WAEC - Economics (2011)

1
Human wants are
Answer
(C)
unlimited
2
The difference between the money cost and the real cost of any item is that
Answer
(A)
real cost is the alternative forgone while the money cost is the actual amount paid for buying the item
3
The production possibility curve (PPC) indicates that as more of one good is produced.
Answer
(A)
less of the other goods is produced
4
An arrangement of data in rows and columns is referred to as
Answer
(D)
table
5
A normal demand curve slopes
Answer
(A)
downward from left to right
6
The co-efficient of income elasticity of demand for inferior goods is
Answer
(D)
negative
7
If a 20% rise in price of Whiskey leads to a 30% increase in quantity demanded of Schnapps, the cross elasticity of demand is
Answer
(D)
1.5
8
Palm oil and palm kernel have
Answer
(C)
joint supply
9
A supply curve which is vertical has an elasticity co-efficient of
Answer
(A)
0.0
10
if the current price of an apple is twice that of last year, it implies that the value of money is
Answer
(B)
falling
11
price fixed above the equilibrium is to
Answer
(A)
protect agricultural producers
12
A consumer purchasing a commodity X will maximize his satisfaction if
Answer
(A)
Px = MUx
13
When total utility is constant, it means marginal utility is
Answer
(B)
zero
14
A rational consumer is one who
Answer
(A)
spends his income to maximize satisfaction
15
which of the following is not true about land?
Answer
(B)
land is mobile
16
The type of production that involve the tapping and harnessing of natural resources is
Answer
(A)
primary production
17
which of the following does not change in the short run?
Answer
(D)
fixed cost
18
The resource used in production are called
Answer
(B)
factors of production
19
A firm will shut down in the long run if its earning is
Answer
(A)
less than normal profit
20
A market structure where profit is maximized when marginal revenue, marginal cost and price are equal is known as
Answer
(A)
perfect competition
21
In which of the following markets does a firm have power to make super normal profits both in the short run and long run?
Answer
(A)
Monopoly
22
If there are no barriers to entering a market, it means that
Answer
(A)
anyone can become a buyer or a seller
23
A firm's main aim is to
Answer
(B)
maximize profits
24
One good reason for the elimination of middle men is that they
Answer
(A)
cause increase in price
25
The increase in population growth in big cities is referred to as
Answer
(D)
urbanization
26
Frictional unemployment can be reduced by
Answer
(A)
encouraging the use of retaining schemes
27
If the labour force of a country is 2.5 million and 2 million are employed , what is the unemployment rate?
Answer
(B)
20%
28
The grouping of the population according to the economic activities people engage in is
Answer
(D)
occupational distribution
29
Natural growth rate of population can be defined as the
Answer
(A)
difference between birth rate and death rate
30
which of the following is not a consequence of increased unemployment?
Answer
(C)
a fall in death rate
31
The following are features of subsistence agriculture except
Answer
(D)
use of crude oil
32
Which of the following is not true of small companies ? they
Answer
(D)
Have a good record of technical innovation
33
The effect of privatization on the industrial sector of a country is that it
Answer
(A)
ensures efficiency
34
The production strategy used in an over-populated country is
Answer
(C)
labour intensive
35
National income is used to measure
Answer
(B)
a country's economic growth
36
A tax is regressive if the
Answer
(B)
rate of tax decrease as income increases
37
When a country's net income from abroad is added to its total output, the result is
Answer
(C)
gross national product
38
A fall in national output will necessitate
Answer
(B)
a rise in the level of savings
39
The demand for money to take advantage of changes in bond prices is the
Answer
(C)
speculative motive
40
Cost push inflation is caused by a
Answer
(A)
rise in the cost of production