2015 - WAEC Economics Past Questions and Answers - page 4

31

In national income accounting, the term net is used to indicate that a value

A
includes income of foreigners
B
includes income of citizens
C
includes depreciation
D
excludes depreciation
correct option: b

In national income accountingnet national income (NNI) is net nationalproduct (NNP) minus indirect taxes. Net national income encompasses theincome of households, businesses, and the government.

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32

which of the following best describes token money?

A
money in the vaults of commercial banks
B
currency and coins in circulation
C
money with face value higher than its material content
D
coins and notes made of poor quality material
correct option: c

token money; money where the face value of notes or coins is unrelated to the value of the material of which they are composed. In economics, Token money, or Token, is money that has little intrinsic value compared to its face value.

The token is a small amount of money (compared to the market value of theproperty) that has to be paid by the buyer as an indication of serious intent to purchase a property.

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33

In developing countries, a larger percentage of the labour force is employed in the

A
trade sector
B
tertiary sector
C
primary sector
D
secondary sector
correct option: c

primary sector; the sector of the economy concerned with or relating to primary industry. Examples include mining, quarrying, farming, fishing and forestry, all of which produce raw materials that can be processed in to a finished product. 

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34

An industry is best described as 

A
firm that sells a set of closely related commodities
B
A. industrial concern that is into production and selling of goods
C
B. a factory that produces different lines of product
D
C. a group of firms that sells a closely related set of products
correct option: c

An industry; economic activity concerned with the processing of raw materials and manufacture of goods in factories.

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35

The main item traded on a stock exchange market is 

A
treasury bills
B
travellers cheque
C
foreign currencies
D
new shares
correct option: d

In financial markets, a share is a unit used as mutual funds, limited partnerships, and real estate investment trusts. The owner of shares in the corporation/company is a shareholder of the corporation. A share is an indivisible unit of capital, expressing the ownership relationship between the company and the shareholder

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36

The proportion of commercial banks' total assets kept in the form of highly liquid assets is known as 

A
demand deposit
B
fixed deposit
C
cash ratio
D
moral suasion
correct option: a

Demand deposit; is a deposit of money that can be withdrawn without prior notice, e.g. in a current account.  A demand deposit is money that you deposit into a bank account from which you can withdraw on demand, at any time, without any advance notice to the bank.

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37

which of the following is not an objective of economic planning

A
need to direct economic development of the country towards the desired direction
B
desire to ensure a sustained cultural development of the country
C
desire to widen the gap between developing countries and the developed world
D
management of scarce resources in the face of unlimited wants of the citizens
correct option: c

Economic planning  consist of economic decisions, schemes formed to meet certain pre-determined economic objectives and a road map of directions to achieve specific goals within specific period of time.By the conscious decisions of Central and State Government, based on in-depth study of the existing and potential resources of a country through surveys and a careful study of the needs of the people the planning takes place.

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38

In order to control inflation, the government should

A
reduce the cost of borrowing
B
buy securities in the open market
C
adopt restrictive monetary policy
D
discourage savings
correct option: c

One popular method of controlling inflation is through a contractionary monetary policy. The goal of a contractionary policy is to reduce the money supply within an economy by decreasing bond prices and increasing interest rates.

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39

when the demand for foreign exchange exceeds its supply, the value of the domestic currency 

A
appreciates
B
depreciates
C
remains inchanged
D
expands
correct option: b

 if the demand for a foreign currency exceeds its supply, the exchange rate will increase rate will increase. This will cause the local currency to suffer. because more of the local currency will be used to exchange for less of the foreign currency

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40

The export of west A frican countries are mostly composed of

A
service
B
raw materials
C
manufactured goods
D
consumer goods
correct option: b

A raw material, also known as a feedstock, unprocessed material, or primary commodity, is a basic material that is used to produce goods, finished products, energy, or intermediate materials which are feedstock for future finished products.As feedstock, the term connotes these materials are bottleneck assets and are highly important with regard to producing other products.

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