2017 - WAEC Economics Past Questions and Answers - page 5

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.

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

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.

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.

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

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 efficient, economic and regular supply of petroleum to consuming nations; and a fairreturn on capital to those investing in the industry.

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.

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.