WAEC Economics 2006 Past Questions

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

The study of economics enables the individuals to

A.change jobs
B.evades taxes
C.accumulate huge wealth
D.make rational decisions

Given that the prices and quantities supplied per period of time in litres of gasoline is expressed as Os = 25 + 0 25 P, Where Qs is quantity supplied, P is price

(a) Determine the quantity supplied when price per litre is (i) 0 Naira (it) 24 Naira (iii) 40 Naira (iv) 60 Naira (v) 80 Naira
(b) From your calculations in (a)(i) present the supply schedule (ii) draw the supply curve.

Most of the problems of economics arises as a result of

A.competing demand for scarce resources
B.increase in the demand for more goods and services
C.the desire of producers to supply more goods and services
D.the need to reduce the level of poverty

The pie chart below shows the age distribution of population in thousands of an island Y for the year 2000 The total population of the island is 245,000.
Use the information supplied to answer the questions that follow (Show all workings clearly)

(a) Calculate the number of persons in the different age groups
(b) What is the dependency ratio of the population?
(c) Give three implications of the above population structure

Sub-part image

which of the following tool of economic analysis is used when data contains more than one category?

A.Bar charts
B.component bar charts
C.Graphs
D.Symbolical sratement

(a) Distinguish between wants and demand
(b) With the aid of diagrams show the effect on demand when (i) there is a reduction in the number of 2200 consumers (ii) prices of substitutes increase
(iii) there is a decrease in 0-16 years the price of the commodity

The reward to capital as a factor of production is

A.rent
B.wage
C.interest
D.commission

(a) What is an economic system?
(b) Outline any four features of a capitalist economy.

mining is an example of

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

(a) What is population census?
(b) Describe the problems faced in conducting a population census in your country.

An owner-manager of a firm can also be called

A.a shareholder
B.an entrepreneur
C.an employer
D.a chairman

(a) What is elasticity of supply?
(b) when is supply elastic?
(c) Explain any four factors that influence elasticity of supply.

If the fixed cost of a firm is 800.00 Naira and it's variable cost is 2,700 Naira while it's total output is 100 units, what is the average cost of the firm?

A.25 Naira
B.35 Naira
C.45 Naira
D.50 Naira

(a) Why would a producer (i) enter a competitive market? (ii) leave a competitive market?
(b) In what two ways do consumers benefit from perfect competition?
(c) Give the two conditions necessary for profit maximization for a perfectly competitive firm.

Distribution of goods and service is hindered by

A.good road network
B.efficient storage facilities
C.too many middlemen
D.adequate market information

(a) Explain the following strategies of industrialization:
(i) import substitution (ii) export promotion
(b) Highlight any four objectives of industrial development programmes in your country.

A movement along the same demand curve either upwards or downwards as a result of change in price implies

A.a chnage in demand
B.a change in quantity demanded
C.an increase in demand
D.a shift in the demand curve to the right

(a) Explain the following: (i) Peasant farming (ii) commercial farming (iii) State farming
(b) In what two ways will increased commercial farming contribute to the development of the economy of your country?

middlemen in an economy perform the function of

A.distribution
B.exchange
C.Hoarding
D.protector

(a) What is (i) commodity money? (ii) token money? (iii) fiduciary issue? (iv) quasi money?
(b) State any four functions of money.

one of the factors affecting geographical distribution of population is

A.high birth rate
B.high death rate
C.encouragement of early marriage in the rural area
D.climate conditions of the different parts of the country

(a) What are the sources of government revenue?
(b) How does a government finance its budget deficit?

Standardization of products or services is a feature of

A.large firms
B.retailer
C.small firms
D.wholesaler

(a) What are natural resources?
(b) Describe any four roles natural resources play in economic development.

The amount of satisfaction obtained from the consumption of a commodity at a particular time is called

A.marginal utility
B.diminishing return
C.total utility
D.average utility

what are inferior goods? These are goods

A.that are generally in short supply
B.that are no longer in demand
C.whose demand falls as income increase
D.whose price falls as demand increases

In the analysis of utility theory, the basis of demand is

A.marginal utility
B.average utility
C.fixed utility
D.diminishing utility

In the normal market situation , when the price of a commodity rises the

A.demand for the commodity will rise
B.demand for the commodity will fall
C.supply of the commodity will be constant
D.supply of the commodity will fall

when the quantity of a commodity supplied increases and the quantity demanded decreases , there will be

A.a rise in price
B.no change in price
C.price fluctuation
D.a fall in price

the market price of a commodity is normally determined by the

A.law of demand
B.interaction of the force of demand and supply
C.total number of people in the market
D.total quantity of the commodity in the market

The mechanism which allows the price of a commodity to be fixed either above or below the equilibrium is known as

A.monopolistic competition
B.price discrimination
C.perfect competitive market
D.price control

A debenture holder is entitled to payment in the form of

A.allowance
B.interest
C.salary
D.donation

The main difference between a private and a public enterprises is the

A.amount of profit realized
B.mode of operation
C.objective of the business
D.ownership structure

The total amount of money raised by a company through issuance of shares to the public is

A.debentures
B.nominal capital
C.ordinary shares
D.paid-up capital

buying and selling of shares is a function performed mostly by the

A.insurance companies
B.stock exchanges
C.merchant banks
D.discount houses

which of the following is not a reason for establishing public enterprises?

A.discouraging investors
B.opening up neglected parts of the country
C.effective control of a natural monopoly
D.rapid economic development

For a monopolist, the average revenue (AR) curve is

A.above the total curve
B.the same as the marginal cost curve
C.above the marginal revenue curve
D.the same as that of the perfect competitor

advertising expenses would not be necessary under perfect competition because

A.consumers would have complete knowledge of goods
B.cost of production would be at the maximum level
C.every firm would enjoy the benefits of large scale production
D.income of the consumers in the community would be high

The equilibrium level of output of a monopolist is determined at a point where

A.marginal cost equals average revenue
B.marginal cost equals acerage cost
C.marginal cost equals marginal revenue
D.marginal revenue equals average cost

Which of the following is a legal tender in West Africa?

A.Treasury Bill
B.Share
C.Credit card
D.Currency

The policy of government to increase the supply of money to meet its own expenditure plans is likely to be

A.speculative
B.deflationary
C.inflationary
D.contractionary

The tendency for prices to rise while the value of money fall is known as

A.bills of exchange
B.inflation
C.depreciation
D.deflation

One way to solve the economic problem of inflation in a country is by increasing the

A.supply of commodities
B.supply of currency
C.salaries of workers
D.demand for commodities

The motive for holding money for investing in securities is referred to as

A.transactionary
B.speculative
C.accumulation
D.deflationary

A cheque book is issued to customers of a bank operating a

A.savings account
B.time deposit account
C.current account
D.fixed deposit account

Amount proposed for payment of wages and salaries in a budget is regarded as part of

A.recurrent expenditure
B.direct investment
C.recurrent revenue
D.capital receipts

The difference between the Gross National Products (GNP) and the Gross Domestic Product (GDP) is

A.total interest payment
B.net income generated internally
C.total national savings
D.net income from abroad

which of the following agricultural system is mainly for the cultivation of food crops for family consumption?

A.Co-operative farming
B.Commercial farming
C.Subsistence farming
D.Plantation farming

Agriculture is important to the economy of West African countries because it is the source of

A.power
B.equipment supply
C.industrial input
D.technological progress

The economic system in which the state takes the economic decision s through detailed planning is

A.Capitalism
B.socialism
C.traditional economic system
D.mixed economic system