WAEC Economics Past Questions & Answers - Page 35

171.

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.

 

172.

In a period of unemployment and falling prices, the government should adopt a

A.

Zero-based budget

B.

Budget deficit

C.

Balanced budget

D.

Surplus budget

Correct answer is C

No explanation has been provided for this answer.

173.

In most underdeveloped countries, development plans do not achieve their objective due to

A.

Poor coordination between local and national governments

B.

Exportation of more primary products

C.

 Lack of educational institutions in those countries

D.

Urban-rural migration of citizens

Correct answer is B

Developing economies mainly trade in primary exports. These primary products are transformed into finished goods by the developed economies and sold to underdeveloped countries. The money raised from the sale of the primary products is then used to pay for manufactured imports, this has been a serious impediment in its developmental strides.

174.

In most developing countries, a large percentage of the labour force is engaged in

A.

Trading

B.

Mining

C.

Agriculture

D.

Manufacturing

Correct answer is C

Developing countries are characterized by a large percentage of the labour force engaged in agricultural activities. These are countries with low per capita income and a high number of poor people. These poor persons are predominantly found in the agricultural sector.

175.

Insurance Companies are similar to commercial banks in that they

A.

Compensate their customers for losses

B.

Act as lender of last resort

C.

Help in maintaining monetary stability in a nation

D.

Help in mobilizing savings for investment

Correct answer is D

No explanation has been provided for this answer.