WAEC - Economics (2012)

• 1

  Which of the following problems arises where there are more than one technically possible methods of production

  回答

  (C)

  how to produce
• 2

  Visible balance is also known as

  回答

  (C)

  balance of trade
• 3

  A shift in the demand curve indicates

  回答

  (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

  回答

  (A)

  elastic
• 5

  A condition for consumer utility maximization is

  回答

  (A)

  equality of the ratio of marginal utilities and the ratio of prices
• 6

  Which of the following best describes the mode? the

  回答

  (A)

  observation with the highest frequency
• 7

  Where a commodity takes an insignificant proportion of the consumer's income, demand for it will be

  回答

  (D)

  income inelastic
• 8

  A demand schedule shows the quantities of goods that are

  回答

  (A)

  bought at given price at a time
• 9

  The demand curve for a commodity is downward sloping because the consumer will pay

  回答

  (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

  回答

  (C)

  joint
• 11

  Any price below the equilibrium price will lead to

  回答

  (B)

  excess demand
• 12

  The allocation of goods and services in a free market economy is performed by

  回答

  (A)

  the price system
• 13

  Given the demand function Qd = 20 - ^1/ ₂P. What is Qd when P is $12?

  回答

  (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

  回答

  (C)

  5.5 utils
• 15

  The law of diminishing marginal utility applies to a

  回答

  (B)

  consumer who maximizes satisfaction
• 16

  why is the law of diminishing returns a short run phenomenon?

  回答

  (A)

  all inputs are fixed
• 17

  Which of the following is capable of increasing the population of a country?

  回答

  (A)

  increase in birth rate
• 18

  In the firm's production process, marginal cost

  回答

  (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

  回答

  (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

  回答

  (C)

  limited liability
• 21

  One reason why small scale businesses are very common in West Africa is that

  回答

  (C)

  their initial capital is easy to rise
• 22

  A public limited company could finance its operations through

  回答

  (B)

  equity shares
• 23

  The factor of production which takes the initiative in combining resources for production is known as

  回答

  (C)

  entrepreneur
• 24

  The type of monopoly that develops as a result of granting patent right is known as

  回答

  (C)

  legal monopoly
• 25

  Which of the following is a function of a retailer?

  回答

  (D)

  Sales services
• 26

  `The difference between the number of immigrants and emigrants is

  回答

  (C)

  net migration
• 27

  All of the following is the features of optimum population except

  回答

  (B)

  unlimited amount of unexploited resources
• 28

  The financial institution that specializes in risk spreading is called

  回答

  (C)

  an insurance company
• 29

  The following are means of reducing the population of a country except encouraging

  回答

  (C)

  early marriage
• 30

  Which of the following features best describes peasant agriculture in West Africa? It

  回答

  (B)

  involves the use of small farm holdings
• 31

  One of the problems facing industrial development in West African countries is

  回答

  (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

  回答

  (B)

  market
• 33

  If Y = income, C = Consumption, I = Investment, X = Export and M = Import, then national income is

  回答

  (C)

  Y = C +I +(X - M)
• 34

  The national income is the

  回答

  (B)

  Gross National product at factor cost
• 35

  When depreciation is deducted from Gross National Product, the result is

  回答

  (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

  回答

  (D)

  double coincidence of wants
• 37

  Which of the following is not a form of money?

  回答

  (C)

  bank balance
• 38

  A price index as a statistic, measures

  回答

  (A)

  how the value of money changes over time
• 39

  The different between birth rate and death rate is known as

  回答

  (B)

  natural growth rate
• 40

  In open market operations, what the Central Banks sells or buys are

  回答

  (C)

  securities
• 41

  The following are reasons for failure of agricultural policies in West Africa except

  回答

  (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

  回答

  (D)

  deficit budgeting
• 43

  An excise tax is imposed on goods

  回答

  (B)

  manufactured locally
• 44

  Which of the following will not retard economic development in West Africa?

  回答

  (B)

  population control
• 45

  When there is improvement in a country's terms of trade, it means that the country's

  回答

  (B)

  imports are cheaper relative to exports