WAEC Economics Past Questions & Answers - Page 91

451.

Goods consumed out of habit have

A.

Elastic demand

B.

Perfectly elastic demand

C.

Inelastic demand

D.

Unitary elastic demand

Correct answer is C

Inelastic demand in economics is when people buy about the same amount whether the price drops or rises. 

452.

Which of the following is not a characteristic of a developing country? High

A.

Real per capita income

B.

Level of primary production

C.

Population growth rate

D.

Level of illiteracy

Correct answer is A

Common Characteristics of Developing Economies

  • Low per capita real income. 
  • High population growth rate/size.
  • High rates of unemployment.
  • Dependence on primary sector. 
  • Dependence on exports of primary commodities.

453.

Examples of joint stock banks are

A.

Commercial banks

B.

Cooperative credit societies

C.

Central banks

D.

Development banks

Correct answer is A

A joint-stock company is a business owned by people called shareholders. Each shareholder owns company stock in proportion to the number of their shares (certificates of ownership). An example of a joint stock company today is a business type that is somewhere between a partnership and a corporation.

454.

Other things being equal, an increase in supply will lead to

A.

A fall in price and an increase in quantity bought and sold

B.

An increase in price and increase in quantity bought and sold

C.

A fall in price and a fall in quantity bought and sold

D.

An increase in quantity supplied and demanded only

Correct answer is A

A change in supply will cause equilibrium price and output to change inopposite directions. a. An increase in supply will cause a reduction in the equilibrium price and an inase in the equilibrium quantity of a good.

455.

Which of the following agencies help to stabilize farmer's income?

A.

Local government authorities

B.

Trade unions

C.

Marketing boards

D.

Cooperative organizations

Correct answer is C

A marketing board is an organization created by many producers to try to market their product and increase consumption and thus prices. It can also be defined as an organization set up by a government to regulate the buying and selling of a certain commodity within a specified area.