enwaececonomics2006

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THEORY QUESTIONS

WAEC SYLLABUS

1. The study of economics enable individual to

A. Change jobs

B. evade taxes

C. accumulate huge wealth

D. make national decisions

2. Most of the problems of economics arise as a result of

A. Competing demands for source resources.

B. Increase in demand for more goods and services

C. The desire for producers to supply more goods and services

D. The need to reduce the level of poverty

3. Which of the following tools of economic analysis is used when data contains more than one category

A. Bar charts

B. Component bar charts

C. Graphs

D. Symbolic statements

4. The reward to capital as a factor of production is

A. rent

B. Wage

C. interest

D. Commission

5. Mining is an example of

A. tertiary production

B. Primary production

C. secondary production

D. advance production

ANSWERS

6. An owner-manager of a firm can also be called

A. a shareholder

B. an entrepreneur

C. an employer

D. a chairman

7. If the fixed cost of a firm is 8 Naira and its variable cost is 2,700 Naira while its total output is 100 units, what is the average cost of the firm?

A. 25 Naira

B. 35 Naira

C. 45 Naira

D. 50 Naira

8. Distribution of goods and services is hindered by

A. good road network

B. efficient storage facilities

C. too many middlemen

D. adequate market information

9. A movement along the same demand curve either upwards or downwards as a result of changes in price implies

A. a change in demand

B. a change in quantity demand

C. an increase in demand

D. a shift in the demand curve to the right

10. Middlemen in an economy perform the function of

A. distribution

B. exchange

C. hoarding

D. protection

ANSWERS

11. One of the factor affecting geographical distribution of population is

A. high birth rate

B. high death rate

C. encouragement of early marriages in rural areas

D. climatic conditions of the different parts of the country

12. Standardization of products or services is a feature of

A. large firm

B. retailers

C. small firms

D. wholesaler

13. The amount of satisfaction obtained from the consumption of a commodity at a particular time is called

A. marginal utility

B. diminishing utility

C. total utility

D. average utility

14. What are inferior goods? These are goods

A. that are generally in short supply

B. that are no longer in demand

C. whose demand falls as income increases.

D. whose price falls as demand increases

15. In the analysis of utility theory, the basis of demand is

A. marginal utility

B. average utility

C. fixed utility

D. diminishing utility

ANSWERS

16. In the normal market situation, when the price of a commodity rises, the

A. demand of the commodity will rise

B. demand for the commodity will fall

C. Supply of the Commodity will be constant

D. supply of the commodity will fall

17. When the quantity of a commodity supplied increases and the quantity demanded Decreases, there will be

A. a rise in price

B. no change in price

C. price fluctuation

D. a fall in price

18. The market price of a commodity is normally determined by the

A. law of demand

B. interaction of the forces of demand and supply

C. total number of people in the market

D. total quantity of the commodity in the market

19 . The mechanism which allows the price of a commodity to be fixed either above or below the equilibrium is know as

A. monopolistic competition

B. price discrimination

C. perfect competitive market

D. price control

20. A debenture holder is entitled to payments in form of

A. allowance

B. interest

C. salary

D. Donation

ANSWERS

21. The main difference between a private and a public enterprise is the

A. amount of profit realized

B. mode of operation

C. Objective of the business

D. Ownerships structure

22. The total amount of money raised by a company through issuance of shares to the public is

A. debentures

B. nominal capital

C. ordinary shares

D. paid-up capital

23. Buying and selling is a function performed mostly by the

A. Insurance company

B. stock exchange

C. merchant banks

D. discount houses

24. Which of the following is not a reason for establishing public enterprises?

A. Discouraging investors

B. opening up neglected part of a country

C. Effective control of natural monopoly

D. Rapid economic development

25. For a monopolist, the average revenue (AR) curve is

A. above the total cost curve

B. the same as the marginal cost curve

C. above the marginal revenue curve

D. the same as that of perfect competitor

ANSWERS

26. Advertising expenses would not be necessary under perfect competition because

A. consumers would have knowledge about the goods

B. cost of production would be at the maximum Level

C. every firm would enjoy the benefits of large scale production.

D. incomes of the consumer in the Community would be high

27. The equilibrium level of output of a monopolist is determined at a point where

A. marginal cost equals average revenue

B. marginal cost equals average cost

C. marginal cost equals marginal revenue

D. marginal revenue equals average cost

28. Which of the following is a legal tender in West Africa?

A. Treasury bill

B. share

C. credit card

D. Currency

29. The policy of government to increase the supply of money to meet its own expenditure plans is Likely to be

A. Speculative

B. deflationary

C. inflationary

D. contractionary

30. The tendency for prices to rise while the value of money falls is known as

A. bills of exchange

B. inflation

C. depreciation

D. deflation

ANSWERS

31. One way to solve the economic problem of inflation in a country is by increasing the

A. supply of commodities

B. supply of currency

C. salaries of workers

D. demand for commodities

32. The motive for holding money for investing in securities is referred to as

A. transactionary

B. time deposit account

C. accumulation

D. deflationary

33. A cheque book is issued to customers of a bank operating a

A. savings account

B. time deposit account

C. current account

D. fixed deposit account

34. Amount proposed for payments of wages and salaries in a budget is regarded as part of

A. recurrent expenditure

B. direct investment

C. recurrent revenue

D. capital receipts

35. The difference between the Gross National Product (GNP) and the Gross Domestic Product (GDP) is

A. total interest payment

B. net income generated internally

C. total national savings

D. net income from abroad

ANSWERS

36. Which of the following agricultural system is mainly for the cultivation of food crops for family consumption

A. Co-operative farming

B. commercial farming

C. subsistence farming

D. Plantation Farming

37. Agriculture is important to the economy of West Africa because it is the source of

A. power

B. equipment supply

C. industrial input

D. technological progress

38. The economic system in which the state takes the economic decisions through detailed planning is

A. capitalism

B. socialism

C. traditional economic system

D. mixed economic system

39. A mixed economy combine the character of both

A. planned and capitalist economies

B. exchange and subsistence economies

C. subsistence and planned economies

D. capitalist and exchange economies

40. In a rapidly growing economy, a change in technology which is labour saving is likely to cause

A. residual unemployment

B. structural unemployment

C. disguised unemployment

D. frictional unemployment

ANSWERS

41. Which of the following is a form of tax evasion

A. Wrong declaration of earnings

B. Payments of flat rate tax

C. constant change of employment

D. low capacity utilization

42. Where the burden of a tax finally rest is called

A. tax object

B. tax rate

C. incidence of tax

D. system of taxation

43. An increase in the quantity of goods and services produced in a country which raises her national income is Known as

A. Economic development

B. economic growth

C. domestic investment

D. productivity

44. The formula index of export prices/index of import prices x used to measure the

A. volume of trade between two countries

B. direction of international trade

C. commodity terms of Trade

D. volume of imports

ANSWERS

46. Which of the following is an invisible item?

A. Bank services

B. petroleum product

C. Processed rice

D. Processed milk

47. In an attempt to correct a deficit balance of payment the country may decide to increase

A. domestic production

B. imports

C. domestic expenditure

D. tax of infant industries

48. Which of the following is an objective of economic integration?

A. Harmonization of cultural practices

B. free movement of persons, goods and services

C. Payment of high tariffs

D. Dumping of goods in less developed countries

49. One of the functions of the international Monetary fund (IMF) is to

A. devaluate the currency of member states.

B. reduce drastically the size of deficit financing of member States

C. give financial assistance to member states that have temporary balance of payment difficulties.

D discourage the rapid industrialization process in less developed nations of the world.

50. The full meaning of OPEC is

A. Oil and Petroleum Exporting Countries

B. Original Petroleum Exporting Companies

C. Organization of Petrol Exporting Countries

D. Organization of petroleum Exporting Countries.

To Top

Q 1-10

Q 11-20

Q 21-30

Q 31-40

Q 41-50

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Candle Light To The World

ECONOMICS

WASSCE 2006

Objectives

copyright:ensoft2024. company@en-soft.com Phone:2347072716127

ensofts

Candle Light To The World

ECONOMICS

WASSCE 2006Objectives

copyright:ensoft2024. company@en-soft.com Phone:2347072716127

WASSCE 2006

Objectives