WAEC Past Questions and Answers - Page 3342

16,706.

The public sector of an economy includes

A.

Cooperative societies

B.

Nationalized industries

C.

Joint stock companies

D.

Pressure groups

Correct answer is B

The public sector is made up of the part of an economy that is controlled by the state or government and this include nationalized industries.

 

Nationalized industries are formerly private owned companies that were converted to government owned industries. Nationalization or nationalisation, is the process of transforming private assets into public. Since nationalized industries are state owned, the government is responsible for meeting any debts. 

16,707.

Which of the following group of accounts make up the balance of payments?

A.

The current account multiple account and capital account

B.

Monetary movement account;company account and international account

C.

Cash acount, double entry account and current account

D.

Capital account, current account and monetary movement account

Correct answer is D

The balance of payments (BOP) is a statement of all transactions made between entities in one country and the rest of the world over a defined period of time. The balance of payments include both the current account and capital account  and the financial account.

 

16,708.

All the following are source of finance to a joint stock company except

A.

Debentures

B.

Cooperative loans

C.

Shares

D.

Bank loans

Correct answer is B

In a joint stock company, funds are raised through the issue of shares and reinvestment or earnings, Borrowed funds which consist of the finance raised from debenture holders, public deposits, financial institutions and commercial banks.

 

Cooperative loans are only given to members of a corporative society. It is not a one of the sources of joint stock company

16,709.

Dumping means the selling of a good in a foreign market at a price that is

A.

Below the home market price

B.

Above the home market price

C.

Equal to the home market price

D.

Able to clear the home market price

Correct answer is A

Dumping is a term used in international trade. It's when a country or company exports a product at a price that is lower in the foreign importing market than the price in the exporter's domestic market.

It is the act of charging a lower price for a product in a foreign market than the normal value of the product in the domestic market.

16,710.

When the demand for a good is fairly inelastic, the burden of an indirect tax falls

A.

More on the consumers of the goods

B.

More on the sellers of the goods

C.

On sellers and consumers equally

D.

Completely on the capital

Correct answer is A

Relatively or fairly inelastic demand is one where the percentage change in demand is less than the percentage change in the price of a product. This means, a change in price will lead to a lesser change in the quantity demanded.

An indirect tax is a tax levied on goods and services. The consumer will bear the extra cost of such goods, because a rise in its price will lead to a lesser change in the quantity the consumers are willing to buy.