WAEC Economics 1989 Past Questions

Practice each question, then open it to see the full details.

Scarcity in Economics means that resources

A.Are not enough to share among producers of goods and services
B.Needed to satisfy human wants are limited
C.Are never enough to share among consumers of goods and services
D.Required to meet our essential wants are unlimited
E.Can be managed if those who use them can behave rationally

What is devaluation? Under what conditions will devaluation improve a country's balance of payment position ?

A table which shows the price of a commodity and the quantity of it that is demanded per unit time is a

A.Time series
B.Demand series
C.Demand curve
D.Demand schedule
E.Time schedule

The wholesaler performs useful economic functions. Discuss.

The greatest disadvantages f barter system is the need for

A.Durability
B.Divisibility
C.Homogeneity
D.Double coincidence of wants
E.Portability

Briefly outline the measures which Nigeria has taken to improve the marketing of her agricultural produce.

An inflation in which the price rises steadily at an average rate of about 2% per annum is best described ad

A.Galloping
B.Induced
C.Creeping
D.Suppressed
E.Run-away

(a) What is a development plan ?
(b) Discuss the various ways of financing economic development in Nigeria.

In Economics market is define as

A.A place where buyers and sellers come together to exchange goods
B.Any agreement made for consumers to buy all they need
C.any arrangement made for producers to sell all their goods
D.any arrangement where by buyers and sellers are in close touch with one another
E.a place where only consumer goods are sold

Why do countries impose restrictions on international trade?

money supply at any given point in time refers to as

A.bank notes, coins abd demand deposits
B.notes and coins only
C.minted money
D.hoarded money
E.money received as gifts

Briefly outline the principles of taxation and give reasons why Nigerians are taxed.

all the following are source of finance to a Joint Stock Company except

A.bank loans
B.equity shares
C.debentures
D.preference shares
E.cooperative thrift

What is the mode and when is it a suitable average to use? State its disadvantages.

Data presented in table are usually arranged in

A.charts and tables
B.rows and columns
C.graphs and rows
D.pictograms and columns
E.maps and pie charts

Given that quantity demanded per period of time is a function of price and that the relation is expressed as: Q = 60 - 1/3 P, where Q is quantity demanded and P is the price,
(a) Find the quantity demanded when price is :
(i) N30.00;
(ii) N210.00;
(iii) NO.00.

(b) comment on (a) (ii) above.

(c) suppose the relation is now expressed as P = N (180 - 3Q); find P when:
(i) Q = 0;
(ii) Q = 60;
(iii) Q = 59.

which of the following is not a function of money?

A.store of values
B.unit of accounts
C.measures of value
D.standard for deferred payment
E.stability in value

The table below shows the age distribution of hypothetical population.

Age	No. of people (million)
Under 20	20.90
20 - 29	13.75
30 - 59	12.10
60 and above	8/25
Total	55.00

Present this information in the form of a pie chart. Show your workings clearly.

Which of the following is not appropriate in calculating national income figures?

A.output method
B.Income method
C.Expenditure method
D.Value added method
E.Depreciation method

Economics problems arise because a country's resources are limited in relation to her unlimited wants. Identify and explain these economic problems.

What is the correct term for this group of exports : tractor, televisions, components, drugs and cars?

A.Current account items
B.Visible exports
C.Capital accoutn items
D.Invisible exports
E.Visible imports

the indicator of the value of money in the market is the

A.the general price level
B.effective supply
C.the equilibrium price
D.effective demand
E.consumer income

Mobility of labour is not affected by

A.the optimum size of population
B.marriage and family
C.the regulation of trade unions
D.the period of training
E.culture and religious beliefs

Given that fixed cost is N500.00, variable cost N1,500.00 and output is 50 units, what will be the average cost of producing one unit?

A.N2,000.00
B.N60.00
C.N50.00
D.N40.00
E.N30.00

Which of the following is regarded as fixed cost?

A.cost of raw material
B.cost of fuel
C.cost of light
D.rent on land
E.labour wages

which of the following reasons explains the upward sloping of supply curve in a competitive market?

A.Ceteris paribus, marginal cost increase as output increases
B.As new firms enter the market, factor price moves up
C.Firms are in business to satisfy consumers
D.Marginal cost often increases in a competitive market
E.Firms are in business to produce goods

A firm is said to be a Public Joint-Stock Company when it

A.is owned by the government
B.operates as a public corporation
C.is a limited liability company
D.sells its shares to memebers of the public
E.is administered by the public

which of the following factor is not important in deciding the location of an industry?

A.the native language of the epople
B.availabilty of suitable labour
C.Source of cheap power and raw materials
D.Proximity to the location of a similar industry
E.proximity to the market

The clearing house of all commercial banks in Nigeria is the

A.General Post Office
B.Bnak forCommerce and Industry
C.Nigerian Industrial Development Bank
D.Mortgage Bank
E.Central Bnak

One of the advantages of Sole Proprietor is that

A.risks are unlimited
B.technological progress is often out of reach
C.shares and stocks can be issued to raise funds
D.initiatives can be used in all cases
E.it folds up in the case of death, lunacy or insolvency

which of the following does not hinder the efficient of distribution of goods in West Africa?

A.inadequate transportation network
B.inadequate storage facilities for agricultural goodss
C.inadequate credit facitlities for potential distributors
D.Government participation in the distributive trade
E.The tendency to hoard and smuggle

which of the following categories of people do not gain during inflation?

A.Debtors
B.businessmen
C.Shareholders
D.Investors
E.Creditors

one of the argument against he presence of middlemen in the distribution chain is that they

A.cause increase in the price of commodities
B.are commissioned agents
C.helps in keeping price stable
D.grade and blend goods
E.can be found almost everywhere

Which of the following is the normal channel by which the commodities reach the final consumer?

A.Mnaufacturer-wholesale-agent retailer-consumer
B.Mnufacturer-wholesale-retailer-consumer
C.Manufacturer-wholesale-sales representative-retailer-consumer
D.Mnufacturer-wholesale-retailer-agent-consumer
E.Mnaufacturer-wholesale-retailer-sales-representative-consumer

the movement of a worker from one grade to another within the same industry is a form of mobility of labour which is

A.geographical
B.vertical
C.occupational
D.horizontal
E.lateral

a person who buys in bulk and sells in bit is a

A.manufacturer
B.sales representative
C.retailer
D.advertiser
E.distributor

which of the following is not correct?

A.Population refers to number of people living in a place
B.The population of a place is not static
C.Population is known through a census
D.Population is affected by the amount of money in circulation
E.Population can be affected by natural disaster

The money paid per hour or week for work done is known as

A.cost
B.time rate
C.bonus
D.wage rate
E.labour

in a rapidly growing economy where human labour is being replaced by machines, there is likely to be

A.classical unemployment
B.frictional unemployment
C.seasonal unemployment
D.residual unemployment
E.cyclical unemployment

Distribution is part of production because it

A.Makes goods and services available to the final consumer
B.Transport the goods from place to place
C.Offers employment to people
D.Encourages the provision of good roads, waterways and railways
E.Links the consumer with the producer

The grouping of a population into males and females is known as the

A.geographical distribution
B.age distribution
C.sex distribution
D.man-woman distribution
E.occupational distribution

which of the following is the most important reason why wages differ among occupations?

A.Length and cost of training
B.Supply of labour
C.Attractiveness of the job
D.influence of trade unions
E.Government decision

A legal tender is any

A.form of money
B.means of exchange authorized by the state
C.commodity generally acceptable as a meduim of exchange
D.total productivity of labour
E.amount of goods and services that the wage can fetch

Wages are to some extent determine by the

A.Marginal utility of labour
B.Marginal productivity of labour
C.Average productivity of labour
D.Total productivity of labour
E.Amount of goods and services that the wage can fetch

Inflation in any economy

A.Has no monetary connection
B.Implies a sustained decrease in the general price level
C.Always increase the value of national currency
D.Tends to redistribute income arbitrarily
E.Tends to bring down market prices

which of these does not encourage industrial development?

A.Tax exemption
B.Provision of financial institution
C.Provision of infrastructural facilities
D.Limitation of markets for industruial products
E.Government direct participation

which of these does not encourage industrial development?

A.Tax exemption
B.Provision of financial institution
C.Provision of infrastructural facilities
D.Limitation of markets for industruial products
E.Government direct participation

Industry can simply be defined as

A.Many firms producing different products
B.A firm or firms producing similar goods and services
C.Different firms producing different goods
D.Different firms producing equal number of similar goods and services
E.Many firms producing unidentical goods and services

The reward of a debenture holder of a public company is a fixed rate of

A.Interest
B.Return
C.Dividend
D.Rent
E.Allowance

The downward sloping of the Average Revenue curve of the monopolist indicates that he

A.Can control both output and price
B.Can only break-even
C.Can control either the output or the price, but not both
D.Can’t control anything
E.Exploit the consumer