WAEC Economics 2016 Past Questions

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

Question 1

The following data shows the budget of hypothetical country in2006. Study data and answer the questions that follow: 
 

 Revenue  [$ million]
 Company tax  240
 Workers' income tax  160
 Excise duties  80
 Taxes on exports  100
 Value added tax  150
 Import duties  90
 Non-tax revenue  40

 

 Expenditure  [$ million]
 Construction of roads  100
 Building of schools  120
 Payment of workers' salaries  150
 Government administration  200
 Maintenance of health facilities  220
 Extension of electricity to rural areas  180
 Maintenance of official vechicles  70

(a) How many revenue was realised from:
(i) direct taxes;(3 marks) ,(ii) indirect taxes (3 marks)

(b)Calculate the total:
(i) recurrent expenditure (3 marks) ,(ii) capital expenditure (3 marks)

(c) What pencentage of total revenue was collected as indirect taxe? (3 marks)

(d) State two examples of non-tax revenue (2 marks)

(e) What was the budget surplus or deficit? Explain your answer. (3 marks). 
 

 

Theory
Question 2

 The utility schedule of a consumer for a brand of ice cream is shown in the table below. Use the information to answer the questions that follow: 
 

 Units Consumed (Q)  Total Utility (TU)  Marginal Utility (MU)
 0  0  -
 1  10  10
 2  19  R
 3  P  6
 4  30  5
 5  31  S
 6  Q  0
 7  29  -2

(a) Calculate the values of P,Q,and S. (8 marks).

(b) Given that the jprice of ice cream is $ 1.00 per unit, at what level of consumption is the consumer in equilibrium? Explain your answer. (3 marks).

(c) Use a graph sheet, draw the marginal utility curve.(3 marks).

(d) State the law of diminishing marginal utility. (3 marks).

 

Theory