WAEC Past Questions and Answers - Page 3337

16,681.

A supply curve which is vertical has an elasticity co-efficient of

A.

0.0

B.

0.5

C.

1.5

D.

2

Correct answer is A

A vertical market supply curve is illustrated by a line running up and down on the graph. When a market supply curve is vertical, it represents that the quantity of that good is fixed no matter what the price of the good is. A vertical curve illustrates a good that has zero elasticity.

16,682.

Palm oil and palm kernel have

A.

Competitive supply

B.

Excess supply

C.

Joint supply

D.

Composite supply

Correct answer is C

Joint supply refers to a product or process that can yield two or more outputs. This is when a product can be used to produce more than one output. Palm oil is used for cooking as well as in soap and cream making, while palm kernel is used in making palm oil and kernel oil amongst others.  

Another Common examples occur within the livestock industry: cows can be utilized for milk, beef.

16,683.

The total stock of money available for use in an economy is

A.

A function of money

B.

A characteristics of money

C.

The demand for money

D.

The supply of money

Correct answer is D

Money supply is the total value of money available in an economy at a point of time. 

16,684.

If a 20% rise in price of Whiskey leads to a 30% increase in quantity demanded of Schnapps, the cross elasticity of demand is

A.

3.0

B.

2.5

C.

2.3

D.

1.5

Correct answer is D

It is calculated by taking the percentage change in the quantity demanded of one good and dividing it by the percentage change in the price of the other good.

Hence; 30/20 = 1.5

16,685.

Which of the following over estimates the value of national income?

A.

Incomplete statistical data

B.

Wrong timing of computation

C.

Changes in price of goods within the year

D.

Double counting

Correct answer is D

In national income, double counting happens when certain items are counted more than once resulting in over-estimation of national product to the extent of the value of intermediate goods included.

 

This is called the problem of double counting which means counting value of the same commodity more than once.