2014 - WAEC Economics Past Questions and Answers - page 3
Increase in supply due to changes in plant size will take place only in the
The long run is a period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all costs, whereas, in the short run, firms are only able to influence prices through adjustments made to production levels
The long - run average cost curve is made up of several short-run
The long-run average cost (LRAC) curve shows the firm's lowest cost per unit at each level of output, assuming that all factors of production are variable. The LRAC curve assumes that the firm has chosen the optimal factor mix, as described in the previous section, for producing any level of output.
Co-operative societies formed to market the output of their members are called
Marketing Co-operatives: They are voluntary associations of producers formed with the objective of ensuring a steady market for the output of members. Marketing Co-operatives are especially suitable for marketing of agricultural products.
Money will serve as a standard of deferred payment if it is
standard of deferred payment is a function of money. It is the function of being a widely accepted way to value a debt, thereby allowing goods and services to be acquired now and paid for in the future. For it to serve this purpose, it has to be able to retain its value overtime.
Which of the following will increase the nominal value of national income?
'Nominal' value of national income can be found by multiplying the quantity of output by the retail (market) price of this output. INcrease in the level of production, will increase the norminal value of national income which is the monetary value of outputs. But If demand increases at an unsustainable rate, resources become increasingly scarce, and firms will raise prices.
Cyclical unemployment is one associated with
Cyclical unemployment is unemployment that results when the overall demand for goods and services in an economy cannot support full employment. Cyclical unemployment is when workers lose their jobs because of downturns in the business cycle.
Which of the following best defines inflation?
Inflation is the persistent increase in the prices of goods and services over time.
Perfect knowledge of events in a perfect market will be made possible by the existence of
In a perfectly competitive market, there are many buyers and many sellers. In fact, the number of buyers and sellers is effectively infinite. This alows for the free flow of information in the market
An increase in the price of a commodity from $10 to $ 15 leads to an increase in the quantity supplied from 10 units to 15 units. The price elasticity of supply is
The price elasticity of supply = % change in quantity supplied / % change in price. When calculating the price elasticity of supply, economists determine whether the quantity supplied of a good is elastic or inelastic.
change in price = 10 - 15 = 5
change in quantity = 10 - 15 = 5
5 ÷ 5 = 1