WAEC Economics 1996 Past Questions

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

The ranking of a consumer’s need in order of importance is termed

A.An opportunity cost
B.Economies of scale
C.A scale of preference
D.The making of choice
E.Direct production

In what ways can the government improve agricultural production in Nigeria?

If price of a commodity rises from N2.00 to N4.00 and its supply increases from 100 to 125, them the co-efficient of elasticity of supply is

A.0.025
B.0.24
C.0.22
D.0.25
E.0.23

Define ageing population and explain its effects on an economy.

If as a result of fall in price of the commodity X, the quantity demanded of commodity Y falls, then commodities X and Y are

A.complementary
B.in joint demand
C.luxuries
D.in composite demand
E.substitutes

Explain any three weapons that can be used by a trade union and any two weapons that can be used by an Employers' Association during a trade dispute.

MUX = PX ( where X and Y = good X and Good Y; MU = Marginal Utility;P= Price)MUY = PY. The above represents the

A.marginal utility equation
B.equation for consumer dis-equulibruim
C.utility maximization equation
D.equation for total utility
E.equation for price elasticity

Utility schedule

Quantity of goods consumed	Total Utility	Marginal Utility
0	0	0
1	10	10
2	16	-
3	-	4
4	-	-
5	23	1
6	23	-

(a) Complete the above utility schedule
(b) Draw the marginal utility curve
C(i) At what quantity does TU equal MU?
(II) What is the value of MU when TU reaches the maximum?
(iii) What happens to the values of TU as the quantity consumed increases?
(iv) What happens to the values of MU as the quantity consumed increases?

Subsistence agriculture means

A.cultivation for external use
B.cultivation for local industries
C.farming for the urban dwellers
D.cultivation for household consumption
E.cultivation for foreign currency

The daily sales of a department store for one week are as follows

Days	Mon	Tue.	Wed.	Thu.	Fri.	Sat.
Sales N	1750	1000	3500	2250	1000	2500

(a) Present the above data in a bar graph. (The use of graph sheet is essential).
(b) Calculate the average utility curve.

Farm produce are graded, packed and distributed by

A.purchasing co=operatives
B.agricultural co-operative banks
C.consumer co-operative society
D.marketing co-operatives
E.wholesale co-operatives

Explain five sources of finance that are available to a Public Limited Company.

Localization of industries is

A.the industrialization of a country
B.the concentration of the firm of an industry in a particular area
C.the location of a firm at a particular locality
D.the economic development of a locality
E.governement intervention in the location of industries

State any two ways by which monopolistic competition and perfect competition are similar and any three ways in which they are different.

Which of the following correctly illustrates the chain of distribution?

A.Manufacturer -> wholesaler -> retailer consumer
B.Consumer -> retailer -> wholesaler -> manufacturer
C.Wholesaler -> manufacturer -> retailer -> consumer
D.Distributor -> consumer -> wholesaler -> manufacturer
E.Producer -> manufacturer -> wholesaler -> retailer

(a) Explain the methods of measuring the national income of a country
(b) State any three problems associated with measuring national income.

The natural growth rate of a population is the

A.Death rate plus net immigration
B.Rate of migration divided by birth rate
C.Birth rate minus death rate
D.Sum of birth rate and net immigration rate
E.Sum of birth rate and death rate

(a) What is meant by devaluation?
(b) Explain the measures by which a country can correct its balance of payments deficit.

Decreasing returns to scale implies ta if all factors of production are doubled, output will be

A.More than doubled
B.Less than doubled
C.Doubled
D.Unchanged
E.Trebled

(a) Explain the term economic planning
(b) Outline the problems of development plans in Nigeria.

Rents and interest are rewards to

A.Labour and capital respectively
B.Land only
C.Capital only
D.Labour and land respectively
E.Land and capital respectively

The process that leads to an agreement on the condition of service between employer and employee is termed

A.Salary negotiation
B.Arbitration
C.Collective bargaining
D.Conciliation
E.Reconciliation

Diminishing return occurs in short run when there is a reduction in the

A.Average product of the fixed factor
B.Total product of the variable factor
C.Total product of the fixed factor
D.Marginal product of the variable factor
E.Marginal product of the fixed factor

In production, factory buildings are regarded as

A.Variable cost
B.Average costs
C.Marginal costs
D.Total cost
E.Fixed costs

The Ownership of a Public Limited Company is made up of

A.Two to twenty persons
B.A minimum of seven shareholders
C.A minimum of fifty and maximum of one hundred shareholders
D.Two to fifty shareholders
E.A maximum of fifty shareholders

All the following are the economic reasons for establishing public enterprises except the provision of ,

A.An avenue for expressing national prestige
B.Services at a cheaper cost
C.Socially necessary facilities
D.Services which are natural monopolies
E.Employment opportunities

The unemployment associated with decrease in demand is referred to as

A.Disguised
B.Imposed
C.Cyclical
D.Voluntary
E.Functional

Monopoly can best be described as a market in which

A.A single seller sells a product which has no close substitute
B.Few sellers sell a product s at different prices
C.The entry of other firms is restricted by the few firms in the market
D.Two or more sellers sell a product which is differentiated
E.a single buyer buys a product which has no close substitutes

which of the following market structure are imperfect in competition. I monopoly II duopoly III oligopoly

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

Demand-pull inflation results when there is

A.inadequate improvement in the wage rate of workers
B.execessive demand due to high purchasing power
C.excessive supply of raw materials for production
D.rise in productivity of the factors of production
E.excessive rise in the standard of living

Changes in the value of money can be measured by

A.The distributors
B.A price index
C.A demand index
D.A supply index
E.The use of cheque

The efficiency of a country's labour force depends on all the following except

A.improved working conditions
B.better and health care facilities
C.adequate training
D.stable economy
E.frequent strikes and lock-outs

which of the following is a bank's responsibility to it's shareholders?

A.making profits
B.creating money
C.paying high interest rate
D.preventing inflation
E.issuing currencies

Deficit financing means

A.receiving grants from the IMF
B.having budget surplus
C.excessive government spending on banks
D.borrowing to finance a budget
E.inadequate supply of money from the finance companies

Development banks mainly provides

A.savings account facilities for a developing economy
B.foreign exchange facilities for importers and exporters
C.capital for development of specific sectors
D.capital for hire-purchase of machinery
E.capital for the development of special banks

In calculating the Gross National Product (GNP) by the income approach , all the following are included except

A.wages and salaries
B.direct taxes paid by persons and companies
C.rents on houses
D.retirement benefits
E.business profits

Exchange control is a weapon used in regulating

A.Internal trade
B.Stock exchange
C.Foreign exchange
D.Barter trade
E.Exchange of personal properties

The current and capital accounts in Nigeria’s balance of payments contain all the following items except

A.oil export
B.receipts for shipping services
C.cost of aviation
D.foreign investment
E.IMF Standard Drawing Right (SDR)

Who bears the greater burden of the indirect tax when the demand for a commodity is inelastic? The

A.wholesaler
B.shareholders
C.retailer
D.consumers
E.entreprenuer

Economic growth specifically refers to the

A.reliance on imported goods in preference to home-made goods
B.sustained increase in the output of goods and services per head
C.change in technical and institutional arangment of the economy
D.continued increase in the depletion of a country's natural resources
E.increase in the total number of people in the economy

The hourly wages of five employees of the Nigerian Port Authority are N2.52, N3.96, N9.20, and N3.75 respectively. The median hourly wage is

A.N2.52
B.N3.28
C.N3.75
D.N3.96
E.N9.20

The petroleum industry in Nigeria is an example of a

A.capital-intensive industry
B.service industry
C.labour-intensive industry
D.tertiary production industry
E.localized industry

The international cartel formed to stabilize the world oil market is the

A.Economic Commissioner for Africa
B.International Monetary Fund
C.Organization of Petroleum Exporting Countries
D.Organization of Petroleum Importing Countries
E.International Trade Organization

The United Nation Conference on Trade and Development (UNCTAD) is a forum designed specifically for discussing the

A.political conflicts in the United Nation Security Council
B.educational needs of the developed countires
C.religious affairs in the Southern Africa
D.revenue allocation in Nigeria
E.better terms of trade in the world

The International Monetary Fund (IMF) is an international organization which

A.gives annual grants to all developing countries
B.assist countries to solve their balance of payment problems
C.execute their development projects
D.help to promote regional economic groupings
E.is owned by all developed countries

An economic system in which most means of production are owned and controlled by the State is known as a

A.socialist economy
B.capitalist economy
C.mixed economy
D.political economy
E.feudal economy