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WAEC - Economics (2012)

1
Which of the following problems arises where there are more than one technically possible methods of production
Answer
(C)
how to produce
2
Visible balance is also known as
Answer
(C)
balance of trade
3
A shift in the demand curve indicates
Answer
(B)
change in demand
4
If a 6% decrease in price results in more than 6% decrease in quantity supplied, supply can be regarded as
Answer
(A)
elastic
5
A condition for consumer utility maximization is
Answer
(A)
equality of the ratio of marginal utilities and the ratio of prices
6
Which of the following best describes the mode? the
Answer
(A)
observation with the highest frequency
7
Where a commodity takes an insignificant proportion of the consumer's income, demand for it will be
Answer
(D)
income inelastic
8
A demand schedule shows the quantities of goods that are
Answer
(A)
bought at given price at a time
9
The demand curve for a commodity is downward sloping because the consumer will pay
Answer
(C)
less as the total utility falls
10
A decrease in the demand for a product X resulted in a decrease in the demand for another product Y. The demand for X and Y is
Answer
(C)
joint
11
Any price below the equilibrium price will lead to
Answer
(B)
excess demand
12
The allocation of goods and services in a free market economy is performed by
Answer
(A)
the price system
13
Given the demand function Qd = 20 - 1/ 2P. What is Qd when P is $12?
Answer
(D)
14 units
14
If a particular consumer derives total utility of 22 utils having consumed 4 units of a given product, his average utility will be
Answer
(C)
5.5 utils
15
The law of diminishing marginal utility applies to a
Answer
(B)
consumer who maximizes satisfaction
16
why is the law of diminishing returns a short run phenomenon?
Answer
(A)
all inputs are fixed
17
Which of the following is capable of increasing the population of a country?
Answer
(A)
increase in birth rate
18
In the firm's production process, marginal cost
Answer
(D)
rises and later falls
19
If a firm's price is less than average cost but more than part of variable cost, the firm is covering
Answer
(A)
all of its fixed cost and variable cost
20
An arrangement in which the debts of a company can only be paid from its own assets implies
Answer
(C)
limited liability
21
One reason why small scale businesses are very common in West Africa is that
Answer
(C)
their initial capital is easy to rise
22
A public limited company could finance its operations through
Answer
(B)
equity shares
23
The factor of production which takes the initiative in combining resources for production is known as
Answer
(C)
entrepreneur
24
The type of monopoly that develops as a result of granting patent right is known as
Answer
(C)
legal monopoly
25
Which of the following is a function of a retailer?
Answer
(D)
Sales services
26
`The difference between the number of immigrants and emigrants is
Answer
(C)
net migration
27
All of the following is the features of optimum population except
Answer
(B)
unlimited amount of unexploited resources
28
The financial institution that specializes in risk spreading is called
Answer
(C)
an insurance company
29
The following are means of reducing the population of a country except encouraging
Answer
(C)
early marriage
30
Which of the following features best describes peasant agriculture in West Africa? It
Answer
(B)
involves the use of small farm holdings
31
One of the problems facing industrial development in West African countries is
Answer
(B)
inadequate infrastructure
32
In a situation where the finished product of an industry is fragile, bulky and perishable, such an industry should be located close to its
Answer
(B)
market
33
If Y = income, C = Consumption, I = Investment, X = Export and M = Import, then national income is
Answer
(C)
Y = C +I +(X - M)
34
The national income is the
Answer
(B)
Gross National product at factor cost
35
When depreciation is deducted from Gross National Product, the result is
Answer
(C)
net national product
36
Mr Akpoti has meat and wants maize, while Mr, Adama has maize and wants meat.transation is possible because of
Answer
(D)
double coincidence of wants
37
Which of the following is not a form of money?
Answer
(C)
bank balance
38
A price index as a statistic, measures
Answer
(A)
how the value of money changes over time
39
The different between birth rate and death rate is known as
Answer
(B)
natural growth rate
40
In open market operations, what the Central Banks sells or buys are
Answer
(C)
securities
41
The following are reasons for failure of agricultural policies in West Africa except
Answer
(C)
creation of agro-service stations
42
A situation in which the estimated government revenue is less than the proposed expenditure for a given year can be described as
Answer
(D)
deficit budgeting
43
An excise tax is imposed on goods
Answer
(B)
manufactured locally
44
Which of the following will not retard economic development in West Africa?
Answer
(B)
population control
45
When there is improvement in a country's terms of trade, it means that the country's
Answer
(B)
imports are cheaper relative to exports