2016 Economics WAEC SSCE (School Candidates) May/June

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Economics 1 - Objective

Human wants are insatiable because wants are ........
1. limited while means are scarce.
2. unlimited and means are also unlimited
3. limited and means are also limited
4. unlimited while means are scarce.
Scale of preference is important for the following reasons except in ......
1. satisfying wants
2. making rational choice
3. making optional allocation of resources.
4. using scarce resources efficiently
In a socialist economy, prices of commodities are determined by .....
1. forces of demand and supply.
2. producers of the commodities
3. .the central planning authority
4. consumers who are sovereign
Which of the following cannot be classified as land in economics?
1. bauxite deposit in the ground
2. a lake used for irrigation
3. a bulldozer for clearing farm land
4. grazing field for cattle
If the budget of the country was $7,200.00, how much is allocated to Education?
1. $2,400.00
2. $2,000.00
3. $1,200.00
4. $1,000.00
What is the ratio of expenditure on health to Agriculture?
1. 2:3
2. 3:4
3. 4:3
4. 5:4
The demand curve for a necessity is usually .........
1. vertical
2. backward bending
3. horizontal
4. nagatively sloped
What effect will an increase in price have on the total revenue of a farm whose product has inelastic demand? Total revenue will .........
1. increase
2. fall
3. fluctuate
4. remain unchanged
If the quantity of men’s hat demanded per week is represented by the function Qd = 20-1/3p, where p is price, how many hats are demanded when ne price is $9.00?
1. 11
2. 17
3. 23
4. 47
The demand for torch and batteries is an example 11. of .........
1. competitive demand
2. composite demand
3. complementary demand
4. derived demand
Price elasticity f suppluy measures how responsive .........
1. consumers are to a change in price
2. sellers are to a change in buyers’ income
3. sellers are to a change in price
4. buyers are to a change in income.
The tendency for workers to value their leisure hours more than hours of work as wage rate increases gives rise to .........
1. positively sloping supply curve
2. perfectly elastic supply curve
3. backward bending supply curve
4. perfectly inelastic supply curve
The supply of rice in tons Is given by the function: Qs - 80 - 0.7p = 0 where Qs = quantity supplied p = price in Dollars ($). Find Qs, when p = $40. .........
1. 108 tons
2. 52tons
3. -52 tons
4. -108 tons
How does producers’ expectation of a price fall affect the supply curve of a product? There will be .........
1. a movement along the curve
2. a leftward shift
3. no shift of the supply curve
4. a shift of the right
One relationship between marginal utility and total utility is .........
1. rising, marginal utility is rising
2. falling, marginal utility is negative
3. maximum, marginal utility is maximum
4. falling, marginal utility is rising
A shift in the supply curve to the right while demand curve remains the same will cause equilibrium price .........
1. and quantity to fall
2. and quantity to rise
3. to rise and quantity to fall
4. to fall and quantity to rise
A price floor results in .........
1. excess demand
2. excess supply
3. parallel market
4. hording of goods
entrepreneur is encouraged to adopt division of labour in production because it .........
1. provides more employment opportunities
2. leads to increased output and lower cost of production
3. brings about equal cost and employment opportunities
4. leads to increased cost of production and lower output.
The long run is the period when .........
1. only the variable factors can be altered
2. all factors become variable
3. the firm will cease to exist
4. only the fixed factors can altered
The necessary condition for a firm to be in equilibrium is that marginal revenue is .........
1. greater than marginal cost
2. equal to marginal cost
3. less than average revenue
4. equal to average cost
At which stage of production should a firm shut down? When .........
1. AVC =ATC
2. AVC = < price
3. AVC=>price
4. AVC=MC
Charging different prices for the same commodity is a feature of .........
1. perfect competion
2. commodity market
3. monopolistic competition
4. monopoly market
Ina partnership, the conduct of members is guided by .........
1. a memorandum of understanding
2. the article of partnership
3. an article of association
4. a partnership constitution
Indigenization policy is a measure aimed at......
1. privatizing the existing business owned by the state
2. commercializing state-owned business
3. reducing foreign economic domination
4. making the indigenes managing directors of businesses
Which of the following measures will hinder efficient distribution of goods in West Africa?
1. improving road network
2. B. provision of adequate storage facilities instituting price control D. Formation of producers’ co-operative
3. instituting price control
4. Formation of producers’ co-operative
The type of unemployment that occurs as a result of physical or mental diability of labour is known as...........
1. financial unemployment
2. structural unemployment
3. cyclical unemployment
4. residual unemployment
One feature of growing population is .........
1. increase in the number of young people
2. increase in the number of old people
3. decrease in the dependent population
4. . decrease in the life expectancy
Efficiency of labour in a country is determined b y the following factors except the .........
1. social attitude to work
2. education and training
3. working conditions of workers.
4. total population
Which of the following will encourage capital intensive farming?
1. encouraging communal system of land owonership
2. adopting policies that will encourage rural-urban migration
3. provision is subsidies on equipment
4. restrictive lending policies by banks
Which of the following will best explains why more foreign investments are not attracted to West Africa?
1. small population size
2. small sizes of market places
3. instability in political and industrial policies
4. lack
Location of firms in rural areas may .........
1. enable the firms to enjoy existing infrastructural facilities
2. make finance readily available
3. enhance even or balanced development
4. make such firms enjoy external economies of scale
In national income accounting, double counting occurs when .........
1. intermediate goods are counted twice
2. intermediate goods are counted with the final goods
3. final goods are counted more than once
4. different people counted the products
The difference between GDP and GNP is .........
1. consumption of fixed capital
2. indirect business tax.
3. net factor income from abroad
4. public transfer payments
Which of the following items is not included in the measurement of the national income using the income approach?
1. wages and salaries
2. government purchases
3. interest
4. dividend
A bank note is said to be a legal tender because it is .........
1. printed by government
2. a store value
3. signed by the head of state
4. backed by law
During inflation, interest rate will .........
1. rise
2. fluctuate
3. remain constant
4. fall
Cost-push inflation is likely to arise when .........
1. there is an increase in bank lending
2. there is an increase in subsidies
3. demand for higher wages is granted
4. there is a decrease In bank lending
Which of the following financial institutions cannot be found on the capital market of a country? .........
1. commercial bank
2. mortgage bank
3. stock exchange
4. agricultural bank
The stock market is a market for .........
1. new and second hand shares
2. debentures
3. goods and services
4. short-term securities
Indirect taxes are generally .........
1. progressive
2. regressive
3. equitable
4. proportionate
Fiscal policy that can control inflation will include the use of .........
1. balanced budgeting
2. tax holidays
3. budget deficit
4. budget surplus
Which of the following is a cause of under development in West Africa? .........
1. availability of manpower
2. increasing population
3. high rate of of capital formation
4. large size of market places
Which of the following is not a major problem of development planning? .........
1. shortage of skilled manpower
2. inadequate data for planning
3. political instability
4. poor identification of projects
A The principle of comparative cost advantage was propounded by .........
1. David Ricardo
2. Alfred Marshal
3. J.S.Mill
4. Adam Smith
The rate at which a country’s exports is exchanged for her imports is .........
1. trade balance
2. balance of payments
3. terms of trade
4. balance on current account
Balance of payments surplus implies that receipts for exports are .........
1. at par with payments for imports
2. greater than payments for imports
3. less than payments for imports
4. proportional to payments for imports
When the international value of a country's currency rises, other things being equal, the country’s .........
1. net exports tend to increase
2. imports tend to decrease
3. net exports tend to decrease
4. exports tend to be stable
One of the physical measures that can be used to reduce the volume of imports is the .........
1. reduction of personal income tax
2. removal of import duties
3. use of foreign exchange control
4. liberalization of credit for importers
When a number of countries agree to remove all trade barriers among themselves and at the same time charge a common tariff against non-memner countries, it is known as .........
1. free trade area
2. common market
3. redcustoms union
4. economic community.
Which of the following international organizations is concerned with the stabilization of the balance of payments? The .........
1. International Monentary Fund (IMF)
2. world bank (IBRD)
3. United Nations Organization
4. Economic Commission for Africa (ECA).

Economics 2 - Essay

Section A

Answer one question only from this section.

The following data shows the budget of a hypothetical country in 2006. Study data and answer the questions that follow:


Revenue	[$ million]
Company tax	240
Workers’ income tax	160
Excise duties	80
Taxes on exports	100
Value added tax	150
Import duties	90
Non-tax revenue	40


Expenditure	[$ million]
Construction of roads	100
Building of schools	120
Payment of workers’ salanes	150
Government administration	200
Maintenance of health facilities	220
Extension of electricity to rural areas	180
Maintenance of official vehicles	70

How many revenue was realised from
1. direct taxes
2. indirect taxes
Calculate the total:
1. recurrent expenditure
2. capital expenditure
What percentage of total revenue was collected as indirect taxe?
State two examples of non-tax revenue
What was the budget surplus or deficit? Explain your answer.

The utility schedule of a consumer for a brand of ice cream is shown in the table below. Use the information to answer the questions that follow:


Units Consumed (Q)	Total Utility (TU)	Marginal Utility (MU)
0	0	-
1	10	10
2	19	R
3	P	6
4	30	5
5	31	S
6	Q	0
7	29	-2

Calculate the values of P,.Q,and S
Given that the jprice of ice cream is $ 1.00 per unit, at what level of consumption 1s the consumer in equilibrium? Explain your answer
Use a graph sheet, draw the marginal utility curve.
State the law of diminishing marginal utility.

Section B

Answer three questions only from this section.

1. What is production possibility curve?
2. Draw a production possibility curve and indicate any:
  1. Point P, where resources are fully utilized;
  2. Point U, where resources are under utilized,
  3. Point X, where production |s not feasible
3. Explain any two factors that can make production at Point X feasible.
4. Why is the production possibility curve negatively sloped?
1. what is:
  1. peasant farming
  2. Co-operative farming?
2. identify any five ways through which government can assist peasant farmers
1. what is price elasticity of supply
2. Differentiate between joint supply and cometitive supply.
3. Explain any four determinants of elasticity of supply.
1. Define
  1. Building Society
  2. Central Bank.
2. Highlight any five instruments of the Central Bank in regulating the supply of money.
1. Who is a discriminating monopolist
2. Explain any four conditions necessary for a monopolist to practice price discrimination.
3. Explain any two benefits enjoyed by a discriminating monopolist
Explain the following National Income concepts:
1. Gross Domestic Product (GDP)
2. Gross National Product (GNP)
3. Cost of living
4. Per Capital income
5. Standard of living