WAEC Economics 1992 Past Questions

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

Economics is a social science because it

A.deals with an aspect of hman behaviour
B.provides people with commodity they want
C.deals with limited resources which have alternative uses
D.deals with the production of goods for present and future consumption
E.is related to how choice is made

The values of different types of accounts held in Nigerian banks for the period 1984 to 1988

Year	1984	1985	1986	1987	1988
Savings	100	120	120	180	200
Current	65	75	70	100	130
Fixed deposit	40	45	60	145	50

Present the data above in the form of a component bar chart.

Scarcity in Economics generally refers to

A.a period of production
B.hoarding of goods
C.monopolization of existing supply of resources
D.period of famine
E.resources being limited

(a) Define price elasticity.
(b) If at N 8.00 per tuber, twenty tubers were demanded and when the price fell to N 6. 00 per tuber, thirty tubers were demanded, what is the elasticity of the demand?

Opportunity cost is define as the

A.money cost
B.cost of production
C.real cost
D.variable cost
E.fixed cost

A demand curve slopes downwards from left to right, but this may not always be so. Explain the statement.

the most basic concern of economists is to

A.create human wants
B.saisfy all human wants
C.redistrubute income so that it is used correctly
D.create perfect competition
E.allocate scarce resources to satisfy human wants

(a) Highlight the factors which encourage entrepreneurs to adopt division of labour in production.

(b) What factors are capable of limiting the practice of division of labour?

The equilibrium price of orange is 50k. If for some reason the price rises to 60k, there will be

A.excess demand
B.excess supply
C.shortage in the market
D.many buyers in the market
E.no buyer in the market

Discuss the different types of agricultural systems that exist in West Africa.

In Economics production is complete when

A.goods are produced in the factories
B.goods are sold to wholesalers
C.prices are fixed for goods and services
D.goods and services reach the consumer
E.goods are sold to retailers

Outline the ways in which the federal government has encouraged industrialization in Nigeria in recent years.

which of the following is not a characteristics of money?

A.Scarcity
B.Durability
C.Divisibility
D.Homogeneity
E.Mobility

Middlemen do encounter problems in the process of carrying out their business. Explain.

which of the following defines Economics most comprehensively ?

A.The study of buying and selling
B.The organization of industries and markets
C.The study of human behaviour in the allocation of scarce resources
D.National development, planning and budgeting
E.The study of market forces as they affected human behaviour

What are the possible solutions to the problems of rural-urban migration in West African countries?

A society that is on its production possibility curve

A.has attained full employment but not full production
B.has attained full production but not full employment
C.is using its resources inefficiently
D.has attained both full employment and full production
E.has a lower output level than it should have

Outline the economic activities that are likely to improve the effective distribution and marketing of commodities in Nigeria.

Money becomes a very poor store
money becomes a very poor stone of value in a period of

A.deflation
B.stable prices
C.recession
D.inflation
E.harvest

Discuss the measures that can be taken by a country seeking to correct its balance of payment deficit.

Economic growth is the

A.rate of increase in a country's full employment and real output
B.rate of increase in a nation's total population
C.rate of increase in inflation
D.rate of decrease inflation
E.growth in birth rate

The market price of a commodity is determine by the

A.total number of people in the market
B.total demand for the commodity
C.quantity of the commodity supplied
D.interaction of demand and supply
E.law of demand

if the price of margarine rises substantially, the equilibrium price and quantity of butter demand will

A.decrease
B.increase
C.remain constant
D.fluctuate
E.be inelastic

Money as a unit of account implies that it can be

A.counted in units
B.use to facilitate exchange
C.used to measure the value of goods and services
D.used to store goods and services
E.used for future payment

which of the following does not increase the population of country

A.an increase in birth rate
B.a decrease in death rate
C.emigration
D.immigration
E.Early marriage

A stockholder partakes of the profit of a l8imited liability business by receiving

A.shares
B.profit
C.wages and salaries
D.dividends
E.gifts

Near Money is made up of

A.very liquid asset which can be easily converted into money
B.currency in circulation and demand deposit
C.note and coins
D.fixed assets which cannot be converted into money
E.the total money supplied in the economy

Which of the following is not characteristics of a perfect competition ?

A.many sellers and buyers are in the market
B.there is perfect knowledge of the market situation
C.supply and demand are equal
D.there is no discrimination
E.Products are identical

Which of the following is not a negative effect of inflation

A.Lenders earn less
B.Pensioneers and salary earners on fixed income suffer
C.Exports tends to decline
D.Savings are discouraged
E.Borrowers tends to gain

Which of the following is not function of central bank

A.Banker to the Government
B.Banker's bank
C.Acceptance of deposit from the public
D.Responsibility for monetary policy
E.Lenders of last resort

Proportional tax is a tax whose

A.percentage rate remains constant as the tax base increases
B.percentage base increases as the tax base increases
C.percentage rate decreases as the tax rate increases
D.percentage rate fluctuates as the tax base increases
E.burden falls heavily on consumer

the largest part of the revenue of a country is derived from

A.direct taxation
B.indirect taxation
C.excise duties
D.company taxes
E.non-tax revenue

which of the following is not a good reason for the importation of agriculture in West African countries? it

A.employs about 60% of the people
B.provides the highest tax revenue
C.is a major foreign exchange earner in most of the countries
D.provides the raw materials for all import-substitution industries
E.provide raw materials only for foreign industries

The comparative cost of doctrine of international trade means specialization in production according to

A.absolute cost advantage
B.absolute cost disadvantage
C.comparative cost disadvantage
D.comparative cost advantage
E.the availability of labour

The greater burden of the taxes on essential goods is borne by

A.the middle income group
B.high income group
C.low income group
D.people between the middle and high income group
E.few top rich people

A change in supply implies a

A.shift in the supply curve to the right and not to the left
B.shift in supply curve to the left and not to the right
C.shift in supply curve to the left or to the right
D.movement along the supply curve
E.decrease in price and quantity supplied

Which of the following will increase the GNP of an economy?

A.increase government expenditure on the salary of the civil serants
B.An increase in the proportion of the productively employed population
C.a decrease in the rate of unemployment
D.A decrease in the output per worker
E.An increase in the population dependency ratio

A market condition where profit is maximized when MR = AR = MC = P is known as

A.monopoly
B.oligopoly
C.monopsony
D.perfect competition
E.duopoly

when price of a commodity is fixed by the law either below or above the equilibrium, the mechanism is known as

A.price discrimination
B.price control
C.perfect market
D.equilibrium price
E.market structure

Money supply is the

A.currency available in the banks
B.currency in circulation and time deposits
C.currency in circulation and saving deposits
D.currency in circulation and demand deposits
E.money scarcity

which of the following is not the function of a commercial bank

A.accepting deposits from the publicv
B.serving as banker to the government
C.lending to the public
D.safekeeping of valuables
E.undertaking foreign exchange transaction of customers

inflation caused by increase in demand is known as

A.cost-push inflation
B.hyper-inflation
C.demand-pull inflation
D.creeping inflation
E.runaway inflation

indirect tax are taxes which

A.are levied on the income and profit of the individuals and firms
B.always affects the producer only
C.are bassed on the progressive principles
D.are based on the regressive principles
E.are levied on goods and services purchased by individuals and firms

The situation where government revenue in a fiscal year is less than its expenditure is referred to as

A.budget deficit
B.balanced budget
C.budget surplus
D.budget statement
E.unfavourable budget

The situation where government revenue in a fiscal year is less than its expenditure is referred to as

A.budget deficit
B.balanced budget
C.budget surplus
D.budget statement
E.unfavourable budget

Land is often different from other factors of production because it

A.is a free gift of nature
B.constitutes one-third of the entire world
C.has different grades
D.is owned bt individuals
E.is owned by government