WAEC - Economics (2019)

1
The fundamental economic problem in every society is
Atsakymas
(A)
the large number of the unemployed
2
A point X inside the production possibility curve indicates that
Atsakymas
(C)
some resources are idle
3
The major employer of labour in developing countries is the
Atsakymas
(C)
primary sector
4
The wages of a group of workers in dollars is stated below;

40, 30, 70, 20, 60, 10, 10, 80, 30, and 10.

What is the mean wage
Atsakymas
(B)
$36
5
The desire for profits is a major feature of
Atsakymas
(C)
market economy
6
If the coefficient of price elasticity of demand of a product is zero, then its demand curve will be
Atsakymas
(B)
parallel to the price axis
7
If the demand function is Qd = -0.5 + 20, calculate the quantity demanded when price is $15.0
Atsakymas
(C)
$12.50
8
If less of a good is bought as one's income increases, such a good is
Atsakymas
(D)
an inferior good
9
The demand for coffee and tea is
Atsakymas
(B)
competitive
10
What effect will an increase in the supply of fish have on the meat market
Atsakymas
(D)
both equilibrium price and quantity will remain unchanged
11
Which of the following factors is not a condition for a change in the supply of a commodity
Atsakymas
(C)
the price of the commodity
12
Supply of agricultural products is likely to be elastic in the
Atsakymas
(B)
long-run
13
Two commodities X and Y are in joint supply when
Atsakymas
(B)
X and Y are produced by the same firm

Table 1
Units of quantity consumed	Total utility	Marginal utility
0	-	-
1	10	10
2	15	5
3	17	2
4	18	1
5	18	0

The table above illustrates the law of?

Atsakymas

(C)

diminishing marginal utility

15
When the price of a good is above the equilibrium, there will be
Atsakymas
(B)
a surplus.
16
What happens when a minimum price is imposed in a market?
Atsakymas
(B)
Surplus occurs
17
When an increase in inputs leads to a more than proportionate increase in output, there is
Atsakymas
(C)
increasing retums to scale
18
The short-run in production is the time period when

Atsakymas
(C)
at least a factor is fixed while others are variable

The table below shows the short-run cost of a firm. Use it to answer the question below

Quantity (kg)	Fixed cost ($)	Variable cost ($)	Total cost ($)	Marginal cost ($)	Average cost ($)
1	750	200	950	-	950
2	750	560	1310	360	655
3	750	900	P	Q	550

Calculate the value of Q

Atsakymas

(B)

$340

20
A cost of production that is positively related to output is the
Atsakymas
(C)
variable cost
21
In perfect competition, the average revenue curve of a firm is
Atsakymas
(C)
the marginal revenue curve
22
Which of the following means of funding a business is very reliable and cheap?
Atsakymas
(C)
Plough back profits
23
Govermment in most cases influences the location of firms to
Atsakymas
(B)
ensure equitable distribution
24
Middlemen are made up of
Atsakymas
(C)
wholesalers, retailers and hawkers
25
Malthusian theory of population was proved wrong because
Atsakymas
(C)
new lands and new methods of production were discovered
26
Human development can be improved if
Atsakymas
(C)
general education and training are encouraged
27
The use of interest rates to control the money supply is a
Atsakymas
(B)
monetary policy
28
Agricultural productivity may be increased if
Atsakymas
(D)
labour intensive method of agriculture is encouraged
29
Which of the following is a major advantage of establishing a tomato-processing factory in a country?
Atsakymas
(C)
Foreign exchange will be conserved
30
A country is described as industrialized if
Atsakymas
(A)
the contributions of industries to national income are high
31
The total value of goods and services produced within the borders of a country is
Atsakymas
(C)
gross domestic product
32
Which of the following factors will not underestimate the national income?
Atsakymas
(D)
Increase in value of services not paid for
33
Which of the following items is not considered as a transfer payment?
Atsakymas
(D)
Doctor's salary
34
Which of the following is true of the value of money? It
Atsakymas
(D)
is inversely related to the price level
35
The motive for holding money to meet unforeseen events is termed
Atsakymas
(A)
precautionary demand
36
An increase in the prices of factor inputs may result in
Atsakymas
(D)
cost-push inflation
37
Citizens are protected from the government's arbitrariness in taxation by the canon of
Atsakymas
(C)
economy
38
What happens when the central bank increases the bank rate?
Atsakymas
(B)
Amount of borrowing decreases
39
Insurance Companies are similar to commercial banks in that they
Atsakymas
(D)
help in mobilizing savings for investment
40
In most developing countries, a large percentage of the labour force is engaged in
Atsakymas
(C)
agriculture
41
In most underdeveloped countries, development plans do not achieve their objective due to
Atsakymas
(B)
exportation of more primary products
42
In a period of unemployment and falling prices, the government should adopt a
Atsakymas
(C)
balanced budget
43
Balance of trade involves the exchange of
Atsakymas
(C)
goods and services
44
Devaluation of currency may not correct a balance of payments deficit if the demand for export is
Atsakymas
(A)
perfectly inelastic
45
An improvement in a country's terms of trade means that the
Atsakymas
(C)
value of her imports is lower than her exports