WAEC Economics 2019 past questions and answers

The fundamental economic problem in every society is

1. A.the large number of the unemployed.
2. B.inadequate supply of money.
3. C.corruption and mismanagement.
4. D.limited supply of productive resources.

A point X inside a production possibility curve indicates that

1. A.resources are fully utilized.
2. B.the country is poor.
3. C.some resources are idle.
4. D.resources are not available.

The major employer of labour in developing countries is the

1. A.tertiary sector.
2. B.secondary sector.
3. C.primary sector.
4. D.industrial sector.

The desire for profit is a major feature of

1. A.traditional economy.
2. B.mixed economy.
3. C.market economy.
4. D.command economy.

The wages of a group of workers in dollars are stated below: 40, 30, 70, 20, 60, 10, 10, 80, 30 and 10. What is the mean wage?

1. A.$35
2. B.$36
3. C.$37
4. D.$38

If the coefficient of price elasticity of demand of a product is zero, then its demand curve will be

1. A.parallel to the quantity axis.
2. B.parallel to the price axis.
3. C.negatively sloped.
4. D.positively sloped.

If the demand function is Qd = −0.5p + 20, calculate the quantity demanded when price is $15.00.

1. A.−$27.50
2. B.−$12.50
3. C.$12.50
4. D.$27.50

If less of a good is bought as one's income increases, such a good is

1. A.a normal good.
2. B.a luxury.
3. C.a necessity.
4. D.an inferior good.

The demand for coffee and tea is

1. A.joint.
2. B.competitive.
3. C.composite.
4. D.derived.

What effect will an increase in the supply of fish have on the meat market?

1. A.A fall in equilibrium price and quantity.
2. B.An increase in equilibrium price and quantity.
3. C.An increase in equilibrium price and a fall in quantity.
4. D.Both equilibrium price and quantity remain unchanged.

Which of the following factors is not a condition for a change in supply of a commodity?

1. A.Improved technology
2. B.Cost of production
3. C.The price of the commodity
4. D.Government tax policies

Supply of agricultural products is likely to be elastic in the

1. A.intermediate period.
2. B.long-run.
3. C.market period
4. D.short-run.

Two commodities X and Y are in joint supply when

1. A.X is a by-product of Y.
2. B.X and Y are produced by the same process.
3. C.increase in quantity of X leads to decrease in Y.
4. D.X and Y cannot be produced in the same firm.

Use the table below (Table I) to answer the question.
Units of quantity consumed | Total Utility | Marginal Utility
0 | - | -
1 | 10 | 10
2 | 15 | 5
3 | 17 | 2
4 | 18 | 1
5 | 18 | 0
Table I illustrates the law of

1. A.diminishing returns
2. B.diminishing marginal productivity.
3. C.diminishing marginal utility.
4. D.variable proportion.

When the price of a good is above the equilibrium, there will be

1. A.a shortage.
2. B.a surplus.
3. C.unemployment
4. D.inflation.

What happens when a minimum price is imposed in a market?

1. A.Shortage occurs.
2. B.Surplus occurs
3. C.The market maintains its equilibrium
4. D.Many firms will close down

When an increase in inputs leads to a more than proportionate increase in output, there is

1. A.decreasing returns to scale.
2. B.increase in marginal product.
3. C.increasing returns to scale.
4. D.constant returns to scale.

The short-run in production is the time period when

1. A.techniques of production can easily be changed.
2. B.all factors of production are variable.
3. C.at least a factor is fixed while others are variable.
4. D.variable factors cannot be changed.

Table II shows the short-run cost of a firm.
Quantity (kg) | Fixed Cost ($) | Variable Cost ($) | Total Cost ($) | Marginal Cost ($) | Average ($)
1 | 750 | 200 | 950 | – | 950
2 | 750 | 560 | 1310 | 360 | 655
3 | 750 | 900 | P | Q | 550
Calculate the value of Q

1. A.$350
2. B.$340
3. C.$360
4. D.$370

A cost of production that is positively related to output is the

1. A.total fixed cost.
2. B.average fixed cost.
3. C.variable cost.
4. D.social cost.

In perfect competition, the average revenue curve of a firm is

1. A.below the marginal revenue curve.
2. B.downward sloping.
3. C.the marginal revenue curve.
4. D.convex to the origin.

Which of the following means of funding a business is very reliable and cheap?

1. A.Bank loans
2. B.Loans from friends
3. C.Plough back profits
4. D.Debentures

Government in most cases influences location of firms to

1. A.discourage private investors.
2. B.ensure equitable distribution.
3. C.reduce cost of production.
4. D.make the firms enjoy economies of scale.

Middlemen are made up of

1. A.manufacturers, wholesalers and consumers.
2. B.manufacturers, wholesalers and retailers.
3. C.wholesalers, retailers and hawkers.
4. D.wholesalers, retailers and consumers.

The Malthusian theory of population was proved wrong because

1. A.the practice of subsistence farming was encouraged.
2. B.developing countries adopted birth control method.
3. C.new lands and new methods of production were discovered.
4. D.Malthus' view was seen as an exaggeration.

Human development can be improved if

1. A.banks give more loans to businessmen.
2. B.large family sizes are encouraged.
3. C.general education and training is encouraged.
4. D.it is handled by the private sector only.

The use of interest rates to control money supply is a

1. A.control policy.
2. B.monetary policy.
3. C.developmental policy.
4. D.fiscal policy.

Agricultural productivity may be increased if

1. A.educational institutions are established in rural areas.
2. B.commercial banks are established in rural areas.
3. C.more infrastructural facilities are provided in rural areas.
4. D.labour intensive method of agriculture is encouraged.

A country is described as industrialized if

1. A.the contributions of industries to national income is high.
2. B.traditional and modern sectors coexist.
3. C.the country adopts import promotion strategy.
4. D.primary industries dominate the economy.

The total value of goods and services produced within the borders of a country is

1. A.net national product.
2. B.net domestic product.
3. C.gross domestic product.
4. D.gross national product.

Which of the following items is not considered as a transfer payment?

1. A.Pension pay
2. B.Government subsidy
3. C.Students' grant
4. D.Doctor's salary

Which of the following factors will not underestimate the national income?

1. A.Rapid decrease in prices
2. B.Increased subsistence production
3. C.Practice of specialization of labour
4. D.Increase in value of services not paid for

Which of the following is true of the value of money? It

1. A.is positively related to the price level.
2. B.depends on the value people attach to it.
3. C.is determined by the government.
4. D.is inversely related to the price level.

The motive for holding money to meet unforeseen events is termed

1. A.precautionary demand.
2. B.transactions demand.
3. C.liquidity demand.
4. D.speculative demand.

An increase in the prices of factor inputs may result in

1. A.demand-pull inflation.
2. B.stagflation.
3. C.open inflation.
4. D.cost-push inflation.

Insurance companies are similar to commercial banks in that they

1. A.compensate their customers for losses.
2. B.acts as lender of last resort.
3. C.help in maintaining monetary stability in a nation.
4. D.help in mobilizing savings for investment.

What happens when the central bank increases the bank rate?

1. A.Amount of borrowing increases
2. B.Amount of borrowing decreases
3. C.Supply of money increases
4. D.Commercial banks are not affected

Citizens are protected from government's arbitrariness in taxation by the canon of

1. A.elasticity.
2. B.flexibility.
3. C.economy.
4. D.certainty.

In a period of unemployment and falling prices, government should adopt a

1. A.zero-based budget.
2. B.budget deficit.
3. C.balanced budget.
4. D.surplus budget.

In most developing countries, a large percentage of the labour force is engaged in

1. A.trading.
2. B.mining.
3. C.agriculture.
4. D.manufacturing.

In most underdeveloped countries, development plans do not achieve their objectives due to

1. A.poor coordination between local and national governments.
2. B.exportation of more primary products.
3. C.lack of educational institutions in those countries.
4. D.urban-rural migration of citizens.

Balance of trade involves exchange of

1. A.goods only.
2. B.services only.
3. C.goods and services.
4. D.goods and capital.

Devaluation of currency may not correct a balance of payments deficit if the demand for export is

1. A.perfectly inelastic.
2. B.perfectly elastic.
3. C.fairly elastic.
4. D.unitary elastic.

One measure for financing a country's balance of payments deficit is through

1. A.export diversification.
2. B.import substitution.
3. C.short-term borrowing from IMF.
4. D.internal borrowing from commercial banks.

The major achievement of the Economic Community of West African States (ECOWAS) is that it has

1. A.made capital more mobile.
2. B.made possible the use of common currency.
3. C.increased members allegiance to former colonial masters.
4. D.widened the market for goods produced.

Which of the following institutions is concerned with expanding developing countries' commodity trade?

1. A.World Trade Organization (WTO)
2. B.United Nations Conference on Trade and Development (UNCTAD)
3. C.Economic Commission for Africa (ECA)
4. D.African Development Bank (AfDB)

Exploitation of forest resources becomes a major problem when

1. A.communities fight over ownership.
2. B.they are not renewed.
3. C.they are neglected.
4. D.the supply is fixed in the long-run.

Natural resources that are renewable are found in the

1. A.mining sector.
2. B.traditional sector.
3. C.agricultural sector.
4. D.secondary sector.

The diagram below represents the equilibrium position of a firm in a perfectly competitive industry. Study it carefully answer the questions that follow.
(a)(i) At what level of output and price is the firm in equilibrium? (ii) Calculate the firm's profit in equilibrium. (iii) What type of profit is it? Explain your answer.
(b) Why is the average revenue (AR) function horizontal?
(c) State any two ways in which marginal cost (MC) and average total cost (ATC) are related.

The extract from a country's balance of payment account is shown below.
ITEM | IMPORT ($ million) | EXPORT ($ million)
Agricultural products | --- | 200
Mineral products | --- | 300
Consumer goods | 250 | ---
Capital goods | 400 | ---
Insurance | 50 | 25
Banking | 75 | 30
Transportation | 85 | 25
Loans | 150 | 60
Using the table above, calculate the: (a) balance of trade; (b) invisible trade balance; (c) balance on current account.

(a)(i) Define distribution of goods. (ii) Illustrate the normal chain of distribution of goods.
(b) Describe a consumer's cooperative society.
(c) Outline any four roles performed by a consumers' cooperative society.

(a) What is an industry?
(b) Explain the following: (i) division of labour (ii) economies of scale.
(c) Outline any four internal economies of scale.

(a) Define a joint venture.
(b) Identify any three merits of a private company over a partnership.
(c) State any three sources of finance to a public enterprise.

(a) Distinguish between the following pairs of concepts: (i) elastic demand and inelastic demand; (ii) income elasticity of demand and cross elasticity of demand.
(b) Using diagrams, explain how an increase in price will affect the total revenue of a producer if demand for his product is: (i) price elastic; (ii) price inelastic.

(a) Distinguish between: (i) a growing population and a declining population; (ii) overpopulation and under population.
(b) Explain any four disadvantages of a rapidly growing population in an economy.

(a) What is public debt?
(b) Outline any three reasons why countries borrow.
(c) Highlight any three effects of a huge national debt on the economy of a country.