WAEC Economics Past Questions & Answers - Page 14

66.

The production of rice and yam on the same farmland is an example of

A.

Joint supply

B.

Composite supply

C.

Competitive supply

D.

Market supply

Correct answer is A

Joint supply is a type of supply in which the production of one article in itself leads to the production of other article as well. for example, leather and beef etc. It is also a process that can yield two or more outputs.

67.

A benefit that is present in all forms of economic integration is that

A.

Common agricultural policy is in place

B.

The size of the market is widened

C.

Factors of production are free to move and be moved

D.

Common currency is in use

Correct answer is C

Economic integration forms international co-operation among nations to foster their economic interests. Countries with common interests form themselves into an organisation whose major objectives are to remove trade barriers and other obstacles that reduce the free flow of goods and service between them.

68.

Foreign investment and long term securities in the balance of payment accounts are recorded as

A.

Current account transaction

B.

Capital account transaction

C.

Balance of trade account transaction

D.

Invisible balance account transaction

Correct answer is B

Capital account transaction is the net balance of international investments. In order words, it keeps track of the flow of money between a nation and its foreign partners.

69.

Which of the following factors is not a cause of change in demand? Changes in

A.

The size of the population

B.

Price of the commodity

C.

Income distribution

D.

Taste and fashion

Correct answer is B

Change in demand is also known as shift in demand. A change / shift in demand is caused by taste, income of the consumer, population size, festival, price of other commodities etc.

70.

Abundant natural resources do not contribute to economic growth in developing countries because of________

A.

High rate of inflation

B.

Urban congestion

C.

Over-reliance on multiple commodities

D.

Mismanagement and corruption

Correct answer is D

No explanation has been provided for this answer.