WAEC Economics 2011 Past Questions

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

Human wants are

A.limited
B.scarce
C.unlimited
D.in grades

The supply situation for rice in country X over a period as shown in the table below. Use the information in the table to answer the questions that follow.

Period	Price ($)	Quantity supplied (bags)
December 2004	30	100
January 2007	40	150
April 2009	50	160

(a) Calculate the co-efficient of price elasticity of supply for rice between December 2004 and January 2007.
(b) Is the supply of rice elastic? Give a reason for your answer.
(c) State any three reasons which may cause an increase in the supply of rice,

The difference between the money cost and the real cost of any item is that

A.real cost is the laternative forgone while the money cost is the actual amount paid for buying the item
B.the real cost is the opportunity cost, while the money cost is the marginal cost
C.money cost is the opportunity, cost while the real cost is the actual cost in monetary terms
D.money cost is always greater than the real cost

The following are the loans granted by a commercial bank to different categories of individuals. Use the information to answer the questions that follow: Bankers $8,000, Farmers $8,000, Miners $7,000, Retailers $5,000, Tailors $4,000 Teachers $6,000, Drivers $4,000, Fishermen $3 000.
(a) Arrange the information in the form of a table grouping the individuals into: (i) Primary sector; (ii) Secondary sector; (iii) Tertiary sector.
(b) Express the loan to each sector of a ratio of the total loan granted
(c) Present the total loans granted to the sectors in a simple bar chart, (Use of graph sheet is essential)

The production possibility curve (PPC) indicates that as more of one good is produced.

A.less of the other goods is produced
B.the same quantity of the other good is produced
C.more of the other good is produced
D.none of the other good is produced

(a) What is centrally planned economy?
(b) Outline any four features of a capitalist economy.

An arrangement of data in rows and columns is referred to as

A.graph
B.bar chart
C.pie chart
D.table

(a) Define mobility of labour.
(b) Describe any four factors influencing the supply of labour.

A normal demand curve slopes

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

(a) What is international trade?
(b) Explain any four advantages of international trade.

The co-efficient of income elasticity of demand for inferior goods is

A.positive
B.equal to one
C.less than one
D.negative

(a) Outline any five reasons why small scale firms are common in West Africa.

If a 20% rise in price of Whiskey leads to a 30% increase in quantity demanded of Schnapps, the cross elasticity of demand is

A.3.0
B.2.5
C.2.3
D.1.5

(a) Explain with examples the terms competitive demand and complementary demand.
(b) With the aid of diagrams, analyse the effect of a decrease in the import duty on cars on the price and consumption of petrol.

Palm oil and palm kernel have

A.competitive supply
B.excess supply
C.joint supply
D.composite supply

(a)What is the demographic transition theory?
(b) Explain the three stages of the theory.

A supply curve which is vertical has an elasticity co-efficient of

A.0.0
B.0.5
C.1.5
D.2

(a) Differentiate between shares and debentures.
(b) Identify any four problems encountered by firms in raising capital,

if the current price of an apple is twice that of last year, it implies that the value of money is

A.stable
B.falling
C.rising
D.getting stronger

(a) Describe the following types of co-operative societies;
(i) consumers' co-operatives;
(ii) producers' co-operatives;
(iii) thrift and credit co-operatives.

(b) Highlight any two problems faced by co-operative societies in West Africa

price fixed above the equilibrium is to

A.protect agricultural producers
B.discourage agricultural producers
C.lower the price of agricultural producers
D.favour consumers

(a) What is economic development? (b) Outline any five features of a Development Bank.

A consumer purchasing a commodity X will maximize his satisfaction if

A.Px = MUx
B.Px ≥ MUx
C.Px > MUx
D.Px < MUx

(a) Outline any three objectives of the African Development Bank.
(b) State any two achievements of the African Development Bank.

When total utility is constant, it means marginal utility is

A.increasing
B.zero
C.decreasing
D.one

A rational consumer is one who

A.spends his income to maximize satisfaction
B.is not influenced by advertisemment
C.behaves in a particular way all the time
D.knows the price of all goods and buys the cheapest

which of the following is not true about land?

A.the supply is fixed
B.land is mobile
C.it is subject to diminishing returns
D.land is heterogeneous

The type of production that involve the tapping and harnessing of natural resources is

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

which of the following does not change in the short run?

A.Variable cost
B.marginal cost
C.total cost
D.fixed cost

the resource used in production are called

A.variable inputs
B.factors of production
C.capital for production
D.fixed inputs

a firm will shut down in the long run if its earning is

A.less than normal profit
B.greater than normal profit
C.equal to super normal profit
D.less than super normal profit

a market structure where profit is maximized when marginal revenue, marginal cost and price are equal is known as

A.perfect competition
B.monopoly
C.oligopoly
D.imperfect competition

in which of the following markets does a firm have power to make super normal profits both in the short run and long run?

A.Monopoly
B.Duopoly
C.Oligopoly
D.Monopsony

if there are no barriers to entering a market, it means that

A.anyone can become a buyer or a seller
B.unwanted goods can always enter the market
C.the market becomes a dumping ground
D.the goods are not inspected

A firm's main aim is to

A.survive the business
B.maximize profits
C.increase its market share
D.satisfy the ambition of its managers

one good reason for the elimination of middle men is that they

A.cause increase in price
B.help in price stability
C.grade and blend goods
D.are too many

The increase in population growth in big cities is referred to as

A.settlement
B.migration
C.industrialization
D.urbanization

Frictional unemployment can be reduced by

A.encouraging the use of restaining schemes
B.removing barriers to labour mobility
C.restricting the introduction of new technology
D.lowering the level of wages paid to young people

if the labour force of a country is 2.5 million and 2 million are employed , what is the unemployment rate?

A.0.2%
B.20%
C.200%
D.250%

the grouping of the population according to the economic activities people engage in is

A.age distribution
B.sex distribution
C.geographical distribution
D.occupational distribution

Natural growth rate of population can be defined as the

A.difference between birth rate and death rate
B.number of births in a year
C.increase in the population growth in a year
D.difference between the total population and the death rate

which of the following is not a consequence of increased unemployment?

A.a fall in tax revenue for the government
B.a reduction in trade union's influence
C.a fall in death rate
D.an increase in the labour force

The following are features of subsistence agriculture except

A.little capital
B.processing of raw materials
C.small allotments of land
D.use of crude oil

which of the following is not true of small companies ? they

A.cannot benefit from economies of scale
B.are a good source of new jobs
C.can satisfy demand in specialist markets
D.have a good record of technical innovation

The effect of privatization on the industrial sector of a country is that it

A.ensures efficiency
B.discourages efficiency
C.leads to decrease in output
D.leads to liquidation

The production strategy used in an over-populated country is

A.import substitution
B.capital intensive
C.labour intensive
D.first come first employed

National income is used to measure

A.a country's population size
B.a country's economic growth
C.the human level of cevelopment
D.the floe of imports to a country

A tax is regressive if the

A.rate of tax is constant at all income levels
B.rate of tax decrease as income increases
C.rate of tax increases as income increases
D.tax is direct rather than indirect

When a country's net income from abroad is added to its total output, the result is

A.gross domestic product
B.net national product
C.gross national product
D.net domestic product

A fall in national output will necessitate

A.a rise in expenditure on imports
B.a rise in the level of savings
C.an increase in the consumption of expenditure
D.a rise in the standard of living