2023 Economics WAEC SSCE (School Candidates) May/June

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Economics 1 - Objective

The study of economics is mainly concerned with how to
1. Rank individuals' wants given the abundant resources
2. Make choice when resources are inadequate
3. Satisfy every member of all societies
4. Produce all the goods needed by everyone
Warehousing is an economic activity that falls under
1. Tertiary production
2. Intermediate production
3. Secondary production
4. Primary production
Which of the following items is not classified as working capital
1. Equipment
2. Fuel
3. Money to pay wages
4. Semi-finished goods
An economic system is mainly concerned with
1. Handling situations of abundant resources
2. Studying the relationship between ends and means
3. The establishment of economic laws
4. The allocation of scarce resources between alternative ends
The marks obtained by 9 students in a class test are recorded below: 9, 8, 7, 5, 7, 6, 8, 9 and 7. What is the median mark?
1. 7
2. 7.5
3. 8
4. 8.5
The demand for a factor input as a result of the demand for its output is known as
1. Complementary demand
2. Competitive demand
3. Derived demand
4. Market demand
If the demand for a commodity remains constant as price increases, the commodity is said to be______
1. Price elastic
2. Unit price elastic
3. Price inelastic
4. Perfectly price inelastic
When more of the tax on a product is borne by the buyer than the seller, the commodity involved has
1. Elastic demand
2. Fairly elastic demand
3. Perfectly elastic demand
4. Perfectly inelastic demand
A fall in price of a normal commodity which has elastic demand will result in
1. A fall in quantity demanded
2. An increase in revenue
3. A fall in demand
4. A decrease in revenue
The supply of light could be met using a candle, lantern and gas lamp. This is an example of a
1. Complementary supply
2. Joint supply
3. Composite supply
4. Abnormal supply
Petrol and kerosene are jointly obtained from crude oil, if the supply of petrol increases, the
1. Supply of kerosene will fall
2. Cost of crude oil production has increased
3. Supply of kerosene will rise
4. Supply of kerosene will remain unchanged
If the government stops subsidy on cocoa production, the supply curve of cocoa will
1. Shift to the right
2. Become vatical
3. Shift to the left
4. Remain unchanged
When the marginal utility from the consumption of commodity X (MUx) is greater than the price of commodity X (Px), a rational consumer should
1. Consume more of commodity X
2. Reduce consumption of commodity X
3. Consume the same quantity of commodity X
4. Strive to remain in disequilibrium
When the demand for a commodity increases while supply remains unchanged, the equilibrium price and quantity will
1. Remain constant
2. Decrease
3. Increase
4. Turn negative
The fixing of maximum prices by government is mainly on
1. Inferior goods
2. Luxury goods
3. Imported capital goods
4. Selected essential goods
At what point on the total product curve shown below will marginal product be negative?
1. P
2. Q
3. R
4. S
A small scale firm located within an industrial estate will enjoy
1. Government protection and funding
2. Technological economies of scale
3. External economies of scale
4. Financial economics of scale
The total fixed cost curve is
1. Vertical
2. Horizontal
3. Downward sloping
4. Upward sloping
If a firm retrenches some of its factory workers its
1. Fixed cost is likely to increase
2. Marginal cost may increase
3. Average fixed cost may increase
4. Variable cost will decline
A monopolist may enjoy abnormal profit only if its
1. Marginal cost exceeds marginal revenue
2. Demand curve is perfectly elastic
3. Price exceeds average total cost
4. Expenditure on advertisement increases
The average revenue curve of a firm in a perfect market is the same as the
1. Supply curve of the firm
2. Demand curve of the firm
3. Total revenue curve of the firm
4. Average cost of the firm
Resources are pooled for the mutual benefit of its members mainly in a
1. Joint stock company
2. Partnership
3. Private company
4. Cooperative society
A joint stock company enjoys perpetual existence because
1. It is formed by a minimum of seven members
2. It is a corporate entity
3. Its shares are easily transferable
4. There is a higher degree of specialization
Consumers have access to a variety of goods through the activities of the
1. Advertising agencies
2. Wholesalers
3. Retailers
4. Mass media
The rate of growth of population is
1. The difference between birth rate and death rate
2. Birth rate less death rate plus net migration
3. Initial population plus number of births and net migration
4. The number of immigrants plus number of births
The malthusian theory of population is best illustrated when
1. Both population and food supply increase at the same rate
2. Population increases much faster than food supply
3. The size of the population and available resources are equal
4. Food supply increases much faster than population growth
The dependency ratio of a country is the
1. Total active population who depends on government for survival
2. Number of children who depends on their parents for survival
3. The children and aged who rely on the active population for support
4. People who are cared for by their extended families
When job vacancies are publicized, the government is mainly trying to solve the problem of
1. Residual unemployment
2. Frictional unemployment
3. Technological unemployment
4. Cyclical unemployment
Many workers are emloyed in the agricultural sector of developing countries because
1. They practice mechanized system of farming
2. Labour intensive method is mostly adopted
3. Wages in the sector is high
4. Abnormal profits are made
Industries are sometimes located in areas which are not profitable so as to
1. Encourage rural-urban migration
2. Be able to reap internal economics of scale
3. Be able to even-out development
4. Bring about external economics of scale
One factor that may not promote industrial development is
1. Granting old firms tax exceptions
2. Local firms entering into partnerships with foreign firms
3. Setting up industrial estates with modern amenities
4. Granting capital to firms at reasonable interest rates
National income is calculated mainly to
1. Determine how income is to be shared
2. Help firms generate more funds
3. Determine the level of sectoral performance
4. Determine aid to be received from other nations
To overcome the problem of double counting under the expenditure approach,
1. Value added method is used
2. Only spending on final goods are considered
3. Proper accounting standards must be used
4. Spending on intermediate goods and inputs are considered
The Net National Product (NNP) of a country is 50m while the depreciation allowance is 10m. The Gross National Product (GNP) is
1. 30m
2. 40m
3. 60m
4. 500m
The price level and the value of monkey are
1. Inversely related
2. Directly related
3. Not related
4. Positively related
Money is able to function more as a medium of exchange when
1. More people ungag in subsistence production
2. There is a fall in production
3. There is specialization of labour
4. Individuals and nations are self-sufficient
An indication that there is inflation in a country is that
1. There is decreased in the demand for goods and services
2. There are too many goods in circulation
3. The same amount of money buys lower quantity of goods
4. People prefer to lend than to borrow
The most liquid asset among the following is
1. Shares
2. Bonds
3. Cash
4. Cheque
Commercial banks helps in economic development mainly by
1. Acting as intermediaries between lenders and borrowers
2. Giving financial advice to the government
3. Acting as trustees and executors of wills
4. Serving as custodians of valuables
Taxes levied on goods and services by governments are called
1. Direct taxes
2. Corporate taxes
3. Indirect taxes
4. Poll taxes
The curve labelled 'W' shows the
1. Proportional tax
2. Progressive tax
3. Specific tax
4. Regressive tax
An example of government's recurrent expenditure is
1. The cost of building a school
2. The cost of building a school
3. Purchase of new vehicles
4. Electrification projects in rural areas

Economics 2 - Essay

Section A

Answer one question only from this section.

The equilibrium position of a firm is illustrated in the diagram below. Study the diagram and answer the questions that follow.
1. Determine the firm’s:
  1. equilibrium output level;
  2. equilibrium price
2. At equilibrium output level, calculate the firm's
  1. total cost
  2. total revenue
  3. total profit
3. At equilibrium output level, calculate the firm's Is the firm operating is the long-run or short-run? Explain your answer.
4. At equilibrium output level, calculate the firm's
  1. What type of market is the firm operating in?
  2. List three features of the market type identified in d(i)
1. Table 1 below represents the output levels of a firm producing hand sanitizer. Use the information to answer the questions that follow. Table 1

Output (units)	0	10	18	28	36	45

If the cost function of the firm is given as C = 30 + 4q, where C is the total cost and q is the units produced, calculate the:

total cost in dollars of producing:

18 units

1. Table 1 below represents the output levels of a firm producing hand sanitizer. Use the information to answer the questions that follow. Table 1

Output (units)	0	10	18	28	36	45

If the cost function of the firm is given as C = 30 + 4q, where C is the total cost and q is the units produced, calculate the:

total cost in dollars of producing:

36 units

1. 1. Average costs in dollars of producing: 28 units
  2. Average costs in dollars of producing: 45 units
2. 1. Average costs in dollars of producing: 28 units
  2. Average costs in dollars of producing: 45 units
3. What is the marginal cost in dollars of producing 28 units?
4. Determine the profit made from producing 45 units when the market price is fixed at $5.00 per unit.
5. Determine the fixed cost of the firm. Explain your answer.

Section B

Answer three questions only from this section.

1. 1. Distinguish between: money cost and opportunity cost
  2. Distinguish between: normal good and inferior goods
2. 1. Explain how the scale of preference assists the following economic groups in making efficient allocation of their resources: individuals
  2. Explain how the scale of preference assists the following economic groups in making efficient allocation of their resources: firms
  3. Explain how the scale of preference assists the following economic groups in making efficient allocation of their resources: government
1. Define economic system
2. Distinguish between a capitalist economy and a socialist economy under the following:
  1. aim of production
  2. consumer sovereignty
  3. competition
3. State three features of land as a factor of production
1. Differentiate between a sole proprietorship and a partnership
2. List four characteristics of a sole proprietorship
3. Outline four advantages of a public limited liability company.
Question 6
1. Define location of industry
2. Explain how the following factors influence where a firm is sited:
  1. raw materials
  2. market
  3. government policy
3. Outline three advantages of localization of industry
1. Define Gross Domestic Product (GDP)
2. Describe the output approach as a method of computing national income
3. Identify any three problems associated with the expenditure approach of calculating national income
1. What is an embargo?
2. Outline any **three* reasons for imposing tariffs on imports
3. Explain any three reasons against the use of tariffs