WAEC Economics Past Questions & Answers - Page 46

226.

An industry is best described as

A.

Firm that sells a set of closely related commodities

B.

A factory that produces different lines of product

C.

A group of firms that sells a closely related set of products

D.

Industrial concern that is into production and selling of goods

Correct answer is D

An industry; economic activity concerned with the processing of raw materials and manufacture of goods in factories.

227.

In developing countries, a larger percentage of the labour force is employed in the

A.

Trade sector

B.

Tertiary sector

C.

Primary sector

D.

Secondary sector

Correct answer is C

Primary sector; the sector of the economy concerned with or relating to primary industry. Examples include mining, quarrying, farming, fishing and forestry, all of which produce raw materials that can be processed in to a finished product. 

228.

Which of the following best describes token money?

A.

Money in the vaults of commercial banks

B.

Currency and coins in circulation

C.

Money with face value higher than its material content

D.

Coins and notes made of poor quality material

Correct answer is C

Token money; money where the face value of notes or coins is unrelated to the value of the material of which they are composed. In economics, Token money, or Token, is money that has little intrinsic value compared to its face value.

The token is a small amount of money (compared to the market value of theproperty) that has to be paid by the buyer as an indication of serious intent to purchase a property.

229.

In national income accounting, the term ''net'' is used to indicate that a value...........

A.

Includes income of foreigners

B.

Includes income of citizens

C.

Includes depreciation

D.

Excludes depreciation

Correct answer is D

In national income accounting, net national income (NNI) is the gross domestic product plus net receipts of wages, salaries, and property income from abroad, minus the depreciation of fixed capital assets through wear and tear and obsolescence.

NNI = GDP + factor income received from abroad - depreciation of Fixed Capital.

 

230.

Location of firms of an industry is not influenced by

A.

Availability of raw material

B.

Existence of other firms

C.

Nearness to the source of money supply

D.

Government policy

Correct answer is B

Industrial locations are complex in nature. These are influenced by the availability of many factors. Some of them are: raw material, land, water, labor, capital, power, transport, and market. For ease of convenience, we can classify the location factors into two: geographical factors and non-geographical factors.