WAEC Economics 2015 Past Questions

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Economics is regarded as a science because it?

A.studies laws that govern human behaviour
B.uses scientific method to explain human behaviour
C.makes use of controlled experiments to explain human behaviour
D.makes use of machines to study human behaviour

The total fixed cost (TFC) and total cost (TC) functions of a hypothetical firm are shown in the graph below. Study it and answer the questions that follow:

(a) Determine the firm's
(i) variable cost at output levels 2, 4 and 6
(ii) average total cost at output levels 2 and 3
(iii) marginal cost at output levels 4 and 6

(b) If the price of the firm's product is $40, calculate the firm's profit or loss when the following units are sold:
(i) 2 units; (ii) 4 units

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which of the following can be described as land

A.forest
B.diamond
C.roads
D.crude oil

The table below shows the incomes and rates of income tax levied on four professional in an economy.

Profession	Income per month($)	Tax rate %	Disposable income ($)
Doctor	8,000	10
Engineer	7,000	12
Civil servant	5,000	18
Nurse	6,000	15

Use the above data to answer the questions that follows:

(a) Calculate the disposable incomes of the four individuals

(b) What system of taxtation was employed?

(c) Give reasons for your answer in 2(b)

(d) With the aid of a diagram, explain the system of taxation employed in 2(b)

An outward shift of the production possibility curve shows that?

A.production is shifting to the left
B.resources are under-utilized
C.economic growth has taken place
D.factors of production are moving outward

(a) What is a trade union?

(b) Describe any four functions of trade unions.

(c) Outline any two weapons used by trade unions to achieve their objectives.

The following constitute the criteria for identifying an economic system except?

A.ownership of resources
B.scarcity of resources
C.method of decision making
D.motivation for production

(a) Outline any four objectives of a price control policy.

(b) Highlight any four effects of a maximum price control policy.

A disadvantage of the mean as measure of central tendency is that?

A.is affected by extreme values
B.can only be used for continuous data
C.cannot be used to measure the qualities of a population
D.cannot be determined in group data

(a) What are infant industries?

(b) State any four reasons for protecting infant industries.

(c) Outline any three ways by which industries can be financed in West Africa.

which of the following is not an effect of many middlemen in the chain of production

A.shortage of commodities
B.low retail prices
C.hoarding of goods
D.high retail prices

(a) What is balance of payment disequilibrium?

(b) Explain the two types of balance of payment disequilibrium.

(c) Highlight any four reasons most West African countries are experiencing balance of payment problem.

If the price of floor rises, then bread

A.demand curve will shift to the left while supply curve will shift to the right
B.supply curve will shift to the left
C.supply curve will shift to the right
D.demand curve will shift to the right while supply curve remains unchanged

(a) What is deflation?

(b) Outline any three positive effects of deflation.

(c) Explain the ways by which inflation affects any three functions of money.

which of the following is not a reason for abnormal demand

A.price of the commodity
B.goods of ostentation
C.giffen goods
D.rare commodity

(a) What is protective tariff?

(b) Outline any four reasons in favour of protective tariff.

(c) State any two reasons against protective tariff.

increase in production subsidies will shift

A.the demand curve to the left
B.the supply curve to the right
C.both the supply demand curves to the left
D.supply curve to the left and demand curve to the right

The market supply curve slopes upward from left to right indicating that?

A.producers pay high taxes
B.two commodities can be supplied at the same time
C.at a lower price, less is supplied
D.at a lower price, more is supplied and demanded

if a given change in price brings a proportionately larger change in quantity demanded, the

A.demand is relatively price elastic
B.demand is relatively price inelastic
C.price elasticity of demand is unitary
D.price elasticity of demand is constant

Government revenue will increase if taxes are levied on goods with?

A.be perfectly elastic demand
B.fairly elastic demand
C.perfectly inelastic demand
D.unitary elastic demand

if the price of a commodity Z falls and a consumer buys less of it, then commodity Z is a

A.necessity
B.good of ostentation
C.normal good
D.giffen good

In order to calculate total utility (TU) from given levels of marginal utility (MU), one has to?

A.subtract MU from TU
B.Add MU from the various levels
C.multiply MU by the initial TU
D.Divide current MU by previous MU

which of the following will not affect the market price of a commodity

A.increase in demand
B.change in taste
C.intersection of demand and supply
D.increase in supply

All the following are methods of determing prices except?

A.maximum pricing
B.rationing
C.minimum pricing
D.auctioning

The law of diminishing marginal returns relate to?

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

Total cost is obtain by?

A.adding up the marginal cost at each level
B.dividing the total cost of output at each level
C.adding up the average variable cost at each level
D.adding up the total variable cost and total fixed cost

By adding all the marginal products at each level of employment of the variable input, we obtain a value equal to

A.average product
B.total product
C.average variable cost
D.total cost

which of the following curves is not U shaped

A.marginal cost curve
B.average fixed cost curve
C.average total cost curve
D.average variable cost

which of the following business organisations is likely to experience disagreements between management and shareholders

A.co-operative society
B.sole trader
C.partnership
D.joint-stock company

which of the following is not a method of controlling monopoly

A.preventing mergers
B.indigenization
C.privatization
D.imposing high profit tax

which of the following features distinguishes a public limited company from a private limited company

A.perpetual existence
B.limited liability
C.legal entity
D.sales of shares to the public

Inflation may occur if there is?

A.excess supply over demand
B.increase in productivity
C.excessive demand with limited supply
D.increased government spending in a depressed economy

Frictional unemployment occurs when?

A.there is a change in the technique of production
B.job seekers lack information where jobs exist
C.bad weather prevents work from progressing
D.job seekers have disabilities

which of the following will increase the demand for labour

A.Increase wage rate
B.labour's demand for output
C.low wage rate
D.low marginal productivity

one reason for low agrictural productivity in most west African countries is that?

A.farmers are not capable of producing cash crops
B.it does not provide income to farmers with large families
C.farmers find it difficult getting help from financial institutions
D.it is not the only source of raw materials for agro-based industries

The movement of labour from one grade to an entirely different grade is an example of?

A.industrial labour mobility
B.horizontal occupational mobility
C.vertical occupational mobility
D.geographical mobility

which of the following is not a strong basis for trade unions demand for higher wages

A.company is making higher profit
B.productivity of workers has increased
C.members of the union have high qualifications
D.commodity produced by the workers is very essential

The difference between the gross domestic product (GDP) and gross national product (GNP) IS?

A.depreciation
B.transfer payment
C.net income from abroad
D.direct taxes

location of firms of an industry is not influenced by?

A.availability of raw material
B.existence of other firms
C.nearness to the source of money supply
D.government policy

In national income accounting, the term net is used to indicate that a value

A.includes income of foreigners
B.includes income of citizens
C.includes depreciation
D.excludes depreciation

which of the following best describes token money?

A.money in the vaults of commercial banks
B.currency and coins in circulation
C.money with face value higher than its material content
D.coins and notes made of poor quality material

In developing countries, a larger percentage of the labour force is employed in the

A.trade sector
B.tertiary sector
C.primary sector
D.secondary sector

An industry is best described as

A.firm that sells a set of closely related commodities
B.industrial concern that is into production and selling of goods
C.a factory that produces different lines of product
D.a group of firms that sells a closely related set of products

The main item traded on a stock exchange market is

A.treasury bills
B.travellers cheque
C.foreign currencies
D.new shares

The proportion of commercial banks' total assets kept in the form of highly liquid assets is known as

A.demand deposit
B.fixed deposit
C.cash ratio
D.moral suasion

which of the following is not an objective of economic planning

A.need to direct economic development of the country towards the desired direction
B.desire to ensure a sustained cultural development of the country
C.desire to widen the gap between developing countries and the developed world
D.management of scarce resources in the face of unlimited wants of the citizens

In order to control inflation, the government should

A.reduce the cost of borrowing
B.buy securities in the open market
C.adopt restrictive monetary policy
D.discourage savings

when the demand for foreign exchange exceeds its supply, the value of the domestic currency

A.appreciates
B.depreciates
C.remains inchanged
D.expands

The export of west A frican countries are mostly composed of

A.service
B.raw materials
C.manufactured goods
D.consumer goods

A concious effort of government to achieve a specific set of goals is?

A.economic planning
B.economic development
C.economic growth
D.economic target