WAEC Economics Past Questions & Answers - Page 66

326.

The largest component of national income in developing countries consist of

A.

Profits

B.

Profit and ren

C.

Rent

D.

Wages and salaries

Correct answer is D

The largest component of national income is: compensation of employees. (wages and salaries). National income measures: the market value or cost of the resources used in the production of the national output.

327.

An industry is described as a group of firms

A.

That provides jobs for many people

B.

Which uses advance technology in production

C.

Which produces similar products

D.

That provides jobs for few people

Correct answer is C

An industry is a group of manufacturers or businesses that produce a particular kind of goods or services. 

328.

Local firms can help in reducing unemployment in a country when

A.

Land acquisition becomes centralized

B.

Imports of substitutes are reduced

C.

Waste in the firm is eliminated

D.

Subsidies to firms are decreased

Correct answer is B

Import substitution is a trade and economic policy which advocates replacing foreign imports with domestic production, it is based on the premise that a country should attempt to reduce its foreign dependency through the local production of industrialized products. 

329.

Which of the following factors is not a reason for farmer's unstable incomes?

A.

Dependence on too many crops

B.

Poor storage facilities

C.

Adverse weather condition

D.

Recession in the world economy

Correct answer is A

No explanation has been provided for this answer.

330.

Positive checks as envisaged by Thamos Malthus can be prevented if

A.

Date rate is reduced

B.

Marriage is abolished

C.

More hospitals are built

D.

More restraint is adopted

Correct answer is D

Positive checks are those, according to Thomas Malthus, that increase the death rate. These include disease, war, disaster, and finally when other checks don't reduce the population, famine. Malthus felt that the fear of famine or the development of famine was also a major impetus to reduce the birth rate.