2014 Economics WAEC SSCE (School Candidates) May/June

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Economics 1 - Objective

  1. Human wants are unlimited because
    1. production is inadequate
    2. resources have alternative uses
    3. new wants always arise
    4. resources are limited
  2. A  basic  economic  problem  of  any  society  is
    1. high level of ilititeracy
    2. irregular power supply
    3. population growth
    4. resource allocation
  3. In a  centrally  planned  economy,  what  to  produce is
    1. determined by the forces of demand and supply
    2. driven by profit motive
    3. determined by consumers
    4. the responsibility of state's bureaucrats
  4. Which  of  the  following  is  related  to  resource allocation  in  an  economy?
    1. How to produce
    2. What to produce
    3. For whom to produce
    4. Efficient use of inputs
  5. Which  of  the  following  is  not  a  feature  of  socialism?
    1. Collective oenership of productive resources
    2. Freedom of enterprise
    3. Production is not based on the profit motive
    4. Maximization of public welfare
  6. Households  make  economic  decisions  because they  want  to  
    1. make more profit
    2. increase their salaries and wages
    3. increase their purchases
    4. maximize their satisfaction
  7. State  owned  enterprises are  more  common  in
    1. centrally planned economies
    2. mixed economies
    3. capital economies
    4. developed economies
  8. A normal supply  curve  has  a  positive  slope  which indicates that  
    1. sellers are willing to sell more at a lower price
    2. sellers are indifferent to price
    3. sellers are willing to sell more at a higher price
    4. there is always a fixed supply
  9. To  control inflation, the  central  bank  of  a  country may  adopt
    1. an expansionary monetary policy
    2. a restrictive monetary policy
    3. an increased wage policy
    4. a deficit financing policy
  10. Disposable income is  the  income earned
    1. by the nationals of country resident within the country
    2. from productive activities of nationals of a country both at home and abroad
    3. when personal income tax is deducted from personal income
    4. when the gross income of an individual is added to personal income tax
  11. Livestock production in  West  Africa is  hindered mainly by  
    1. inadequate demand
    2. use of traditional implements
    3. land tenure system
    4. pests and diseases
  12. The  componentsof  a  three-sector economy are
    1. banks, schools and hospitals
    2. workers, producers and marketers
    3. households, firms, and the government.
    4. producers, retailers and wholesalers
  13.  A declining  population  is  one  in  which  the population is 
    1. experiencing a high rate of emigration
    2. made up of large number of old people
    3. not producing enough goods
    4. not contributing enough to the national income
  14. Which  of  the  following  agencies  help  to  stabilize farmer’s  income?  
    1. local government authorities
    2. trade unions
    3. marketing boards
    4. cooperative organizations
  15. Other things being equal, an increase in supply will lead to
    1. a fall in price and increase in quantity bought and sold
    2. an increase in price and increase in quantity bought and sold
    3. a fall in price and a fall in quantity bought and sold
    4. an increase in quantity supplied and demanded only
  16. Examples  of  joint  stock  banks  are  
    1. commercial banks
    2. co-operative credit societies
    3. central banks
    4. develpoment banks
  17. Which  of  the  following  is  not  a  characteristic  of  a developing  country?  High  
    1. real per capital income
    2. level of primary production
    3. population growth rate
    4. level of illiteracy
  18. Goods  consumed  out  of  habit  have  
    1. elastic demand
    2. perfectly elastic demand
    3. inelastic demand
    4. unitary elastic demand
  19. Which of the following  items  is  not  a  recurrent expenditure?  
    1. building of schools and colleges
    2. maintenance of school building
    3. payment of teachers salaries
    4. purchase of stationery for examinations
  20. If  the  coefficient  of  price  elasticity  of  demand  is 0,1,  demand  is  
    1. elastic
    2. inelastic
    3. zero elastic
    4. unitary elastic
  21. The  profit  of  a  producer  is  the  difference  between
    1. total cost and marginal cost
    2. total revenue and total cost
    3. average cost and total cost
    4. price and total cost
  22. The  rate  of  increase  in  utility  is  
    1. average utility
    2. increasing utility
    3. total utility
    4. marginal utility
  23. The  supply  of  tea  is  linearly  presented  as  P=0.2Q, where P  is  the  price  Q  is  the  quantity.  What  is  the P  when  Q  =  25
    1. $0.08
    2. $5.00
    3. $25.02
    4. $125
  24. Increase  in  supply  due  to  changes  in  plant  size will  take  place  only  in  the
    1. normal time
    2. long run
    3. market period
    4. short run
  25. The long-run average  cost  curve  is  made  up  of several  short-run
    1. marginal and average cost curves
    2. average cost curves
    3. average variable cost curves
    4. average variable and total cost curves

    26. Use the table below to answer questions 26 and 27

    x 2 3 4 5
    f 2 5 2 1
  26. From the table , the mean of the distribution is
    1. 2.2
    2. 2.5
    3. 3.2
    4. 4.5
  27. What is the median of the distribution?
    1. 5
    2. 4
    3. 3
    4. 2
  28. Co-operative  societies  formed  to  market  the  output of  their  members  are  called  
    1. consumers' co-operative societies
    2. wholesale co-operative
    3. credit and thrift co-operative societies
    4. producers' co-operative societies
  29. Money  will  serve  as  a  standard  of  deferred  payment if  it is  
    1. homogenous
    2. durable
    3. easily
    4. stable in value
  30. Due to an increase in price, a seller increase the quantity offered for sal from 400units to 450units. What is the percentage change in quantity supplied?
    1. 1%
    2. 7.5%
    3. 12.5%
    4. 20%
  31. Which  of  the  following  will  increase  the  nominal value  of  national  income?  
    1. high rate of inflation
    2. increase in the value of money
    3. increase in import
    4. high rate of subsistence production
  32. Cyclical  unemployment  is  associated  with
    1. inadequate information
    2. trade fluctuations
    3. structural changes
    4. seasonal changes
  33. Which  of  the  following  best  defines  inflation?
    1. cyclical increase in prices
    2. periodic increase in prices
    3. persistent increase in prices
    4. occasional increase in prices
  34. Perfect  knowledge  of  events  in  a  perfect  market will  be  made  possible  by  the  existence  of
    1. many buyers and sellers
    2. homogenous products
    3. means of communication
    4. large number of trades
  35. An  increase  in  the  price  of  a  commodity  from  $10 to  $15  leads  to  an  increase  in  the  quantity  supplied from  10  units  to  15  units. The  price  elasticity  of supply  is  
    1. 0
    2. 0.5
    3. 1
    4. 5
  36. Economic  development  may  be  hindered  if  there is  
    1. a high pool of skilled labout
    2. a high rate of economic growth
    3. political stability
    4. rapid population growth
  37. Which  of  the  following  types  of  unemployment results  from  changes  in  the  pattern  of  aggregate demand?  
    1. technological unemployment
    2. structural unemployment
    3. frictional unemployment
    4. seasonal unemployment
  38. Which  of  the  following  is  not  a  reason  countries import  goods?  
    1. differences in natural endowments
    2. the law of absolute advantage
    3. differences in taste
    4. the love for other nations
  39. Provision  of  short  term  loans  to  solve  balance  of payments  problems  is  done  by  the  
    1. international finance corporation
    2. international monetary fund
    3. international bank for reconstruction and develpoment
    4. african development bank
  40. West  Africa  countries  are  experiencing  worsening terms of trade because
    1. they are primary producers
    2. their currencies are overvalued
    3. they import less machines
    4. they are tertiary producers
  41. Which  of  the  following  statements  is  correct? 
    1. As  total  utility  increases,  the  marginal  utility  also increases
    2. The  marginal  utility  is  always  zero whenever  the  total  utility  reaches  the  maximum
    3. The  total  utility  is  at  maximum  whenever marginal  utility  1s  at  it's  maximum
    4. There  is  no relationship  between  total  utility  and  the  marginal utility
  42. A  change  in  the  quantity  demanded  of  a  commodity is  determined  by  the  
    1. size of population
    2. income of the consumer
    3. price of the commodity
    4. taste and fashion
  43. The  likely  implication  of  the  devaluation  of  a country’s  currency  is  that
    1. exports  of  such  a country  become  cheaper 
    2. importation  of  goods into  such  a  country  becomes  cheaper
    3. .the  value of  such  a  country’s  currency  rises.
    4. foreign goods  are  attracted  into  the  country
  44. international  trade  is  desirable  because  it 
    1. may lead  to  overproduction 
    2. brings  about  overdependence  of  countries  on  one  another
    3. provides  foreign  market  for  local  goods 
    4. brings about  unhealthy  competition  and  rivalries
  45. A  financial  institution  established  for  the  purpose of  providing  specialized  services  like  acceptance of  bills  of  exchange  and  equipment  leasing  is known  as 
    1. Merchant  Bank 
    2. Development Bank 
    3. Central  Bank 
    4. Insurance  company
  46. Which  of  the  following  functions  of  money  is  mostly affected  during  inflation?
    1. Medium  of  exchange
    2. .Unit  of  Account 
    3. store  of  value
    4. Standard of  deferred  payment
  47. Precautionary  motive  for  holding  money  is  to
    1. meet  daily  and  regular  transactions
    2. take advantage  of  changes  in  the  prices  of  goods  and services 
    3. cover  unforeseen  events
    4. cover expenses  on  house  rent
  48. Which  of  the  following  measures  will  not  encourage industrialization  in  West  Africa? 
    1. taking  over  of all  forms  of  industries  by  the  government
    2. Provision  of  social  infrastructure
    3. Giving  tax incentives,  especially  to  infant  industries
    4. Using tariffs  to  discourage  the  use  of  imported  items
  49. The  concentration  of  many  firms  of  a  particular industry  in  a  particular  area  is  known  as 
    1. location of  industry
    2. amalgamation  of  industries
    3. localization  of  industry 
    4. nationalization  of industry
  50. Which  of  the  following  is  not  an  effect  of  the discovery  of  mineral  resources  in  an  area?
    1. Increase in wealth 
    2. Overcrowding
    3. Increase incrime rate 
    4. Under  population

Economics 2 - Essay

Section A

Answer one question only from this section.

  1. The  table  below  shows  an  extract  from the balance  of payments  for  country  A.  Use the  questions  to answer the questions that follow:

    Balalce of payments items

    IItems of transaction Receipt ($) Payments ($)
    1 Merchandise (Visible trade) 52,000.00 4,000.00
    2 Shipping, other transport, and travel 4,000.00 8,000.00
    3 Investment income 20,00.00 5,000.00
    4 Other services 2,500.00 5,000.00
    5 Unrequired transfers 22,800.00 7,000.00
    6 Direct investments 50,000.00 26,000.00
    7 Other long-term capital 254,000.00 289,000.00
    8 Short-term capital 221,00.00 238,000.00

    Calculate the:

    1. balance of trade
    2. balance on current account
    3. balance on capital account
    4. balance of payment
  2. The table below presents the price and quantity supplied by a palm oil producer. Use the information in the table to answer the following questions.
    3. Price ($) Quantity Supplied (gallons)
    6 200
    12 300
    18 400
    20 500
    24 600
    1. If the price of palm oil falls from $20,00 to $18.00, calculate the price elasticity of supply.
    2. Interpret your answer in question 2
    3. Study the extract below and answer the following questions. The price of palm oil remains at $6.00 per gallon and an increase in the price of a related product causes an increase in the supply of palm oil:
      1. Give a graphical presentation to illustrate this change.
      2. Indicate the type of supply for the two products
    4. State reasons that can cause a change in supply

Section B

Answer three questions only from this section.

    1. Define occupational mobility of labour
    2. Identify any four barriers to occupational mobility of labour
    3. State any two factors that will make labour efficient
    1. What is crop farming?
    2. OUtline any four measures that can be adopted to increase crp production in your country.
    3. State any two contributions of idustrial sector to agriculture in your country.
    1. Highlight any four differences bewtwen public limited liability company and a private limited liability company
    2. Explain any four advantages a limited liability company
    1. Define gross national income
    2. Using appopriate examples, distinguish between:
    3. Personal income and disposabe income
    4. Nominal income and real income
    5. Outline any three uses of national income statistics
    1. what is the normal chain of distribution?
    2. State any three functions of middlemen in the chain of distribution.
    3. Highlight any four problem involved in distribution of goods in West Africa
    1. What is a specific tax?
    2. Explain with the aid of diagrams, the effects of specific tax on a commodity that has a:
      1. perfectly elastic demand
      2. perfectly inelastic demand
    3. State two differences between a direct tax and an indirect tax
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