WAEC Economics 2003 Past Questions

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

Economic as a field of study is a

A.pure science
B.polititcal science
C.social science
D.physical science

Study the following extract on country Y's population data and answer the questions that follow.

The population of country Y in 1970 was 60 million. From 1971 to 1975 the total number of births was 25 million and deaths stood at 3 million. 8 million immigrants and 4 million emigrants were recorded in the reporting period.
(a) Present the above data in a table.
(b) (i) Determine the net migration within the period.
(ii) Calculate the population of the country in 1975.
(c) What is the percentage increase in the population of the country from 1970 to 1975?

The major agents of economics system are

A.consumer, workers and producers
B.markets, telecommunication and banks
C.schools, hospitals and universisties
D.indidviduals , firms and government

The table below shows the tax payments of four income earners in a year. Use the information in the table to answer the questions that follow.

Income Earners	Income Base	tax	Payments
		N	N
		A	B
Jawara	15,000.00	1,500.00	1,200.00
Ade	25,000.00	2,000.00	2,000.00
Eke	32,000.00	3,200.00	2,240.00
Audu	60,000.00	6,000.00	3,000.00

(a) Determine the percentage rate of taxation paid by
(i) Jawara in columns A and B.
(ii) Audu in columns A and B.
(iii) Ade in columns B.
(iv) Eke in column B

(b)(i) Identify the systems of taxation employed in columns A and B.
(ii) Which of the income earners have the least burden under column B?

(c) (i) If government increases its rate of taxation to 15% flat rate, how much revenue will be generated from the payees?
(ii) At 15% flat rate taxation, calculate the disposable incomes of Messrs Jawara, Ade, Eke and Audu.

which of the following is not an advantage of tubular presentation of data?

A.enables easy location of required figures
B.makes for easy comaprison of figures
C.occupy more space than mathematical equations
D.showa wether the figures are increasing or decreasing

(a) Why is the scale of preference important
(b) Explain the concept, opportunity cost.
(c) State the opportunity cost in each of the following actions:
(i) A shirt was purchased for N500.00 instead of a pair of shoes.
(ii) Onions were planted on a farm realizing N20,000.00 instead of maize that could have realized N25,000.00

The problem of scarcity is reduced by

A.controlling consumption of goods and services
B.producing everything needed by the consumers
C.ensuring efficient allocation of resources
D.restricting consumer choice and tatste

Why do government conduct population census?

The reward for labour is

A.wage
B.profit
C.rent
D.dividend

(a) What is price elasticity of demand?
(b) With carefully labeled diagrams, illustrate each of the following:
(i) perfectly inelastic demand
(ii) unitary elastic demand
(iii) fairly elastic demand
(iv) perfectly elastic demand.

Which of the following factors of production consists of man made goods?

A.land
B.labour
C.capital
D.entreprennuer

Explain any four of the following terms:
(a) Nationalization
(b) Commercialization
(c) Privatization
(d) Indigenization
(e) Joint Ventures.

one major function of the entrepreneur is

A.bearing of risks
B.maximizing profits
C.taking charge of day to day managment
D.determinig the selling price of his products

(a) Distinguish between cost-push inflation and demand pull inflation.

(b) Explain any four ways of controlling inflation.

A major limiting factor of mass production is

A.efficient management
B.adequate labour supply
C.small size of the market
D.adequate supply of raw materials

(a) Define the term unemployment.

(b) Highlight the effects of unemployment on an economy.

Division of labour leads to

A.improved craftsmanship
B.the production of standardized goods
C.increase in the cost of goods
D.trade by barter

Write notes on each of the following:
(a) Savings account
(b) Current account
(c) Fixed deposit account.

which of the following is an advantage of localization of industry?

A.development of subsidiary firms
B.creation of paralell markets
C.developments of slums
D.attraction of foreign capitals

In what ways is foreign trade different from domestic trade?

The additional satisfaction derived from the consumption of one or more unit of a good is called

A.marginal products
B.marginal utility
C.marginal revenue
D.marginal cost

(a) Explain the term economic integration.

(b) Highlight any four problems of economic integration in West Africa.

when the total products is at its maximum marginal products is

A.increasing
B.positive
C.negative
D.zero

(a) What is economic planning?
(b) Outline the problems associated with economic planning in West Africa.

Marginal cost can be derived from the

A.total product
B.total revenue
C.total cost
D.average fixed cost

The market supply curve slopes upwards from left to right indicating that

A.at a lower price more is supplied
B.two commodities can be supplied at the same time
C.at a lower price, less is supplied
D.producers pay high taxes

The term underpopulation refers to a situation where the population is

A.disperesed over the country
B.small in relation to available resources
C.greater than the available resources
D.concentrated in a few areas

West African countries experience rapid population growth due to

A.existence of birth control clinics
B.early marriages
C.adequate sex education in schools
D.late marriages

which of the following could be used to measure the efficiency of labour?

A.education and training
B.rate of inflation
C.level of unemployment
D.input-output ratio

which of the following is necessary for the survival of small firms in West Africa?

A.acess to loand for development
B.inadequate collaterals for bank loans
C.government assistants in form of loans and tax holidays
D.high transportation cost

A normal demand curve slopes

A.downward from left to right
B.upwards from left to right
C.downwards from right to left
D.upwards from the origin

If the quantity demanded of a commodity increases from 20 to 30 units where there is an increase in price from 4naira to 5 naira, the elasticity of demand is

A.0.0
B.1
C.2
D.5

Price elasticity supply measures the responsiveness of quantity supplied to

A.change in suppliers' income
B.change in price of otther commodities
C.a change in the rpice of the commodities
D.a change in the demand for the products

The most common type of business in West African countries is

A.joint-stock companies
B.sole proprietorships
C.Partnership
D.public enterprises

Which of the following is a type of business organization?

A.stock exchange
B.insurance company
C.chain stores
D.co-operatives

one advantage of the sole proprietor is that

A.control and supervise is under one man
B.accounts must be publisized
C.it is always successful
D.funds are easy to obtain

The shares which do not carry any fixed rate of dividend are known as

A.debenture
B.cummulative preference shares
C.ordianry shares
D.participating preferencial shares

The economic goals of public corporation is to

A.maximize profits
B.expand assets
C.minimize cost
D.provide essential services

one of the factors responsible for low agricultural production in West Africa is

A.inadequate labour
B.shortage of lands
C.inadequate implements
D.inadequate research

Efficient distribution of goods in West Africa will be facilitated by

A.poor storage facility
B.adequate transportation system
C.high standard of living
D.high cost of living

The demand for money is

A.derived demand
B.composite demand
C.joint demand
D.complimentary demand

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

A.deflation
B.depression
C.recession
D.inflation

A continuous fall in the general price level is called

A.recession
B.depression
C.deflation
D.stagflation

Which of the following is the function of a central bank?

A.accepting deposits from the public
B.lending to the commercial banks
C.discounting bills of exchange
D.agent of payment for individuals

Cost-push inflation is likely to raise when

A.there is an increase in government spending
B.there is an increase in direct taxes
C.demand for higher wages is granted
D.there is a decrease in banks lending

The most important function of merchant banks is the

A.issuing of currency
B.provision of short term loans
C.provision of medium and long term loans
D.provision of short and long term loans

Precautionary motive relates to

A.demand for money
B.demands for goods
C.supply of money
D.supply of goods

Question 36
Invisible trade refers to trade in
A.services
B.goods and services
C.tangible goods
D.crude oil
Objective

Question 37
When the demand for foreign exchange exceeds its supply, the value of the domestic currency
A.appreciates
B.depreciates
C.inflates
D.expands
Objective

Question 38
Which of the following is part of the capital account of the balance of payments?
A.Net investment from abroad
B.import of machinery
C.insurance
D.transportation cost
Objective