WAEC Past Questions and Answers - Page 3037

15,181.

One way of speeding up the economic development of a country is by encouraging

A.

The consumption of consumer goods

B.

Early marriage

C.

The importation of more consumer goods

D.

Savings and investment

Correct answer is D

Typically a higher savings rate, the fraction of GDP not consumed today, results in higher investment rates. Thus, the more a society invests (and saves) results in more production opportunities in the future, implying a higher rate of growth.

Saving can therefore be vital to increase the amount of fixed capital available, which contributes to economic growth. However, increased saving does not always correspond to increased investment. In the short term, if saving falls belowinvestment, it can lead to a growth of aggregate demand and an economic boom.

15,182.

Which of the following is not a feature of economic underdevelopment?

A.

Monocultural economy

B.

High productivity

C.

Low life expectancy

D.

Income inequality

Correct answer is B

The term underdevelopment refers to that state of an economy where levels of living of masses are extremely low due to very low levels of per capita income resulting from low levels of productivity and high growth rates of population.

 there is a set of common characteristics of underdeveloped economies such as low per capita income, low levels of living, high rate of population growth, illiteracy, technical backwardness, capital deficiency, dependence on backward agriculture, high level of unemployment, unfavourable institutions and so on.

15,183.

The control of aggregate demand through changes in government spending and tax rates is referred to as

A.

Monetary policy

B.

Government policy

C.

Income policy

D.

Fiscal policy

Correct answer is D

In economics and political science, fiscal policy is the use of government revenue collection (mainly taxes) and expenditure (spending) to influence the economy.

15,184.

The following are benefits member countries derive from the Economic Community of West African State (ECOWAS) except _______

A.

economic cooperation

B.

Larger market

C.

military assistance

D.

free ports

Correct answer is D

No explanation has been provided for this answer.

15,185.

Which colonial administration in West Africa sought to integrate her colonies with their home country?

A.

British

B.

Dutch

C.

French

D.

Danes

Correct answer is C

No explanation has been provided for this answer.