WAEC Economics 1993 Past Questions

A.choose between alternatives, given limited resources
B.regulate the money that is in circulation in a country
C.be prudent in the use of available resources
D.improve the standard of living of the society at large
E.arrange our needs in order of usefulness before satisfying them

(a) Explain each of the following measures of central tendency
(i) mean;
(ii) median;
(iii) mode
(b) Calculate the mean, median and mode of the following set of numbers: 21, 22, 23,24, 25, 26, 23, 28, 29, 30, 24, 31, 34, 23

Theory

Question 2

Scarcity in economics arises because

A.the resources availoable are adequate
B.individuals have limited time
C.resources are limited in supply
D.human beigns have limited wants
E.individual wants are equal to the resources available

Objective

Question 2

What are the factors that determine the price elasticity of demand for a commodity?

Theory

Question 3

The real cost of a commodity is

A.the cost of the alternative that has to be sacrificed for it
B.the alternative that has to be forgone in order to purchase it
C.its market price
D.the alternative cost involved when the opportunity of buying the commodity is missed
E.the sacrifice that is made after buying the commodity

Objective

Question 3

What are the likely reasons for government participation in the location of industries in Nigeria?

Theory

Question 4

Public corporation in West Africa are set up to

A.make maximum profit
B.provide jobs for the people
C.provide welfare service for the people
D.show that the government can do business
E.compete with private enterprises

Objective

Question 4

What functions do wholesalers perform for manufacturers?

Theory

Question 5

Supply in Economics means making

A.goods and services available to consumers
B.goods available to the market at a given price and at a given period
C.available the goods and services which consumers require
D.craete goods
E.import goods

Objective

Question 5

Explain each of the following types of taxes:
(a) Proportional tax;
(b) progressive tax;
(c) regressive tax.

Theory

Question 6

An inferior goods is one

A.that is too bad for consumption
B.whose price is lower than the price of other goods
C.that is easily perishable
D.whose demands fall when the income of its consumer increases
E.that is not durable

Objective

Question 6

Outline the merits of a Joint Stock Company.

Theory

Question 7

Price elasticity of demand is define as the

A.responsiveness of demand to change in price
B.responsiveness of price to change in demand
C.increase in demand resulting form a rise in price
D.unit decrease in price resulting from a a fall in demand
E.unit increase in quantity demanded when price rises

Objective

Question 7

Highlight the economic effects of high population density in Nigeria.

Theory

Question 8

The rural area of West Africa lack industries because

A.rural people are not meant to work in industries
B.rural people are uneducated
C.of inadequate infrastructure
D.of low population density
E.they are not suitable for industries

Objective

Question 8

How does the Central Bank exercise control over commercial banks?

Theory

Question 9

An entrepreneur will locate his industry in a place

A.nearest to his homw town
B.where the cost of production will be minimized
C.nearest to his wife's hometown
D.where the government direct him to locate
E.where there is no other industry

Objective

Question 9

Describe the problems facing agriculture in Nigeria.

Theory

Question 10

which of the following reasons is mainly responsible for the inefficient distribution of goods in West African countries?

A.large number of distribution companies
B.import and export restrictions by the government
C.narrow markets for commodities produced
D.poor transportation and communication system
E.large influence of foreign traders

Objective

Question 10

Cost schedule of a firm

Output	Total Fixed cost TFC(N)	Total Variable Cost TVC (N)	Total Cost TC (N)	Average Variable AVC(N)	Average Total ATC (N)	Marginal Cost MC(N)
0	100	0	100	0	100	-
1	100	40	140	-	-	-
2	100	64	164	-	-	-
3	100	80	180	-	-	-
4	100	88	188	-	-	-
5	100	96	196	-	-	-

From the cost schedule in this table calculate the Average Variable Cost (AVC), Average Total Cost (ATC) and Marginal Cost (MC) of the firm. Show your working clearly.

Theory

Question 11

which of the following does not apply to private companies?

A.the number of shareholders is limited
B.the liability of shareholders is limited
C.accounts have to be publicized
D.the companies are separate legal entities
E.shares are not easily transferable

Objective

Question 12

In , Economics the reward for labour is in the form of

A.wages
B.profit
C.rent
D.dividends
E.interest

Objective

Question 13

A nation with a working population that is insufficient to exploit its resources is said to be

A.over-populated
B.under-populated
C.experiencing decrease population
D.experiencing increasing population
E.having optimum population

Objective

Question 14

Which of the following may not be included in explaining the term production?

A.provision of services
B.manufacture of goods
C.changing raw materials ti finishing goods
D.use of consumer goods
E.making goods available where and when they are needed

Objective

Question 15

which of the following business establishment are not motivated mainly by profit?

A.Public Limited Companies
B.Private Limited Companies
C.Holding companies
D.Patnershps
E.Co-operatives

Objective

Question 16

Production is not complete until the

A.goods gets to the wholesaler
B.goods reached the final consumer
C.factors of production are combined
D.goods are ready for transportation
E.wholesalers ask the firms to produce

Objective

Question 17

which of the following is the correct way to calculate total cost?

A.Addition of fixed cost to variable cost
B.Division of total cost by total output
C.Multiplication of fixed cost by the variable cost
D.Subtraction of fixed cost from total cost
E.Addition of marginal cost to average cost

Objective

Question 18

Robert T. Malthus postulated in his population theory that

A.the death rate may become so high that people may not survive
B.people will eventually stop having children
C.people will migrate from one place to another in search of food
D.posititve efforts should be made to increase population
E.population growth rate may out-grow the means of subsistence

Objective

Question 19

Division of labour may be restricted when

A.an ailing economy has improved
B.producers live in villages
C.market is small
D.there is full employment
E.there is inflation

Objective

Question 20

Land is often distinguished as a factor of production because it

A.is a free gift of nature
B.constitutes one-third of the entire world
C.is unlimited in supply
D.is owned by individuals
E.is owned by government

Objective

Question 21

which of the following is an advantage of division of labour? It

A.saves time
B.make possible the sue of machine
C.is monotonous
D.leads to specialization
E.aids the development of skills

Objective

Question 22

the location of timber and plywood industries in West Africa is mainly influenced by the

A.avilability of transport
B.good climate
C.availability of power supply
D.adequate labour supply
E.presence of a luxuriant forest

Objective

Question 23

the occupational distribution of population in most West African countries shows the highest concentration in

A.agriculture and aalied industries
B.mining and manufacturing
C.the distributive trade
D.commerce and industries
E.mining and services

Objective

Question 24

The growth of the population is the ?

A.annual increase in population
B.total population of a country at a given time
C.addition to the total population over a given period
D.increase in the working population over a given period
E.percentage increase in population in a given year

Objective

Question 25

A situation in which an increase in demand for certain goods leads to a fall in demand for other goods is known as

A.joint supply
B.derived demand
C.competitive demand
D.competitive supply
E.composite demand

Objective

Question 26

A market equilibrium exist when

A.demand and supply are equal
B.the market is large
C.the price is fluctuating
D.no buyer goes home empty-handed
E.no seller has an unsold stock

Objective

Question 27

The price system is

A.the market price of commodities
B.a market where a single price rules
C.a system of price allocation to the products of the same firm
D.a system of resource allocation through supply and demand interaction
E.a system which the market price is determined only through haggling

Objective

Question 28

The main objective of production by entrepreneur is to

A.equate marginal revenue with marginal cost
B.provide employment opportunities
C.equate total revenue with total cost
D.equate average revenue with average cost
E.acumulate wealth for the nation

Objective

Question 29

If price falls below the equilibrium

A.Demand will equal supply
B.Demand will be greater than supply
C.Supply will be greater than demand
D.Price will become indeterminate
E.Quantity supplied will be zero

Objective

Question 30

Which of the following is not a source of finance for a one-man business?

A.money lenders
B.inheritance
C.loans from insurance companies
D.loans from banks
E.Sales of shares

Objective

Question 31

Land is a most significant factor in terms of contribution to the economy because

A.it enables us to build industries
B.we build houses on it
C.all our highways are constructed on it
D.we get a lot of fishes from it
E.vital resources from it enrich the economy

Objective

Question 32

Capital as a factor of production is important because

A.it enables us to carry out task which can not be done by human effort only
B.most tasks can be done with bare hands
C.people can work without capital
D.without capital all the factors are useless
E.it provides money which is essnetial for the growth of business

Objective

Question 33

A firm's compulsory cost whether it is in production or not , is referred to as its

A.prime cost
B.variable cost
C.marginal cost
D.fixed cost
E.average cost

Objective

Question 34

A scale of preference is a list

A.of consumer's wants arrange in order of importance
B.thaqt helps the individual to make rational choice
C.that enables the consumer to make a wise decision about his choice
D.that is necessary because human beigns are faced with competitive wants
E.os all satisfied wants arrange in order of magnitude

Objective

Question 35

An economic system in which the state owns and controls the means of production is known as

A.free enterprise
B.socialist economy
C.mixed economy
D.capitalist economy
E.welafare company

Objective

Question 36

Which of the following is not a middleman in the distribution channel? The

A.wholesaler
B.distributor
C.agent
D.cosumer
E.retailer

Objective

Question 37

Division of labour gives rise to

A.the exchange of goods and services
B.the use of barter system
C.the production of limited goods
D.unemployment
E.delay in production

Objective

Question 38

One-man business is popular in West Africa because of all the following , except the

A.ease of entry
B.small capital required
C.limited enterpreneur skills needed
D.ease of decision making
E.tendency to become joint-stock companies

Objective

Question 39

Which of the following is not a reason why statutory are run only by the government?

A.The duplication of some services will lead to resource wastage
B.all corporation provides services which individuals cannot provide
C.Essential services must be provided irrespective of the economic system adopted
D.some corporations require large financial capital which may not be easy to acquire by individuals
E.There is need to protect consumers from exploitation

Objective