WAEC Economics Past Questions & Answers - Page 145

721.

A market situation with a larger number of firms selling closely related but, differentiated products is

A.

Monopolistic competition

B.

Perfect competition

C.

Monopoly

D.

Monopsony

Correct answer is A

No explanation has been provided for this answer.

722.

The monopolist can determine

A.

Price and output

B.

Price only

C.

Output only

D.

Price or output

Correct answer is D

No explanation has been provided for this answer.

723.

The main characteristics of an ordinary shares are

A.

Maximum risk, fixed dividends, voting rights

B.

Minimum risks, fixed dividends, no voting rights

C.

Maximum risks, variable dividends, voting rights

D.

Minimum risks. fixed dividends, no voting rights

Correct answer is C

Ordinary shareholders are owners of the company, hence possess voting rights in the selection of board members, they take the maximum risks of the business, and their dividends vary and mostly paid only after all other classes of shares have been paid.

724.

A business outfit is said to be a public limited company when it

A.

Is owned by the government

B.

Operates as a public corporations

C.

Is run by the public

D.

Sells its shares to members of the public

Correct answer is D

A public limited company is a company that sells its shares to members of the public and whose liabilities don't affect the private properties of its owners in the event of a liquidation. It means that the liability is limited to the amount invested.

725.

Revenue is the

A.

Cost of good multiplied by the quantity sold

B.

Price of goods multiplied by the quantity sold

C.

Quantity of goods plus purchase price

D.

Quantity supplied less quantity sold

Correct answer is B

Revenue = Sales x Average Price of Service or Sales Price