WAEC Past Questions and Answers - Page 2825

14,121.

The major achievement of the Economic Community of West African States (ECOWAS) is that it has

A.

Made capital more mobile

B.

Made possible the use of common currency

C.

Increased member's allegiance to former colonial masters

D.

Widened the market for goods produced

Correct answer is D

No explanation has been provided for this answer.

14,122.

Which of the following institutions is Concerned with expanding developing countries commodity trade?

A.

World Trade Organization (WTO)

B.

United Nations Conference on Trade and Development (UNCTAD)

C.

Economic Commission for Africa (ECA)

D.

African Development Bank (AfDB)

Correct answer is D

The African Development Bank was established to help reduce poverty, improve living conditions for Africans and mobilize resources for the continent's economic and social development.

14,123.

An improvement in a country's terms of trade means that the

A.

Nation can export more services

B.

Nation's receipts on export are equal to payments on imports

C.

Value of her imports is lower than her exports

D.

Visible exports is less than visible imports

Correct answer is C

Terms of trade measure the ratio between the index of export prices and the index of import prices. If a country's terms of trade improve, it means that for every unit of exports sold it can buy more units of imported goods. This means its exports values exceed that of its imports.

14,124.

Devaluation of currency may not correct a balance of payments deficit if the demand for export is

A.

Perfectly inelastic

B.

Perfectly elastic

C.

Fairly elastic

D.

Unitary elastic

Correct answer is A

No explanation has been provided for this answer.

14,125.

Balance of trade involves the exchange of

A.

Goods only

B.

Services only

C.

Goods and services

D.

Goods and capital

Correct answer is C

Balance of trade is the difference between the value of a country's exports and the value of its imports. These exports and imports include both goods and services.