1991 Economics WAEC SSCE (School Candidates) May/June

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Economics 1 - Objective

The price system refers to the system by which
1. the government controls prices in the economy
2. prices tend to rise to a general level.
3. price allocates resources between consumer and producer goods.
4. government allocates resources to consumers and producers.
5. the producers fix the price of their products.
Choice is necessary because resources
1. are available
2. can be found everywhere
3. are constant.
4. are scarce.
5. are unlimited.
Agriculture plays a dominant role in West African economies because
1. the Green Revolution in Nigeria is agricultural.
2. it supplies all the food stuff consumed in Ghana alone.
3. there are large plantations of cocoa, groundnut and oil palm in West Africa.
4. it is the main source of revenue in Sierra Leone alone.
5. it employs more than 50% of the total labour force in West Africa.
The effect of emigration on a country's population, all other things remaining constant is to
1. increase is size
2. cause overpopulation.
3. increase its growth rate.
4. reduce the proportion of children
5. Reduce its size
The monetary that requires a double coincidence of wants is known as the
1. gold standard.
2. barter system.
3. commodity system.
4. gold exchange standard.
5. cheque system.
If over a period of time here is more money in the economy than the available goods and services, the economy is likely to experience
1. devaluation.
2. inflation.
3. deflation.
4. demonetisation.
5. over-valuation.
Use the diagram below to answer Questions 7 and 8 In the diagram, the equilibrium price is
1. QQ1
2. OQ0
3. P1P0
4. P0P2
5. OP0
At price OP2
1. demand exceeds supply.
2. supply exceeds demand.
3. demand equals supply.
4. QO2 is the quantity supplied
5. OQ0 is the quantity demanded.
The value of money is determined by the
1. rate of interest.
2. general price level.
3. quantity of money in circulation.
4. level of economic development.
5. weight of the currency notes and coins.
Open market operations are the process by which
1. the Central Bank purchases and sells securities.
2. commercial banks purchase and sell securities.
3. business firms buy raw materials freely.
4. household buy consumer goods openly.
5. the money market takes over the function of the Central Bank.
Devaluation means
1. a reduction in the value of the national currency.
2. a reduction in the purchasing power of foreign currencies.
3. a reduction in the value of domestic currency relative for foreign currencies.
4. an increase in the value of the national currency.
5. a decrease in the purchasing power of foreign currencies.
A disequilibrium in a country's balance of payment implies
1. that her imports exceed her exports.
2. an overall deficit or surplus in her current account and capital account.
3. that her capital inflow exceeds her capital outflow.
4. an overall deficit in its trade balance with other countries.
5. that its export earnings exceed the cost of its imports.
Which of the following functions do retailers perform in an economy?
1. production
2. Exchange
3. Hoarding
4. Distribution
5. Investment
A movement along the demand curve for some goods may be caused by a change in
1. consumer income
2. the price of goods.
3. consumer taste.
4. the price of other goods.
5. population.
Which of the following items is not included in measuring national income by the income approach?
1. Wages and salaries of public servants
2. Students' grants and scholarships
3. Profits of companies
4. income earned by self-employed persons such as lawyers.
5. Rents on property.
If an economy is growing at an annual rate of 7% and 4% of it is known to be due to the improvement in labour and capital combined, the balance of 3% is usually attributed to
1. land and entrepreneur.
2. abundance of natural resources
3. level of human capital.
4. technical progress and related factors.
5. discipline in political leadership.
A government treasury bill is a form of debt instrument which falls due for repayment after
1. 3 months
2. 9 months.
3. 2 years.
4. 5 years.
5. 10 or more years.
Which of the following is not regarded as money in Economics?
1. Coins
2. Currency notes
3. Bank deposits
4. cheques
5. Naira and kobo
Public expenditure creates expansionary effects in the economy when it is
1. in excess of government revenue.
2. channeled into the provision of consumer goods.
3. diverted to the importation of luxury goods.
4. financed through oil revenue.
5. financed completely through part of the year's total tax collected.
Which of the following is not a reason why people migrate from one place to another?
1. To find jobs and improve their standard of living
2. To live in a more suitable climate
3. For the sake of change and adventure
4. To escape from a religious, political or social situation in a country
5. To buy foreign goods for sale in their country.
A major function of middlemen in Nigeria is the distribution of
1. commodities to all consumers regardless of income.
2. commodities to consuming centres.
3. economic welfare facilities to all.
4. wealth to all.
5. income within the society.
International trade is necessary mainly because
1. no country can live in economic isolation.
2. different countries are endowed with the same nature and man-made resources.
3. some countries have comparative cost advantage in the production of certain commodities.
4. the world demand for and supply of various categories of commodities is expanding very fast.
5. countries want to build up their foreign exchange reserves.
Which of the following is the approximate working age in Nigeria?
1. 1-15
2. 15-65
3. 30-40
4. 40-65
5. 65 and above
Dumping in Economics means the selling of goods in a foreign market
1. at a price below that received in the home market.
2. at a price above that received in the home market.
3. at a price equal to the cost price in the home market.
4. in order to encourage indigenous producers.
5. at a price equal to the selling price in the home market.
A shift of the demand curve to the right when the supply curve remains constant, implies that
1. both price and quantity demanded will increase.
2. only price increases.
3. both price and quantity demanded will decrease.
4. the price remains constant.
5. the price falls.
The natural growth rate of a population is the
1. sum of the birth rate and the death rate.
2. sum of the birth rate and the net immigration rate.
3. birth rate minus the death rate.
4. birth rate divided by the net immigration
5. death rate minus their immigration.
Use the following market schedule for semovita to answer Questions 27 and 28. What is the equilibrium price?
1. N5.00
2. N6.00
3. N7.00
4. N8.00
5. N9.00
If the equlibrium price falls by N2.00, what will be the change in quantity demand and supplied?
1. 7,000 and 6,000 bags respectively.
2. 6,000 and 4,000 bags respectively.
3. 5,000 and 4,500 bags respectively.
4. 3,000 and 3,000 bags respectively.
5. 2,000 and 2,000 bags respectively.
In the event of a limited liabilty company going into liquidation, each share- holder
1. may lose a maximum of the amount he has invested.
2. loses nothing.
3. loses everything including his house.
4. may have an unlimited liabilty.
5. will lose the amount he has invested plus aproportion of his bank account.
This diagram shows that
1. supply is infinitely elastic.
2. the higher the price, the greater the quantity supplied.
3. the higher the price, the lower the quantity supplied.
4. supply has a unitary elasticity.
5. demand is completely inelastic.
Division of labour is greatly limited by
1. its resultant monotony of work.
2. its associated decline in craftsmanship.
3. its attendant risk of unemployment.
4. the extent of the market.
5. the boredom it creates.
Which of the following are direct taxes?
1. Sales taxes
2. Excise duties Quantity
3. income and company taxes
4. Tariff duties
5. Commodity taxes
Which of the following is a function of money? it is
1. portable.
2. a standard of deferred payment
3. relatively stable in value.
4. generally acceptable.
5. and easily divisible item.
The productivity of labour does not depend only on its own effort and efficiency, but also on I. the level of technical knowledge. Il. the quality of other factors. III. racial qualities which allow persons from certain races to have good physique and be very active. Which of the above statements is / are correct?
1. I only.
2. I and ll only.
3. l and IIl only.
4. Il and lll only.
5. Ill only.
A tax is said to be good when
1. it vields more revenue to the state at the expenses of the people's ability to pay.
2. the cost of collecting it is equal to the revenue it generates.
3. it is imposed so suddenly that no one can, dodge its payment.
4. its payment causes minimum inconvenience to the tax payer.
5. it induces workers to preter more leisure to extra work.
Which of the following is a public corporation?
1. Roads (Nigeria) plc
2. National Oil and Chemical Marketing Co.plc
3. Union Bank of Nigeria plc.
4. Volkswagen of Nigeria plc.
5. National Electric Power Authority.
In a sole proprietorship, decisions are made by the
1. government.
2. owner.
3. shareholders' conference
4. management.
5. board of directors.
Which of the following statements is not true in an inflationary period?
1. The purchasing power of money diminishes.
2. Wages rise simultaneously with price.
3. More money runs after a limited quantity of goods.
4. Fixed income earners lose.
5. Aggregate real demand exceeds aggregate real supply.
Palm oil industry is located in Bendel State becuase the state
1. imports raw materials for the industry.
2. has a poor soil which is unsuitable for other crops.
3. is a palm-tree growing area.
4. government does not engage in the
Question 40
1. Option a
2. Option b
3. Option c
4. Option d

Economics 2 - Essay

Section A

Answer one question only from this section.

This is a pie-chart showing the age distribution of population. The total population is 120 million. The official school-leaving ago is 18 years while the official retiring age is 55 years
1. From the above information calculate the:
  1. Population of children between 0 and 17 years
  2. population of old people (55+years)
  3. working population (18 - 54 years)
2. what is the economic implication of the above population structure?
Complete the following cost schedules and answer the question that follow.
1. At what output is AC at the minimum?
2. At what output is MC at the minimum?
3. At what output does AC start increasing?
4. At what output does MC start to be greater than AC?
5. What is the maximum output?

Section B

Answer three questions only from this section.

With the aid of diagrams, explain what is meant by a change in
1. the quantity demanded;
2. demand
What is the median? State its merits and demerits
Discuss five contributions made by agriculture to the industrial development of Nigeria.
Question 6
1. Explain the term mobility of labour
2. Why may labour as a mobile factor of production be unwilling to move?
Explain the factors that affect the supply of labour in Nigeria.
Question 8
1. Define a market.
2. Explain four characteristics of a perfect market.
Describe the factors that can affect the size of a country's population.
What efforts has the government of Nigeria made to combat inflation?