WAEC Economics Past Questions & Answers - Page 25

121.

Dumping is selling goods in a foreign market at a price

A.

Below what is sold at the home market

B.

Above what is sold at the home market

C.

Equal to what is sold at the home market

D.

Equal to the cost of producing the goods

Correct answer is A

In international trade, dumping simply refers to a situation where a product is sold at a cheaper price to a foreign country (importing country), than in the domestic market that produced it (exporting country).

122.

A country is allowed to import just 50,000 tonnes of rice annually. This describes 

A.

Devaluation

B.

Tariff

C.

Embargo

D.

Quota

Correct answer is D

A quota is a government-imposed restriction that limits the quantity or the monetary value of goods that a country can import or export during a particular period.

123.

A country should embark on development planning to ensure that

A.

It becomes popular among the comity of nations

B.

It also does what others are doing

C.

Its scarce productive resources are efficiently utilized

D.

The nation is able to contribute its own quota to international organizations

Correct answer is C

No explanation has been provided for this answer.

124.

Expenditure on food takes a large proportion of the incomes of people in

A.

Industrialized countries

B.

Advanced countries

C.

Developing countries

D.

Capitalist countries

Correct answer is C

Option C is correct because developing countries depend mainly on imported finished goods, and taxes are being paid on these goods from the point of clearing at the port to the point of sales at shops.

125.

Mr. X and Mrs. Y pay $500.00 and $1,400.00 as taxes on their earning of S5,000.00 and $7,000.00 respectively. The system of taxation employed is

A.

Specific tax

B.

Proportional tax

C.

Regressive tax

D.

Progressive tax

Correct answer is D

 A progressive tax is a type of tax in which the tax rate increases as the taxable amount increases. This type of taxes imposes a greater percentage of taxation on higher income levels.