2017 - WAEC Economics Past Questions and Answers - page 5

41

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

A
the consumption of consumer goods
B
early marriage
C
the importation of more consumer goods
D
savings and investment
correct option: d

Typically a higher savings rate, the fraction of GDP not consumed today, results in higher investment rates. Thus, the more a society invests (and saves) results in more production opportunities in the future, implying a higher rate of growth.

Saving can therefore be vital to increase the amount of fixed capital available, which contributes to economic growth. However, increased saving does not always correspond to increased investment. In the short term, if saving falls belowinvestment, it can lead to a growth of aggregate demand and an economic boom.

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42

Dumping in international occurs when a foreign firm sells

A
above its cost of production at home and abroad
B
below its cost of production at home and abroad
C
more goods to a country than the country has need of
D
below its cost of production in a foreign market
correct option: d

Dumping is a term used in the context of international trade. It's when a country or company exports a product at a price that is lower in the foreign importing market than the price in the exporter's domestic market. it means exported goods are sold cheaper in the foreign market than the the exporter's domestic. that means the goods are sold below its cost of production

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43

Infant industries can be described as?

A
newly established industries
B
industries enjoying tax holidays
C
industries producing baby products
D
newly commercialized industries
correct option: a

In economics, an infant industry is a new industry, which in its early stages experiences relative difficulty or is absolutely incapable in competing with established competitors abroad.

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44

Modern international trade is based on the principle of?

A
absolute cost advantage
B
comparative advantage
C
terms of trade
D
balance of trade
correct option: b

Comparative advantage is an economic term that refers to an economy's ability to produce goods and services at a lower opportunity cost than that of trade partners. A comparative advantage gives a company the ability to sell goods and services at a lower price than its competitors and realize stronger sales margins.

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45

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

A
investment income
B
foreign direct investment
C
longterm capital flows
D
long-term loans
correct option: a

The current account on the balance of payments measures the inflow and outflow of goods, services, investment incomes and transfer payments.

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46

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

A
presence of large and developed market
B
uneven development among west African countries
C
existence of different central banks in the countries
D
fairly of labour to move freely in the country
correct option: b
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47

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

A
harmonize and stabilize oil prizes
B
ensure excess supply of oil to consuming countries
C
subsidize oil prices in member countries
D
assist member countries to exploit oil resources
correct option: a

OPEC's objective is to co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers; an efficienteconomic and regular supply of petroleum to consuming nations; and a fairreturn on capital to those investing in the industry.

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48

which of the following resources is renewable

A
coal
B
iron ore
C
rice
D
limestone
correct option: a

A renewable resource is a natural resource which will replenish to replace the portion depleted by usage and consumption, either through natural reproduction or other recurring processes in a finite amount of time in a human time scale. Renewable resources are a part of Earth's natural environment and the largest components of its ecosphere.

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49

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

A
Reafforestation in rural communities
B
land degradation
C
destruction of farm lands
D
pollution of water bodies
correct option: a

Mining has the potential to have severely adverse effects on the environment including loss of biodiversity, erosion, contamination of surface water, ground water, and soil. The formation of sinkholes is also possible.

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