WAEC Economics Past Questions & Answers - Page 53

261.

The negative effects of mining in West Africa does not include?

A.

Reafforestation in rural communities

B.

Land degradation

C.

Destruction of farm lands

D.

Pollution of water bodies

Correct answer is A

Mining has the potential to have severely adverse effects on the environment including loss of biodiversity, erosion, contamination of surface water, ground water, and soil. The formation of sinkholes is also possible.

262.

One objective of organisation of patroleum exporting countries (OPEC) is to?

A.

Harmonize and stabilize oil prizes

B.

Ensure excess supply of oil to consuming countries

C.

Subsidize oil prices in member countries

D.

Assist member countries to exploit oil resources

Correct answer is A

OPEC's objective is to co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry.

263.

One problem facing the economic integration of countries in west Africa is the

A.

Presence of large and developed market

B.

Uneven development among west African countries

C.

Existence of different central banks in the countries

D.

Fairly of labour to move freely in the country

Correct answer is B

No explanation has been provided for this answer.

264.

Which of the following terms of trade is recorded in a country's current account section of the balance of payments?

A.

Investment income

B.

Foreign direct investment

C.

Longterm capital flows

D.

Long-term loans

Correct answer is A

The current account on the balance of payments measures the inflow and outflow of goods, services, investment incomes and transfer payments.

 

265.

Modern international trade is based on the principle of

A.

Absolute cost advantage

B.

Comparative advantage

C.

Terms of trade

D.

Balance of trade

Correct answer is B

Comparative advantage is an economic term that refers to an economy's ability to produce goods and services at a lower opportunity cost than that of trade partners. A comparative advantage gives a company the ability to sell goods and services at a lower price than its competitors and realize stronger sales margins.