2016 Economics WAEC SSCE (School Candidates) May/June

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Economics 1 - Objective

1. Human wants are insatiable because wants are A. limited while means are scarce. B_ unlimited and means are also unlimited C limited and means are also limited D. unlimited while means are scarce.
   1. Option a
   2. Option b
   3. Option c
   4. Option d
2. Scale of preference is important for the following reasons except in A. satisfying wants B. making rational choice C. making optional allocation of resources. D. using scarce resources efficiently.
   1. Option a
   2. Option b
   3. Option c
   4. Option d
3. In a socialist economy, prices of commodities are determined by A. forces of demand and supply. B. producers of the commodities C. the central planning authority D. consumers who are sovereign.
   1. Option a
   2. Option b
   3. Option c
   4. Option d
4. Which of the following cannot be classified as land in economics? A. bauxite deposit in the ground B. a lake used for irrigation C. a bulldozer for clearing farmland =D. grazing field for
   1. Option a
   2. Option b
   3. Option c
   4. Option d
5. If the budget of the country was $7,200.00, how much is allocated to Education?. A. $2,400.00 B. $2,000.00 C
   1. Option a
   2. Option b
   3. Option c
   4. Option d
6. What is the ratio of expenditure on health to Agriculture? =A. 2:3 B.3:4 C.4:3 D. 5:4
   1. Option a
   2. Option b
   3. Option c
   4. Option d
7. The demand curve for a necessity is usually A. vertical B. backward bending C. horizontal D. nagatively sloped
   1. Option a
   2. Option b
   3. Option c
   4. Option d
8. What effect will an increase in price have on the total revenue of a farm whose product has inelastic demand? Total revenue will A. increase B.fall C. fluctuate D. remain unchanged
   1. Option a
   2. Option b
   3. Option c
   4. Option d
9. If the quantity of men’s hat demanded per week is represented by the function Qd = 20-1/3p, where p is price, how many hats are demanded when ne price is $9.00? A. 11 B.17 C.23
   1. Option a
   2. Option b
   3. Option c
   4. 47
10. The demand for torch and batteries is an example 11. of A.competitive demand B. composite demand C. complementary demand D
    1. Option a
    2. Option b
    3. Option c
    4. Option d
11. Price elasticity f suppluy measures how responsive A. consumers are to a change in price. B. sellers are to a change in buyers’ income C. sellers are to a change in price D. buyers are to a change in income.
    1. Option a
    2. Option b
    3. Option c
    4. Option d
12. The tendency for workers to value their leisure hours more than hours of work as wage rate increases gives rise to A positively sloping supply curve B. perfectly elastic supply curve C. backward bending supply curve D. perfectly inelastic supply curve.
    1. Option a
    2. Option b
    3. Option c
    4. Option d
13. The supply of rice in tons Is given by the function: Qs - 80 - 0.7p = 0 where Qs = quantity supplied p = price in Dollars ($). Find Qs, when p = $40. A 108 tons B 52tons C.-52 tons D -108 tons
    1. Option a
    2. Option b
    3. Option c
    4. Option d
14. How does producers’ expectation of a price fall affect the supply curve of a product? There will be A. a movement along the curve __B. a leftward shift C. no shift of the supply curve D. a shift of the right.
    1. Option a
    2. Option b
    3. Option c
    4. Option d
15. One relationship between marginal utility and total utility is A. rising, marginal utility is rising B. falling, marginal utility is negative C. maximum, marginal utility is maximum D. falling, marginal utility is rising.
    1. Option a
    2. Option b
    3. Option c
    4. Option d
16. A shift in the supply curve to the right while demand curve remains the same will cause equilibrium price A. and quantity to fall B. and quantity to rise C. to rise and quantity to fall _D. to fall and quantity to rise.
    1. Option a
    2. Option b
    3. Option c
    4. Option d
17. A price floor results in A. excess demand B. excess supply C. parallel market D. hording of goods.
    1. Option a
    2. Option b
    3. Option c
    4. Option d
18. entrepreneur is encouraged to adopt division of labour in production because it A. provides more employment opportunities B. leads to increased output and lower cost of production C. brings about equal cost and employment opportunities D. leads to increased cost of production and lower output.
    1. Option a
    2. Option b
    3. Option c
    4. Option d
19. The long run is the period when A. only the variable factors can be altered B. all factors become variable C. the firm will cease to exist D. only the fixed factors can altered
    1. Option a
    2. Option b
    3. Option c
    4. Option d
20. The necessary condition for a firm to be in equilibrium is that marginal revenue is A. greater than marginal cost B. equal to marginal cost C. less than average revenue D. equal to average cost.
    1. Option a
    2. Option b
    3. Option c
    4. Option d
21. At which stage of production should a firm shut down? Whan A. AVC =ATC B. AVC = < price C.AVC=>price D.AVC=MC.
    1. Option a
    2. Option b
    3. Option c
    4. Option d
22. Charging different prices for the same commodity is a feature of A. perfect competion B. commodity market C. monopolistic competition D. monopoly market.
    1. Option a
    2. Option b
    3. Option c
    4. Option d
23. Ina partnership, the conduct of members is guided by A. a memorandum of understanding B. the article of partnership C. an article of association D. a partnership constitution.
    1. Option a
    2. Option b
    3. Option c
    4. Option d
24. Indigenization policy is a measure aimed at...... privatizing the existing business owned by the state B. commercializing state-owned business C. reducing foreign economic domination D. making the indigenes managing directors of businesses.
    1. Option a
    2. Option b
    3. Option c
    4. Option d
25. Which of the following measures will hinder efficient distribution of goods in West Africa? A. improving road network
    1. Option a
    2. B. provision of adequate storage facilities instituting price control D. Formation of producers’ co-operative
    3. instituting price control
    4. Formation of producers’ co-operative
26. The type of unemployment that occurs as a result of physical or mental diability of labour is known as A. financial unemployment
    1. Option a
    2. structural unemployment C. cyclical unemployment D. residual unemployment.
    3. Option c
    4. Option d
27. One feature of growing population is A. increase in the number of young people B. increase in the number of old people C. decrease in the dependent population D. decrease in the life expectancy
    1. Option a
    2. Option b
    3. Option c
    4. Option d
28. Efficiency of labour in a country is determined b y the following factors exceptthe A. social attitude to work B.education and training C. working conditions of workers. D. total population.
    1. Option a
    2. Option b
    3. Option c
    4. Option d
29. Which of the following will encourage capital intensive farming? A. encouraging communal system of land wonership _B. adopting policies that will encourage rural-urban migration C. provision os subsidies on equipment D. restrictive lending policies by banks.
    1. Option a
    2. Option b
    3. Option c
    4. Option d
30. Which of the following will best explains why more foreign investments are not attracted to West Africa? A. small population size B. small sizes
    1. small population size
    2. small sizes of market places
    3. instablity in political and industrial policies
    4. lack
31. Location of firms in rural areas may A. enable the firms to enjoy existing infrastructural facilities. B. make finance readily available C. enhance even or balanced development D. make such firms enjoy external economies of scale. Option a
    1. Option b
    2. Option c
    3. Option d
32. In national income accounting, double counting occurs when A. intermediate goods are counted twice. B. intermediate goods are counted with the final goods C. final goods are counted more than once D. different people counted the products.
    1. Option a
    2. Option b
    3. Option c
    4. Option d
33. The difference between GDP and GNP is A. consumption of fixed capital B. indirect business tax. C.net factor income from abroad D. public transfer payments.
    1. Option a
    2. Option b
    3. Option c
    4. Option d
34. Which of the following items is not included in the measurement of the national income using the income approach? A. wages and s
    1. wages and salaries
    2. government purchases
    3. interest
    4. dividend
35. A bank note is said to be a legal tender because it is A. printed by government B. a store value C. signed by the head of state D. backed by law. . . During inflation, interest rate will A. rise B. fluctuate C.remainconstant D. fall. Cost-push inflation is likely to arise when A. there is an increase in bank lending B. there is an increase in subsidies C. demand for higher wages is granted D. there is a decrease In bank lending. ; ees Which of the following financial institutions cannot be found on the capital market of a country? A. commerial bank Bangi bank C. stock exchange _D. agricultural bank. The stnek market is a market for A. new and second hand shares B.debentures C.goods and services D. short-term securities. 40. 41, 42. 43. 44, 45, 46. 47. 48. 49. 50. indirect taxes are generally A. progressive B regressive C equitable D proportionate. Fiscal policy that can control inflation will include the use of A. balanced budgeting B. tax holidays C. budget deficit D. budget surplus. Which of the following is a cause of under�development in West Africa? A. availability of manpower B. increasing population C. high rate of of capital formation D. large size of market places. Which of the following is not a major problem of development planning? A. shortage of skilled manpower B. inadequate data for planning C. political instability D. poor identification of projects. The principle of comparative cost advantage was propounded by A. David Ricardo B. Alfred Marshal C.J. S. Mill D.Adam Smith. The rate at which a country’s exports is exchanged for herimports is A. trade balance B. balance of payments C. terms of trade D. balance on current account. Balance of payments surplus implies that receipts for exports are A. at par with payments for imports B. greater than payments for imports C. less than payments for imports D. proportional to payments for imports. When the international value of a country's currency rises, other things being equal, the country’s A. net exports tend to increase B. imports tend to decrease C. net exports tend to decrease D. exports tend to be stable. One of the physical measures that can be used to reduce the volume of imports is the A. reduction of personal income tax B. removal of import duties C. use of foreign exchange control D. liberalization of credit for importers. When a number of countries agree to remove all trade barriers among them
    1. Option a
    2. Option b
    3. Option c
    4. Option d
36. A bank note is said to be a legal tender because it is A. printed by government B. a store value C. signed by the head of state D. backed by law. . . During inflation, interest rate will A. rise B. fluctuate C.remainconstant D. fall. Cost-push inflation is likely to arise when A. there is an increase in bank lending B. there is an increase in subsidies C. demand for higher wages is granted D. there is a decrease In bank lending. ; ees Which of the following financial institutions cannot be found on the capital market of a country? A. commerial bank Bangi bank C. stock exchange _D. agricultural bank. The stnek market is a market for A. new and second hand shares B.debentures C.goods and services D. short-term securities. 40. 41, 42. 43. 44, 45, 46. 47. 48. 49. 50. indirect taxes are generally A. progressive B regressive C equitable D proportionate. Fiscal policy that can control inflation will include the use of A. balanced budgeting B. tax holidays C. budget deficit D. budget surplus. Which of the following is a cause of under�development in West Africa? A. availability of manpower B. increasing population C. high rate of of capital formation D. large size of market places. Which of the following is not a major problem of development planning? A. shortage of skilled manpower B. inadequate data for planning C. political instability D. poor identification of projects. The principle of comparative cost advantage was propounded by A. David Ricardo B. Alfred Marshal C.J. S. Mill D.Adam Smith. The rate at which a country’s exports is exchanged for herimports is A. trade balance B. balance of payments C. terms of trade D. balance on current account. Balance of payments surplus implies that receipts for exports are A. at par with payments for imports B. greater than payments for imports C. less than payments for imports D. proportional to payments for imports. When the international value of a country's currency rises, other things being equal, the country’s A. net exports tend to increase B. imports tend to decrease C. net exports tend to decrease D. exports tend to be stable. One of the physical measures that can be used to reduce the volume of imports is the A. reduction of personal income tax B. removal of import duties C. use of foreign exchange control D. liberalization of credit for importers. When a number of countries agree to remove all trade barriers among themselves and at the same time charge a common tariff against non-memner countries, itis known as_ A. free trade area B. common market C. redcustoms union D. economic community. Which of the following international organizations is concerned with the stabilization of the balance of payments? The A. International Monentary Fund (IMF) B. world bank (IBRD) C. United Nations Organization (UNO) D. Economic Commission for Africa (ECA). WASSCE JUNE 2016 ECONOMICS 2 THEORY QUESTIONS SECTION A: Answer one question only from this section. 1. The following data shows the budget of a hypothetical country in 2006. 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 1
    1. Option a
    2. Option b
    3. Option c
    4. Option d
37. A bank note is said to be a legal tender because it is A. printed by government B. a store value C. signed by the head of state D. backed by law. . . During inflation, interest rate will A. rise B. fluctuate C.remainconstant D. fall. Cost-push inflation is likely to arise when A. there is an increase in bank lending B. there is an increase in subsidies C. demand for higher wages is granted D. there is a decrease In bank lending. ; ees Which of the following financial institutions cannot be found on the capital market of a country? A. commerial bank Bangi bank C. stock exchange _D. agricultural bank. The stnek market is a market for A. new and second hand shares B.debentures C.goods and services D. short-term securities. 40. 41, 42. 43. 44, 45, 46. 47. 48. 49. 50. indirect taxes are generally A. progressive B regressive C equitable D proportionate. Fiscal policy that can control inflation will include the use of A. balanced budgeting B. tax holidays C. budget deficit D. budget surplus. Which of the following is a cause of under�development in West Africa? A. availability of manpower B. increasing population C. high rate of of capital formation D. large size of market places. Which of the following is not a major problem of development planning? A. shortage of skilled manpower B. inadequate data for planning C. political instability D. poor identification of projects. The principle of comparative cost advantage was propounded by A. David Ricardo B. Alfred Marshal C.J. S. Mill D.Adam Smith. The rate at which a country’s exports is exchanged for herimports is A. trade balance B. balance of payments C. terms of trade D. balance on current account. Balance of payments surplus implies that receipts for exports are A. at par with payments for imports B. greater than payments for imports C. less than payments for imports D. proportional to payments for imports. When the international value of a country's currency rises, other things being equal, the country’s A. net exports tend to increase B. imports tend to decrease C. net exports tend to decrease D. exports tend to be stable. One of the physical measures that can be used to reduce the volume of imports is the A. reduction of personal income tax B. removal of import duties C. use of foreign exchange control D. liberalization of credit for importers. When a number of countries agree to remove all trade barriers among themselves and at the same time charge a common tariff against non-memner countries, itis known as_ A. free trade area B. common market C. redcustoms union D. economic community. Which of the following international organizations is concerned with the stabilization of the balance of payments? The A. International Monentary Fund (IMF) B. world bank (IBRD) C. United Nations Organization (UNO) D. Economic Commission for Africa (ECA). WASSCE JUNE 2016 ECONOMICS 2 THEORY QUESTIONS SECTION A: Answer one question only from this section. 1. The following data shows the budget of a hypothetical country in 2006. 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 1
    1. Option a
    2. Option b
    3. Option c
    4. Option d
38. A bank note is said to be a legal tender because it is A. printed by government B. a store value C. signed by the head of state D. backed by law. . . During inflation, interest rate will A. rise B. fluctuate C.remainconstant D. fall. Cost-push inflation is likely to arise when A. there is an increase in bank lending B. there is an increase in subsidies C. demand for higher wages is granted D. there is a decrease In bank lending. ; ees Which of the following financial institutions cannot be found on the capital market of a country? A. commerial bank Bangi bank C. stock exchange _D. agricultural bank. The stnek market is a market for A. new and second hand shares B.debentures C.goods and services D. short-term securities. 40. 41, 42. 43. 44, 45, 46. 47. 48. 49. 50. indirect taxes are generally A. progressive B regressive C equitable D proportionate. Fiscal policy that can control inflation will include the use of A. balanced budgeting B. tax holidays C. budget deficit D. budget surplus. Which of the following is a cause of under�development in West Africa? A. availability of manpower B. increasing population C. high rate of of capital formation D. large size of market places. Which of the following is not a major problem of development planning? A. shortage of skilled manpower B. inadequate data for planning C. political instability D. poor identification of projects. The principle of comparative cost advantage was propounded by A. David Ricardo B. Alfred Marshal C.J. S. Mill D.Adam Smith. The rate at which a country’s exports is exchanged for herimports is A. trade balance B. balance of payments C. terms of trade D. balance on current account. Balance of payments surplus implies that receipts for exports are A. at par with payments for imports B. greater than payments for imports C. less than payments for imports D. proportional to payments for imports. When the international value of a country's currency rises, other things being equal, the country’s A. net exports tend to increase B. imports tend to decrease C. net exports tend to decrease D. exports tend to be stable. One of the physical measures that can be used to reduce the volume of imports is the A. reduction of personal income tax B. removal of import duties C. use of foreign exchange control D. liberalization of credit for importers. When a number of countries agree to remove all trade barriers among themselves and at the same time charge a common tariff against non-memner countries, itis known as_ A. free trade area B. common market C. redcustoms union D. economic community. Which of the following international organizations is concerned with the stabilization of the balance of payments? The A. International Monentary Fund (IMF) B. world bank (IBRD) C. United Nations Organization (UNO) D. Economic Commission for Africa (ECA). WASSCE JUNE 2016 ECONOMICS 2 THEORY QUESTIONS SECTION A: Answer one question only from this section. 1. The following data shows the budget of a hypothetical country in 2006. 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 1
    1. Option a
    2. Option b
    3. Option c
    4. Option d
39. A bank note is said to be a legal tender because it is A. printed by government B. a store value C. signed by the head of state D. backed by law. . . During inflation, interest rate will A. rise B. fluctuate C.remainconstant D. fall. Cost-push inflation is likely to arise when A. there is an increase in bank lending B. there is an increase in subsidies C. demand for higher wages is granted D. there is a decrease In bank lending. ; ees Which of the following financial institutions cannot be found on the capital market of a country? A. commerial bank Bangi bank C. stock exchange _D. agricultural bank. The stnek market is a market for A. new and second hand shares B.debentures C.goods and services D. short-term securities. 40. 41, 42. 43. 44, 45, 46. 47. 48. 49. 50. indirect taxes are generally A. progressive B regressive C equitable D proportionate. Fiscal policy that can control inflation will include the use of A. balanced budgeting B. tax holidays C. budget deficit D. budget surplus. Which of the following is a cause of under�development in West Africa? A. availability of manpower B. increasing population C. high rate of of capital formation D. large size of market places. Which of the following is not a major problem of development planning? A. shortage of skilled manpower B. inadequate data for planning C. political instability D. poor identification of projects. The principle of comparative cost advantage was propounded by A. David Ricardo B. Alfred Marshal C.J. S. Mill D.Adam Smith. The rate at which a country’s exports is exchanged for herimports is A. trade balance B. balance of payments C. terms of trade D. balance on current account. Balance of payments surplus implies that receipts for exports are A. at par with payments for imports B. greater than payments for imports C. less than payments for imports D. proportional to payments for imports. When the international value of a country's currency rises, other things being equal, the country’s A. net exports tend to increase B. imports tend to decrease C. net exports tend to decrease D. exports tend to be stable. One of the physical measures that can be used to reduce the volume of imports is the A. reduction of personal income tax B. removal of import duties C. use of foreign exchange control D. liberalization of credit for importers. When a number of countries agree to remove all trade barriers among themselves and at the same time charge a common tariff against non-memner countries, itis known as_ A. free trade area B. common market C. redcustoms union D. economic community. Which of the following international organizations is concerned with the stabilization of the balance of payments? The A. International Monentary Fund (IMF) B. world bank (IBRD) C. United Nations Organization (UNO) D. Economic Commission for Africa (ECA). WASSCE JUNE 2016 ECONOMICS 2 THEORY QUESTIONS SECTION A: Answer one question only from this section. 1. The following data shows the budget of a hypothetical country in 2006. 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 1
    1. Option a
    2. Option b
    3. Option c
    4. Option d
40. A bank note is said to be a legal tender because it is A. printed by government B. a store value C. signed by the head of state D. backed by law. . . During inflation, interest rate will A. rise B. fluctuate C.remainconstant D. fall. Cost-push inflation is likely to arise when A. there is an increase in bank lending B. there is an increase in subsidies C. demand for higher wages is granted D. there is a decrease In bank lending. ; ees Which of the following financial institutions cannot be found on the capital market of a country? A. commerial bank Bangi bank C. stock exchange _D. agricultural bank. The stnek market is a market for A. new and second hand shares B.debentures C.goods and services D. short-term securities. 40. 41, 42. 43. 44, 45, 46. 47. 48. 49. 50. indirect taxes are generally A. progressive B regressive C equitable D proportionate. Fiscal policy that can control inflation will include the use of A. balanced budgeting B. tax holidays C. budget deficit D. budget surplus. Which of the following is a cause of under�development in West Africa? A. availability of manpower B. increasing population C. high rate of of capital formation D. large size of market places. Which of the following is not a major problem of development planning? A. shortage of skilled manpower B. inadequate data for planning C. political instability D. poor identification of projects. The principle of comparative cost advantage was propounded by A. David Ricardo B. Alfred Marshal C.J. S. Mill D.Adam Smith. The rate at which a country’s exports is exchanged for herimports is A. trade balance B. balance of payments C. terms of trade D. balance on current account. Balance of payments surplus implies that receipts for exports are A. at par with payments for imports B. greater than payments for imports C. less than payments for imports D. proportional to payments for imports. When the international value of a country's currency rises, other things being equal, the country’s A. net exports tend to increase B. imports tend to decrease C. net exports tend to decrease D. exports tend to be stable. One of the physical measures that can be used to reduce the volume of imports is the A. reduction of personal income tax B. removal of import duties C. use of foreign exchange control D. liberalization of credit for importers. When a number of countries agree to remove all trade barriers among themselves and at the same time charge a common tariff against non-memner countries, itis known as_ A. free trade area B. common market C. redcustoms union D. economic community. Which of the following international organizations is concerned with the stabilization of the balance of payments? The A. International Monentary Fund (IMF) B. world bank (IBRD) C. United Nations Organization (UNO) D. Economic Commission for Africa (ECA). WASSCE JUNE 2016 ECONOMICS 2 THEORY QUESTIONS SECTION A: Answer one question only from this section. 1. The following data shows the budget of a hypothetical country in 2006. 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 1
    1. Option a
    2. Option b
    3. Option c
    4. Option d
41. A bank note is said to be a legal tender because it is A. printed by government B. a store value C. signed by the head of state D. backed by law. . . During inflation, interest rate will A. rise B. fluctuate C.remainconstant D. fall. Cost-push inflation is likely to arise when A. there is an increase in bank lending B. there is an increase in subsidies C. demand for higher wages is granted D. there is a decrease In bank lending. ; ees Which of the following financial institutions cannot be found on the capital market of a country? A. commerial bank Bangi bank C. stock exchange _D. agricultural bank. The stnek market is a market for A. new and second hand shares B.debentures C.goods and services D. short-term securities. 40. 41, 42. 43. 44, 45, 46. 47. 48. 49. 50. indirect taxes are generally A. progressive B regressive C equitable D proportionate. Fiscal policy that can control inflation will include the use of A. balanced budgeting B. tax holidays C. budget deficit D. budget surplus. Which of the following is a cause of under�development in West Africa? A. availability of manpower B. increasing population C. high rate of of capital formation D. large size of market places. Which of the following is not a major problem of development planning? A. shortage of skilled manpower B. inadequate data for planning C. political instability D. poor identification of projects. The principle of comparative cost advantage was propounded by A. David Ricardo B. Alfred Marshal C.J. S. Mill D.Adam Smith. The rate at which a country’s exports is exchanged for herimports is A. trade balance B. balance of payments C. terms of trade D. balance on current account. Balance of payments surplus implies that receipts for exports are A. at par with payments for imports B. greater than payments for imports C. less than payments for imports D. proportional to payments for imports. When the international value of a country's currency rises, other things being equal, the country’s A. net exports tend to increase B. imports tend to decrease C. net exports tend to decrease D. exports tend to be stable. One of the physical measures that can be used to reduce the volume of imports is the A. reduction of personal income tax B. removal of import duties C. use of foreign exchange control D. liberalization of credit for importers. When a number of countries agree to remove all trade barriers among themselves and at the same time charge a common tariff against non-memner countries, itis known as_ A. free trade area B. common market C. redcustoms union D. economic community. Which of the following international organizations is concerned with the stabilization of the balance of payments? The A. International Monentary Fund (IMF) B. world bank (IBRD) C. United Nations Organization (UNO) D. Economic Commission for Africa (ECA). WASSCE JUNE 2016 ECONOMICS 2 THEORY QUESTIONS SECTION A: Answer one question only from this section. 1. The following data shows the budget of a hypothetical country in 2006. 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 1
    1. Option a
    2. Option b
    3. Option c
    4. Option d
42. A bank note is said to be a legal tender because it is A. printed by government B. a store value C. signed by the head of state D. backed by law. . . During inflation, interest rate will A. rise B. fluctuate C.remainconstant D. fall. Cost-push inflation is likely to arise when A. there is an increase in bank lending B. there is an increase in subsidies C. demand for higher wages is granted D. there is a decrease In bank lending. ; ees Which of the following financial institutions cannot be found on the capital market of a country? A. commerial bank Bangi bank C. stock exchange _D. agricultural bank. The stnek market is a market for A. new and second hand shares B.debentures C.goods and services D. short-term securities. 40. 41, 42. 43. 44, 45, 46. 47. 48. 49. 50. indirect taxes are generally A. progressive B regressive C equitable D proportionate. Fiscal policy that can control inflation will include the use of A. balanced budgeting B. tax holidays C. budget deficit D. budget surplus. Which of the following is a cause of under�development in West Africa? A. availability of manpower B. increasing population C. high rate of of capital formation D. large size of market places. Which of the following is not a major problem of development planning? A. shortage of skilled manpower B. inadequate data for planning C. political instability D. poor identification of projects. The principle of comparative cost advantage was propounded by A. David Ricardo B. Alfred Marshal C.J. S. Mill D.Adam Smith. The rate at which a country’s exports is exchanged for herimports is A. trade balance B. balance of payments C. terms of trade D. balance on current account. Balance of payments surplus implies that receipts for exports are A. at par with payments for imports B. greater than payments for imports C. less than payments for imports D. proportional to payments for imports. When the international value of a country's currency rises, other things being equal, the country’s A. net exports tend to increase B. imports tend to decrease C. net exports tend to decrease D. exports tend to be stable. One of the physical measures that can be used to reduce the volume of imports is the A. reduction of personal income tax B. removal of import duties C. use of foreign exchange control D. liberalization of credit for importers. When a number of countries agree to remove all trade barriers among themselves and at the same time charge a common tariff against non-memner countries, itis known as_ A. free trade area B. common market C. redcustoms union D. economic community. Which of the following international organizations is concerned with the stabilization of the balance of payments? The A. International Monentary Fund (IMF) B. world bank (IBRD) C. United Nations Organization (UNO) D. Economic Commission for Africa (ECA). WASSCE JUNE 2016 ECONOMICS 2 THEORY QUESTIONS SECTION A: Answer one question only from this section. 1. The following data shows the budget of a hypothetical country in 2006. 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 1
    1. Option a
    2. Option b
    3. Option c
    4. Option d
43. A bank note is said to be a legal tender because it is A. printed by government B. a store value C. signed by the head of state D. backed by law. . . During inflation, interest rate will A. rise B. fluctuate C.remainconstant D. fall. Cost-push inflation is likely to arise when A. there is an increase in bank lending B. there is an increase in subsidies C. demand for higher wages is granted D. there is a decrease In bank lending. ; ees Which of the following financial institutions cannot be found on the capital market of a country? A. commerial bank Bangi bank C. stock exchange _D. agricultural bank. The stnek market is a market for A. new and second hand shares B.debentures C.goods and services D. short-term securities. 40. 41, 42. 43. 44, 45, 46. 47. 48. 49. 50. indirect taxes are generally A. progressive B regressive C equitable D proportionate. Fiscal policy that can control inflation will include the use of A. balanced budgeting B. tax holidays C. budget deficit D. budget surplus. Which of the following is a cause of under�development in West Africa? A. availability of manpower B. increasing population C. high rate of of capital formation D. large size of market places. Which of the following is not a major problem of development planning? A. shortage of skilled manpower B. inadequate data for planning C. political instability D. poor identification of projects. The principle of comparative cost advantage was propounded by A. David Ricardo B. Alfred Marshal C.J. S. Mill D.Adam Smith. The rate at which a country’s exports is exchanged for herimports is A. trade balance B. balance of payments C. terms of trade D. balance on current account. Balance of payments surplus implies that receipts for exports are A. at par with payments for imports B. greater than payments for imports C. less than payments for imports D. proportional to payments for imports. When the international value of a country's currency rises, other things being equal, the country’s A. net exports tend to increase B. imports tend to decrease C. net exports tend to decrease D. exports tend to be stable. One of the physical measures that can be used to reduce the volume of imports is the A. reduction of personal income tax B. removal of import duties C. use of foreign exchange control D. liberalization of credit for importers. When a number of countries agree to remove all trade barriers among themselves and at the same time charge a common tariff against non-memner countries, itis known as_ A. free trade area B. common market C. redcustoms union D. economic community. Which of the following international organizations is concerned with the stabilization of the balance of payments? The A. International Monentary Fund (IMF) B. world bank (IBRD) C. United Nations Organization (UNO) D. Economic Commission for Africa (ECA). WASSCE JUNE 2016 ECONOMICS 2 THEORY QUESTIONS SECTION A: Answer one question only from this section. 1. The following data shows the budget of a hypothetical country in 2006. 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 1
    1. Option a
    2. Option b
    3. Option c
    4. Option d
44. A The principle of comparative cost advantage was propounded by A. David Ricardo B. Alfred Marshal C.J. S. Mill D.Adam Smith.
    1. Option a
    2. Option b
    3. Option c
    4. Option d
45. The rate at which a country’s exports is exchanged for her imports is A. trade balance B. balance of payments C. terms of trade D. balance on current account.
    1. Option a
    2. Option b
    3. Option c
    4. Option d
46. Balance of payments surplus implies that receipts for exports are A. at par with payments for imports B. greater than payments for imports C. less than payments for imports D. proportional to payments for imports.
    1. Option a
    2. Option b
    3. Option c
    4. Option d
47. When the international value of a country's currency rises, other things being equal, the country’s A. net exports tend to increase B. imports tend to decrease C. net exports tend to decrease D. exports tend to be stable.
    1. Option a
    2. Option b
    3. Option c
    4. Option d
48. One of the physical measures that can be used to reduce the volume of imports is the A. reduction of personal income tax B. removal of import duties C. use of foreign exchange control D. liberalization of credit for importers.
    1. Option a
    2. Option b
    3. Option c
    4. Option d
49. When a number of countries agree to remove all trade barriers among themselves and at the same time charge a common tariff against non-memner countries, itis known as_ A. free trade area B. common market C. redcustoms union D. economic community.
    1. Option a
    2. Option b
    3. Option c
    4. Option d
50. Which of the following international organizations is concerned with the stabilization of the balance of payments? The A. International Monentary Fund (IMF) B. world bank (IBRD) C. United Nations Organization (UNO) D. Economic Commission for Africa (ECA).
    1. Option a
    2. Option b
    3. Option c
    4. Option d

Economics 2 - Essay

Section A

Answer one question only from this section.

1. Question 1
   1. Sub-question a
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   2. Sub-question b
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   3. Sub-question c
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   4. Sub-question d
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   5. Sub-question e
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   6. Sub-question f
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
2. Question 2
   1. Sub-question a
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   2. Sub-question b
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   3. Sub-question c
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   4. Sub-question d
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   5. Sub-question e
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   6. Sub-question f
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v

Section B

Answer three questions only from this section.

3. Question 3
   1. Sub-question a
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   2. Sub-question b
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   3. Sub-question c
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   4. Sub-question d
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   5. Sub-question e
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   6. Sub-question f
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
4. Question 4
   1. Sub-question a
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   2. Sub-question b
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   3. Sub-question c
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   4. Sub-question d
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   5. Sub-question e
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   6. Sub-question f
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
5. Question 5
   1. Sub-question a
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   2. Sub-question b
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   3. Sub-question c
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   4. Sub-question d
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   5. Sub-question e
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   6. Sub-question f
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
6. Question 6
   1. Sub-question a
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   2. Sub-question b
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   3. Sub-question c
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   4. Sub-question d
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   5. Sub-question e
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   6. Sub-question f
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
7. Question 7
   1. Sub-question a
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   2. Sub-question b
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   3. Sub-question c
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   4. Sub-question d
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   5. Sub-question e
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   6. Sub-question f
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
8. Question 8
   1. Sub-question a
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   2. Sub-question b
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   3. Sub-question c
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   4. Sub-question d
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   5. Sub-question e
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v
   6. Sub-question f
      1. Sub-question i
      2. Sub-question ii
      3. Sub-question iii
      4. Sub-question iv
      5. Sub-question v