WAEC Economics Past Questions & Answers - Page 103

511.

Which of the following is not a form of money?

A.

Coins

B.

Bank notes

C.

Bank balance

D.

Bank deposit

Correct answer is C

Bank balance is the amount of money held in a bank account at a given moment. It is not a form of money, but rather the total amount of money owned by a bank customer at a particular point in time.

512.

Mr Akpoti has meat and wants maize, while Mr Adama has maize and wants meat. Transaction is possible because of

A.

Bank deposit

B.

Joint demand

C.

Scale of preference

D.

Double coincidence of wants

Correct answer is D

Double coincidence of wants is when two people have goods they are both happy to swap in exchange. 

513.

When depreciation is deducted from Gross National Product, the result is

A.

Total national income

B.

Gross domestic product

C.

Net national product

D.

Net domestic produc

Correct answer is C

Net national product is the total value of goods produced and services provided in a country during one year, after depreciation of capital goods has been deducted.

514.

The national income is the

A.

Gross Domestic Product at market prices

B.

Gross National product at factor cost

C.

Net National Product at factor cost

D.

Net National Product at market prices

Correct answer is B

The gross national income (GNI), previously known as gross national product (GNP), is the total domestic and foreign output claimed by residents of a country, consisting of gross domestic product (GDP), plus factor incomes earned by foreign residents, minus income earned in the domestic economy by nonresidents.

515.

If Y = income, C = Consumption, I = Investment, X = Export and M = Import, then national income is

A.

Y = C - I + (x +m)

B.

Y = C + I + (x + m)

C.

Y = C +I +(X - M)

D.

Y =C + I + (m - x)

Correct answer is C

Since national income is the gross domestic product of a country plus all the wages, salaries of its citizens abroad minus earnings of foreign citizens residing in the said country;

National Income = C + I + X - M (exports - imports)