1989 Economics WAEC SSCE (School Candidates) May/June

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Economics 1 - Objective

1. Scarcity in Economics means that resources
   1. Are not enough to share among producers of goods and services
   2. Needed to satisfy human wants are limited
   3. Are never enough to share among consumers of goods and services
   4. Required to meet our essential wants are unlimited
   5. Can be managed if those who use them can behave rationally
2. A table which shows the price of a commodity and the quantity of it that is demanded per unit time is a
   1. Time series
   2. Demand series
   3. Demand curve
   4. Demand schedule
   5. Time schedule
3. The greatest disadvantages f barter system is the need for
   1. Durability
   2. Divisibility
   3. Homogeneity
   4. Double coincidence of wants
   5. Portability
4. An inflation in which the price rises steadily at an average rate of about 2% per annum is best described as
   1. Galloping
   2. Induced
   3. Creeping
   4. Suppressed
   5. Run-away
5. In Economics market is define as
   1. A place where buyers and sellers come together to exchange goods
   2. Any agreement made for consumers to buy all they need
   3. any arrangement made for producers to sell all their goods
   4. any arrangement where by buyers and sellers are in close touch with one another
   5. a place where only consumer goods are sold
6. money supply at any given point in time refers to as
   1. bank notes, coins and demand deposits
   2. notes and coins only
   3. minted money
   4. hoarded money
   5. money received as gifts
7. all the following are source of finance to a Joint Stock Company except
   1. bank loans
   2. equity shares
   3. debentures
   4. preference shares
   5. cooperative thrift
8. Data presented in table are usually arranged in
   1. charts and tables
   2. rows and columns
   3. graphs and rows
   4. pictograms and columns
   5. maps and pie charts
9. which of the following is not a function of money?
   1. store of values
   2. unit of accounts
   3. measures of value
   4. standard for deferred payment
   5. stability in value
10. Which of the following is not appropriate in calculating national income figures?
    1. output method
    2. Income method
    3. Expenditure method
    4. Value added method
    5. Depreciation method
11. What is the correct term for this group of exports: tractor, televisions, components, drugs and cars?
    1. Current account items
    2. Visible exports
    3. Capital account items
    4. Invisible exports
    5. Visible imports
12. the indicator of the value of money in the market is the
    1. the general price level
    2. effective supply
    3. the equilibrium price
    4. effective demand
    5. consumer income
13. Mobility of labour is not affected by
    1. the optimum size of population
    2. marriage and family
    3. the regulation of trade unions
    4. the period of training
    5. culture and religious beliefs
14. Given that fixed cost is N500.00, variable cost N1,500.00 and output is 50 units, what will be the average cost of producing one unit?
    1. N2,000.00
    2. N60.00
    3. N50.00
    4. N40.00
    5. N30.00
15. Which of the following is regarded as fixed cost?
    1. cost of raw material
    2. cost of fuel
    3. cost of light
    4. rent on land
    5. labour wages
16. which of the following reasons explains the upward sloping of supply curve in a competitive market?
    1. Ceteris paribus, marginal cost increase as output increases
    2. As new firms enter the market, factor price moves up
    3. Firms are in business to satisfy consumers
    4. Marginal cost often increases in a competitive market
    5. Firms are in business to produce goods
17. A firm is said to be a Public Joint-Stock Company when it
    1. is owned by the government
    2. operates as a public corporation
    3. is a limited liability company
    4. sells its shares to members of the public
    5. is administered by the public
18. which of the following factor is not important in deciding the location of an industry?
    1. the native language of the people
    2. Availabilty of suitable labour
    3. Source of cheap power and raw materials
    4. Proximity to the location of a similar industry
    5. proximity to the market
19. The clearing house of all commercial banks in Nigeria is the
    1. General Post Office
    2. Bank for Commerce and Industry
    3. Nigerian Industrial Development Bank
    4. Mortgage Bank
    5. Central bank
20. One of the advantages of Sole Proprietor is that
    1. risks are unlimited
    2. technological progress is often out of reach
    3. shares and stocks can be issued to raise funds
    4. initiatives can be used in all cases
    5. it folds up in the case of death, lunacy or insolvency
21. which of the following does not hinder the efficient of distribution of goods in West Africa?
    1. inadequate transportation network
    2. inadequate storage facilities for agricultural goods
    3. inadequate credit facilities for potential distributors
    4. Government participation in the distributive trade
    5. The tendency to hoard and smuggle
22. which of the following categories of people do not gain during inflation?
    1. Debtors
    2. businessmen
    3. Shareholders
    4. Investors
    5. Creditors
23. one of the argument against he presence of middlemen in the distribution chain is that they
    1. cause increase in the price of commodities
    2. are commissioned agents
    3. helps in keeping price stable
    4. grade and blend goods
    5. can be found almost everywhere
24. Which of the following is the normal channel by which the commodities reach the final consumer?
    1. Manufacturer-wholesale-agent retailer-consumer
    2. Manufacturer-wholesale-retailer-consumer
    3. Manufacturer-wholesale-sales representative-retailer-consumer
    4. Manufacturer-wholesale-retailer-agent-consumer
    5. Manufacturer-wholesale-retailer-sales-representative-consumer
25. the movement of a worker from one grade to another within the same industry is a form of mobility of labour which is
    1. geographical
    2. vertical
    3. occupational
    4. horizontal
    5. lateral
26. a person who buys in bulk and sells in bit is a
    1. manufacturer
    2. sales representative
    3. retailer
    4. advertiser
    5. distributor
27. which of the following is not correct?
    1. Population refers to number of people living in a place
    2. The population of a place is not static
    3. Population is known through a census
    4. Population is affected by the amount of money in circulation
    5. Population can be affected by natural disaster
28. The money paid per hour or week for work done is known as
    1. cost
    2. time rate
    3. bonus
    4. wage rate
    5. labour
29. in a rapidly growing economy where human labour is being replaced by machines, there is likely to be
    1. classical unemployment
    2. frictional unemployment
    3. seasonal unemployment
    4. residual unemployment
    5. cyclical unemployment
30. Distribution is part of production because it
    1. Makes goods and services available to the final consumer
    2. Transport the goods from place to place
    3. Offers employment to people
    4. Encourages the provision of good roads, waterways and railways
    5. Links the consumer with the producer
31. The grouping of a population into males and females is known as the
    1. geographical distribution
    2. age distribution
    3. sex distribution
    4. man-woman distribution
    5. occupational distribution
32. which of the following is the most important reason why wages differ among occupations?
    1. Length and cost of training
    2. Supply of labour
    3. Attractiveness of the job
    4. influence of trade unions
    5. Government decision
33. A legal tender is any
    1. form of money
    2. means of exchange authorized by the state
    3. commodity generally acceptable as a medium of exchange
    4. total productivity of labour
    5. amount of goods and services that the wage can fetch
34. Wages are to some extent determine by the
    1. Marginal utility of labour
    2. Marginal productivity of labour
    3. Average productivity of labour
    4. Total productivity of labour
    5. Amount of goods and services that the wage can fetch
35. Inflation in any economy
    1. Has no monetary connection
    2. Implies a sustained decrease in the general price level
    3. Always increase the value of national currency
    4. Tends to redistribute income arbitrarily
    5. Tends to bring down market prices
36. which of these does not encourage industrial development?
    1. Tax exemption
    2. Provision of financial institution
    3. Provision of infrastructural facilities
    4. Limitation of markets for industrial products
    5. Government direct participation
37. Industry can simply be defined as
    1. Many firms producing different products
    2. A firm or firms producing similar goods and services
    3. Different firms producing different goods
    4. Different firms producing equal number of similar goods and services
    5. Many firms producing unidentical goods and services
38. The reward of a debenture holder of a public company is a fixed rate of
    1. Interest
    2. Return
    3. Dividend
    4. Rent
    5. Allowance
39. The downward sloping of the Average Revenue curve of the monopolist indicates that he
    1. Can control both output and price
    2. Can only break-even
    3. Can control either the output or the price, but not both
    4. Can’t control anything
    5. Exploit the consumer
40. which of the following hard currencies is usually used in the pricing of oil at the world market particularly by the Organization of Petroleum Exporting Countries (OPEC)? The
    1. US dollar
    2. Japanese Yen
    3. Pound Sterling
    4. Deutschemark
    5. Naira

Economics 2 - Essay

Section A

Answer one question only from this section.

1. Given that quantity demanded per period of time is a function of price and that the relation is expressed as: Q = 60 - 1/3 P, where Q is quantity demanded and P is the price,
   1. Find the quantity demanded when price is:
      1. N30.00;
      2. N210.00;
      3. NO.00.
   2. comment on (a) (ii) above.
   3. suppose the relation is now expressed as P = N (180 - 3Q); find P when:
      1. Q = 0;
      2. Q = 60;
      3. Q = 59.
2. The table below shows the age distribution of hypothetical population.

Age	No. of people (million)
Under 20	20.90
20 - 29	13.75
30 - 59	12.10
60 and above	8/25
Total	55.00

Present this information in the form of a pie chart. Show your workings clearly.

Section B

Answer three questions only from this section.

3. Economics problems arise because a country's resources are limited in relation to her unlimited wants. Identify and explain these economic problems.
4. What is the mode and when is it a suitable average to use? State its disadvantages.
5. What is devaluation? Under what conditions will devaluation improve a country's balance of payment position?
6. The wholesaler performs useful economic functions. Discuss.
7. Briefly outline the measures which Nigeria has taken to improve the marketing of her agricultural produce.
8. 1. What is a development plan?
   2. Discuss the various ways of financing economic development in Nigeria.
9. Why do countries impose restrictions on international trade?
10. Briefly outline the principles of taxation and give reasons why Nigerians are taxed.