WAEC Economics Past Questions & Answers - Page 47

231.

The difference between the gross domestic product (GDP) and gross national product (GNP) is?

A.

Depreciation

B.

Transfer payment

C.

Net income from abroad

D.

Direct taxes

Correct answer is C

The most important distinguishing point between these two is that while we calculate GDP, we take into consideration whatever is produced within the local borders of the country and so it includes the goods and services produced by the foreign nationals also but if we talk about GNP, only the production done by the country’s citizens is considered whether they are inside or outside the country and the contribution of foreign citizens are completely excluded.

Net income from abroad is income earned by any person {including Artificial} i.e citizen of that country, earned even outside political boundaries i.e land + 20 nautical miles of water. This is GNP. Income earned by anyone {including foreign citizen} within the country is GDP.

232.

Which of the following is not a strong basis for trade unions demand for higher wages?

A.

Company is making higher profit

B.

Productivity of workers has increased

C.

Members of the union have high qualifications

D.

Commodity produced by the workers is very essential

Correct answer is C

No explanation has been provided for this answer.

233.

The movement of labour from one grade to an entirely different grade is an example of

A.

Industrial labour mobility

B.

Horizontal occupational mobility

C.

Vertical occupational mobility

D.

Geographical mobility

Correct answer is C

When a worker of a lower grade and status in an occupation moves to another occupation in a higher grade and status, it is vertical mobility. Just as a school lecturer becomes a college lecturer, a clerk becomes a manager, etc.

234.

One reason for low agricultural productivity in most West African countries is that?

A.

Farmers are not capable of producing cash crops

B.

It does not provide income to farmers with large families

C.

Farmers find it difficult getting help from financial institutions

D.

It is not the only source of raw materials for agro-based industries

Correct answer is C

No explanation has been provided for this answer.

235.

Which of the following will increase the demand for labour?

A.

Increase wage rate

B.

Labour's demand for output

C.

Low wage rate

D.

Low marginal productivity

Correct answer is C

Factors that can shift the demand curve for labour include: a change in the quantity demanded of the product that the labour produces; a change in the production process that uses more or less labour; and a change in government policy that affects the quantity of labour that firms wish to hire at a given wage. When the payment for labour is low, fills will be willing to employ more people than with an increased wage rate.