WAEC Economics 2005 Past Questions

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Economic activities are undertaken to solve the problem of

A.Desire to spend more income on consumption
B.opprotuinity cost
C.production
D.scarcity

The diagram above illustrates the demand for and supply of maize. Use the information in the diagram to answer the questions that follow
(a) (i) What is the total revenue of the farmer at the initial equilibrium?
(ii) Calculate the total revenue of the farmer if the supply curve shifts to S\(_1\)S\(_1\)
(b) What change occurs in the total revenue of the farmer when the price falls from 100 Dollars to 40 Dollars per tonne?
(b) (i)Use the figures in the diagram to determine the price elasticity of demand for maize (u) Interprete your answer.
(c) Give two reasons for the shift of the supply curve from SS to S\(_1\)S\(_1\)

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Farming, mining and fishing are

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

The Table below relates to the supply of labour in response to the given wage rates Use the information in the table to answer the questions that follow .

Wage rate ($ per hour)	Hours worked (per day)	Income per day (S)
10	-	10
20	-	60
30	-	150
40	6	-
50	4	-
60	3	-

(a) Determine the number of hours of work per day if the wage rate is (i) $10 per day (ii) $20 per day (16) $30 per day
(b) Calculate the income per day when the wage rate is (i) $40 (ii) $50 (iii) 60

(c) (i) Which wage rate per hour attracts the highest earnings?
(ii) Name the type of supply curve that can be associated with the data in the table.
(iii) Explain the nature of the supply curve named in (c)(ii)

A list of consumer's wants arranged in order of priorities is known as

A.a budget
B.an opprotuniy cost
C.A scale of preference
D.choice

(a) What are capital goods.
(b) Explain the problems associated with the distribution of goods in your country.

The 150.00 Naira which Olu would have used to purchase a textbook was used to buy a T-shirt . This implies that

A.Olu's real cost is 150.00 Naira
B.Olu's opprtunity cost is the T-shirt he bought
C.Olu's opportunity cost is the textbook
D.Olu's money cost is also the real cost

(a) Explain the term net migration.
(b) Describe any four economic effects of rural to urban migration in your country.

The remuneration of the entrepreneur as a factor of production is called

A.wages
B.salary
C.interest
D.profit

(a) Outline any two differences between monopoly and perfect competition
(b) State any four entry barriers that can prevent the emergence of competitive firms.

The production factor, whose entire world supply is fixed is

A.land
B.skilled labour
C.capital goods
D.entrepreneur

(a) Distinguish between a public company and a public corporation
(b) What are the problems of public corporations in your country?

when all factors input are reduced by half, the production possibility curve will shift

A.outwards
B.inwards
C.downwards
D.upwards

(a) What is trade by barter?
(b) Highlight the problems posed by trade by barter.

when a worker changes from one tye of job to another, it is called

A.geographical mobility of labour
B.occupational mobility of labour
C.immobility of labour
D.rural-urban migration

Outline the role of development banks In the economic development of West African countries.

which of the following determines the size of a country's population ? (I) Birth rate (II) Death rate (III) Migration rate (IV) Importation rate (V) Unemployment rate

A.(I), (II) and (V)
B.(II) and (IV)
C.(I),(II) and (III)
D.(IU) and (V)

Describe any four ways by which industrial development can promote agricultural productivity in your country

Age distribution is important because it helps the government to

A.check rural-urban drift
B.determines the number of foreigners
C.determines the number of factories
D.undertake effective planning

(a) Define the term taxation.
(b) In which four ways can the government of your country use taxation to improve the economy?

A group of firm producing similar commodities for the same market constitute

A.a cartel
B.an industry
C.a co-operative
D.wholesaler

(a) Distinguish between personal income and national income
(b) Describe any four uses of national income data.

a factor that has slowed down the rate of industrial development in West Africa is

A.inadequate technology
B.increasing rate of manpower production
C.increased demand for local goods
D.intervention of the government in business activities

(a) Explain the term balance of payments deficit
(b) What four measures can be taken to reduce the balance of payments deficit of a country?

To achieve an equilibrium position, the consumer must buy so much of each commodity whose price is equal to its

A.marginal utility
B.total utility
C.average utility
D.variable utility

Price control refers to

A.the way of making more goods available in the market
B.a policy of ensuring stable price in the market
C.a general reduction in the price level
D.effective working of the forces of demand and supply

The desire for goods without the ability to pay is called

A.choice
B.effective demand
C.joint demand
D.wants

amount of goods offered to the market at respective prices and presented in a table is called

A.price schedule
B.supply schedule
C.scale of preference
D.demand schedule

At the equilibrium price, quantity demanded is

A.greater than quantity supplied
B.equal to quantity supplied
C.less than quantity supplied
D.equal to excess supply

If the government fixed a price of a commodity above equilibrium price, the quantity supplied will be

A.less than quantity demanded
B.equal to the qauntity demanded
C.greater than quantity demanded
D.equal to zero

one of the factors determining price elasticity of demand for a commodity is the

A.availability of close substitutes
B.number of producers
C.government policy
D.price of other commodities

If elasticity of demand for a commodity is less than one, demand is

A.unitary elastic
B.inelastic
C.infinetelt elastic
D.zero elastic

The transfer of ownership of a public enterprise to individuals and firms is called

A.commercialization
B.nationalization
C.privatization
D.restructuring

One-man business are popular in West Africa because of all the following except the

A.ease of entry
B.small capital required
C.limited enterpreneur skills needed
D.tendency to become joint-stock compsnies

Wholesalers are often criticized because they

A.help to break the bulk
B.finance producers
C.increase prices
D.provide after-sales services

In which of the following business units are the owners mostly customers?

A.co-operatives
B.limited liability companies
C.partnerships
D.public corporations

information about new goods is passed on to buyers through

A.advertising
B.retail trade
C.the manufacturer
D.wholesale trade

The profit of the producers can be calculated as the

A.total cost less total revenue
B.average revenue less average cost
C.total revenue less total cost
D.marginal revenue less marginal cost

The direct exchange of one goods for another without the use of money is known as

A.foreign exchange
B.exchange rate
C.expenditure rate
D.barter

Acceptability, durability, homogeneity and portability are all attributes of good

A.markets
B.money
C.banks
D.government

The term demand for money means

A.desire to borrow money from people
B.desire of an individual to invest all his money in projects
C.willingness of people to hold money
D.wilingness of people to keep all their resources in assets

A persistent and appreciable rise in the general level of price is known as

A.depreciation
B.inflation
C.deflation
D.production

A commercial banks deposits are

A.liabilities
B.assets
C.capital
D.cash at hand

The lender of last resort in the banking system is the

A.industrial banks
B.mortgage banks
C.commercial banks
D.central banks

Discounting a bill of exchange means the bill is

A.cashed over the counter
B.sold on the stock exchange
C.bought for less than its face value
D.sold to the highest bidder

The central banks control credit in the economy through the use of

A.legal tender
B.travellers cheque
C.foreign exchange instruments
D.open market operation

Among the principles of taxation propounded by Adam Smith was that

A.A tax should be impossible to evade
B.A tax should be convenient to pay
C.no tax should be levied on food
D.there should be no taxation without representation

Mr. Bala’s income is $800.00 per month while that of Mr. Jatau is $1,200.00. If Messrs. Bala and Jtau pay $80.00 and $120.00 respectively as taxes, the tax system is

A.progressive
B.regressive
C.proportional
D.ad-valorem

Government revenue from the groundnut industry is from

A.licences
B.rents
C.royalties
D.taxes

The theory of comparative cost advantage is associated with

A.Alfred Marshal
B.Adam Smith
C.David Ricardo
D.J. B. Say