enwaececonomics2009

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THEORY QUESTIONS

WAEC SYLLABUS

1. The study of Economics becomes necessary because of the

A. Large population size of the world

B. Scarcity of resources

C. Opportunity cost of goods and services

D. Need to satisfy every desire of men

2. The concept of opportunity cost is also referred to as

A. Social cost

B. real cost

C. cost of production

D. scarcity of resources

3. Choice is necessitated by

A. Demand and supply

B. Cost of production

C. Production possibility curve

D. Scarcity of resources

4. A type of unemployment which occurs due to technological progress is called

A. Frictional unemployment

B. Residual unemployment

C. Structural unemployment

D. Mass unemployment

5. All the following are features of market economics except

A. Competition among producers

B. Demand and supply forces guiding production decisions

C. That profit motive is paramount

D. Public ownership of capital

ANSWERS

6. The economic system which relies mainly on the price mechanism for the allocation of scarce resources is known as

A. Capitalist economic system

B. Command economic system

C. Combined economic system

D. Traditional economic system

7. In a capitalist economy, resources are

A. Collectively owned

B. jointly owned

C. privately owned

D. communally owned

8. An economic system where the central planning authority determines what goods to produce and In what quantity is known as

A. Market economy

B. Socialist economy

C. Welfare economy

D. Traditional economy

9. The main objective of setting up a private business organization is to

A. Protect the interest of the owner

B. Promote experts

C. Provide infrastructure

D. Maximize profits

10. The demand and supply functions of a commodity are given as follow Qd = 20 – 2p Qs = 6p -12 Where P = price ‘in naira, Qd = Quantity demanded and Qs = Quantity supplied. The equilibrium prices is

A. 2 Naira

B. 4Naira

C. 6 Naira

D. 20 Naira

ANSWERS

11. The type of demand that exists between torchlight and battery is

A. Competitive demand

B. Complementary demand

C. Composite demand

D. Independent demand

12. When the price of a commodity increases and the quantity demanded also increase, this is a case of

A. Exceptional demand

B. Derived demand

C. Competitive demand

D. Joint demand

13. If a fall in price of one commodity leads to an increase in the supply of another commodity, both Commodities have

A. Composite supply

B. joint supply

C. competitive supply

D. short- run supply

14. At a co-efficient of price elasticity of supply of 0.5, supply is

A. Perfectly inelastic

B. inelastic

C. perfectly elastic

D. elastic

15. If in the short-run commodity X and commodity Y are supplied jointly, which of the following is correct

A. An increase in demand for X will increase supply of Y

B. An increase in demand of X will leave the supply of Y unchanged

C. An increase in demand for Y will raise the price of X

D. An increase in demand for X will cause less of Y to be produced

ANSWERS

16. If an increase in earnings leads to more of a commodity being demanded, the good is said to have

A. Positive income elasticity

B. Negative income elasticity

C. Positive cross elasticity

D. Negative cross elasticity

17. Interaction of supply and demand for labour determines

A. Production

B. income

C. wage

D. profit

18. Government fixing of prices below the equilibrium point is aimed at protecting the

A. Seller

B. industries

C. distributors

D. consumers

19. A consumer maximizes his utility in consuming a good ‘ X’

A. Mux = Px

B. Px Mux

C. Price is falling

D. Mux Px

20. The relationship between Marginal Production (MP) and Average Production (AP) is such that they are equal when

A. Average product is maximum

B. Average product is minimum

C. Marginal product is maximum

D. Marginal product is increase

ANSWERS

21. Who among the following is the intermediary between the producer and the retailer

A. Agent

B. Wholesaler

C. Consumer

D. Distributor

22. Which of the following sector is most capital intensive

A. Insurance

B. petroleum

C. commerce

D. tourism

23. A. society that operates below the production possibility curve is using its productive resources

A. Optimally

B. efficiently

C. inefficiently

D. maximally

24. Labour can be efficient when there are

A. Adequate tools to work with

B. High levels of employment

C. Limited vacancies

D. Government restrictions

25. What accounts for the ‘U shape’ of the short run average cost (AC) curve?

A. The law of variable proportions

B. Increasing returns to scale

C. Decreasing use of inputs

D. Changing output during the production period.

ANSWERS

26. Which of these is true of a perfect competitor

A. P = AR

B. P

C. P = MR

D. P = AR = MR

27. One advantage of a sole proprietorship is that

A. It can be manage without conflict

B. The sole proprietor raises money from the public

C. It makes an increase in the volume of business possible

D. There is no limit to the number of people who may bring in capital

28. Which of the following is a condition necessary for a perfect markets

A. The goods are heterogeneous

B. There is preferential treatment

C. There is a large number of buyers and sellers

D. Buyers and sellers are easily influenced

29. A market in which a high price obtains for a product is known as

A. A product market

B. a capital price market

C. an imperfect market

C. a perfect market

30. What is the effect of pursuit of a higher education on the size labour force,

A. It makes labour force to be defective

B. It bring higher wage rate

C. It increases the size of labour force

D. It reduces the size of labour force

ANSWERS

31. The population density of a town Y made up of 50 square kilometre land area and 100 million people is

A. 50,000 people per square kilometer

B. 0.2 million people per square kilometer

C. 0.5 million people per square kilometer

D. 2 million people per square kilometer

32. Manufacturing involves the process of

A. Making goods available

B. Providing finished products

C. Changing items to new states

D. Producing capital goods only

33. Disposable income is total income

A. Less tax

B. divided by tax

C. plus tax

D. multiplied by tax

Use the information below to answer question 34 to 36

Depreciation.............................. = $40,000

Gross Domestic Product.......... = $100,000

Factor Payments to foreigners = $20.000

Factor Receipt from Abroad.... = $25.000

34. The Gross National Product is equal to

A. $40,000

B. $50,000

C. $105,000

D. $125,000

35. The National Income is equal to

A. $45,000

B. $60,000

C. $65,000

D. $195,000

ANSWERS

36. The Net Domestic Product is

A. $55,000

B. $60,000`

C. 140,000

D. 165,000

37. Which of the following is specialized in lending money for the purpose of developing real estate?

A. Merchant banks

B. Mortgage bank

C. Discount houses

D. Commercial banks

38. The marketing of government security by the central Bank is termed

A. Retail banking

B. open market operation

C. selective credit control

D. credit creation

39. Which of the following serves as a banker’s bank

A. Commercial bank

B. The Mortgage Bank

C. The Central Bank

D. Development Bank

40. The tax impose on goods manufactured within a country is

A. An excise tax

B. a capital gains tax

C. profit tax

D. a sales tax

ANSWERS

41. Government expenditure on the construction of roads and bridges is

A. Recurrent expenditure

B. Capital expenditure

C. supplementary expenditure

D. Variable expenditure

42. Fiscal policy is associated with

A. Taxation and government expenditure

B. Re-structuring of the banks

C. Injection of more money into

D. Reduction in economic activities

43. The need for development planning arises largely from the fact that

A. Aggregate savings exceed aggregate consumption

B. Aggregate consumption equals aggregate savings

C. Productive resources are in excess of the demand for them

D. Productive resources are scarce relative to the demand for them

44. Economic development is rejected in

A. Scarcity of capital

B. Increase in the price level

C. Decline in agricultural production

D. Increase in productive capacity

45. Terms of trade may be defined as the

A. Trade between one country and another

B. Relationship between country’s receipt from others and payment to others

C. Rate at which a country’s export exchange for import

D. Difference between the value of export and import

ANSWERS

46. The terms of trade is described as unfavorable when

A. The price of imports rise relative to those of exports

B. The price of exports rise relative to those of imports

C. The net income from abroad does not change

D. The value of exports rise relative to those of imports

47. Expenditure by foreign tourists in a country will be recorded as

A. Invisible export

B. official transfers

C. transfer income

D. visible export

48. One major aim of a cartel is to

A. Increase production

B. Regulate output through quota system

C. Have a joint account

D. Share profit equally

49. The five countries that established the organization of petroleum Exporting countries (OPEC) are

A. Nigeria, Iraq, Venezuela, Kuwait and Ghana

B. Saudi Arabia, Kuwait, Sierra Leone, Iran and Iraq

C. Algeria, Kuwait, Venezuela, Iran and the Gambia

D. Kuwait, Venezuela, Iran, Iraq and Saudi Arabia

50. The headquarters of the African Development Bank (ADB) was originally located at

A. Cotonu

B. Harare

C. Abidjan

D. Lagos

To Top

Q 1-10

Q 11-20

Q 21-30

Q 31-40

Q 41-50

To 2008

To 2010

To En-Schoolcert

ensofts

Candle Light To The World

ECONOMICS

WASSCE 2009

Objectives

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

ensofts

Candle Light To The World

ECONOMICS

WASSCE 2009Objectives

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

WASSCE 2009

Objectives