2016 - WAEC Economics Past Questions and Answers - page 3

21

In a partnership, the conduct of members is guided by

A
a memorandum of understanding
B
the article of partnership
C
an article of association
D
a partnership constitution
correct option: b

Articles of partnership is a voluntary contract between/among two or more persons to place their capital, labor, and skills into business, with the understanding that there will be a sharing of the profits and losses between/among partners.

 

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22

Indigenization policy is a measure aimed at

A
privating the existing business owned by the state
B
commercializing state owned businesses
C
reducing foreign economic domination
D
making the indegenes managing directors of businesses
correct option: c

Indigenization policy is a deliberate government policy aimed at replacing foreign investors and personnel in certain industries with indigenes or the natives of a country that is, excluding foreign participation in certain productive activities.

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23

Which of the following measures will hinder efficient distribution of goods in West Africa

A
Improving roads networks
B
provision of adequate storage facilities
C
instituting price control
D
formation of producers' co-operative societies
correct option: c

Instituting price control can affect the efficient distribution of goods in west Africa. Price control government regulation establishing a maximum price to be charged for specified goods and services, especially during periods of war or inflation.

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24

The type of unemployment that occurs as a result physical or mental disability of labour is known as

A
frictional unemployment
B
structural unemployment
C
cyclical unemployment
D
residual unemployment
correct option: d

Residual unemployment; the unemployment that remains in periods of full employment, as a result of those mentally, physically, or emotionally unfit to work. 

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25

One relationship between marginal utility and total utility. When total is 

A
rising, marginal utility is rising
B
falling, marginal utility is negative
C
maximum, marginal utility is maximum
D
falling, marginal utility is rising
correct option: b

The following are the various relationships between  total and marginal utility.

  • When marginal utility is positive , total utility increases
  • When marginal utility is zero , total utility is at maximum
  • When marginal utility is negative , total utility decreases
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26

One feature of a growing population

A
increase in the number of young people
B
increase in the number of old people
C
decrease in the dependent population
D
decrease in the life expectancy
correct option: a

A growing population is primarily determined by rates of birth, death, immigration, and emigration. Under  ideal conditions, population can grow  exponentially. The growth rate increases as the population gets larger. An increased number of young people indicates a fast growing population

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27

Efficiency of labour in a country is determined by the following factor except the

A
social attitude to work
B
education and training
C
working conditions of workers
D
total polulation
correct option: d

 Some of the factors affecting the efficiency of labour

- Personal Qualities of Labourers
- General Education and Intelligence
- Working Conditions
- Efficiency of Other Factors
- Welfare Services
- Motivation and Incentives

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28

Which of the following will encourage capital intensive farming

A
encouraging communal system of land ownership
B
adopting policies that will encourage rural-urban migration
C
provision of subsidies on equipment
D
Restrictive lending policies by banks
correct option: c

Intensive farming involves various types of agriculture with higher levels of input and output per cubic unit of agriculturalland area. It is characterized by a low fallow ratio, higher use of inputs such as capital and labour, and higher crop yields per cubic unit land area.

 

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29

Which of the following best explains why more foreign investments are not attracted to West Africa

A
Small population size
B
small sizes of market places
C
instability in political and industrial policies
D
lack of manpower needed to work in industries
correct option: c

instability in political and industrial policies is a major problem of growth and development in west Africa. An industrial policy,  that led to lower growth and more inequality and instability will discourage foreign investment. A traditional criticism of industrial policies is related to 'political economy', that such policies are likely to be captured by special interests to advance themselves.

 

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30

Location of firm in rural areas may

A
enable the firm to enjoy existing infrastructural facilities
B
make finance readily avalaible
C
enhance even or balanced development
D
make such firm enjoy external economics of scale
correct option: c

- It will be easier for the firm to get raw materials in the rural areas.
- It would bring about development and improvement in the standard or living in the area
- Basic infrastructure may not be available.

 

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