1994 Economics WAEC SSCE (School Candidates) May/June

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Economics 1 - Objective

1. The definition of Economics as 'the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses' was given by
   1. Adam Smith
   2. David Ricardo
   3. Lionel Robbins
   4. Thomas R. Malthus
   5. Robert Giffen
2. The concept of economic efficiency primarily implies
   1. obtaining the maximum output from available resources at the lowest possible cost
   2. conserving our petroleum resources
   3. equity in the distribution of the nation's wealth
   4. producing without waste
   5. the limited wants-unlimited resources dilemma
3. Which of the following is true of NEPA as a public corporation in Nigeria? It is
   1. a solar energy distributor
   2. organized in a perfectly competitive market
   3. a duopoly
   4. a monopolistically competitive industry
   5. a monopoly
4. A situation of full employment exists when
   1. every adult is employed
   2. all adults who can work are employed
   3. all persons who have attained the age of 15 years and above are employed
   4. only the disabled are not employed
   5. all those who are able and eligible to work are employed
5. Which of the following functions of money makes it possible for any person to provide for old age
   1. Medium of exchange
   2. Store of value
   3. Measure of value
   4. Unit of account
   5. Standard for deferred payments
6. The primary objective of the Agricultural Credit Guarantee Scheme is the provision of
   1. guarantee for loans granted by banks for agricultural purposes
   2. agricultural inputs to facilitate credit from banks
   3. loans for every farmer
   4. agricultural products for farmers
7. Which of the following is not an advantage of localization of industries?
   1. Enjoyment of external economies
   2. Development of subsidiary industries
   3. Development of organized markets
   4. Growth of conurbation
8. Which of the following is not an advantage of government ownership of enterprises?
   1. More capital is provided
   2. Pricing policy may be in the interest of consumers
   3. Government workers may be indifferent towards the public
   4. Infrastructures are rapidly developed
   5. Income may be more evenly distributed
9. If the foreign exchange rate is N8 to £1, then a bicycle bought for £40 will cost
   1. N15.00
   2. N60.00
   3. N100.00
   4. N250.00
   5. N320.00
10. All the following are assets of a commercial bank except
    1. cash
    2. bills discounted
    3. bank deposits
    4. investment
    5. advances to customers
11. The Central Bank controls commercial banks through all the following measures except
    1. the use of directives
    2. the use of bank rate
    3. Open market operations
    4. accepting deposits
    5. demanding special deposits
12. If a person supplements his current income by drawing on past savings in order to make both ends meet, he is said to be living
    1. a good life
    2. an average life
    3. on his savings
    4. a reckless life
    5. on borrowed money
13. Which of the following is not a set of measures of central tendency?
    1. Mode and median
    2. Mean and median
    3. Mean and mode
    4. Median and percentage
    5. Mode, mean and median
14. The diagram here is a
    

    

    Pie chart

    1. bar chart
    2. pie chart
    3. ball chart
    4. histogram
    5. histo-chart
15. Which of the following pairs can be referred to as middlemen?
    1. Wholesalers and agents
    2. Retailers and consumers
    3. Consumers and agents
    4. Wholesalers and retailers
    5. Wholesalers and consumers
16. Mono-product economies are those that
    1. have a rich cultural heritage
    2. produce only raw materials
    3. live on the exportation of their raw products
    4. produce one main commodity
    5. specialize in agricultural industries
17. In diagram below, the broken line labelled PM is the Marginal Revenue Curve of a
    

    

    Economics 1994 graph

    1. monopoly
    2. competitive firm
    3. state corporation
    4. partnership
    5. monopsony
18. A Nigerian household's demand curve for semovita is downward sloping because
    1. the demand for semovita is high
    2. the local markets are flooded with semovita
    3. semovita is produced in Nigeria
    4. every household can afford to buy semovita
    5. the higher the price of semovita, the lower the quantity demanded
19. To the economist, a stock of goods existing at a particular time and conforming to certain requirements such as having utility, money value and being limited in supply, is known as
    1. consumer goods
    2. products
    3. wealth
    4. commercial goods
    5. durable goods
20. The decision to consume more of one product will under normal circumstance imply that
    1. more of another product will be consumed
    2. less of something else will be consumed
    3. no other product will be consumed
    4. decision-making is basic in Economics
    5. enough resources are available
21. The difference between the Gross Domestic Product(GDP) and the Gross National Product (GNP) is the
    1. allowance for total depreciation
    2. total interest payment
    3. net income from abroad
    4. total tax and interest payments
    5. net internally generated income
22. One of the functions of a commercial bank is that it
    1. is responsible for formulating monetary policies
    2. accepts demand and time deposits from customers
    3. is the lender of last resort
    4. is the banker of the government
    5. is responsible for issuing currency notes
23. Which of the following is not a problem of distribution of goods in Nigeria?
    1. Poor communication network
    2. Inadequate storage facilities
    3. Ignorance of consumers
    4. Dishonesty of middlemen
    5. Inadequate market
24. Mr. Idowu needs a television and a refrigerator. Each costs N500.00, the exact amount he has. If Mr. Idowu buys the television, the refrigerator would be regarded as the
    1. marginal cost
    2. inferior item
    3. opportunity cost
    4. supplementary item
    5. prime cost
25. Petro-chemical industries are located in Rivers State of Nigeria due to the presence of
    1. a favourable climate
    2. coal deposits
    3. oil palm products
    4. an undulating terrain
    5. oil deposits
26. Foreign exchange control in Nigeria is enforced by the
    1. commercial banks
    2. merchant banks
    3. mortgage banks
    4. Central Bank
    5. Agricultural Development Bank
27. The difference between the number of immigrants and emigrants is
    1. internal mobility
    2. internal migration
    3. net migration
    4. marginal migration
    5. external migration
28. Risk-bearing and managerial control are the main functions of the
    1. managing director
    2. manager
    3. entrepreneur
    4. chief executive
    5. chief accountant
29. In the table below, the marginal cost when output is 2 units is
    1. N16.00
    2. N20.00
    3. N36.00
    4. N40.00
    5. 48.00
30. If successive units of labour are added to a piece of land while capital and technology remain constant, a point will be reached in the level of production when each additional unit of labour will add less to the output than previous units. This concept is known as the
    1. productivity of labour
    2. law of diminishing marginal utility
    3. law of diminishing returns
    4. law of diminishing returns of a variable factor
    5. internal economies of scale
31. Which of the following pairs gives the values of X and Y in the table?
    1. X = 20, Y = 6
    2. X = 10, Y = 10
    3. X = 38, Y = 9
    4. X = 46, Y = 9
    5. X = 46, Y = 14
32. When a firm's total revenue is at the maximum, marginal revenue is
    1. at the maximum
    2. negative
    3. zero
    4. positive
    5. constant
33. Under normal circumstance, a producer will bear the entire burden of taxation on his output if the
    1. supply of his goods is more elastic than the demand
    2. demand for his product is completely elastic
    3. production of his commodities is subject to diminishing returns
    4. demand for his product is more elastic than the supply
    5. demand for his product is completely inelastic
34. Limited liability means that
    1. the debts of a company can only be paid from its own assets
    2. the debts of a company are paid from business as well as private funds of the owners
    3. a company does not have to pay its debts
    4. the debts of a company must be paid from private funds only
    5. government cannot tax a company
35. Factory buildings, machinery and raw materials are known in Economics as
    1. personal wealth
    2. social wealth
    3. government wealth
    4. business wealth
    5. public wealth
36. Abstention from consumption enables capital to be produced. Such abstention is called
    1. saving
    2. Production
    3. accumulation
    4. Factors of production
    5. opportunity cost
37. Tax evasion in Economics means
    1. false declaration of assets
    2. paying tax only as and when due
    3. declaration of assets
    4. tax-payment according to income received
    5. quarrelling with tax collectors
38. The magnitude of the national income of a country depends on all the following except the
    1. quantity of natural resources available
    2. level of technical know-how
    3. mobility of labour
    4. level of productivity
    5. quality and quantity of factors of production
39. The Quantity Theory of Money states that an increase in the quantity of money would bring about
    1. a geometrical rise in prices
    2. an unequal rise in prices
    3. a proportionate rise in prices
    4. an absolute rise in prices
    5. a less than proportionate increase in prices
40. Under the ECOWAS agreement, a Nigerian can enter and stay in Ghana without a visa for a period of
    1. 14 days
    2. 30 days
    3. 60 days
    4. 90 days
    5. 100 days

Economics 2 - Essay

Section A

Answer one question only from this section.

1. 1. What is meant by price elasticity of demand?
   2. The following figures are extracted from a schedule of demand and supply:

      Price	Quantity demanded	Quantity supplied
      N9.00	1,050	850
      N10.00	1,000	1,000
      N11.00	950	1,150

      1. Calculate the elasticity of demand when price rises from N10.00 to N11.00.
      2. State whether the demand in (i) above is elastic or inelastic.
      3. Calculate the elasticity of supply when price falls from N10.00 to N9.00.
      4. State whether the demand in (iii) above is elastic or inelastic.
2. Use the data in the table below to answer the questions that follow.

   Age group	No of persons in thousands
   	1955	1960
   0 - 16	150	143
   17 - 45	51	107
   46 - 60	29	33
   above 60	15	17

   1. What is the percentage increase in the working population between 1955 and 1960?
   2. Calculate the ratio of dependent population to the working population in 1955.
   3. Calculate the ratio of dependent population to the working population in 1960.
   4. Has the dependency ratio increased or decreased between 1955 and 1960?

Section B

Answer three questions only from this section.

3. "Price tends towards the level which equates supply with demand". Explain this statement.
4. Highlight the economic problems associated with the dependency of West African countries on primary production.
5. 1. Explain the term national debt.
   2. State any four instruments of government borrowing in Nigeria.
6. Compare and contrast the private limited company with the public limited company.
7. 1. Outline the main features of the Malthusian theory on population.
   2. Explain the developments that render the theory irrelevant to the present day situation.
8. What is money? Explain its characteristics.
9. 1. Explain the term capital market.
   2. How is the capital market different from the stock exchange?
   3. What are the advantages of the capital market?
10. Describe the functions of the International Monetary Fund (IMF)