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2022 WAEC ECONOMICS

OBJECTIVE TEST QUESTIONS

1. Scale of preference shows A. incomes of consumers in order of size. B. utilities enjoyed  by  consumers. C. opportunity cost of goods consumed. D. consumers wants in order of priority.
2. There is unemployment of resources when production is A. within the production possibility curve. B. outside the production possibility curve. C. along the production possibility curve D. adequate to meet market demand.
3. A major characteristic of natural resources is that they A. are unlimited in supply. B. have high cost of production. C. are free gifts of nature. D. do not command any price.
4. A major disadvantage of a capitalist economy is that it A. leads to low production of goods and services. B. requires large number of officials to operate. C. considers individual consumers' satisfaction. D. worsens  income inequality among the citizens.
5. The mining sector of an economy contributes 60%to the Gross Domestic Product  (GDP).If the GDP is $540 what is the contribution of the mining sector? A.$90.00 B.$180.00 C.$324.00   D.$350.00
6. The increase in the demand for a commodity may lead to a decrease in the demand for another if both are A. in complementary demand. B. of   the same quality. C. in composite demand D. in  competitive  demand.
7. .The demand curve for goods of ostentation is usually A. negatively sloped B. positively sloped. C. vertical. D. horizontal
8. Which of the following factors is not a cause of change in demand? Changes in A. taste and fashion B. income distribution C. price of the commodity D. the size of the population
9. If the quantity demanded of a commodity increases from 20 units to 30 units when there is an increase in price from $4.00 to $5.00 the elasticity of the demand is A. 0.50 B. 0.65 C. 2.00 D. 2.50
10. The supply curve of a locally produced good may shift to the right if A. there is an increase in taxes of outputs B. government increasing subsidies C. rural-urban migration is encouraged D. the price of the commodity increases
11. In perfectly elastic supply, the supply curve A. is vertical B. is horizontal C. slopes upward D. slopes downward
12. An increase in the price of commodity X led to the fall of commodity Y. Commodities X and Y are A. competitive goods B. composite goods C. jointly supplied D. derived goods
13. The production of rice and yam on the same farmland is an example of A. joint supply. B. composite supply. C. competitive supply. D. market supply
14. A consumer of a single commodity is in equilibrium when A. he can equate his demand with price. B. he equates marginal utility and price. C. he can equate his marginal and total utilities D. his marginal utility is equal to zero.
15. If the government  imposes a minimum price  on  a commodity A. market surplus occurs. B. the market will be cleared in the short-run. C. excess demand  occurs  D. government  regulation is no longer needed
16. A minimum price legislation is also called A. price ceiling. B. price floor. C. price  control. D. price mechanism.
17. Which of the following factors is not a cause of diminishing returns? A. Increase in variable inputs B. Land fragmentation C. Constant technology D. Technological innovations
18. In manufacturing, division of labour may be hindered by A. excessive demand for the product. B. low level of technology. C. excess supply of labour D. increase in the export of goods
19. The production cost that varies inversely with output is the A. total fixed cost. B. marginal cost. C. average fixed cost. D. average cost
20. A firm that closes down will still incur A. variable cost. B. fixed cost. C. total cost. D. marginal cost.