enwaececonomics2011

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THEORY QUESTIONS

WAEC SYLLABUS

I Human wants are

A. limited

B. scarce

C. unlimited

D. in grades

2. The difference between the money cost and the teal cost of any item is that

A. real cost is the alternative forgone while the money cost is the actual amount paid for buying the item.

B. the real cost is the opportunity cost while the money cost is the Marginal cost.

C. Money cost is the opportunity cost, while the real cost is the actual cost in monetary terms.

D. money cost is always greater than real cost.

3. The Production Possibility Curve (PPC) indicates that as more of one good is produced

A. less of the other good is produced.

B. the same quantity of the other good is produced.

C. more of the other good is produced

D. none of the other good is produced.

4. An arrangement of data in rows and columns is referred to as a

A. graph

B. bar chart

C. pie chart

D. table

5. A normal demand curve slopes

A. downwards from left to right

B. upwards from right to left

C. downwards from right to left

D. upwards horn left to right

ANSWERS

6. The coefficient of income elasticity of demand for inferior goods is

A. Positive

B. equal to one

C. less than one

D. negative

7. If 20% rise in the price of Whisky leads to a 30% increase in quantity demanded of Schnapps, the cross elasticity of demand is

A. 3.0

B. 2.5

C. 2.3

D. 1.5

8. Palm oil and palm kernel have

A. competitive supply

B. excess supply

C. joint supply

D. Composite supply

9. A supply curve which is vertical has elasticity co-efficient of

A. 0

B. 2.5

C. 1.5

D. 2

10. lf the current price of an apple is twice that of last year, it implies that the value of money is

A. stable

B. falling

C. rising

D. getting stronger

ANSWERS

11. Price fixed above the equilibrium is to

A. protects agricultural producers.

B. discourages agricultural producers.

C. lowers the prices of agricultural produce

D. favour consumers,

12. A consumer purchasing a commodity X will maximize his satisfaction. if.

A. Px = MUx

B. Px ≥ MUx

C. Px>MUx

D. Px < MUx

13. When total utility is constant, it means marginal utility is

A. increasing

B. zero

C. Decreasing

D. one

14. A rational consumer is one who

A. spends his income to maximize satisfaction.

B. is not influenced by advertisement.

C. behaves in a particular way all the time.

D. knows the prices of all goods and buys the cheapest

15. Which of the following is not true about land?

A. The supply is fixed

B. Land is mobile

C. It is subject to diminishing returns

D.

ANSWERS

16. The types of production that involves the tapping and harnessing of natural resource is

A. Primary production

B. Secondary production

C. Tertiary production

D. Industrial Production

17. Which of the following does not change in the short run

A. Variable cost

B. Marginal cost

C. Total cost

D. Fixed cost

18. The resource used in production are called

A. Variable inputs

B. Factors of production

C. Capital for production

D. Fixed inputs

19. A firm will shut down in the long run if its earning is

A. Less than normal profit

B. Greater than normal profit

C. Equal to super normal profit

D. Less than super normal

20. A market structures where profit is maximized when marginal revenue marginal cost and price are equal is known as

A. Perfect competition

B. Monopoly

C. Oligopoly

D. Imperfect competition

ANSWERS

21. In which of the following markets does a form have power to make super normal profit both in the short run and long run?

A. Monopoly

B. Duopoly

C. Oligopoly

D. Monophony

22. If there are no barriers to entering a market, it means that

A. Anyone can become a buyer or seller

B. Unwanted goods cam always enter the market

C. The market becomes a dumping ground

D. The goods are not inspected

23. A firm’s main aim is to

A. survive in business

B. Maximize Profits

C. Increase its market share

D. Satisfy the ambitions of its managers

24. One good reason for the elimination of middlemen is that

A. Cause increase in price

B. Help in price stability

C. Grade and blend goods

D. Are too many

25. The increase in population growth in big cities is referred to as

A. Settlement

B. Migration

C. Industrialization

D. Urbanization

ANSWERS

26. Frictional unemployment can be reduced by

A. Encourage the use of retaining schemes

B. Removing barriers to labor mobility

C. Restricting he production of new technology

D. Lowering the level of wagers paid to young people

27. If the labor force of a country is 2.5 million and 2 million are employed, what is the unemployment rate?

A. 0.2%

B. 20%

C. 200%

D. 250%

28. The grouping of production according to the economic activities people engage in is

A. Age distribution

B. Sex distribution

C. Geographical distribution

D. Occupation distribution

29. Natural growth rate of population can be defined as the

A. Different between birth rate and death rate

B. Number of births in a year

C. Increase in the population growth in a year

D. Difference between the total population and the death rate

30. Which of the following is not a consequence in increased unemployment?

A. Fall in tax revenue for the government

B. Reduction in trade union’s influence

C. A fall in the death rate

D. increase in the labor force

ANSWERS

31. which of the following over estimate the value of national income?

a. incomplete statistical data

b. wrong timing of computation

c. changes in prices of good within the year

d. double counting

32. The total stock of money available for use in an economy is

a. a function of money

b. a characteristic of money

c. the demand for money

d. the supply of money

33. Which of this the following is not a reason for holding money?

a. Ostentation

b. speculation

c. Transaction

d. precautionary

34. The best way of combating demand-pull inflation is to

a. increases income taxes

b. reduce income taxes

c. increase import duties

d. increase salaries and wages.

35. in Which of this the following ways has inflation adversely affected your country’s economy?

a. increase in money supply

b. a fall in real income

c. appreciation in the value of money

d. increased employment.

ANSWERS

36. Which of the following is a legal tender?

a. bank note

b. bank overdraft

c. bills of exchange

d. money order

37. The central Bank controls money supply through all the following except?

a. lending to the public

b. bank rate

c. legal reserve requirements

d. open market operation.

38. One of the functions of the Central Bank is?

a. production of goods

b. issuing of currency

c. presenting budget

d. printing of chuque books.

39. The functions of the Central Bank as a lender of last resort means that when all other resource fail.

a. the consumer can always borrow from the Central Bank

b. the government can ask the Central Bank to print more money

c. commercial banks can raise loans from the Central Bank.

d. commercial banks can deposit money with the central bank.

40. One of the disadvantage of direct taxes is that they

a. allocation scare resources

b. are not rigid

c. cab be progressive

d. can be evaded

ANSWERS

41. exercise duty is levied on

a. a total population

b. local products

c. luxury goods

d. the working population.

42. a component of the national debt of a country is

a. taxation

b. bank saving

c. the budget

d. treasury bills

43. When the demand for a good is fairly inelastic, the burden of an indirect tax fails.

a. more on the consumers of the good

b. more on the sellers of the good.

c. on sellers and consumer equally

d. complete on the capitals.

44. Dumping means the selling of good in a foreign market at a price that is

a. below the home market price

b. above the home market price

c. equal to the home market

d. able to clear the home market.

45. Which of the following group of accounts makes up the balance of payment?

a. the current account, multiple account and capital account

b. monetary movement account company account and international account

c. cash account current double entry and current account.

d. capital account current account and monetary movement account.

ANSWERS

46. A county’s balance of payments is in deficit when?

a. a country’s payments for imports of invisible good arte greater than her receipt from exports of invisible goods.

b. the total receipt from her export invisible and invisible goods are greater than her payments for visible and invisible imports.

c. it can record a surplus on current account of her balance of payments account.

d. the total payments for visible and invisible imports are greater than the total receipts from her exports of visible and invisible goods

47. In order to stabilize oil price in the world market, there is the need for OPEC members to

a. always have budget deficit

b. encourage competition among themselves

c. adhere to production quotas

d. fix the price of non-oil products.

48. Which of the following is not a member of the Economic Community of West Africa states (ECOWAS)?

a. cape Verde

b. Mauritania

c. Cameroon

d. Nigeria.

49. Which of the following is not type of Economic integration?

a. Customs market

b. common market

c. Economic Union

d. free trade area.

50. Which of the following is not an international Economic integration organization?

a. Economic commission for Africa (ECA)

b. African Development Bank (ADB)

c. World Health Organization (WHO)

d. International Monetary Fund (IMF)

WASSCE JUNE 2011 ECONOMICS OBJECTIVE TEST

ANSWERS

1. C 2. A 3. A 4. D 5. E 6.D 7. D 8.C 9.A 10.B 11.A 12.A 13.B 14.A 15. B 16.A 17.D 18.B 19.A 20.A 21.A 22.A 23.B 24.A 25.D 26.A 27.B 28.D 29.C 30.C 31. B 32.D 33.A 34.C 35. B 36. B 37.C 38.A 39.C 40.A 41.A 42.C 43.C 44.A 45.B 46.B 47.A 48.B 49.C 50.B

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