WAEC Economics 1994 Past Questions

Question 1

The definition of economics as 'the science which studies human behaviuor as a relationship between ends and scarce means which have alternative uses' was given by

A.Adam Smith
B.David Ricardo
C.Lionel Robbins
D.Thomas R. Mtithus
E.Robert Giffen

Objective

Question 1

(a) What is meant by price elasticity of demand?
(b) The following figures are extracted from a schedule of demand and supply:

Price	Quantity Demanded	Quantity Supplied
N9.00	1050	850
N10.00	1000	1000
N11.00	950	1150

(i) Calculate the elasticity of demand when price rises from N10.00 to N11.00.
(ii) State whether the demand in (i) above is elastic or inelastic.
(iii) Calculate the elasticity of supply when price falls from N10.00 to N9.00.
(iv) State whether the supply in (iii) above is elastic or inelastic

Theory

Question 2

The concept of economics efficiency primarily implies

A.containing the maximum output from available resources at the lowest possible cost
B.conserving our petroleum resources
C.equity in the distribution of the nation's wealth
D.production without waste
E.the limited wants unlimited resources dilemma

Objective

Question 2

Use the data in the table below to answer the questions that follow;

Age group	No of Students in thousands
Age group	1955	1960
0 - 16	150	143
17 - 45	51	107
46 -60	29	33
above 60	15	17

(a) What is the percentage increase in the working population between 1955 - 1960?
(b) Calculate the ratio dependent population to the working population in 1955.
(c) Calculate the ratio of dependent population to the working population in 1960.
(d) Has the dependency ratio increased or decreased between 1955 and 1960?

Theory

Question 3

Which of the following is true of NEPA as a public corporation in Nigeria? It is

A.a solar energy distribution
B.organized in a perfectly competitive market
C.a duopoly
D.a monopolistically competitive industry
E.a monopoly

Objective

Question 3

Price tends towards the level which equates supply with demand'. Explain this statement.

Theory

Question 4

a situation of full employment exist when

A.every adult is employed
B.all adukts who can work are employed
C.all persons who have attained the age of 15 years and above are employed
D.only the disabled are not employed
E.all those who are able and eligible to work are employed

Objective

Question 4

Highlight the economic problems associated with the dependency of West African countries on primary production.

Theory

Question 5

which of the following function of money makes it possible for any person to provide for old age?

A.medium of exchange
B.stores of value
C.measures of value
D.unit of account
E.standard for deferred payment

Objective

Question 5

(a) Explain the term national debt.
(b) State any four instruments of government borrowing in Nigeria.

Theory

Question 6

The primary objective of Agricultural Credit Guarantee Scheme is the provision of

A.guarantee for loans granted by by banks for agricultural purposes
B.agricultural inputs to facilitate credits from banks
C.loans for every farmer
D.agricultural products for farmers
E.credit for farmers

Objective

Question 6

Compare and contrast the private limited company with the public limited company.

Theory

Question 7

which of the following is not an advantage of localization of industries ?

A.enjoyment of externa economies
B.development of subsidiary industries
C.development of organized markets
D.growth of conurbation
E.growth of farms

Objective

Question 7

(a) Outline the main features of the Malthusian theory on population.
(b) Explain the developments that render the theory irrelevant to the present day situation.

Theory

Question 8

Which of the following is not an advantage of government ownership of enterprises?

A.more capital is provided
B.pricing policy may be in the interest of consumers
C.Government workers may be indifferent towards the public
D.infrastructure are rapidly developed
E.incomes may be more evenly distributed

Objective

Question 8

What is money ? Explain its characteristics.

Theory

Question 9

if the foreign exchange rate is N80 to £1, then a bicycle bought for £40 will cost

A.N15.00
B.N60.00
C.N100.00
D.N250.00
E.N320.00

Objective

Question 9

(a) Explain the term capital market.
(b) How is the capital market different from the stock exchange?
(c) What are the advantages of the capital market?

Theory

Question 10

The central banks controls commercial banks through all the following measures except

A.The uses of directives
B.The use of bank rate
C.Open market operations
D.Accepting deposits
E.Demanding special deposits

Objective

Question 10

Describe the functions of the International Monetary Fund (IMF).

Theory

Question 11

If a person supplements his current income by drawing on past savings in order to make both ends meet, he is said to be living

A.good life
B.an average life
C.on his savings
D.a reckless life
E.on borrowed money

Objective

Question 12

Which of the following is not a set of measures of central tendency?

A.Mode and Median
B.mean and median
C.Mean and mode
D.Median and percentage
E.Mode, mean and median

Objective

Question 13

which of the following pairs can be referred to as middlemen?

A.wholesalers and agents
B.Retailers and consumers
C.Consumers and agents
D.Wholesalers and retailers
E.Wholesalers and consumers

Objective

Question 14

Mono-products economics are those that

A.have a rich culture heritage
B.produce only raw materials
C.live on the exportation of their raw products
D.produce one main commodity
E.specialize in agricultural industries

Objective

Question 15

A Nigerian household demand curve for semovita is downward sloping because

A.the demand for semovita is high
B.the local markets are flooded with semovita
C.semovita is produced in Nigeria
D.every household can afford to buy semovita
E.the higher the price of semovita, the lower the quantity demanded

Objective

Question 16

To the economist a stock of goods existing at a a particular time and conforming to certain requirements such as having utility, money value and being limited in supply , is known as

A.consumer goods
B.products
C.wealth
D.commercial goods
E.durable goods

Objective

Question 17

The decision to consume more of one product swill under normal circumstances imply that

A.more of another product will be consumed
B.less of something else will be consumed
C.no other product will be consumed
D.decision-making is basic in economics
E.enough resources are available

Objective

Question 18

The difference between the Gross Domestic Product (GDP) and the Gross National Product (GNP) is the

A.allowance for total depreciation
B.total interest payment
C.net income from abroad
D.total tax and interest payment
E.net internally generated income

Objective

Question 19

one of the function of a commercial bank is that it

A.is responsible for formulating monetary policies
B.accepts demand and time deposits from constomers
C.is the lender of the last resort
D.is the banker of the government
E.is responsible for issuing currency notes

Objective

Question 20

which of the following is not a problem of distribution of goods in Nigeria?

A.poor communication network
B.inadequate storage facilities
C.ignorance of consumers
D.Dishonesty of middlemen
E.inadequate market

Objective

Question 21

Mr Idowu needs a television and a refrigerator. Each cost N500.00, the exact amount he has . If Mr. Idowu buys the television , the refrigerator would be regarded as the

A.marginal cost
B.inferior item
C.opportunity cost
D.supplementary item
E.prime cost

Objective

Question 22

Petro-chemicals industries are located in River State of Nigeria due to the presence of

A.a favourable climate
B.coal deposits
C.oil palm products
D.an undullating terrain
E.oil deposits

Objective

Question 23

Foreign exchange control in Nigeria is enforced by the

A.Commercial banks
B.Merchant banks
C.Mortgage banks
D.Central banks
E.Agricultural development banks

Objective

Question 24

The difference between the number of immigrants and emigrants is

A.internal mobility
B.internal migration
C.net migration
D.marginal migration
E.external migration

Objective

Question 25

Risk bearing and managerial control are the main function of the

A.managing director
B.manager
C.entrepreneur
D.chief excecutive
E.chief accountant

Objective

Question 26

If successive unit of labour are added to a piece of land while capital and technology remains constant, a point will be reached in the level of production when each additional unit of labour will add less to the output than previous units. This concept is known as

A.productivity of labour
B.law of diminishing marginal utility
C.law of diminishing returns
D.law of diminishing returns of a variable factor
E.internal economies of sales

Objective

Question 27

When a firm's total revenue is at the maximum , marginal revenue is

A.at the maximum
B.negative
C.zero
D.positive
E.constant

Objective

Question 28

Under normal circumstances, a producer will bear the entire burden of taxation on his output if the

A.supply of his goods is more elastic than the demand
B.demand for his products is completely elastic
C.production of his commodity is subject to diminishing returns
D.demand for his products is more elastic than the supply
E.demand for his products is completely elastic

Objective

Question 29

Limited liability means that

A.the debt of a company can only be paid from its own assets
B.the debts of a company are paid from business as well as private funds of the owners
C.a company does not have to pay its debts
D.the debts of a company must be paid from a private funds only
E.government cannot tax a company