WAEC - Economics (2021)

1
The study of economics IS Important to every society because it______
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(B)
Helps in the utilization of scarce resources.
2
A consumer with $10 needs a dress, a pair of shoes, a handbag and jewelry costing $20, $10, $7 and $3 respectively. The opportunity cost of buying the pair of shoes Is the________
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(C)
Handbag and Jewelry.
3
The distinguishing function of an entrepreneur is_______
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(C)
Risk-bearing.
4
When a commodity market operates without government interference, commodities are distributed through_______
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(B)
The operation of price mechanism.
5
One way of obtaining the median of a given data is to__________
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(D)
Arrange the data in either ascending or descending order and find what item divides the set in two equal parts.
6
An increase in the rice harvest, all things being equal, may cause____________
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(B)
Price to fall substantially.
7
The demand for wood and labour is an example of______
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(C)
Derived demand
8
What will be the reaction of consumers in a market if there is a fall in the price of the substitute commodity X?
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(C)
Demand for commodity X will decrease
9
An increase in market supply is caused by the following factors except_________
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(C)
A reduction in the cost of raw materials.
10
The coefficient of price elasticity of supply of land is usually____________
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(C)
Zero
11
The price of soap rose from $10 to $20 causing a trader to increase her supply from 50 to 120 boxes per week. This makes supply_________
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(C)
Fairly elastic.
12
The leftward shift in the supply curve for a commodity indicates_________
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(B)
A decrease in supply.
13
Market supply may increase if there is an increase in the________
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(A)
Price of the product
14
Government can increase farmers' incomes by__________
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(B)
Fixing minimum prices.
15
When market supply increases , the equilibrium price_________
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(B)
Falls and quantity rises.
16
The supply of mangoes is represented as P=0.3Q, where P is the price ($) and Q is the quantity. What is P when Q is 50?
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(B)
$15.00
17
The output of an extra unit of an input is referred to as________
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(B)
Marginal product of the input
18
The law of diminishing returns is applicable to the__________
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(B)
variable factors of production.
19
A firm incurred the following costs in production. Use the information in the table to answer the question below.

Output
(bags of rice 0 10 20 30 40 50 60

Total Cost ($) 100 200 300 380 440 520 600

The fixed cost of production is___________
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(A)
$I00.
20
A firm incurred the following costs in production. Use the information in the table to answer the question below.

Output
(bags of rice 0 10 20 30 40 50 60

Total Cost ($) 100 200 300 380 440 520 600

The average cost of producing 40 bags of rice is_____
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(B)
$11
21
The relationship between the marginal revenue (MR) and the average revenue(AR) of a monopolist is that the marginal revenue curve____
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(B)
slopes down to the right and is below the AR curve.
22
A major source of finance to the Railway Corporation in West African countries is_______
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(B)
government subvention
23
Separation of ownership of resources and their control is mostly found in a __________
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(C)
joint stock company
24
By passing the middlemen in the chain of distribution can lead to _________
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(A)
a problem of unemployment of labour
25
Two factors which can improve the efficiency of labour are_________
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(C)
work environment and health status of workers
26
The age distribution of a country's population is shown below. Use the information is answer the question below.

Age group (YEARS) Population

0 - 15
16 - 40
41 - 60
Over 60 30%
45%
15%
10%

What is the percentage of the working population?

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(B)
60%
27
The age distribution of a country's population is shown below. Use the information is answer the question below.

Age group (YEARS) Population

0 - 15
16 - 40
41 - 60
Over 60 30%
45%
15%
10%

What is the dependency ratio?
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(A)
2:3
28
The supply of land for agricultural purpose can be increased through _______
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(B)
reclamation and irrigation
29
Non-economic factors that influence the location of firms include ________
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(D)
the activities of politicians in deciding location of firms
30
Which of the following is not an argument for the policy of privatization in West Africa?
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(B)
Government is able to participate and control the operation of the privatized businesses
31
Use this data below to answer the question

The following data relates to the national income of a country.
Gross domestic product = $2800
Net factor income from abroad = $250
Depreciation = $700
Indirect taxes = $120

What is the country's Gross National (GNP)?
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(B)
$ 2.680
32
Use this data below to answer the question

The following data relates to the national income of a country.
Gross domestic product = $2800
Net factor income from abroad = $250
Depreciation = $700
Indirect taxes = $120

What is the country's Net National Product (NNP) at factor cost?
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(C)
$2,230
33
The standard of living in two countries can be compared using the___________
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(D)
gross national product per head
34
Government can curb inflation by_________
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(D)
selling securities in the open market
35
Functions of money does not include_______
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(D)
general acceptability.
36
Demand-pull inflation can be as a result of___________
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(C)
deficit financing by the government.
37
An increase in cash ratio by the central bank will_______
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(D)
Reduce the supply of money.
38
When a government cuts down her expenditure to reduce inflation, she has embarked on___________
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(A)
A restrictive Fiscal policy.
39
In order to enable the government of a country to increase its tax revenue, it will be advisable for it to increase taxes on_______
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(A)
Textile materials with elastic demand
40
People who dispose of their assets are expected to pay ______________
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(B)
capital gains tax
41
A floating exchange rate means that the exchange rate is fixed by the __________
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(B)
Forces of demand and supply
42
A measure that can be adopted to correct a country 's balance of payments deficit is ____________
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(C)
Adopt import substitution strategy
43
Records of a country's invisible trade are recorded in her_____________-
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(C)
Current account
44
If a country's import bill is high, she can encourage exports by___________
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(A)
Allowing her currency to depreciate
45
If a country imposes a barrier on trade, the resultant effect will be _________
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(C)
an increase in the demand for locally produced goods

Output (bags of rice	0	10	20	30	40	50	60
Total Cost ($)	100	200	300	380	440	520	600

Age group (YEARS)	Population
0 - 15 16 - 40 41 - 60 Over 60	30% 45% 15% 10%