WAEC Economics Past Questions & Answers - Page 89

441.

Which of the following will increase the nominal value of national income?

A.

High rate of inflation

B.

Increase in the value of money

C.

Increase in import

D.

High rate of subsistence production

Correct answer is D

'Nominal' value of national income can be found by multiplying the quantity of output by the retail (market) price of this output. INcrease in the level of production, will increase the norminal value of national income which is the monetary value of outputs. But If demand increases at an unsustainable rate, resources become increasingly scarce, and firms will raise prices.

443.

Money will serve as a standard of deferred payment if it is

A.

Homogeneous

B.

Durable

C.

Easily recognized

D.

Stable in value

Correct answer is D

Standard of deferred payment is a function of money. It is the function of being a widely accepted way to value a debt, thereby allowing goods and services to be acquired now and paid for in the future. For it to serve this purpose, it has to be able to retain its value overtime.

444.

Co-operative societies formed to market the output of their members are called

A.

Consumer's co-operative societies

B.

Marketing co-operative societies

C.

Credit and thrift co-operative societies

D.

Producer's co-operative societies

Correct answer is B

Marketing Co-operatives: They are voluntary associations of producers formed with the objective of ensuring a steady market for the output of members. Marketing Co-operatives are especially suitable for marketing of agricultural products.

445.

The long-run average cost curve is made up of several short-run

A.

Marginal and average cost curves

B.

Average cost curves

C.

Average variable cost curves

D.

Average variable and total cost curves

Correct answer is C

The long-run average cost (LRAC) curve shows the firm's lowest cost per unit at each level of output, assuming that all factors of production are variable. The LRAC curve assumes that the firm has chosen the optimal factor mix, as described in the previous section, for producing any level of output.