WAEC Economics Past Questions & Answers - Page 9

41.

When the marginal utility from the consumption of commodity X (Mux) is greater than the price commodity X (Px), a rational consumer should

A.

Strive to remain in disequilibrium

B.

Consume the same quantity of commodity X

C.

Consume more of commodity X

D.

Reduce consumption of commodity X

Correct answer is C

A rational consumer should consume more of commodity X when the marginal utility from the consumption of commodity X (Mux) is greater than the price commodity X (Px). This is because the consumer is getting more satisfaction from consuming each additional unit of commodity X than they are paying for it. As a result, the consumer should continue to consume more of the commodity until the marginal utility is equal to the price.

42.

An economy system is mainly concerned with

A.

Studying the relationship between ends and means

B.

The allocation of scarce resources between alternative ends

C.

Handling situations of abudant resources

D.

The establishment of economic laws

Correct answer is B

An economy system is mainly concerned with the allocation of scarce resources between alternative ends. This is because resources are always scarce, meaning that there is never enough to satisfy all of our wants and needs. As a result, we have to make choices about how to allocate our resources in a way that maximizes our well-being.

43.

Money is able to function more as a medium of exchange when

A.

There is a fall in production

B.

More prople engage in subsistence production

C.

Individuals and nations are self-sufficient

D.

There is specialization of labour

Correct answer is D

Money is able to function more as a medium of exchange when there is specialization of labour. Specialization of labour, on the other hand, increases the need for money. This is because specialization means that people produce different goods and services, which they then trade with each other. Money is needed to facilitate these trades.

44.

Assisting members to solve temporary balance of payments problems is the reasons for the establishment of the

A.

International Monetary Fund

B.

Economic Commission for Africa

C.

World Bank

D.

African Development Bank

Correct answer is A

The IMF is an international organization that was founded in 1944. Its main goal is to promote international monetary cooperation and facilitate international trade. The IMF does this by providing loans to countries that are experiencing balance of payments problems.

 

A balance of payments problem occurs when a country's imports exceed its exports. This can lead to a shortage of foreign currency, which can make it difficult for the country to pay for imports. The IMF can provide loans to countries with balance of payments problems to help them to cover their import shortfalls and stabilize their currencies. 

45.

National income is calculated mainly to

A.

Determine how income is to shared

B.

Help firms generate more funds

C.

Determine aid to to be received from other nations

D.

Determine the level of sectoral performance

Correct answer is A

National income is calculated mainly to determine the level of sectoral performance.

 

The level of sectoral performance is important because it can indicate the strength of the economy and the potential for future growth. By measuring the level of sectoral performance, governments can identify areas where the economy is doing well and areas where it needs improvement.