WAEC Economics 2009 Past Questions

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

» the study of economics becomes necessary because of the

A.large population size of the world
B.scarcity of resources
C.opportunity cost of goods and services
D.needs to satisfy every desire of man

The table below shows the natural growth gowth rate of the population of country N over a period of time. Use the information contained in the table to answer the following questions.

Year	Birth Rate per '000	Death Rate per '000	Natural Growth Rate
1971	45	32	L
1972	39	P	12.50
1973	26	22	Q
1974	R	22.50	4.50
1975	26.50	22.50	S
1976	20.50	T	3.00

(a) Determine L. P, Q, R, S and T. [6 marks]
(b) With the use of a bar chart, graphically present the changes in the natural growth rate over the years. (Use of graph sheet is essential) [8 marks]
(c) Outline any three reasons for changes in birth rate. [6 marks]

The concept of opportunity cost is also referred to as

A.social cost
B.real cost
C.fixed cost
D.variable cost

A village consists of twenty (20) households with the following annual incomes-
(Incomes $00) 30 20 50 40 60 40 40 50 20 60 80 40 20 20 70 40 70 30 40 80
(a) Determine the (i) mean income: [4 marks] (ii) modal income; [ 2 marks] (iii) median income. [2 marks]
(b) What is the range of income distribution? [2 marks]
(c) Calculate the total tax that could be generated from the village if (i) a flat rate tax of 7% is imposed on all households; [5 marks] (ii) a flat rate tax of 15% is imposed on all households earning $4,000 per annum and above. [5 marks]

choice is necessitated by

A.demand and supply
B.cost of production
C.production possibility curve
D.scarcity of resources

(a) Why is scarcity a fundamental problem in Economics? [6 marks]
(b) Give a reason on why Economics is a (i) science; (ii) social science [3 marks each]
(c) How do governments solve the problem of scarcity? [8 marks

A type of unemployment which occurs due to technological progress is called

A.frictional unemployment
B.residual unemployment
C.structural unemployment
D.mass unemployment

(a) Outline the chain of distribution for manufactured consumer goods. [4marks]
(b) Explain the functions of the (i) wholesaler; (ii) retailer. [8 marks each]

All the following are features of market economies except

A.competition among producers
B.demand and supply force guiding production decision
C.that profit motive is paramount
D.public ownership of capital

(a) Define labour [4 marks]
(b) Give four factors that affect the efficiency of labour in your country. [16 marks]

the economic system which relies mainly on the price mechanism for the allocation of scarce resources is known as

A.capital economic system
B.command economic system
C.combined economic system
D.traditional

(a) With examples. distinguish between direct and indirect tax, [8 marks]
(b) Explain any four problems of tax collection in any West African country. [12 marks]

In a capitalist economy, resources are

A.collectively owned
B.jointly owned
C.privately owned
D.communally owned

(a) Distinguish between the following pairs of cost concepts.
(i) Fixed cost and variable cost. (ii) Real cost and money cost
(iii) Implicit cost and explicit cost. [5 marks each]

(b) (I) What would you recommend to a firm whose average cost is greater than its price? [2 marks]
(ii) Give a reason for your answer In (b)(i) above. [3 marks]

An economic system where the central planning authority determines what goods to produce and in what quantity is known as

A.market economy
B.socialist economy
C.welfare economy
D.Traditional economy

(a) What is a capital market? [5 marks]
(b) Describe any three instruments used in the capital market. [15 marks]

The main objective of setting up a private business organization is to

A.protect the interest of the owners
B.promote exports
C.provide infrastructure
D.maximize profits

(a) What is (i) devaluation: (ii) depreciation of currency? [4 marks each]
(b) Outline three measures that can be adopted to correct balance of payments deficit [12 marks]

The demand and supply function of a commodity are given as below.
Qd = 20 - 2p
Qs = 6p - 12
Where p = price in naira, Qd = Quantity demanded and Qs = Quantity supplied. The equilibrium price is

A.2 Naira
B.4 Naira
C.6 Naira
D.20 Naira

(a) With the aid of a diagram, explain the effects of fixing a price (i) above the equilibrium price,
(ii) below the equilibrium price [5 marks each]
(b) (i) What is an abnormal demand? [4 marks] (ii) Give two reasons for its occurrence [6 marks]

The type of demand that exist between torchlight and battery is

A.competitive demand
B.complemetary demand
C.composite demand
D.joint demand

Explain any five objectives of the Economic Community of West African States (ECOWAS). [20 marks]

When the price of a commodity increases and the quantity demanded also increases, this is a case of

A.exceptional demand
B.derived demand
C.competitive demand
D.joint demand

Give five reasons for the continued existence of the Organization of Petroleum Exporting Countries (OPEC). [20 marks]

If a fall in price of one commodity leads to an increase supply of another commodity, both commodities have

A.composite supply
B.joint supply
C.competitive supply
D.short run supply

At a co-efficient of price elasticity of supply of 0.5, supply is

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

In the short-run commodity X and commodity Y are supplied jointly, which of the following is correct?

A.An increase in demand for X will increase supply of Y
B.An increase in demand for X will leave the supply of Y unchanged
C.An increase in demand for Y will raise the price of X
D.An increase in demand for X will cause less of Y to be produced

If an increase in earning leads to more of of a commodity being demanded, the good is said to have

A.positive income elasticity
B.negative income elasticity
C.positive cross elasticity
D.negative cross elasticity

The interaction of supply and demands for labour determines

A.production
B.income
C.wage
D.profits

Government fixing of prices below the equilibrium point is aimed at protecting the

A.sellers
B.industries
C.distributors
D.consumers

A consumer maximizes his utility in consuming a good 'X' when

A.Mux = Px
B.Px > Mux
C.price is falling
D.Mux > Px

The relationship between Marginal Product (MP) and Average Product (AP) is such that they are equal when

A.average product is maximum
B.Average product is minimum
C.Marginal Product is maximum
D.Marginal Product is increasing

who among the following is the intermediary between the producer and the retailer?

A.agent
B.wholesaler
C.consumer
D.distributor

which of the following sector is most capital intensive?

A.insurance
B.petroleum
C.commerce
D.tourism

A society that operates below the production possibility curve is using its productive resources

A.optimally
B.efficiently
C.inefficiently
D.maximally

labour can be efficient when there are

A.adequate tools to work with
B.high level of employment
C.limited vacancies
D.government restrictions

What accounts for the ‘U-shaped’ of the short run average cost (AC) curve?

A.the law of variable proportions
B.increasing returns to scale
C.decreasing use of inputs
D.change output during the production period

which of these is true of a perfect competitor?

A.P = AR < MR
B.P > AR = MR
C.P = MR < AR
D.P = AR = MR

One advantage of a sole proprietor is that

A.it can be managed without conflicts
B.the sole proprietor raises money from the public
C.it makes an increase in the volume of business possible
D.there is no limit to the number pf people who may bring in capital

which of the following is a condition necessary for a perfect market?

A.the goods are heterogenous
B.there is preferential treatment
C.there is a large number of buyers and sellers
D.buyers and sellers are easily influenced

A market in which a single price obtains for a product is known as

A.a product market
B.a capital price market
C.an imperfect market
D.a perfect market

what is the effect of pursuit of higher education on the size of labour force?

A.it makes labour force to be defective
B.it brings higher wage rate
C.it increases the size of labour force
D.it reduces the size of labour force

The population density of town Y made up of 50 square kilometre land area and 100 million people is

A.50,000 people per square kilometre
B.0.2 million people per square kilometre
C.0.5 million people per square kilometre
D.2 million people per square kilometre

manufacturing involves the process of

A.making goods available
B.providing finished products
C.changing items to new states
D.producing capital goods only

disposable income is total income

A.less tax
B.divided by tax
C.plus tax
D.multiplied by tax

Use the information below to answer these questions

Depreciation = $40,000
Gross Domestic Product = $100,000
Factor Payments to Foreigners = $20,000
Factor Receipts from Abroad = $25,000
The Gross National Product is equal to

A.$40,000
B.$50,000
C.$105,000
D.$125,000

Depreciation = $40,000
Gross Domestic Product = $100,000
Factor Payments to Foreigners = $20,000
Factor Receipts from Abroad = $25,000

The National Income is equal to

A.$45,000
B.$60,000
C.$65,000
D.$195,000

Depreciation = $40,000
Gross Domestic Product = $100,000
Factor Payments to Foreigners = $20,000
Factor Receipts from Abroad = $25,000

The Net Domestic Product is

A.$55,000
B.$60,000
C.$140,000
D.$165,000

which of the following is specialized in lending money for the purpose of developing real estate?

A.merchant banks
B.mortgage banks
C.discount houses
D.commercial banks

The marketing of government security by the Central Bank is termed

A.retail banking
B.open market operation
C.selective credit control
D.credit creation