WAEC Economics Past Questions & Answers - Page 100

496.

A debenture holder earns

A.

Commission

B.

Profits

C.

Fixed interest

D.

Quasi-rent

Correct answer is C

A debenture pays a regular interest rate or coupon rate return to investors.  Payment of interest is made to the debenture holder at a specified rate and at clearly defined intervals.

497.

In Economics, a market is defined as any

A.

Agreement made for consumers to buy all they need

B.

Arrangement made for producers sell all their goods

C.

Agreement to sell commodities at low prices

D.

Arrangement whereby the buyers and sellers are in contact

Correct answer is D

No explanation has been provided for this answer.

498.

The action of government to forgo road construction in order to provide more health facilities denotes

A.

Sound economic decision

B.

Opportunity cost

C.

Practicable government policy

D.

Scale of preference

Correct answer is B

No explanation has been provided for this answer.

499.

Which of the following is not a function of the West African Development Bank?

A.

Promotion of both private and public investments in member states

B.

Financing and executing projects in member states

C.

Promotion of social development of member states

D.

Harmonization of oil prices to the advantage of member states

Correct answer is B

The functions of the West African Development Bank does not include financing and executing projects in member states.

500.

One of the reasons why government may erect a trade barrier is to

A.

Control foreign currencies

B.

Protect infant industries

C.

Promote importation

D.

Diverisify the economy

Correct answer is B

Barriers to trade are often used as protection of infant and local industries. Their stated purpose is to shield or advance particular industries or segments of an economy. These barriers include tariffs.