WAEC - Economics (2002)
1
Economics is best described as the study of
Answer(C)
how man provides for his everyday needs
2
The most frequent occurring value in a given data is the
3
Subsistence production means that goods and services are
Answer(A)
produced for consumption only
4
Warehouse facilities in the distribution and marketing of products are provided by
5
Which of the following is a reward to a factor of production?
6
Land is a factor of production because it
Answer(C)
assits in the creation of utility
7
One of the advantages of large scale production is that
Answer(C)
the firm can use labour-saving machinery
8
Which of the following is an advantage of division of labour?
Answer(A)
production of specialized goods
9
Despite the benefits large firms enjoy, it could be limited by the
10
Localization of industry refers to the
Answer(A)
conentration of the firms of an industry in a particular area
11
Economist speaks about ‘opportunity cost’ when a consumer
Answer(B)
has to forgo one thing in order to have another
12
The cost which firm will incur whether it is in production or not, is referred to as
13
The location of timber and plywood industries in West Africa is mainly influenced by the availability of
14
The main objective of setting up private businesses is to
15
small firms are important for the development of a country because
Answer(B)
they render personalized services to the consumers
16
A limited liability company is owned by the
17
The National Electrical Power Authority (NEPA) in Nigeria is a
18
When elasticity is zero the demand curve is
19
An increase in the demand for butter reduces the demand for margarine, this type of demand is called
20
A commodity is said to have derived demand when it
Answer(D)
is demanded because of what it can help to produce
21
Which of the following statements about population is correct?
Answer(B)
Under-population implies that available resources are not use to full capacity
22
Malthus population theory stated that
Answer(B)
Population may outgrow the means of subsistence
23
One of the criticisms of population increase is that it result in
Answer(D)
increase in government expenditure
24
Which of the following is not likely to be an effect of a growing population?
25
Census figure of most countries in West Africa is inaccurate because of
Answer(C)
high degree of illiteracy
26
Which of the following is a problem of trade by barter?
Answer(A)
exchange rate determination
27
Cheques are not money because
Answer(C)
they are not generally acceptable as a medium of exchange
28
Which of the following is a liability of commercial banks?
29
The value of money is best determined by its
30
Which of the following is a function of the Central Bank of Nigeria?
31
Who among the following will benefit from inflation?
32
inflation can be controlled by increasing
33
Which of the following is a function of merchant banks?
Answer(D)
acting as acceptance houses
34
personal savings are generally low in West Africa because of
Answer(A)
the level of income of people
35
Which business organization enjoys tax-free point in est Africa?
36
The greatest revenue earning industry in Nigeria is
37
A market equilibrium exist when
Answer(C)
demand and supply are equal
38
The incidence of an increase in tax on a commodity with perfectly inelastic demand will be on the
39
Budget surplus implies that
Answer(B)
expenditure is less than revenue
40
International trade is based on the law of
Answer(C)
comparative cost advantage
41
Terms of trade is used to describe
Answer(D)
the rate at which exports exchange for imports
42
A nation's net export is negative when her
43
Deficit in the balance of payment is financed through
44
Devaluation of a currency in a country is likely to lead to
45
which of the following is not a benefit derived by Nigeria from the petroleum industry?
Answer(C)
employment of a greater proportion of the population
