WAEC Economics 1991 Past Questions

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

The price system refers to the system by which

A.the government controls price in the economic system
B.prices tends to rise to a general level
C.price allocates resources between consumer and producer goods
D.government allocate resources to consumers and producers
E.the producers fix the price for their products

This is a pie-chart showing the age distribution of population. The total population is 120 million. The official school-leaving age is 18 years while the official retiring age is 55 years.
(a) From the above information, calculate the:
(i) Population of children between 0 and 17 years.
(ii) population of old people (55 + years);
(iii) work-ing population (18 - 54 years) .

(b) what is the economic implication of the above population structure?

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Choice is necessary because resources

A.are available
B.can be found everywhere
C.are constant
D.are scarce
E.are unlimited

Discuss five contributions made by agriculture to the industrial development of Nigeria.

Agriculture plays a dominant role in West African economies because

A.the Green Revolution in Nigeria is agricultural
B.it supplies all the food stuffs consumed in Ghana alone
C.there are large plantation of cocoa, groundnut and oil palm in West Africa
D.it is the main source of revenue in Sirera Leon alone
E.it emplys more than 50% of the total labour force in West Africa

What is the median? State its merits and demerits.

The monetary system that requires a double coincidence of wants is known as the

A.gold standard
B.barter system
C.commodity system
D.gold exchange standard
E.cheque system

With the aid of diagrams, explain what is meant by a change in:
(a) the quantity demanded;
(b) demand.

if over a period of time there is more money in the economy than the available goods and services , the economy is likely to experience

A.devaluation
B.inflation
C.deflation
D.demonetization
E.over-valuation

(a) Explain the term mobility of labour.
(b) Why may labour as a mobile factor of production be unwilling to move?

The value of money is determined by the

A.rate of interest
B.general price level
C.quantity of money in circulation
D.level of economic development
E.weight of the currency notes and coins

Explain the factors that affect the supply of labour in Nigeria.

open market operation are the process by which

A.the Central Banks purchases and sells securities
B.Commercial Banks purchases and sells securities
C.business firms buys raw materials freely
D.huseholds buys consumer goods openly
E.the money market takes over the function of the Central Banks

(a) Define a market.
(b) Explain four characteristics of a perfect market.

Devaluation means

A.a reduction in the value of the National currency
B.a reduction in the purchasing power of the foreign currency
C.a reduction in the value of the domestic currency relative to foreign currencies
D.an increase in the value of the national currency
E.a decrease in the purchasing power of the foreign currencies

Describe the factors that can affect the size of a country's population.

Which of the following functions do retailers perform in an economy?

A.Production
B.Exchange
C.Hoarding
D.Distribution
E.Investment

Complete the following cost schedules and answer the questions that follow.

Output	Total Cost TC	Average cost AC	Marginal Cost
1	18	8	-
2	14	?	-
3	?	6	-
4	20	?	-
5	?	6	-
6	46	?	-

(a) At what output is AC at the minimum?
(b)At what output is MC at the minimum
(c) At what output does AC start increasing?
(d) At what output does MC start to be greater than AC
(e) What is the maximum output?

A movement along the demand curve for some goods may be caused by a change in

A.consumer income
B.the price of goods
C.consumers taste
D.the price of other goods
E.population

which of the following item is not included in measuring national income by the income approach?

A.Wages and salaries of public servants
B.Student's grants and scholarships
C.Profits of companies
D.Income earned by self-employed persons such as lawyers
E.Rents on property

if an economy is growing at an annual rate of 7% and 4% of it is known to be due to the improvement in labour ans capital combined, the balance of 3% is usually attributed to

A.land and enterprenuer
B.abundance of natural resources
C.level of human capital
D.technical progress and related factors
E.discipline in political leadership

A government treasury bill is a form of debt instrument which falls due for repayment after

A.3 months
B.9 months
C.2 years
D.5 years
E.10 or more years

Which of the following is not regarded as money in Economics?

A.Coins
B.Currency notes
C.bank depisits
D.cheques
E.Naira and Kobo

Which of the following is not a reason why people migrate from one place to another ?

A.to find jobs and improve their standard of living
B.To live in a more suitable climate
C.For the sake of change and adventure
D.to escape from a religious. political or social situation in a country
E.To buy foreign goods for sale in their country

A major function of the middlemen in Nigeria is the distribution of

A.commodities to all consumers regardless of income
B.commodities to consuming centres
C.economic welfare facilities to all
D.waelth to all
E.income within the society

International trade is necessary mainly because

A.no country can live in economic isolation
B.different countries are endowed with the same natural; and man-made resources
C.some countries have comparative cost advantage in the production of certain commodities
D.the world demand for and supply od various categories of commodities is expanding very fast
E.countries wants to build up their foreign exchange reserve

Which of the following is the approximate working agent in Nigeria?

A.1 - 15
B.15 - 65
C.30 - 40
D.40 - 65
E.65 and above

Dumping in Economics means the selling of goods in a foreign market

A.ata a price below that received in the home market
B.at a price above that received in the home market
C.at a price equal to the cost price in the home market
D.in order to encourage indigenious producers
E.at a price equal to the selling price in the home market

A shift of the demand curve to the right when the supply curve remains constant , implies that

A.both price and quantity demanded will increase
B.only price increases
C.both price and quantity demanded will decrease
D.the price remains constant
E.the price falls

The natural growth rate of a population is the

A.sum of the birth rate and death rate
B.sum of the birth rate and the net immigration rate
C.birth rate minus the death rate
D.birth rate divided by the net immigration
E.death rate minus the net immigration

in the event of a limited liability company going into liquidation, each shareholder

A.may lose a maximum of the amount he has invested
B.lose nothing
C.loses everything including his house
D.may have unlimited liability
E.will lose the amount he has invested plus a proportion of his bank account

Which of the following are direct taxes?

A.Sale taxes
B.Excise duties
C.income and company taxes
D.Tarrif duties
E.Commodity taxes

Which of the following is a function of money? It is

A.portable
B.A standard of diferred payment
C.relatively stable in value
D.generally acceptable
E.an easily divisible item

The productivity of labour does not depend only o its own effort and efficiency, but also on I the level of technical knowledge II. the quality of other factors III. racial qualities which allow persons from certain races to have good physique and be very active . Which of the above statements is /are correct?

A.I only
B.I and II only
C.I and III only
D.II and III only
E.III only

A tax is said to be good when

A.it yields more revenue to the state at the expense of the people's ability to pay
B.the cost of collecting it is equal to the revenue it generates
C.it is imposed so suddenly that no one can dodge its payment
D.its payment causes minimum incovenience to the tax payer
E.it induces workers to prefer more leisure to extra work

Which of the following is a public corporation?

A.Roads (Nigeria) Plc
B.National Oil and Chemical Marketing Co. Plc
C.Union Bank of Nigeria Plc
D.Volkswagen of Nigeria Plc
E.National Electric Power authority

In a sole proprietorship decisions are made by the

A.government
B.owner
C.shareholder's conference
D.management
E.board of directors

Which of the following statements is not true in an inflationary period?

A.the purchasing power diminishes
B.Wages rise simultaneously with prices
C.More money runs after a limited quantity of goods
D.Fixed income earners lose
E.Aggregate real demand exceeds aggregate real supply

Palm oil industry in located in Bendel State because the state

A.imports raw materials for the industry
B.has a poor soil which is unsuitable for other crops
C.is a palm-tree growing area
D.government does not engage in the growing of other crops
E.has the highest demands for apl oil in Nigeria

Which of the following is not an argument for locating industries in rural areas?

A.Rural areas supply agricultural raw materials
B.the pace of development of rural areas will be quicken
C.Employment will be for rural inhabitants
D.capital is easily available in rural areas
E.Rural-urban migration will decrease