WAEC Economics Past Questions & Answers - Page 92

456.

A declining population is one in which the population is

A.

Experiencing a high rate of emigration

B.

Made up of large number of old people

C.

Not producing enough goods

D.

Not contributing enough to the national income

Correct answer is A

Emigration; is the act of leaving one's own country to settle permanently in another; moving abroad.

population decline (or depopulation) in humans is a reduction in a human population caused by events such as long-term demographic trends, as in sub-replacement fertility, urban decay, white flight, or rural flight, or due to violence, disease, or other catastrophes.

457.

The components of a three-sector economy are

A.

Banks, schools and hospitals

B.

Workers, producers and marketers

C.

Households, firms and the government

D.

Producers, retailers and wholesalers

Correct answer is C

The three-sector economy involves three sectors namely, households, business, and government.  The addition of the government in an economy results in bringing two variables in an economy. These variables are government expenditure (act as injections to income) and taxation (act as leakage or withdrawals from income).

458.

Livestock production in West Africa is hindered mainly by

A.

Inadequate demand

B.

Use of traditional implements

C.

Land tenure system

D.

Pests and diseases

Correct answer is D

Livestock diseases, low productivity, water scarcity and predators are major constraints to livestock farming in west Africa.

459.

Disposable income is the income earned

A.

By the nationals of a country resident within the country

B.

From proactive activities of nationals of a country both at home and abroad

C.

When personal income tax is deducted from personal income

D.

When the gross income of an individual is added to person income tax

Correct answer is C

Disposable income; income remaining after deduction of taxes and social security charges, available to be spent or saved as one wishes.

460.

To control inflation, the central bank of a country may adopt

A.

An expansionary monetary policy

B.

A restrictive monetary policy

C.

An increased wage policy

D.

A deficit financing policy

Correct answer is B

The purpose of restrictive monetary policy is to ward off inflation. It's called restrictive because the banks restrict liquidity. It reduces the amount of money and credit that banks can lend. It lowers the money supply by making loans, credit cards and mortgages more expensive.