WAEC Economics 1999 Past Questions

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

The money payment made to owners of land and labour are

A.rent and wages
B.interst and profits
C.wages and interest
D.didvidends and salary
E.tax

Given the demand function for commodity X Qd = 12 - 2P where Qd is the quantity demanded and P the price of the commodity.

P	6	5	4	3	2	1	0
Qd

Use the demand function to complete the table
(b) Draw the individual's demand curve (use of graph paper is essential
(c) What is the maximum quantity the individual can buy of commodity X per unit of time?
(d) What is the relationship between quantity demanded and price in the function Qd = f(P)?

The price elasticity of coefficient indicates

A.how far business can reduce cost
B.the degree of competition
C.the extent to which curve shifts
D.consumer responsiveness to price changes
E.none of the above

The table below relates to the application of fertilizer to a fixed area of land and the production of maize. Use the table to answer the questions that follow.

Tones of fertilizer Applied	Total production in Bags	Marginal product
0	1,000	-
1	1,100	100
2	1,250	150
3	1,500	250
4	-	400
5	-	250
6	-	125
7	2,350	-
8	2,380	-
9	2,330	-

(a) What will be the total output of maize when no fertilizer is applied to the land?
(b) Calculate the total product after the application of the following quantities of fertilizer:
(i) 4 tonnes;
(ii) 5 tonnes;
(iii) 6 tonnes.
(c) Calculate the marginal product after the application of the following quantities of fertilizer:
(i) 7 tonnes;
(ii) 8 tonnes;
(iii) 9 tonnes.
(d) (i) After what level of the application of fertilizer does diminishing marginal returns occur?
(ii) After what level of fertilizer application will the total output decrease?

every society strive to pursue all the following economic objectives except

A.increase production
B.price stability
C.an inequitable distribution of income
D.sustainable growth and income

What would be the economic consequences if prices were fixed by the government?

which of the following best describes capital as a factor of production?

A.a natural resources found everywhere
B.a stock of physical assets used for production
C.the organization of human and material resources for production
D.resources used in training labour

Explain the advantages and disadvantages of a joint stock company as a form of business organization.

The system whereby goods are exchanged for goods is known as

A.stock exchange
B.barter system
C.banking
D.co-operative system

What are the positive and negative effects of inflation on the economy?

The graph of the function X = a + bY is

A.linear
B.quadratic
C.cubical
D.exponential

Distinguish between:
(a) Economic resources and non-economic resources.
(b) Want and Demand.
(c) Money Cost and Real Cost.

Productivity , per worker, is best measured by

A.total output less number of workers
B.total output multiplied by number of workers
C.number of workers less total output
D.total output didvided by number of workers

Explain the advantages and disadvantages of monopoly.

In determining cost economics considers

A.implicit cost only
B.explicit cost only
C.implicit and explicit costs
D.explicit cost less implicit

Why is the small scale trader important in West African countries?

The precautionary motive for holding money is to enable the holder to

A.buy stocks when interest are high
B.overcome unforseesn contigencies
C.buy goods and services on daily basis
D.buy fixed assets

How can West African countries promote indigenous industries?

In long run, all factors inputs are

A.variable
B.diminishing
C.constant
D.fixed

(a) What is a customs union?
(b) State three advantages and two disadvantages of a customs union.

The benefits that result from concentrating similar firms in an area is referred to as

A.external diseconomies of scales
B.internal diseconomies of scales
C.internal economies of scales
D.external economies of scales

Highlight the causes of Balance of payments deficits in your country.

Per capita income in any West African country is measured by

A.dividing the GNP by total population
B.adding the total savings to the GNP
C.multiplying the GNP by the total population
D.subtracting the GNP fron the GDP

Describe the contributions of natural resources to the economy of your country.

A priority rating of aggregate individuals wants is called

A.Scarcity
B.choice
C.A scale of preference
D.opportunity cost

Profits can be calculated by

A.subtracting total cost from total revenue
B.subtracting average revenue from total cost
C.dividing total revenue from total output
D.dividing marginal revenue by marginal cost

The marginal revenue curve of a monopolist is

A.upward sloping from the right to left
B.downward sloping from left to right
C.paralell to the quantity axis
D.downward sloping from right to left

when all factor inputs are doubled , the production possibly curve will

A.shift from left to right and return to its orignal position
B.shift from left to right
C.remain in its former position
D.shift from right to left

income elasticity of demand is measurement of the responsiveness of

A.price to change in income
B.quantity demanded to change in income
C.change in expenditure to change in income
D.change in expenditure to change in price of the commodity

The establishment of industries in rural areas will help to reduce

A.urban-rural migration
B.urban-urban migration
C.rural-urban migration
D.rural-rural migration

Government imposes taxes mainly to

A.punish the citizens
B.provide social amenities
C.donates to poorer countries
D.execute white elephant projects

In a perfect market price and quantity to be bought are determined by the

A.consumers and retailers
B.producers and wholesalers
C.forces of demand and supply
D.interest of government and producers

When price elasticity of supply is equal to 0.4, supply is said to be

A.inelastic
B.elastic
C.unitary elastic
D.public utilities

In the money market , money can only be borrowed for

A.long term
B.short term
C.capital project
D.public utilities

Deflation can be controlled by increase in

A.the bank rate
B.income tax
C.the price level
D.the budget deficit

Mortgage banks give loan to investors on long term basis to

A.finance agriculture
B.establish banks
C.acquire machinery
D.build houses

The situation where by a government spends more than its budgets for a fiscal year is known as

A.extra budget
B.surplus budget
C.mid-year budget
D.deficit budget

In a socialist economy, factors of production are owned and controlled by the

A.citizens
B.businessmen
C.government
D.foreigners

One quality of money which makes it possible to be carried easily is its

A.Scarcity
B.Durability
C.portability
D.acceptability

A form of tax in which the poor pay a higher rate than the rich is known as

A.regressive tax
B.backward tax
C.oppressive tax
D.retrogressive tax

The reduction in the value of a country's currency of other nations is known as

A.deflation
B.devaluation
C.inflation
D.revaluation

The creation of utility can be referred to as

A.value added
B.profit maximization
C.entreprenuership
D.production

Government revenue will increase if tax is imposed on a good whose demand is

A.elastic
B.inelastic
C.unitary elastic
D.perfectly elastic

Occupational distribution of population is mainly influenced by

A.economic factors
B.religious factors
C.geographical factors
D.social factors

proportional tax refers to

A.taxation of the rich only
B.equal tax rate for all people
C.unequal tax rate for all people
D.taxation of civil servants only

which of the following is not n item of capital expenditure?

A.Construction of highways
B.Building of dams
C.payment of salaries and wages
D.building of a new universities

The population which yields the highest level of income per head is known as

A.over-population
B.under-population
C.extreme population
D.optimum population

Price discrimination can only occur when there is

A.perfect competiton
B.imperfect competition
C.a merge
D.partnership

Commodity market can best be described as a market in which

A.goods are sold
B.labour is sold and bought
C.short-term loans are obtained
D.quoted stocks are bought

Provision of services is classified under

A.primary production
B.secondary production
C.tertiary production
D.production possibilities