WAEC Economics 2004 Past Questions

Which of the following is an economic activity?

A.attending a town's meeting
B.a visit to the stadium
C.payment of school fees
D.arresting a petty thief

Use the diagram below to answer the questions that follow.

(b)(i) Which of the curves represents the monopoly demand curve?
(ii) What is the point on the diagram?
(iii) State the equilibrium price and quantity
(iv) Which area represent monopoly profits?

(c) If P\(_1\) q = 5 Naira and q\(_1\) = 50 units and C = 2 Naira, deter mine the monopoly profit.

Theory

Question 2

The reward for land as a factor of production is

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

Objective

Question 2

The table below represents the output level of a particular firm producing soft drinks. Use the information in the table to answer the questions that follow.

Give the cost equation of the firm in Naira as C = 20 + 2q where C is total cost and q is quantity produced, calculate:
(a) The total cost of producing: (i) 12 units of output (ii) 36 units of output.
(b) The average cost when: (i) 48 units were produced (ii) 58 units were produced.
(c) The marginal cost when: (i) 23 units were produced (ii) 36 units were produced.
(d) If the firm is operating in a perfectly competitive market and the market price is N5 per unit, determine the profit when: (i) 23-units are produced (ii) 48 units are produced.

Theory

Question 3

The three broad categories of productions are

A.direct, secondary and extractive
B.primary, tertiary and direct
C.primary, secondary and tertiary
D.secondary , primary and direct

Objective

Question 3

(a) Explain any two causes of a declining population:
(b) Outline any three factors which determine the size of your country's working population.

Theory

Question 4

A carpenter's consumer goods includes 1. a kilogram of rice II. 3 pairs of shoes III. 4 pairs of socks IV. 3 screw drivers

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

Objective

Question 4

(a) Describe each of the following:
(i) Abnormal demand
(ii) Effective demand

(b) Give three reasons for the occurrence of abnormal demand.

Theory

Question 5

In a capitalist system, the means of production is owned and controlled by

A.the government
B.politicians
C.private indidviduals
D.the workers

Objective

Question 5

(a) Outline any two objectives of a price control policy.

(b) Highlight any three effects of a maximum price control policy.

Theory

Question 6

Mixed economy refers to a system in which the means of production are controlled by

A.private enterprises and the government
B.private indidviduals
C.the government only
D.the workers and businessmen

Objective

Question 6

(a) What are public corporations?

(b) State any four merits of public corporations.

Theory

Question 7

An economic goods is described as a good which

A.yields utility and commands a price
B.is useful and occupies a space
C.is in high demand and transferable
D.has unlimited supply

Objective

Question 7

(a) Distinguish between:
(i) a firm and an industry.
(ii)location and localization of industry.

(b) Describe any four factors which influence the location of industries in your country.

Theory

Question 8

The concept of opportunity cost is important to the firm because it

A.determines the price of the firms products
B.increases the level of output of the firm
C.leads to maximum satisfaction of the consumers
D.guides firms in allocating scarce resources

Objective

Question 8

(a) Explain any four reasons why small-scale farmers dominate agricultural production in your country

(b) Suggest any two measures that can be taken to encourage large scale farming in your country.

Theory

Question 9

As a firm expand s , it enjoys some advantages called

A.variable proportion
B.diminishing marginal returns
C.internal economies of scales
D.decreasing returns to scale

Objective

Question 9

(a) Distinguish between:
(i) a mortgage bank and a merchant bank.
(ii) a commercial bank and a development bank.

(b) Explain any four functions of commercial banks.

Theory

Question 10

division of labour is limited by

A.the size of the market
B.the productivity of capital
C.cost of production
D.the factors of production

Objective

Question 10

(a) What is a tax?

(b) Describe any four principles of a good tax system.

Theory

Question 11

An entrepreneur is likely to make more profits when

A.expenditure is more than revenue
B.competitors charge lower prices
C.costs per unit output falls
D.quantity of output reduces

Objective

Question 11

Explain each of the following terms:
(a) Export promotion
(b) Depreciation
(c) Terms of trade
(d) Balance of trade.

Theory

Question 12

Natural growth rate is

A.birth rate less death rate
B.death rate less migration
C.death rate plus birth rate
D.birth rate plus migration

Objective

Question 12

(a) Define Gross National Product (GNP).

(b) Describe the three methods of measuring national income.

Theory

Question 13

A major effect of ageing population is

A.reduced labour force
B.rise in price of commodities
C.reduced infrastructures
D.neglect of agriculture

Objective

Question 14

One of the problems associated with the middlemen in the distribution of goods is that he

A.buys in large quantities
B.hoards goods
C.grants credit to the retailers
D.sells varieties of goods

Objective

Question 15

The distribution of goods is said to be completed when it reaches the

A.wholesalers
B.consumers
C.retailers
D.manufacturers

Objective

Question 16

The gap between demand and supply curve below the equilibrium price indicates

A.excess demand
B.excess supply
C.equilibrium quantity
D.equilibrium price

Objective

Question 17

Demand for inferior goods is an example of

A.expansion of demand
B.contraction of demand
C.individual demand
D.abnormal demand

Objective

Question 18

When a change in price does not affect the quantity demanded of a commodity , the price elasticity of demand is

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

Objective

Question 19

For both the monopolist and the perfectly competitive firm , profit maximizing output occurs at the point where the

A.marginal cost curves cuts the marginal revenue curve from below
B.marginal revenue curve cuts the marginal output from above
C.marginal cost curve intersect the X-axis
D.marginal revenue curve intersects the Y-axis

Objective

Question 20

The market structure in which the operation are many and none of them can influence the price is

A.imperfect market
B.perfect market
C.oligopolistic
D.stock market

Objective

Question 21

one main benefit of partnership is

A.the possibility of raising funds on the stock exchange
B.the possibility of attracting twenty one or more members
C.that members can specialize in various functions
D.that it enjoys its own separate legal entity

Objective

Question 22

Joint ventures are partnerships involving

A.the poor and the rich
B.employers and workers
C.government and private investors
D.multinationals and individuals

Objective

Question 23

The value of money is best determined by

A.input-output ratio
B.the purchasing power
C.the importance people attach to it
D.economies of scale

Objective

Question 24

Which of the following will be an effect of inflation?

A.wage earners will gain
B.borrowing of money will be restricted
C.money lenders will gain
D.borrowers of money will gain

Objective

Question 25

Government can control inflation by

A.printing more money
B.reducing the rate of taxes
C.reducing the level of expenditures
D.establishing more banks

Objective

Question 26

The market consisting of a network of dealers where currencies can be bought and sold is known as

A.capital market
B.foreign exchange market
C.commodity market
D.the stock market

Objective

Question 27

Open Market Operation (OMO) means the

A.provision of credit facilities by commercial banks
B.provision of credit facilities by the mortgage banks
C.buying and selling of government securities by the central banks
D.procedure for the establishment of commercial banks

Objective

Question 28
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.atrraction of foreign capital
Objective

Question 29
which of the following will ensure efficiency in the in the industrial sector of your country?
A.indigenization
B.privatisation
C.nationalization
D.liquidation
Objective

Question 30
The number of people who are qualified to work and who offer themselves for employment are called
A.migrant labour
B.working population
C.labour turnover
D.mobility of labour
Objective

Question 31
When the general price level persistently falls, the rate of unemployment
A.rises
B.stagnates
C.rapidly reduces
D.equal natural groth rate
Objective

Question 32
Which of the following is not a direct effort to increase agricultural production?
A.operation feed the nation
B.use of improved seedlings
C.increased loans to farmers and co-operative societies
D.Ntional Yputh Service Corps
Objective

Question 33
To ensure high employment rate, developing countries should
A.build more universities
B.protect infant industries
C.organize trade fairs
D.prevent rural-urban drift
Objective

Question 34
The act of selling goods in foreign markets at prices below those charged at home market is called
A.exchange
B.specialization
C.dumping
D.exporting
Objective

Question 35
Taxes levied on commodities are
A.direct taxes
B.indirect tax
C.poll tax
D.investment taxes
Objective

Question 36
One disadvantages of direct tax is that
A.government's revenue is reduced
B.price of essential commodities fall
C.people are discouraged from additional work
D.firms make more profit
Objective

Question 37
International trade is an application of the principle of
A.industrial production
B.mass production
C.regional co-operation
D.comparative cost advantage
Objective

Question 38
Trade among West African countries is poor because the
A.countries are self-sufficient
B.communication links are weak
C.number of banks is insufficient
D.people are not enterprising
Objective