WAEC SSCE - Economics - 2017

in an industrial area, the location of industries is particularly influenced by ?

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In an industrial area, the location of industries is particularly influenced by several factors, including: 1. Access to raw materials: Industries often locate near sources of raw materials to reduce transportation costs and increase efficiency. 2. Access to markets: Industries may locate near markets to reduce the cost of getting products to customers and to take advantage of local demand. 3. Access to transportation: Good transportation links, such as roads, ports, and airports, are important for getting products to market and for accessing raw materials and inputs. 4. Availability of skilled labor: Industries may locate near areas with a skilled workforce to reduce recruitment and training costs. 5. External economies: External economies refer to the benefits that a company can enjoy from being located near other businesses, such as lower costs for inputs, access to specialized services, and a larger pool of potential employees. 6. Nearness to financial institutions: Being close to financial institutions can make it easier for companies to access capital for investment and expansion. 7. Cost of land and other inputs: The cost of land and other inputs, such as electricity and water, can also influence the location of industries. Companies may choose to locate in areas where these costs are lower.

price elasticity of supply can be influenced by the following factors except?

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The price elasticity of supply refers to how much the quantity supplied of a product changes in response to a change in its price. Some factors that can influence the price elasticity of supply include the time period, cost of production, and nature of the product. However, the size of consumer income does not affect the price elasticity of supply. Consumer income is a factor that can influence the demand for a product, but it has no direct impact on how much producers are willing and able to supply at different prices. For example, if the price of oranges increases, the quantity supplied by orange farmers may not immediately increase because they need time to plant more trees, wait for the trees to mature, and harvest the fruit. Thus, the time period can influence the price elasticity of supply. Similarly, if the cost of producing oranges increases due to a drought or pest infestation, the price elasticity of supply may decrease because farmers may be less willing and able to supply oranges at higher prices. Finally, the nature of the product can also influence the price elasticity of supply. For example, if oranges are the only fruit that can be used to make a popular juice, the price elasticity of supply may be low because there are no close substitutes that producers can switch to if the price of oranges increases. In summary, while the time period, cost of production, and nature of the product can influence the price elasticity of supply, the size of consumer income has no direct impact on how much producers are willing and able to supply at different prices.

if a state owned firm is sold through the stock market, the organisation becomes?

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If a state-owned firm is sold through the stock market, the organization becomes a public limited company or a PLC. A public limited company is a type of company that has its shares available for public purchase and is owned by shareholders who hold a portion of the company's equity. When a state-owned firm is sold through the stock market, the government relinquishes its ownership of the company, and the company is no longer a public corporation or state-owned enterprise. Instead, it is run by a board of directors who are elected by the shareholders, and the company is obligated to disclose its financial information to the public. Becoming a PLC has several advantages, such as access to additional capital through the sale of shares, increased marketability, and better ability to attract investors. However, it also comes with increased scrutiny from regulatory bodies and requires compliance with certain regulations. In summary, selling a state-owned firm through the stock market transforms the organization from a public corporation into a public limited company, owned by shareholders who can buy and sell shares in the open market.

which of the following items is not an example of circulating capital

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in a market economy, the problem of what goods to produced is solved primarily by

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In a market economy, the problem of what goods to produce is primarily solved by the pattern of consumers spending. This means that the decisions about what goods and services to produce are driven by what consumers are willing to buy. If people are buying a lot of a certain product, then producers will likely increase production of that product to meet the demand. On the other hand, if people are not buying a particular product, then producers may stop making that product or reduce its production. In this way, the market economy is driven by the choices and preferences of consumers, and producers respond to that demand.

The amount of money that a firm recieves from the sales of its output is called

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The amount of money that a firm receives from the sales of its output is called total revenue. Total revenue is the sum of all the money a firm earns from selling its products or services. It is calculated by multiplying the price of the product by the quantity sold. For example, if a company sells 100 units of a product at $10 each, their total revenue would be $1,000. Total revenue is important because it represents the income that a company generates from its sales. This revenue can be used to cover the costs of producing the product, pay for operating expenses, and generate a profit. Without total revenue, a company would not be able to sustain its operations or grow its business. Therefore, it is important for firms to track their total revenue and make sure it is sufficient to cover their costs and achieve their goals.

if the weight of five puppies in kilograms are 3.5, 3.0, 4.2, 5.0 and 4.3, then mean weight of the puppies is?

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To find the mean weight of the five puppies, you need to add up their weights and divide the total by the number of puppies. So, adding up the weights of the five puppies: 3.5 kg + 3.0 kg + 4.2 kg + 5.0 kg + 4.3 kg = 20 kg Then, dividing by the number of puppies (which is 5): 20 kg ÷ 5 = 4.0 kg Therefore, the mean weight of the five puppies is 4.0 kg.

which of the following is a threat to the existence of middlemen

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The existence of middlemen, who act as intermediaries between producers and consumers, is threatened by the establishment of consumers and producers cooperative societies. Cooperative societies allow consumers and producers to bypass middlemen, as they work together to market and distribute goods directly between themselves. By doing so, they eliminate the need for middlemen, who may take a portion of the profit for themselves. Consumers cooperative societies are formed by groups of consumers who band together to purchase goods in bulk, which allows them to negotiate better prices directly with producers. Producers cooperative societies are formed by groups of producers who come together to pool their resources and collectively market their products, which can lead to greater bargaining power and access to larger markets. Sales agents and large scale producers may also pose a threat to the existence of middlemen, as they have the resources and marketing power to bypass intermediaries and deal directly with producers and consumers. However, cooperative societies are a particularly potent threat to middlemen as they represent a collective effort by producers and consumers to work together, rather than being reliant on individual sales agents or large scale producers.

Which of the following resources is renewable

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Rice is a renewable resource. This means that it can be grown and harvested again and again, as long as the right conditions are met, such as suitable soil, water, and climate. Coal, iron ore, and limestone are not renewable resources. They are finite resources that take millions of years to form, and once they are extracted and used, they cannot be easily replenished.

which of the following is most likely to be of benefit to a debtor

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which of the following is trueof the monopolist

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when a firm is enjoying internal economies of scale, its?

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When a firm is enjoying internal economies of scale, it means that the average cost of production decreases as the output increases. In other words, the cost of producing each unit of the product goes down as the firm produces more of it. This happens because the firm can take advantage of factors such as specialization, division of labor, and bulk purchasing to increase efficiency and reduce costs. Therefore, option C is the correct answer. The other options are not consistent with the concept of internal economies of scale.

increase in the supply of a product can be caused by?

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An increase in the supply of a product means that there are more units of the product available for sale. This can be caused by various factors, but one of the most common reasons is a fall in the cost of production. When the cost of production decreases, producers can afford to produce more units of the product, which increases the supply. Other factors that can lead to an increase in supply include an increase in the income of consumers, which can lead to higher demand for the product and hence more production, and changes in taste and fashion of consumers, which can create new demand for a product. However, an increase in the price of a product usually does not directly cause an increase in supply. Instead, it can lead to an increase in production in the short term, but if the price increase is not sustainable, the supply may decrease in the long run.

Effective supply is the total amount of a commodity 

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Effective supply is the total amount of a commodity "offered for sale at a market place". It represents the actual quantity of a product or service that producers are willing and able to sell at a given price and at a given point in time. Effective supply takes into account the production capacity of producers, their willingness to sell their products, and the prevailing market conditions such as the price level and demand for the product. The effective supply of a commodity reflects the real availability of the product in the market and is a critical factor that affects its price and quantity sold. Therefore, effective supply refers to the total amount of a commodity that is available for sale in a given market at a given time.

The system of agriculture which involves the cultivation of crops and rearing of animals for family consumption only is termed?

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The system of agriculture which involves the cultivation of crops and rearing of animals for family consumption only is known as subsistence farming. In subsistence farming, farmers grow crops and raise animals mainly to feed their families, with little or no surplus for sale. Subsistence farming is common in rural areas, where farmers may not have access to modern farming technologies and may lack the resources to invest in large-scale commercial farming. It is a traditional way of life that has been practiced for centuries in many parts of the world. Subsistence farming is often characterized by small-scale farms, the use of traditional and manual farming techniques, and a focus on growing crops that are well-suited to the local climate and soil conditions. While it can provide food security for families, it may not be a reliable source of income or a sustainable form of agriculture in the long term.

A measure of the value of money in an economy is the

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A measure of the value of money in an economy is the general price level. The general price level refers to the average level of prices for goods and services in an economy over time. It is a measure of how much money is required to purchase a certain basket of goods and services. In other words, it is a measure of the purchasing power of money in an economy. If the general price level is high, it means that goods and services are more expensive, and the purchasing power of money is low. On the other hand, if the general price level is low, it means that goods and services are relatively cheaper, and the purchasing power of money is high. Therefore, the general price level is an important measure of the value of money in an economy.

Economics is regarded as a science because?

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Economics is considered a science because it uses scientific methods to study and understand economic behavior and systems. This includes collecting data, analyzing data, forming hypotheses, and testing theories through empirical evidence. By using a systematic and objective approach, economists can make predictions and draw conclusions about the economy and how it functions, which can be verified by reference to facts. Additionally, the subject matter of economics, which is the behavior of individuals and organizations in the market, is also a key factor in its classification as a science.

Infant industries can be described as?

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Infant industries can be described as newly established industries. An infant industry is a term used to describe a young and developing industry that is in its early stages of growth. These industries are often in need of support and protection in order to compete with more established industries. This support can come in the form of government subsidies, tax breaks, or other forms of assistance. The goal is to help these industries grow and mature, so that they can eventually compete on their own in the global market. In simple terms, an infant industry is a new and developing industry that needs support to grow and succeed.

one objective of organisation of patroleum exporting countries (OPEC) is to?

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One objective of the Organization of the Petroleum Exporting Countries (OPEC) is to harmonize and stabilize oil prices. OPEC is an intergovernmental organization made up of countries that are major oil producers. The organization's main goal is to regulate the supply of oil in order to maintain stable and predictable oil prices. This is done by setting production quotas for member countries and coordinating their oil production policies. By controlling the supply of oil, OPEC aims to prevent sharp price swings and ensure stability in the global oil market.

the opportunity cost of a worker going to the university  is

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The opportunity cost of a worker going to the university is the wages given up to attend the university. This means that instead of working and earning a wage, the worker is choosing to attend the university and forgo their wages for that time period. The opportunity cost of going to university is the best alternative use of the worker's time, which in this case is their wage earning potential.

Equity shares form the bulk of the capital of a?

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Equity shares form the bulk of the capital of a public company. A public company is a type of business that is owned by shareholders and is traded on stock exchanges. The shareholders own equity shares in the company, which represent a claim on the company's profits and assets. These equity shares are used to raise capital for the company, and they form the bulk of the company's financing. In simple terms, a public company is financed primarily through the sale of equity shares to the public.

Another term for equilibrium price is?

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Another term for equilibrium price is market clearing price. Market clearing price refers to the price at which the quantity of a good or service supplied is equal to the quantity demanded. In other words, it is the price where there is no excess supply or excess demand in the market. At this price, all buyers who want to purchase the product at that price are able to do so, and all sellers who want to sell at that price are able to find buyers. This is the price that balances the market, hence it is called the market clearing price or the equilibrium price.

one of the major functions of money is?

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One of the major functions of money is to serve as a medium of exchange. This means that money is used as a way to facilitate transactions between people, businesses, and governments. Instead of having to barter goods or services directly with each other, people can use money to buy and sell goods and services. Money makes transactions easier because it is widely accepted and recognized as a means of payment. Without money, transactions would be much more difficult and time-consuming, which would make it harder for people to get the things they need and want.

Direct taxes include?

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Direct taxes are taxes that are levied on individuals and organizations based on their income, profits, or wealth. Examples of direct taxes include: - Income tax: This is a tax that is imposed on individuals and businesses based on their income or profits. - Capital gains tax: This is a tax on the profits earned from the sale of assets such as property, stocks, and bonds. - Wealth tax: This is a tax on the net worth of individuals, which includes their assets minus their liabilities. - Property tax: This is a tax on the value of real estate, such as land and buildings. Direct taxes are usually progressive, meaning that individuals with higher income or wealth pay a larger proportion of their income in taxes than those with lower income or wealth. Direct taxes are different from indirect taxes, which are taxes on goods and services, such as excise duty, ad valorem tax, and specific tax.

which of the following is an implication  of a large population

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The control of aggregate demand through changes in government spending and tax rates is referred to as?

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The control of aggregate demand through changes in government spending and tax rates is referred to as "fiscal policy." Fiscal policy is a tool that governments use to influence the economy by changing the amount of money they spend on public services and infrastructure, as well as the amount of money they collect in taxes from individuals and businesses. By adjusting government spending and taxation levels, policymakers can influence the level of economic activity in the short-term, which can have an impact on economic growth, inflation, and unemployment rates.

which of the following terms of trade is recorded in a country's current account section of the balance of payments

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The term of trade recorded in a country's current account section of the balance of payments is investment income. Investment income refers to the income earned by a country on its foreign investments, such as interest and dividends from foreign stocks and bonds. This type of income is recorded in the current account because it represents a flow of money in and out of the country in the short term, rather than a long-term investment. Foreign direct investment refers to a company or individual investing in and managing operations in a foreign country, rather than just investing in foreign stocks or bonds. Long-term capital flows refer to the movement of money into or out of a country for investment purposes over a longer period of time. Long-term loans refer to loans made for a period of more than one year.

a rational consumer will purchase a product whose price is?

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Modern international trade is based on the principle of?

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Modern international trade is based on the principle of comparative advantage. This principle states that countries should specialize in producing the goods and services they are relatively more efficient at producing, and then trade with other countries to obtain the goods and services they are relatively less efficient at producing. This allows for a more efficient allocation of resources and leads to increased economic growth and higher standards of living for all countries involved in trade. The idea is that even if one country is more efficient at producing all goods, it still benefits from specializing in the goods it is relatively more efficient at producing and trading for the goods it is relatively less efficient at producing. Terms of trade refer to the relative price of exports to imports, while balance of trade refers to the difference between a country's exports and imports. Both of these concepts are related to international trade, but comparative advantage is the underlying principle that guides modern international trade.

A demand curve parallel to the Y-axis indicates

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A demand curve that is parallel to the Y-axis indicates a perfectly inelastic demand. In this case, changes in the price of a product do not affect the quantity demanded by consumers at all. No matter what the price of the product is, consumers will always buy the same amount. For example, let's consider insulin, a life-saving medication for people with diabetes. The demand for insulin is likely to be perfectly inelastic because people with diabetes require a certain amount of insulin to survive, and they are willing to pay whatever price is necessary to obtain it. In contrast, if a demand curve is steep and close to the Y-axis, it indicates a perfectly elastic demand, where consumers are highly sensitive to changes in price, and a small change in price can lead to a large change in the quantity demanded. The other two options, fairly elastic and fairly inelastic demand, refer to demand curves that are less extreme than perfectly elastic or perfectly inelastic. A fairly elastic demand curve indicates that consumers are somewhat sensitive to changes in price, while a fairly inelastic demand curve indicates that consumers are somewhat less sensitive to changes in price.

one problem facing the economic integration of countries in west Africa is the

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One problem facing the economic integration of countries in West Africa is the uneven development among West African countries. Economic integration involves the creation of a common market that allows for the free movement of goods, services, and labor across borders. However, this can be difficult to achieve when there are significant differences in economic development between countries. Developed countries may have a comparative advantage over less developed countries, making it difficult for the less developed countries to compete. This can lead to trade imbalances and unequal distribution of benefits from economic integration. In addition, uneven development can make it difficult to establish common regulations and policies, which are necessary for successful economic integration.

The difference between demand and wants is in the

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The difference between demand and wants is in the ability to pay for the commodity. Demand refers to the willingness and ability of consumers to buy a certain product or service at a given price. It is the quantity of a product or service that consumers are willing and able to buy at a specific price point. Wants, on the other hand, refer to the desire for a product or service. Consumers may want a wide range of products and services, but not all of these wants translate into actual demand because they may not have the means to pay for them. So, the difference between demand and wants lies in the ability to pay for the commodity. If a consumer has the means to pay for a product or service, their want becomes demand. If they do not have the means, their want remains just that, a want.

The total number of people of working age who are willing and prepared to work at a given wage rate is the 

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A rightward shift in the supply curve of a commodity is brought about by an increase in?

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Dumping in international occurs when a foreign firm sells

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Dumping in international trade occurs when a foreign firm sells goods at a price that is below their cost of production in the foreign market. This can harm domestic producers by making it difficult for them to compete with the lower prices of the foreign firm. Dumping can also lead to oversupply in the market, which can depress prices and reduce profits for all producers in the industry. Some countries may impose anti-dumping measures to protect their domestic industries from this practice.

parallel markets are usually the results of 

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which of the following is not a feature of economic underdevelopment 

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High productivity is not a feature of economic underdevelopment. Economic underdevelopment is a situation where a country experiences a low level of economic growth and development, which leads to poverty, limited access to essential services, and a low standard of living for its citizens. A monocultural economy is one where the country relies heavily on one type of export or industry, making it vulnerable to external economic shocks. Low life expectancy is often associated with economic underdevelopment due to limited access to healthcare, nutrition, and sanitation. Income inequality is also a common feature of underdeveloped economies, where a small proportion of the population has access to the majority of resources and wealth. In contrast, high productivity is an indicator of economic development as it signifies that the country is efficiently using its resources to produce goods and services. High productivity is associated with higher economic growth, job creation, and an overall improvement in the standard of living.

which of the following can be added to a firm's profit to obtain total revenue

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Total revenue is the total amount of money a firm receives from selling its products or services. To calculate total revenue, you need to add up all the money earned from selling each unit of the product or service. Therefore, the only option that can be added to a firm's profit to obtain total revenue is "total revenue" itself. Total variable cost, total fixed cost, and marginal cost are not directly related to total revenue but are used to calculate profit.

the value added method used in measuring national income is to 

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which of the following is an example of derived demand

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Labour is an example of derived demand. Derived demand refers to the demand for a product or service that arises from the demand for another product or service. In the case of labour, the demand for workers arises from the demand for the goods or services they produce. For example, a factory may require a certain number of workers to produce a certain number of goods. The demand for those workers is therefore derived from the demand for the goods they produce. In contrast, a textbook, staple food, or mobile phone are not examples of derived demand because they are products that are demanded directly by consumers, rather than being demanded as a result of the demand for another product or service.

A civil engineer who accepts to teach elementary science in a primary school because he cannot get a paid engineering job is an example of?

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This situation can be referred to as "structural unemployment." Structural unemployment occurs when there is a mismatch between the skills that workers have and the skills that employers need. In this scenario, the civil engineer is unable to find a job in their field of expertise and has to take up a different job, which is teaching elementary science. This means that the engineer's skills are not in demand in the engineering field, leading to structural unemployment.

The function that distinguishes commercial banks from the central bank is that the former 

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Commercial banks are financial institutions that accept deposits from the public and use those funds to provide loans and other financial services to individuals and businesses. On the other hand, the central bank is a government-owned institution that oversees the banking system and manages the country's money supply. The central bank is also responsible for implementing monetary policy, regulating the foreign exchange market, and serving as a lender of last resort for commercial banks in times of financial crisis. So, the main difference between commercial banks and the central bank is that commercial banks accept deposits from the public and provide loans, while the central bank manages the country's money supply and regulates the banking system.

if the coefficient of cross elasticity of demand for goods Y and Z is positive, the two goods are?

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If the coefficient of cross elasticity of demand for goods Y and Z is positive, this indicates that the two goods are substitutes. This means that if the price of good Y increases, the demand for good Z will increase as consumers switch from good Y to good Z, and vice versa. For example, if the price of coffee (good Y) increases, some consumers may switch to tea (good Z) instead, causing an increase in the demand for tea. Conversely, if the price of tea increases, some consumers may switch to coffee instead, causing an increase in the demand for coffee. Therefore, the two goods are substitutes.

which of the following is a threat to the existence of middlemen

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the negative effects of mining in wast A frica does not include?

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The negative effects of mining in West Africa do not include reafforestation in rural communities. Reafforestation refers to the process of planting trees in areas where forests have been destroyed or removed. Although it is an important practice for restoring ecosystems, it is not directly related to the negative effects of mining. However, mining activities in West Africa can lead to other negative effects, such as land degradation, destruction of farmlands, and pollution of water bodies. Land degradation refers to the deterioration of the quality of land due to human activities, such as mining. Destruction of farmlands can result in loss of livelihood for farmers and food insecurity for communities. Pollution of water bodies can lead to health problems for people who depend on the water for drinking, fishing, and other activities.

one way of speeding up the economic development of a country is by encouraging

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One way of speeding up the economic development of a country is by encouraging savings and investment. Savings refers to the portion of income that is not spent on consumption and instead put away for future use. Investment, on the other hand, refers to the use of saved money to create new businesses, expand existing ones, or fund infrastructure projects. Encouraging savings and investment can stimulate economic growth by providing funds for businesses to grow and create more jobs. This, in turn, increases the income and purchasing power of individuals, leading to increased consumption of goods and services. In contrast, encouraging the consumption of consumer goods or importing more consumer goods may provide short-term benefits by increasing demand for products, but this can be unsustainable and may result in negative consequences such as inflation or trade imbalances. Early marriage, on the other hand, is not directly related to economic development and may have negative social and economic consequences, such as limiting educational opportunities and increasing poverty.

which of the following is a transfer income

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Out of the options given, pensions are a transfer income. A transfer income is a payment received by an individual or household that is not in exchange for any current goods or services. Instead, it is a transfer of income from one party to another. Pensions are a type of transfer income because they are typically provided by the government or an employer as a retirement benefit to eligible individuals. The payment received by the retiree is not in exchange for any current work or services, but rather it is a transfer of income from the pension provider to the retiree. Dividends, rent, and interest, on the other hand, are not transfer incomes. Dividends are a distribution of profits from a company to its shareholders, and they are paid in exchange for owning shares in the company. Rent is a payment made by a tenant in exchange for the use of a property. Interest is a payment made by a borrower in exchange for borrowing money from a lender.

The specialization of labour enhances production because people?

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A dealer in deep freezers increased the price of his product from $450 to $500 and sales dropped from 800 units to 600 units a week. 
Use the information above to answer the questions that follow.
(a)(i) Calculate the price elasticity of demand
(ii) What type of elasticity is it? Explain your answer

(b)Calculate the (i) total revenue of the company before and after price increase; (ii) change in total revenue. 

(c) What is the effect of the increase in price on the total revenue?

(d) State two factors influencing price elasticity of demand. 

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 (a) State two features each of: (i) free trade area; (ii) common markets.

(b) outline two advantage and two disadvantage of a common market.

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 (a) What is economic development?

(b) State three features of a developing country.

(c) Explain any four factors that can speed up the economic development of your country.

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(a) State two features each of:
(i) perfect competition; (ii)monopolistic competition.

(b) What does it mean for a firm to be a : (i) price taker; (ii)price maker?

(c) Explain the following sources of monopoly power: (i) acts of parliament; (ii) copyright; (iii) natural monopoly; (iv) cartel

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 (a) Define land as a factor of production.

(b) State three features of land.

(c) Explain four ways in which land contributes to the economic development of your country

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 (a) Define inflation.

(b) Identify any three causes of: (i) demand-pull inflation; (ii) cost-push inflation .

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The market for apples is represented by the following demand and supply functions:
Qd = 30 - p;
Qs = 15 + 2p.
(a) Prepare a demand and supply schedule for the market, given the prices $2.00, $4.00 and $7.00.

(b) (i) Determine the equilibrium price and equilibrium quantity of apples in the market.
(ii) If the price of apple is fixed at $3.00, what will be the excess demand or excess supply.
(c) Suppose the demand function changed to Qd = 40 - p. Using the prices in (a) above:
(i) prepare a new demand schedule;
(ii) does it represent an increase or a decrease in demand?
(iii) explain your answer in (c) (ii) above. 

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 (a) What is subsistence farming?

(b) Distinguish between crop farming and livestock farming with specific examples.

(c) Identify four measures that the government of your country can adopt to boost agricultural production.

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