WAEC - Economics (2020)

• 1

  Which of the following is central to the definition of Economics?

  Cevap

  (C)

  scarcity
• 2

  When the production possibility curve shifts outwards, the economy experiences

  Cevap

  (A)

  growth
• 3

  Land as a factor of production is made useful through the 

  Cevap

  (A)

  application of human effort
• 4

  In a free market economy, resources are allocated through the 

  Cevap

  (B)

  price mechanisms
• 5

  Use the figure below to answer question that follows

  

  What does the diagram above depict

  Cevap

  (C)

  component bar chart
• 6

  

  The figure above shows the change in demand for Commodity X which is a normal good. Use it to answer the question that follows.

  Which of the following caused the change in demand from D\(_{1}\) D\(_{1}\) to D\(_{2}\)D\(_{2}\)

  Cevap

  (B)

  Rise in the price of a substitute
• 7

  Use the figure below to answer the question that follows

  

  The curves D\(_{0}\)D\(_{0}\) and S\(_{0}\)S\(_{0}\) are the initial demand and supply curves respectively. What happens when government provides subsidies to producers?

  Cevap

  (B)

  The supply curve will shift from S\(_{0}\)S\(_{0}\) to S\(_{1}\)S\(_{1}\)
• 8

  

  In the figure above, YZ represents 

  Cevap

  (B)

  excess supply
• 9

  Goods are described as inferior if their demand

  Cevap

  (C)

  decreases as income increases
• 10

  A consumer is in equilibrium when 

  Cevap

  (B)

  he maximizes his satisfaction from spending his income
• 11

  Goods that are abundant in supply usually have low

  Cevap

  (B)

  marginal utility
• 12

  If an increase in the price of crude oil led to an increase in the prices of kerosene and grease, then kerosene and grease are in

  Cevap

  (A)

  joint supply
• 13

  If an increase in the supply of beef increased the supply of hides, then beef and hides are in
   

  Cevap

  (B)

  joint supply.
• 14

  An increase in supply means that

  Cevap

  (B)

  more is sold at the same price
• 15

  A seller increased the quantity he offered for sale from 200 units to 250 units when the price of his product increased by 12.5%. What is the price elasticity of the supply of his product?

  Cevap

  (A)

  2.00
• 16

  If a beef market is in equilibrium at $4.00 per kg, an increase in price to $6.00 per kg may cause

  Cevap

  (A)

  surplus in the market
• 17

  A large firm may experience diseconomies of scale if there is 

  Cevap

  (A)

  difficulty in coordinating decisions
• 18

  Increasing returns to scale suggests that 

  Cevap

  (B)

  a firm can make more profit by increasing output
• 19

  One feature of the average fixed cost is that it
   

  Cevap

  (A)

  falls continuously but is never equal to zero.
• 20

  If the average fixed cost (AFC) of producing 5 bags of rice is $20.00, the average fixed cost of producing 10 bags will be 

  Cevap

  (C)

  $10.00
• 21

  The table below shows the total revenue schedule of a firm. Use the information to answer the question that follows

  Output (units)	50	60	70	80	90
  Total revenue (TR) $	85	102	119	136	153

  What is the unit price of the firm's output

  Cevap

  (D)

  $1.70
• 22

  The table below shows the total revenue schedule of a firm. Use the information to answer the question that follows

  Output (units)	50	60	70	80	90
  Total revenue (TR) $	85	102	119	136	153

  What is the firm's marginal revenue? 

  Cevap

  (C)

  $1.70
• 23

   Organization and entrepreneurship are vested in diferrent persons in a

  Cevap

  (D)

  public company.
• 24

  The public sector in a mixed economy is not always because of

  Cevap

  (A)

  bureaucratic practice
• 25

  Which function of the wholesaler enables him to stabilize prices? 

  Cevap

  (A)

  Warehousing goods
• 26

  In the long run, as individuals receive higher wages, it causes

  Cevap

  (A)

  demand for food to decrease
• 27

  Labor productivity is defined as 

  Cevap

  (A)

  output per man-hour
• 28

  Which of the following problem has the least effect on agricultural productivity in West Africa?

  Cevap

  (D)

  Illiteracy
• 29

  The location of iron and steel industry at a place is due to 

  Cevap

  (A)

  easy access to raw materials
• 30

  Import substitution as a strategy of industrialization is the 

  Cevap

  (B)

  development of locally produced goods with imported ones
• 31

  Which of the following are intermediate products?

  Cevap

  (A)

  Cement and steel
• 32

  How is NNP at factor cost derived from GNP at market prices? 

  Cevap

  (D)

  GNP+ Depreciation- Indirect taxes + Subsidies 
• 33

  Inflation may occur if 

  Cevap

  (C)

  wage increase is granted without an increase in productivity
• 34

  Money would cease to be a good store of value when 

  Cevap

  (C)

  prices of goods and services are rising rapidly
• 35

  Which of the following factors may lead to the underestimation of national income figures?

  Cevap

  (C)

  Emigration of skilled workers to foreign countries
• 36

  Governments in West Africa can curtail inflation by 

  Cevap

  (B)

  selling securities in the open market
• 37

  The central bank Can reduce the ability of commercial banks to give out loans by 

  Cevap

  (A)

  raising the bank rates
• 38

  Tools of monetary policy do not include

  Cevap

  (D)

  tax and public expenditure
• 39

  During inflation, the appropriate fiscal measure to adopt is to

  Cevap

  (B)

  increase direct taxes
• 40

  Mr. X and Mrs. Y pay $500.00 and $1,400.00 as taxes on their earning of S5,000.00 and $7,000.00 respectively. The system of taxation employed is

  Cevap

  (D)

  progressive tax
• 41

  Expenditure on food takes a large proportion of the incomes of people in

  Cevap

  (C)

  developing countries
• 42

  A country should embark on development planning to ensure that

  Cevap

  (C)

  its scarce productive resources are efficiently utilized
• 43

  A country is allowed to import just 50,000 tonnes of rice annually. This describes 

  Cevap

  (D)

  quota
• 44

  Dumping is selling goods in a foreign market at a price 

  Cevap

  (A)

  below what is sold at the home market
• 45

  The principle of comparative advantage encourages a country to 

  Cevap

  (B)

  engage in trade if it can produce a commodity at a lower cost