enwaececonomics2014

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THEORY QUESTIONS

WAEC SYLLABUS

1. Human want are unlimited because

A. Production is inadequate

B. Resources have alternative uses

C. New wants always arise.

D. Resources are limited

2 A basic economic problem of any society is

A. High level of illiteracy

B. Irregular power supply

C. Population growth.

D. Resources allocation

3 In a centrally planned economy, what to produce is

A. Determined by the forces of demand and supply.

B. Irregular power supply

C. Determined by consumers.

D. The responsibility of state’s bureaucrats

4 which of the following is related to resource allocation in a country in an economy

A. How to produce

B. What to produce

C for who to produce

D. Efficient use of inputs

5. Which of the following is not a feature of socialism?

A. Collective ownership of productive resources

B. Freedom of enterprise

C. production is not based on the profit motive

D maximization of public welfare

ANSWERS

6. Households make economic decision because they want to

A. makes more profit

B. increase their salaries and wages

C. increase purchase

D. maximize their satisfaction

7. State owned enterprises ae more common in

A. Centrally planned economics

B. mixed economic

C. capitalist economics

D. developed economics

8. A normal supply curve has a positive slope which indicates that

A. sellers are willing to sell more at a lower price

B. seller are indifferent to prices

C. there is always a fixed supply

D. there is always a fixed price

9. 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

10. Disposable income is the income earned

A. by the nationals of a country resident within the country

B. from productive 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 personal income tax.

ANSWERS

11. Livestock production in west Africa is hindered mainly by

A. Inadequate demand

B. Use of traditional implements

C. Land tenure system

D. pest and disease.

12. 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

13. A declining population is one in which the population is

A. experiencing a high rate of emigration

B. made up of a large number of old people

C. not producing enough goods

D. not contributing enough to the national income

14. Which of the following agencies help to stabilize farmers income?

A. Local government authorities

B. trade union

C. marketing agencies

D. Co- operative organizations

15. other things being equal, an increase 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 bought and sold

C. a fall in price and a fall in quantity bought and sold

D. a n increase in quantity supplied and demand only

ANSWERS

16. Examples of joint stock banks are

A. commercial banks

B. Co-operative credit societies

C. Central banks

D. Development banks

17. 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

18. Goods consumed out of habit have

A. elastic demand

B. Perfectly elastic demand

C. inelastic demand

D. Unitary elastic demand

19. Which of the following items is not a recurrent expenditure?

A. Building of school and colleges

B. maintenance of school buildings

C. payment of teacher salaries

D. purchase of stationery for examinations

20. If the coefficient of price elasticity of demand is 0.1 demand is

A. elastic

B. Inelastic

C. Zero elastic

D. Unitary elastic

ANSWERS

21. The profit of a producer is the difference between

A. total cost and marginal cost

B. total revenue and total cost

C. average cost and total cost

D. Price and total cost

22. The rate of increase in unity is

A average utility

B. Increase utility

C. total utility

D. marginal utility

23. The supply of tea is linearly presented as P = 0.2Q, where P is the price and Q is the quantity. What is P when Q= 25??

A. N 0.08

B. N 5.00

C. N25.02

D. M125

24. increase in supply due to change In plant size will take place only in the

A. normal time

B. Long run

C. market period

D. short run

25. The long run average cost curve is made up of several short –run

A. marginal and average cost curves.

B. average cost curves

C. average variable cost curves

D. average variable and total cost curves.

Use the table below to answer question 26 and 27

ANSWERS

26. From then table, the mean of the distribution is

A. 2.2

B. 2.5

C. 3.2

D. 4.5

27. What is the median of the distribution?

A. 5

B. 4

C. 3

D. 2

28. Co-operative societies formed to market the output of their members are called

A. Consumers co-operative societies

B. Wholesale co-operative societies

C. Credit and thrift co-operative societies.

D. producer’s co-operative societies

29. Money will serve as a standard of deferred payment if it is

A. homogenous

B. Durable

C. easily recognized

D. stable in value

30. Due to an increase in price, a seller increase then quantity offered for sale from 400 unit to 450 units. What is the percentage change in quantity supplied?

A. 1%

B. 7.5

C. 12.5%

D. 20%

ANSWERS

31. Which of the following will increase the nominal value of national income?

A. High rate of inflation

B. increase in the value of money

C. increase in import

D. High rate of subsistence production

32. Cyclical unemployment is one associated with

A. inadequate information

B. Trade fluctuations

C. structural changes

D. Seasonal changes

33. Which of the following best defines inflation?

A. Cyclical increase in prices

B. Periodic increase in prices

C. Persistent increase in prices

D. Occasional increase in prices

34. Perfect knowledge of events in a perfect market will be made possible by the existence of

A. many buyers and sellers

B. homogenous products

C. means of communication

D. large number of traders

35. An increase in the price of a commodity from N 10 to N 15 leads to an increase in the quantity supplied from 10 units to 15 units. The price elasticity of supply is

A. 0

B 0.5

C. 1

D. 5

ANSWERS

36. Economics development may be hindered if there is

A. a high pool of skilled labour

B. a mhigh rate of economic growth

C. political stability

D. rapid population growth

37. Which of the following types of unemployment results from changes in the pattern of aggregate demand?

A. Technological unemployment

B. Structural unemployment

C. Frictional unemployment

D. Seasonal unemployment

38. Which of the following is not a reason countries import goods?

A. Different in natural endowments

B. The law of absolute advantage

C. Different in taste

D. The love for other nations

39. Provision of short term loans to solve balance of payments problems is done by the

A. international Finance Corporation

B. International Monetary Fund

C. International Bank for Reconciliation and Development

D. African Development Bank

40. West African countries are experiencing worsening terms of trade because

A. they are primary producers

B. their currencies are overvalued.

C. they import less machines

D. they are tertiary producers.

ANSWERS

41. Which of the following statement is correct?

A. as total utility increase, the marginal utility also increases

B. The marginal utility is always zero whenever the total utility reaches the maximum

C. The total utility is at minimum whenever marginal utility is at it’s maximum

D. There is no relationship between total utility and the marginal utility

42. A change in the quantity demanded of a given commodity is determined by the

A size of the population

B. Income of the consumer

C. price of the commodity

D. taste and fashion

43. The likely implication of the devaluation of a country’s currency is that

A. exports of such a country become cheaper

B. importation of goods into such a country becomes cheaper

C. The value of such a country becomes cheaper

D. foreign goods attracted into the country

44. International trade is desirable because it

A. may lead to overproduction

B. brings about over-dependence of countries on one a bother

C. provides foreign market for local goods

D. brings about unhealthy completion and rivalries

45. A financial institution establishes for the purpose of providing specialized services like acceptance or bills of exchange and equipment leasing is known as:

A. Merchant Bank

B. Development Bank

C. Store of value

D. Standard of deferred payment

ANSWERS

46. Which of the following functions of money is mostly affected during inflation?

A. Medium of exchange

B. Unit of account

C. Store of value

D. Standard of deferred payment

47. precautionary motive for holding money is to

A Meet daily and regular transactions