a breakdown of communication between the parties.

Which of the following equation is appropriate for determining the Net Domestic Product (NDP)?

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The appropriate equation for determining the Net Domestic Product (NDP) is NDP = GDP - depreciation. Gross Domestic Product (GDP) is the total value of goods and services produced within a country's borders in a given period. However, this value includes the depreciation of capital goods, which refers to the decrease in value of assets due to wear and tear or obsolescence. To calculate the value of goods and services produced without the effect of depreciation, we need to subtract it from GDP. This gives us the Net Domestic Product (NDP), which is the value of goods and services produced within a country's borders minus the value of depreciation. The other equations presented are not appropriate for determining NDP: - NDP = GNP - depreciation refers to Gross National Product (GNP), which includes the income earned by a country's citizens abroad. It does not relate directly to the calculation of NDP. - NDP = GDP + Net Income from abroad refers to Gross National Income (GNI), which is GDP plus net income from abroad. This equation does not account for depreciation, and does not provide a direct calculation of NDP. - NDP = GDP * Net Income from abroad is not a recognized equation for calculating NDP, and does not account for depreciation.

A country whose population size is too small relative to its resource is

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An underpopulated country is a country whose population size is too small relative to its resources. This means that the country has more resources than it has people to utilize them. As a result, the country may experience underutilization of resources and a lack of economic growth. An underpopulated country may also have a low labor force, which can lead to low productivity and slow economic growth.

Which of the following group of accounts make up the balance of payments?

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The correct answer is "Capital account; current account and monetary movement account". The balance of payments is a record of all the economic transactions between the residents of a country and the rest of the world over a given period of time. It has two main components: the current account and the capital account, and the monetary movement account is sometimes also included. The current account records trade in goods and services, income flows, and unilateral transfers, while the capital account records capital flows such as foreign direct investment and portfolio investment. The monetary movement account records changes in a country's monetary reserves. Therefore, the group of accounts that make up the balance of payments are the capital account, current account, and monetary movement account.

Which of the following is not a reason for holding money?

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The reason for holding money refers to the purpose or motive behind keeping money aside instead of spending it immediately. Ostentation is not a reason for holding money because it refers to the act of showing off wealth or possessions rather than actually holding on to money. Speculation is a reason for holding money because some people hold money in order to buy assets or investments that they believe will increase in value. Transactions is also a reason for holding money because people need money to carry out daily transactions such as buying goods and services. Precautionary is another reason for holding money because people may hold money in case of emergencies or unexpected expenses.

The public sector of an economy includes

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The public sector of an economy includes nationalized industries. These are businesses or organizations that are owned and operated by the government or state, and are responsible for providing essential goods and services to the public, such as healthcare, education, transportation, and utilities. Nationalized industries are different from joint stock companies, which are owned by private individuals or organizations, and cooperative societies, which are owned and operated by their members. Pressure groups, on the other hand, are organizations that seek to influence government policy or public opinion on a particular issue, but are not part of the public sector of the economy.

The best way of combating demand-pull inflation is to

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Demand-pull inflation occurs when there is too much demand for goods and services relative to the supply available, leading to a rise in prices. One of the best ways to combat this type of inflation is to reduce demand by reducing overall spending in the economy. Out of the options listed, the best way to combat demand-pull inflation would be to increase income taxes. This reduces disposable income, meaning people will have less money to spend on goods and services, which will reduce overall demand. On the other hand, reducing income taxes or increasing salaries and wages will increase disposable income and encourage spending, leading to higher demand and potentially worsening demand-pull inflation. Similarly, increasing import duties would only affect the prices of imported goods and not necessarily address the root cause of the inflation.

The following are examples of economic goods except

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An economic good is a product or service that has value and can be traded or sold in a market. It is something that people are willing to pay for because it satisfies a need or a want. Out of the options provided, the example of "air" is not an economic good because it is not scarce and has no economic value in most cases. While air is essential for life, it is generally available in abundance and free of charge. Therefore, it is not a product that people typically buy and sell in a market, and it is not considered an economic good. On the other hand, bottled water, household utensils, and shelter are all examples of economic goods because they have value, are scarce, and people are willing to pay for them to satisfy their needs and wants.

The reward to land as a factor of production is

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The reward to land as a factor of production is rent. Rent is the payment made to the owner of a piece of land or other natural resources for the use of that resource in the production of goods or services. It is a return on the natural resources which are not produced by humans but exist in nature, such as land, minerals, oil, and gas.

In which of the following ways has inflation adversely affected your country’s economy?

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Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. When there is inflation, the value of money decreases, and this can have adverse effects on an economy. One way inflation can adversely affect a country's economy is through a fall in real income. As prices increase, the purchasing power of individuals decreases, making it more difficult for them to afford goods and services. This can lead to a decrease in overall consumer spending, which can then lead to a decrease in business profits and employment opportunities. Additionally, if inflation is high and volatile, it can create uncertainty and unpredictability in the economy, making it difficult for businesses to plan for the future and make long-term investments. This can further harm economic growth and stability. Therefore, inflation can negatively impact an economy in a number of ways, including a fall in real income.

The slope of a supply curve is

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The slope of a supply curve is positive. A supply curve is a graphical representation of the relationship between the quantity of a good or service that a producer is willing to offer for sale and the price of that good or service. The slope of the supply curve indicates how much the quantity supplied changes when the price changes. In general, the higher the price of a good or service, the more the producer is willing to supply. Therefore, the supply curve slopes upward from left to right, indicating a positive slope.

Which of the following is not a member of the Economic Community of West African State (ECOWAS)?

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Cameroon is not a member of the Economic Community of West African States (ECOWAS). While Cameroon is located in West Africa, it is not geographically within the region defined as ECOWAS. Additionally, Cameroon is a member of the Economic and Monetary Community of Central Africa (CEMAC) which is a separate regional economic community in Africa.

Which of the following is a legal tender?

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Bank notes are a legal tender. Legal tender refers to any form of payment that is recognized by law as a means to settle a debt or financial obligation. Bank notes are issued by the central bank of a country and are considered to be a form of currency that is widely accepted as a means of payment for goods and services. This means that when you use bank notes to pay for something, the person you are paying must accept them as payment. Bank overdrafts, bills of exchange, and money orders are not legal tender. Bank overdrafts are a type of credit that allows you to spend more money than you have in your bank account, but they are not considered a form of payment. Bills of exchange are similar to checks and are used to transfer money between two parties, but they are not considered a legal tender. Money orders are a type of payment that can be used to transfer money, but they are not legal tender.

The wholesaler performs the following function except

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A component of the national debt of a country is

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The national debt of a country is the total amount of money that the government owes to its creditors. This includes all forms of government borrowing, such as selling treasury bills, bonds, and other securities. Therefore, the component of the national debt of a country is treasury bills.

Which of the following causes the demand curve to shift to the right?

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Goods for which demands rises as income rises are

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Goods for which demand rises as income rises are called normal goods. As consumers' income increases, they tend to purchase more of these goods. Examples of normal goods include luxury items such as expensive jewelry or high-end vehicles, as well as everyday items such as clothing and household appliances.

A decrease in supply with demand remaining unchanged will cause the equilibrium price for a good to

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If the supply of a good decreases while the demand for that good stays the same, there will be fewer goods available to satisfy the same level of demand. This creates a situation where buyers are willing to pay more for the limited supply of the good, which drives up the price. Therefore, the equilibrium price of the good will rise.

One advantage of the Sole Proprietorship over other forms of business organization is that it can

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The advantage of a Sole Proprietorship over other forms of business organization is that it allows the owner to keep their affairs private. This means that the owner does not have to share information about their business with anyone else, and they have complete control over how the business is run. Additionally, there is no requirement to share profits or decision-making power with anyone else, which can result in greater flexibility and autonomy for the owner. However, a Sole Proprietorship may not necessarily be the best option for every business, as it also has limitations in terms of raising capital and sharing liability.

Find the median of the following set of scores 8,9,6,5,10

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To find the median of a set of scores, we need to arrange the scores in order from lowest to highest. 6, 5, 8, 9, 10 The median is the middle value. In this case, the middle value is 8. Therefore, the answer is 8.

A firm is said to be a public joint stock company when it

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A firm is said to be a public joint stock company when it sells its shares to members of the public. In a public joint stock company, the capital of the firm is divided into shares, which are sold to members of the public. The shareholders are the owners of the company, and they share in the profits and losses of the company. The shares of a public joint stock company are traded on a stock exchange, and the value of the shares can fluctuate depending on the performance of the company. Unlike a private joint stock company, a public joint stock company is subject to more stringent regulatory requirements and is required to disclose more information to the public.

The sum of items divided by the number of items is the

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The sum of items divided by the number of items is called the mean. The mean is a type of average that is commonly used to describe a set of data. To find the mean, you add up all the values in the set and then divide by the total number of values. For example, if you have a set of three numbers - 2, 4, and 6 - the sum of these numbers is 12. Dividing 12 by 3 (the number of items) gives you a mean of 4. This means that the average value in this set of numbers is 4. The mean is a useful tool for summarizing data because it gives you an idea of what the typical value in a set of numbers is.

The law of diminishing marginal utility state that, the more a commodity is consumed the

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The law of diminishing marginal utility states that the more a commodity is consumed, the lower the rate of increase in the total utility derived from it. In simpler terms, it means that as you consume more of a good, the additional satisfaction or utility you get from consuming each additional unit will decrease. For example, if you eat one slice of pizza, you may really enjoy it and get a lot of satisfaction. But if you eat five slices, you may not enjoy the last slice as much as the first slice, and may even start feeling sick. This is because the marginal utility of each additional slice of pizza decreases as you consume more of them.

A tent-making factory offers

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A tent-making factory offers indirect services. This means that they produce a product, which in this case is tents, that can be used by customers for various purposes such as camping, outdoor events, or shelter. The factory does not provide personal services, such as tailoring or customization of the tents for individual customers. They also do not offer social services or reflex services, which are typically related to healthcare or personal care.

A country's balance of payment is deficit when

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A country's balance of payment is deficit when its total payment for visible and invisible imports are greater than its total receipts from its exports of visible and invisible goods. In other words, the country is spending more on buying goods and services from other countries than it is earning from selling its own goods and services to other countries. This leads to a negative balance of payment, which indicates a deficit.

The following are all factors determining the location of industry except

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The minimum wage rate is not a factor determining the location of industry. Minimum wage is the minimum amount of money that employers are required by law to pay their workers for the work they do. Although it is an important consideration for businesses in terms of managing costs, it is not a factor that would determine where to locate a business. The other three factors mentioned are all important considerations for determining the location of an industry. Availability of labour is important because businesses need access to a skilled workforce to operate efficiently. Nearness of raw materials is important because it reduces transportation costs and ensures a reliable supply chain. Proximity to the market is important because it reduces transportation costs and ensures that products can be delivered to customers in a timely and cost-effective manner.

Which of the following over estimates the value of national income?

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Double counting overestimates the value of national income. Double counting occurs when the value of an intermediate good is included in the value of the final good. It leads to an overestimation of the national income as the value of the intermediate good is counted more than once. For example, if the value of the car is included in both the value of the tires and the value of the car, it leads to double counting and an overestimation of national income.

If TC, FC and VC represent total cost, fixed cost and variable cost respectively, which of the following is correct?

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The correct option is: TC = FC + VC. Total cost (TC) is the sum of fixed cost (FC) and variable cost (VC). Fixed costs are those costs that remain constant irrespective of the level of production, such as rent, salaries, and insurance. Variable costs, on the other hand, vary with the level of production, such as the cost of raw materials, labor, and energy. Therefore, the total cost of producing a certain quantity of goods or services is the sum of these two costs. So, the equation that correctly represents the relationship between total cost, fixed cost, and variable cost is TC = FC + VC.

At the highest level of total utility, marginal utility is

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At the highest level of total utility, the marginal utility is zero. This is because total utility is the sum of marginal utilities, and when marginal utility reaches zero, it means that the consumer has reached the highest level of satisfaction they can derive from consuming that particular good or service. After this point, any additional units consumed will not increase the total utility, hence the marginal utility is zero. Therefore, the answer is option D: zero.

All the following are source of finance to a joint stock company except

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The answer to the question is "cooperative loans." A joint-stock company can raise funds through the issuance of shares, debentures, and bank loans. However, cooperative loans are not a source of finance to a joint-stock company. Cooperative loans are usually provided to cooperative societies, not joint-stock companies. Cooperative societies are different from joint-stock companies in terms of their ownership structure and operations. Cooperative societies are owned and operated by their members, while joint-stock companies are owned by shareholders who may not be involved in the day-to-day operations of the company. Therefore, cooperative loans cannot be a source of finance to a joint-stock company.

When the demand for a good is fairly inelastic, the burden of an indirect tax falls

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When the demand for a good is fairly inelastic, it means that consumers are not very sensitive to changes in the price of the good. In this case, if the government imposes an indirect tax on the good, the burden of the tax will mostly fall on the consumers of the good. This is because consumers will continue to buy the good even if the price increases due to the tax, and therefore will end up paying most of the tax. The sellers may bear some of the burden of the tax if they are unable to pass on the entire tax to consumers in the form of a higher price. However, since the demand is fairly inelastic, they will be able to pass on most of the tax to consumers. Therefore, the correct answer is "more on the consumers of the goods".

Which of the following does not explain why a school principal earns more salary than a school messenger?

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Dumping means the selling of a good in a foreign market at a price that is

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Dumping means selling a product or good in a foreign market at a price that is below the home market price. In other words, it is selling a product at a price that is lower than what it is sold for in its domestic market. This practice can lead to various economic effects, such as anti-dumping laws and retaliatory measures by the affected country to protect its industries.

The following are advantages of large scale agriculture except

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Large scale agriculture has various advantages, including the use of sophisticated implements, an increase in employment, and integration of crops and animal farming. However, the use of simple implements is not an advantage of large scale agriculture. In fact, large scale agriculture often requires the use of advanced machinery and equipment to increase efficiency and productivity. The use of simple implements may be associated with small scale agriculture, which has its own set of advantages and disadvantages.

(a) What is a partnership? [4 marks) 
(b) State any two advantages and any two disadvantages of a partnership [16 marks]

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None

 With an appropriate illustration, explain the circumstance in which an increase in output of a producer would 
(a) decrease his sales revenue [10 marks] 
(b) increase his sales revenue [10 marks} 
 

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None

(a) What is a commercial bank? [4 marks] 
(b) Describe any four ways by which the Central Bank controls the amount of credit given by the commercial bank [16 marks] 

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None

(a) What is privatization? [4 marks] 
(b) Give four reasons for government participation in economic activities in your country [16 marks]

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None

(a) Explain the function of money as a (i) measure of value [5 marks] (ii) store of value. [5 marks] 
(b)Show how inflation affects these two functions of money [10 marks] 

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None

(a) Explain with examples the following types of production (i) Primary [4 marks] (ii) Secondary [4 marks] (iii) Tertiary [4 mark] 
(b) Give two reasons why primary production pre-dominates in developing countries [8 marks] 

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None

(a) Define increase in supply. [4 marks] 
(b) With the aid of diagrams, explain the effect of an increase in the supply of fish on the price of beef [16 marks] 

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None

(a) Distinguish between location of industries and localization of industries [5 marks] 
(b) Describe any three advantages and any two disadvantages of locating industries in rural areas [15 marks] 

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None

The table below represents a travellers's consumption of bottles of Coca-Cola. Study the table carefully and answer the questions that follow. 
 

(a) Complete the missing figures D, E, F, G and H (5 marks) 
(b) Draw the demand curve for the traveler's consumption of Coca-Cola. (The use of a graph sheet is essential) [10 marks] 
(c) Explain the law of diminishing marginal utility as the basis for the slope of the traveler's demand curve. [5 marks]

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None

The table below represents the cost function of a poultry farm. The price of a crate of egg is $21. Use the information contained in the table to answer the questions that follow. 
 

(a) What Is the fixed cost of the farm? (2 marks]
(b)(i) Calculate the marginal cost at each level of output. [9 marks] 
(ii) What is the profit maximizing output of the farm? [3 marks]
(c) Draw the demand curve for the farm. [6 marks]. 
 

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None

(a) What is the equilibrium of a consumer? [5 marks] 
(b) Explain how a consumer attains equilibrium in spending his income. [15 marks] 

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None

(a) What is incidence of taxes? [4 marks] 
(b) Explain any four principles of taxation [16 marks] 

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None