WAEC - Economics (2002)

• 1

  Economics is best described as the study of

  回答

  (C)

  how man provides for his everyday needs
• 2

  The most frequent occurring value in a given data is the

  回答

  (A)

  mode
• 3

  Subsistence production means that goods and services are

  回答

  (A)

  produced for consumption only
• 4

  Warehouse facilities in the distribution and marketing of products are provided by

  回答

  (B)

  wholesaler
• 5

  Which of the following is a reward to a factor of production?

  回答

  (A)

  interest
• 6

  Land is a factor of production because it

  回答

  (C)

  assits in the creation of utility
• 7

  One of the advantages of large scale production is that

  回答

  (C)

  the firm can use labour-saving machinery
• 8

  Which of the following is an advantage of division of labour?

  回答

  (A)

  production of specialized goods
• 9

  Despite the benefits large firms enjoy, it could be limited by the

  回答

  (D)

  extent of the market
• 10

  Localization of industry refers to the

  回答

  (A)

  conentration of the firms of an industry in a particular area
• 11

  Economist speaks about ‘opportunity cost’ when a consumer

  回答

  (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

  回答

  (D)

  fixed cost
• 13

  The location of timber and plywood industries in West Africa is mainly influenced by the availability of

  回答

  (C)

  raw materials
• 14

  The main objective of setting up private businesses is to

  回答

  (B)

  maximize profits
• 15

  small firms are important for the development of a country because

  回答

  (B)

  they render personalized services to the consumers
• 16

  A limited liability company is owned by the

  回答

  (D)

  shareholders
• 17

  The National Electrical Power Authority (NEPA) in Nigeria is a

  回答

  (D)

  public corporation
• 18

  When elasticity is zero the demand curve is

  回答

  (B)

  Perfectly inelastic
• 19

  An increase in the demand for butter reduces the demand for margarine, this type of demand is called

  回答

  (A)

  competitive demand
• 20

  A commodity is said to have derived demand when it

  回答

  (D)

  is demanded because of what it can help to produce
• 21

  Which of the following statements about population is correct?

  回答

  (B)

  Under-population implies that available resources are not use to full capacity
• 22

  Malthus population theory stated that

  回答

  (B)

  Population may outgrow the means of subsistence
• 23

  One of the criticisms of population increase is that it result in

  回答

  (D)

  increase in government expenditure
• 24

  Which of the following is not likely to be an effect of a growing population?

  回答

  (D)

  high per capita income
• 25

  Census figure of most countries in West Africa is inaccurate because of

  回答

  (C)

  high degree of illiteracy
• 26

  Which of the following is a problem of trade by barter?

  回答

  (A)

  exchange rate determination
• 27

  Cheques are not money because

  回答

  (C)

  they are not generally acceptable as a medium of exchange
• 28

  Which of the following is a liability of commercial banks?

  回答

  (A)

  deposits
• 29

  The value of money is best determined by its

  回答

  (B)

  purchasing power
• 30

  Which of the following is a function of the Central Bank of Nigeria?

  回答

  (C)

  serving as banker's bank
• 31

  Who among the following will benefit from inflation?

  回答

  (C)

  debtors
• 32

  inflation can be controlled by increasing

  回答

  (A)

  aggregate supply
• 33

  Which of the following is a function of merchant banks?

  回答

  (D)

  acting as acceptance houses
• 34

  personal savings are generally low in West Africa because of

  回答

  (A)

  the level of income of people
• 35

  Which business organization enjoys tax-free point in est Africa?

  回答

  (A)

  co-operative societies
• 36

  The greatest revenue earning industry in Nigeria is

  回答

  (D)

  mining
• 37

  A market equilibrium exist when

  回答

  (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

  回答

  (D)

  consumer
• 39

  Budget surplus implies that

  回答

  (B)

  expenditure is less than revenue
• 40

  International trade is based on the law of

  回答

  (C)

  comparative cost advantage
• 41

  Terms of trade is used to describe

  回答

  (D)

  the rate at which exports exchange for imports
• 42

  A nation's net export is negative when her

  回答

  (D)

  imports exceeds exports
• 43

  Deficit in the balance of payment is financed through

  回答

  (A)

  capital account
• 44

  Devaluation of a currency in a country is likely to lead to

  回答

  (C)

  exports becoming cheaper
• 45

  which of the following is not a benefit derived by Nigeria from the petroleum industry?

  回答

  (C)

  employment of a greater proportion of the population