2010 Economics WAEC SSCE (School Candidates) May/June

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Economics 1 - Objective

The following are examples of economic goods except
1. bottled water
2. air
3. household utensils
4. shelter
A tent-making factory offers
1. personal services
2. indirect services
3. social services
4. reflex services
In which of the following economic systems do we have mostly private ownership of resources and individual decision making?
1. Capitalist system
2. Socialist system
3. Mixed system
4. Traditional system
The sum of items divided by the number of items is the
1. frequency
2. mean
3. median
4. mode
Find the median of the following set of scores:8,9,6,5
1. 9
2. 8
3. 6
4. 5
Which of the following causes the demand curve to shift to the right?
1. A reduction in the size of population
2. An increase in the income of the buyer
3. The availability of substitutes
4. A decrease in price of the good
Goods for which demand rises as income rises are
1. complementary goods
2. inferior goods
3. normal goods
4. substitutes.
The slope of a supply curve is
1. horizontal
2. uniform
3. positive
4. vertical
Equilibrium price is the price at which quantity
1. demanded is greater than quantity supplied
2. supplied is greater than quantity demanded
3. demanded is equal to quantity supplied
4. supplied equals quantity produced
A decrease in supply with demand remaining unchanged will cause the equilibrium price for a good to
1. unchanged
2. remain elastic
3. remain inelastic
4. rise
At the highest level of total utility, marginal utility is
1. negative
2. positive and falling
3. positive and rising
4. zero
The law of diminishing marginal utility states that, the more a commodity is consumed the
1. higher the satisfaction derived from an additional unit
2. higher the price
3. lower the quantity supplied
4. lower the rate of increase in the total utility derived
Greater inter-dependence among workers in production is associated with
1. utility
2. manufacturing
3. division of labour
4. factory workers
If TC, FC and VC represent total cost, fixed cost and variable cost respectively, which of the following is correct?
1. TC=FC-VC
2. FC=TC+VC
3. TC>FC+VC
4. TC =FC+VC
The reward to land as a factor of production is
1. profit
2. rent
3. interest
4. wage
A firm is said to be a public joint stock company when it
1. is owned by the government
2. sells its shares to members of the public
3. operates as a government corporation
4. is not legally recognised as a firm
All the following are sources of finance to a joint stock company except
1. debentures
2. cooperative loans
3. shares
4. bank loans
The public sector of an economy includes
1. cooperative societies
2. nationalised industries.
3. joint stock companies
4. pressure groups
One advantage of the Sole Proprietorship over other forms of business organisations is that it can
1. make very high profits
2. employ many workers
3. keep its affairs private
4. produce on a very large scale
Which of the following is obtainable in a perfect market
1. P=MR>AR
2. MR=MC>P
3. MR<P
4. P=MR=MC
The wholesaler performs the following functions except
1. breaking the bulk
2. offering credit facilities to consumers
3. financing manufacturers
4. buying in bulk from manufacturers
Age Group 1983

0-15 30%

16-40 27%

41-60 25%

61 and above 18%

The table above shows the age distribution of country A in 1983. Using the data in the table, calculate the percentage of working population in 1983.
1. 48%
2. 52%
3. 57%
4. 70%
A country whose population size is too small relative to its resources is
1. over populated
2. optimally populated
3. under populated
4. producing the optimum output
An efficient weapon used in resolving disputes between employers and employees is
1. co-operation
2. collective bargaining
3. display of placards
4. legal action
Which of the following does not explain why a school principal earns more salary than a school messenger
1. Length of training
2. Demand and Supply
3. Cost of training
4. The messenger is a non-teaching staff
The role of government in promoting agricultural development includes the following except
1. paying the wages of all farmers
2. establishing and funding research
3. formulation of policies
4. provision of rural infrastructure
The following are advantages of large scale agriculture except
1. use of simple implements
2. use of sophisticated implements
3. increase in employment
4. integration of crop and animal farming
The following are all factors determining the location of industry except
1. minimum wage rate
2. availability of labour
3. nearness to raw materials
4. proximity to market
Which of the following is not a concept in National Income accounting?
1. Domestic National Product(DNP)
2. Gross National Product (GNP)
3. Gross Domestic Product (GDP)
4. Net Domestic Product (NDP)
Which of the following equations is appropriate for determining the Net Domestic Product. (NDP)?
1. NDP = GNP - depreciation
2. NDP = GDP + Net income from abroad
3. NDP = GDP - depreciation
4. NDP = GDP x Net income from abroad
Which of the following over-estimates the value of national income?
1. Incomplete statistical data
2. Wrong timing of computation
3. Changes in prices of goods within the year
4. Double counting
The total stock of money available for use in an economy is
1. a function of money
2. a characteristic of money
3. the demand for money
4. the supply of money
Which of the following is not a reason for holding money?
1. Ostentation
2. Speculation
3. Transactions
4. Precautionary
The best way of combating demand-pull inflation is to
1. increase income taxes
2. reduce income taxes
3. increase import duties
4. increase salaries and wages
In which of the following ways has inflation adversely affected your country's economy?
1. Increase in money supply
2. A fall in real income
3. Appreciation in the value of money
4. Increased employment
Which of the following is a legal tender?
1. Bank notes
2. Bank overdrafts
3. Bills of exchange
4. Money order
The Central Bank controls money supply through all the following except
1. lending to the public
2. bank rate
3. legal reserve requirements
4. open market operation
One of the functions of the Central Bank is
1. production of goods
2. issuing of currency
3. presenting budgets
4. printing of cheque books
The function of the Central Bank as a lender of last resort means that when all other sources fail
1. the consumer can always borrow money from the Central Bank
2. the government can ask the Central Bank to print more money
3. commercial banks raise loans
4. commercial banks can deposit money with the Central Bank
One disadvantage of direct taxes is that they
1. allocate scarce resources
2. are not rigid
3. can be progressive
4. can be evaded
Excise duty is levied on
1. the total population
2. local products
3. luxury goods
4. the working population
A component of the national debt of a country is
1. taxation
2. bank saving
3. the budget
4. treasury bills
When the demand for a good is fairly inelastic, the burden of an indirect tax falls
1. more on the consumers of the good
2. more on the sellers of the good
3. on sellers and consumers equally
4. completely on the capital
Dumping means the selling of a good in a foreign market at a price that is
1. below the home market price
2. above the home market price
3. equal to the home market price
4. able to clear the home market
Which of the following groups of accounts makes up the balance of payments?
1. The current account; multiple account and capital account
2. Monetary movement account; company account and international account
3. Cash account; double entry account and current account
4. Capital account; current account and monetary movement account
A country’s balance of payments is in deficit when
1. a country's payments for imports of invisible goods are greater than her receipts from exports of invisible goods
2. the total receipts from her export of visible and invisible goods are greater than her payments for visible and invisible imports
3. it can record a surplus on current account of her balance of payment accounts
4. the total payments for visible and invisible imports are greater than the total receipts from her exports of visible and invisible goods
In order to stabilize oil price in the world market, there is the need for OPEC members to
1. always have budget deficit
2. encourage competition among themselves
3. adhere to production quotas
4. fix the price of non-oil products
Which of the following is not a member of the Economic Community of West African States (ECOWAS)?
1. Cape Verde
2. Mauritania
3. Cameroun
4. Niger
Which of the following is not a type of economic integration?
1. Customs market
2. Common market
3. Economic union
4. Free trade area
Which of the following is not an international economic organization?
1. Economic Commission for Africa (ECA)
2. African Development Bank (ADB)
3. World Health Organisation (WHO)
4. International Monetary Fund (IMF)

Economics 2 - Essay

Section A

Answer one question only from this section.

The table below represents a traveller's consumption of bottles of Coca-Cola. Study the table Carefully and answer the questions that follow.
1. Complete the missing figures D. E. F, G and H.
2. Draw the demand curve for the traveller's consumption of Coca-Cola.
3. Explain the law of diminishing marginal utility as the basis of the traveller’s demand curve.
The table below represents the cost function of a poultry farm. The price of a crate of a egg is $21. Use the information contained in the table to answer the questions follow.
1. What is the fixed cost of the farm?
2. 1. Calculate the marginal cost at each level of output.
  2. What is the profit maximizing output of the farm.
3. Draw the demand curve for the farm.

Section B

Answer four questions only from this section.

With an appropriate illustration, explain the circumstance in which an increase in output of a producer would
1. decrease his sales revenue
2. increase his sales revenue
1. Define increase in supply.
2. With the aid of diagrams, explain the effect of an increase in the supply of fish on the price of be
1. What is the equilibrium of a consumer ?
2. Explain how a consumer attains equilibrium in spending his income.
1. Explain with examples the following types of production
  1. Primary
  2. Secondary
  3. Tertiary
2. Give two reasons why primary production pre-dominates in developing countries.
1. What is a market partnership?
2. State any two advantages and any two disadvantages of a partnership
1. What is privatization?
2. Give four reasons for government participation in economic activities in your country
1. Distinguish between location of industries and localization of industries
2. Describe any three advantages and any two disadvantages of locating industries in rural areas
1. Explain the function of money as a
  1. measure of value
  2. store of value
2. Show how inflation affects these two functions of money
1. What is a commercial bank?
2. Describe any four ways by which the Central Bank controls the amount of credit given by the commercial bank
1. What is incidence of taxes?
2. Explain any four principles of taxation

Age Group	1983
0-15	30%
16-40	27%
41-60	25%
61 and above	18%

No. of bottles	Total Utility	Marginal Utility
1	15	15
2	29	F
3	42	13
4	D	12
5	65	G
6	75	H
7	E	0