WAEC Economics Past Questions & Answers - Page 105

521.

All of the following is the features of optimum population except

A.

Full employment of available resources

B.

Unlimited amount of unexploited resources

C.

Maximum per capita production and income

D.

High standard of living

Correct answer is B

Optimum population yields highest quality of life, which means each person has access to adequate food, water, energy and air of highest quality, adequate medical care, recreational facilities and cultural outlets. It does not include unlimited amount of unexploited resources.

522.

Which of the following is a function of a retailer?

A.

Banking services

B.

Hoarding services

C.

Storage services

D.

Sales services

Correct answer is D

After sales service refers to all the things you do for the care and feeding of your valued customers after they buy from you. A retailer purchases in bulk from the wholesalers and sells the products to the customers in small quantities, they provide after sales services such as installation, repairs, helping the customer in transporting the goods bought.

523.

The type of monopoly that develops as a result of granting patent right is known as

A.

Natural monopoly

B.

State monopoly

C.

Legal monopoly

D.

Discriminating monopoly

Correct answer is C

A legal monopoly, also known as a statutory monopoly, is a firm that is protected by law from competitors. Patent rights are exclusive right conferred by a patent. This means only the company with the patent can make or produce the product.

524.

The factor of production which takes the initiative in combining resources for production is known as

A.

Capital

B.

Land

C.

Entrepreneur

D.

Labour

Correct answer is C

An entrepreneur is a person who combines the other factors of production - land, labor, and capital - to earn a profit.

525.

A public limited company could finance its operations through

A.

Government taxes

B.

Equity shares

C.

Dividend payments

D.

Import duties

Correct answer is B

Public limited company can finance its operation by raising equity capital with initial public offering This is done by issuing new shares to the public or the existing shareholders can sell off their shares to other people without raising any fresh capital.