WAEC Economics 2013 Past Questions

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

The action of government to forgo road construction in order to provide more health facilities denotes

A.sound economic decision
B.opportunity cost
C.practicable government policy
D.scale of preference

The output and cost of production of rice (in bags) are presented in the table below. Use the information in the table to answer the questions that follow.

Output of rice (in bags)	0	1	2	3	4
Total Variables Coat (TVC) $	0	5	7	10	20
Total Cost (TC) $	7	12	14	17	27

(a) Calculate the
(i) Average Fixed Cost (AFC) at output levels 0,2 and 4
(ii) Marginal Cost (MC) at all levels of output

(b) If the price of a bag of rice were $10,
(i) calculate the profit/loss at all levels of output.
(ii) at what output level(s) is the maximum profit made?

(c) Draw the marginal cost curve (the use of graph sheet is essential).

In Economics , a market is defined as any

A.agreement made for consumers to buy all they need
B.ngement made for producers sell all their goods
C.agreement to sell commodities at low prices
D.arrangement whereby the buyers and sellers are in contact

The table below shows the scale of preference of a student - Mr Smith whose disposable income is $7.00. Use the information in the table to answer the auestoins that follow.

Items needed	Price ($)
Textbook	5.00
Shirt	2.00
Shoes	3.00
Trousers	3.00
Notebook	1.00
School fees	7.00
Mattress	10.00

(a)(i) What will Mr. Smith spend his money on?
(ii) Explain your answer in 2(a)(i).

(b)(i) What is the opportunity cost of Mr. Smith's decision in 2(b)(i)?
(ii) Explain your answer in 2(b)(i).

(c)(i) If Mr. Smith's disposable income increases to $10.0, what will he spend it on?
(ii) What is the opportunity cost of the decision in 2(c)(i)?

(d) Define "scale of preference" and "opportunity cost".

(e) What is the importance of a scale of preference?

Which of the following is not a function of an insurance company?

A.pooling resources together against risks
B.Mobilization of funds through premiums collected
C.Encouragement of investment by security of capital
D.collection of deposits from the public for investment

(a) What is:
(i) peasant farming?
(ii) commercial farming?

(b) Describe five ways in which agriculture contributes to the economic development of your country.

A debenture holder earns

A.commission
B.profits
C.fixed interest
D.quasi-rent

(a) Distinguish between small scale prodution and large scale production

(b) Describe any five internal economies of large scale production.

All economic systems must decide what to produce because

A.resources are not available
B.consumers want maximum satisfaction
C.resources are limited in supply
D.producers want maximum profit

(a) Explain any four benefits of industrial development in an economy

(b) Outline any four measures that will encourage industrial growth in your country.

Trade between two countries is known as

A.bilateral trade.
B.bilateria trade
C.multilateral trade
D.internal trade

(a) Differentiate between direct and indirect taxation

(b) Highlight any five advantages of indirect taxation to developing countries

In the balance of payments of a country, tourism is classified under

A.capital account
B.invisible trade
C.merchandise trade
D.official reserves

(a) What is competitive supply?

(b) With the aid of illustrations, differentiate between a supply schedule and a supply curve.

(c) Explain how the supply of a commodity is affected by the following:
(i) an improvement in technology;
(ii) a rise in input prices;
(iii) a rise in the prices of other commodities;
(iv) an increase in government subsidies on production.

General rise in the price level induced by increased price of inputs is referred to as

A.run-away inflation
B.cost -push inflation
C.demand -pull inflation
D.imported inflation

(a) State two characteristics of monopolistic competition.

(b) With the aid of diagram(s), explain why a firm in monopolistic competition is unable to earn abnormal profits in the long run.

(c) Differentiate between natural monopoly and legal monopoly.

Which of the following is a function of merchant banks?

A.Acting as bankers' bank.
B.Lending to the commercial banks as a last resort
C.controlling inflation in the economy
D.underwriting and issuing of shares

(a) Highlight the difference between creeping inflation and hyper inflation.

(b) List any four negative effects of inflation.

(c) Outline four ways in which the government of your country can control inflation.

A budget is balance when expected total revenue is

A.greater than expected expected expenditure
B.less than total expenditure
C.equal to expected expenditure
D.greater than total expenditure

(a) What is perfect competition?

(b) With the aid of diagrams, compare the short run equilibrium positions of a perfect competitor and an imperfect competitor.

(c) State any two features of an imperfect market.

A co-operative society is a

A.finance house
B.self -help business organization
C.public corporation
D.non-democratic business organization

(a) Distinguish between cash ratio and special deposits.

(b) Explain how cash ratio and special deposits are used as instruments of monetary policy.

(c) Describe any two instruments of fiscal policy in West Africa.

The value of money is effected by the

A.speculative motive
B.price level
C.precautionary motive
D.intervention of development

(a) Outline any four problems of barter economy.

(b) How has the introduction of money solved the problems outlined in 12(a) above?

Which of the following is a function of money?

A.Medium of Communication
B.Measure of securities
C.Store of Wealth
D.Discounting bills of exchange

Which of the following is an asset of a commercial bank?

A.Reserve funds
B.Shareholders capital
C.Customers' deposits
D.Treasury bills

An increase in the supply of a commodity X automatically results in an increase in the supply of another commodity Y. This is a cause of

A.elastic supply
B.joint supply
C.exceptional supply
D.competitive supply

Why would an individual increase his level of consumption during inflationary periods?

A.The real value of any amount saved falls over time
B.Interest rates are generally low
C.There are varieties of goods to buy
D.Wages and salaries stagnate during inflation

The type of monopoly that develops as a result of uneven distribution of resources is called

A.legal monopoly
B.natural monopoly
C.state monopoly
D.international monopoly

Goods which have to be paid for are known as

A.physical goods
B.economic goods
C.free goods
D.intangible goods

Goods are said to be in competitive demand when they are

A.substitutes
B.complementary
C.jointly demanded
D.identical

In the long term run factors of production are considered to be

A.at maximum
B.fixed
C.variable
D.increasing

Which of the following will enhance productivity in an economy?

A.The use of obsolete capital
B.Technological change
C.Expansion of land under cultivation
D.An increase in the labour force

Post harvest losses in West African countries can be reduced if

A.the land tenure system could be reformed
B.more irrigation schemes could be provided
C.better storage facilities could be provided
D.erosion is controlled

Which of the following best explains what to product?

A.How much goods are to be produced
B.The combination of resources to be used
C.Which goods and services to be produced
D.How many wants are to be satisfied

The demand for money is described as a

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

Which of the following is the main outcome of a trade union's interference with the wage rate? Wages are

A.lowered but more employment opportunities are created
B.lowered but employment level remains unchanged
C.increased and employment levels are unchanged
D.increased but employment levels are reduced

The introduction of tariffs and quotas

A.reduce th prices of imports
B.increase the demand for locally made goods
C.discourage domestic industries from becoming more efficient
D.reduce the prices of locally made goods

A government that wants to get more revenue will increase the tax on commodities with a

A.high price elasticity of demand
B.low price elasticity of demand
C.high income elasticity of demand
D.low income elasticity of demand

Which of the following is involved in the money market?

A.Building society
B.Development banks
C.Commercial banks
D.Stock exchange

Demand pull inflation can aptly be described as

A.inflation induced by rising costs of production
B.reduction in government expenditure
C.persistent rise in prices due to increase in expenditure
D.massive importation of goods from a country with hyper inflation

In order to develop the banking habit of rural dwellers, the traditional money lenders should be

A.proscribed
B.legalized
C.subsidized
D.heavily taxed

All rates of interest in a country are influenced by the

A.bank rate
B.population growth rate
C.wage rate
D.mortgage rate

Exchange control is a weapon used in regulating

A.barter trade
B.stock exchange
C.foreign trade
D.internal trade

When the marginal product is negative,the total product will be

A.constant
B.at a maximum
C.increasing
D.decreasing

Physical productivity is affected by all the under listed factors except the

A.state of technology
B.quantity of inputs
C.quality of inputs
D.price of output

If a commodity has a high marginal utility, its market price will be

A.stable
B.high
C.zero
D.constant

Price fluctuation is a feature of

A.common market
B.imperfect market
C.supermarkets
D.market failure

Which of the following statements is not a feature of a monopoly?

A.Seller is allowed to fix his own price
B.Buyers and sellers are price takers
C.New entrances are restricted
D.There is only one seller of the commodity

The following are advantages of sole proprietorship except

A.quick and easy decision-making
B.keeping its business affairs private
C.assurance of raising huge capital for expansion
D.high level of commitment