WAEC Economics 2023 past questions and answers

The study of economics is mainly concerned with how to

1. A.rank individuals' wants given the abundant resources.
2. B.make choice when resources are inadequate.
3. C.satisfy every member of all societies.
4. D.produce all the goods needed by everyone.

Warehousing is an economic activity that falls under

1. A.tertiary production.
2. B.intermediate production.
3. C.secondary production.
4. D.primary production.

Which of the following items is not classified as working capital?

1. A.Equipment
2. B.Fuel
3. C.money to pay wages
4. D.Semi-finished goods

An economic system is mainly concerned with

1. A.handling situations of abundant resources.
2. B.studying the relationship between ends and means.
3. C.the establishment of economic laws.
4. D.the allocation of scarce resources between alternative ends.

The marks obtained by 9 students in a class test are recorded below: 9, 8, 7, 5, 7, 6, 8, 9, and 7. What is the median mark?

1. A.7
2. B.7.5
3. C.8
4. D.8.5

The demand for a factor input as a result of the demand for its output is known as

1. A.complementary demand.
2. B.competitive demand.
3. C.derived demand.
4. D.market demand.

If the demand for a commodity remains constant as price increases, the commodity is said to be

1. A.price elastic.
2. B.unit price elastic.
3. C.price inelastic.
4. D.perfectly price inelastic.

When more of the tax on a product is borne by the buyer than the seller, the commodity involved has

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

A fall in the price of a normal commodity which has elastic demand will result in

1. A.a fall in quantity demanded.
2. B.an increase in revenue.
3. C.a fall in demand.
4. D.a decrease in revenue.

The supply of light could be met using a candle, lantern and gas lamp. This is an example of a

1. A.complementary supply.
2. B.joint supply.
3. C.composite supply.
4. D.abnormal supply.

Petrol and kerosene are jointly obtained from crude oil. If the supply of petrol increases, the

1. A.supply of kerosene will fall.
2. B.cost of crude oil production has increased.
3. C.supply of kerosene will rise.
4. D.supply of kerosene will remain unchanged.

If the government stops subsidy on cocoa production, the supply curve of cocoa will

1. A.shift to the right.
2. B.become vertical.
3. C.shift to the left.
4. D.remain unchanged.

When the marginal utility from the consumption of commodity X (MU_x) is greater than the price of commodity X (P_x), a rational consumer should

1. A.consume more of commodity X.
2. B.reduce consumption of commodity X.
3. C.consume the same quantity of commodity X.
4. D.strive to remain in disequilibrium.

When the demand for a commodity increases while supply remains unchanged, the equilibrium price and quantity will

1. A.remain constant.
2. B.decrease.
3. C.increase.
4. D.turn negative.

The fixing if maximum prices by government is mainly on

1. A.inferior goods.
2. B.luxury goods.
3. C.imported capital goods.
4. D.selected essential goods.

At what point on the total product curve shown below will marginal product be negative?

1. A.P
2. B.Q
3. C.R
4. D.S

A small scale firm located within an industrial estate will enjoy

1. A.government protection and funding.
2. B.technological economies of scale.
3. C.external economies of scale.
4. D.financial economies of scale.

The total fixed cost curve is

1. A.vertical.
2. B.horizontal.
3. C.downward sloping.
4. D.upward sloping.

If a firm retrenches some of its factory workers, its

1. A.fixed cost is likely to increase.
2. B.marginal cost may increase.
3. C.average fixed cost may increase.
4. D.variable cost will decline.

A monopolist may enjoy abnormal profit only if its

1. A.marginal cost exceeds marginal revenue.
2. B.demand curve is perfectly elastic.
3. C.price exceeds average total cost.
4. D.expenditure on advertisement increases.

The average revenue curve of a firm in a perfect market is the same as the

1. A.supply curve of the firm.
2. B.demand curve of the firm.
3. C.total revenue curve of the firm.
4. D.average cost curve of the firm.

Resources are pooled for the mutual benefits of its members mainly in a

1. A.joint stock company.
2. B.partnership.
3. C.private company.
4. D.cooperative society.

A joint stock company enjoys perpetual existence because

1. A.it is formed by a minimum of seven members.
2. B.it is a corporate entity.
3. C.its shares are easily transferable.
4. D.there is a higher degree of specialization.

Consumers have access to a variety of goods through the activities of the

1. A.advertising agencies.
2. B.wholesalers.
3. C.retailers.
4. D.mass media.

The rate of growth of population is

1. A.the difference between birth rate and death rate.
2. B.birth rate less death rate plus net migration.
3. C.initial population plus number of births and net migration.
4. D.the number of immigrants plus number of births.

The Malthusian theory of population is best illustrated when

1. A.both population and food supply increase at the same rate.
2. B.population increases much faster than food supply.
3. C.the size of the population and available resources are equal.
4. D.food supply increases much faster than population growth.

The dependency ratio of a country is the

1. A.total active population who depend on government for survival.
2. B.number of children who depend on their parents for survival.
3. C.children and aged who rely on the active population for support.
4. D.people who are cared for by their extended families.

When job vacancies are publicized, the government is mainly trying to solve the problem of

1. A.residual unemployment.
2. B.frictional unemployment.
3. C.technological unemployment.
4. D.cyclical unemployment.

Many workers are employed in the agricultural sector of developing countries because

1. A.they practice mechanized system of farming.
2. B.labour intensive method is mostly adopted.
3. C.wages in the sector is high.
4. D.abnormal profits are made.

Industries are sometimes located in areas which are not profitable so as to

1. A.encourage rural-urban migration.
2. B.be able to reap internal economies of scale.
3. C.be able to even-out development.
4. D.bring about external economies of scale.

One factor that may not promote industrial development is

1. A.granting old firms tax exemptions.
2. B.local firms entering into partnerships with foreign firms.
3. C.setting up industrial estates with modern amenities.
4. D.granting capital to firms at reasonable interest rates.

To overcome the problem of double counting under the expenditure approach,

1. A.value added method is used.
2. B.only spending on final goods are considered.
3. C.proper accounting standards must be used.
4. D.spending on intermediate goods and inputs are considered.

The Net National Product (NNP) of a country is $50m while the depreciation allowance is $10m. The Gross National Product (GNP) is

1. A.$30m.
2. B.$40m.
3. C.$60m.
4. D.$500m.

The price level and the value of money are

1. A.inversely related.
2. B.directly related.
3. C.not related.
4. D.positively related.

Money is able to function more as a medium of exchange when

1. A.more people engage in subsistence production.
2. B.there is a fall in production.
3. C.there is specialization of labour.
4. D.individuals and nations are self-sufficient.

An indication that there is inflation in a country is that

1. A.there is a decrease in the demand for goods and services.
2. B.there are too many goods in circulation.
3. C.the same amount of money buys lower quantity of goods.
4. D.people prefer to lend than to borrow.

The most liquid asset among the following is

1. A.shares.
2. B.bonds.
3. C.cash.
4. D.cheque.

Commercial banks help in economic development mainly by

1. A.acting as intermediaries between lenders and borrowers.
2. B.giving financial advice to the government.
3. C.acting as trustees and executors of wills.
4. D.serving as custodians of valuables.

Taxes levied on goods and services by governments are called

1. A.direct taxes.
2. B.corporate taxes.
3. C.indirect taxes.
4. D.poll taxes.

Use the diagram below to answer the question. The curve labelled W shows the

1. A.proportional tax.
2. B.progressive tax.
3. C.specific tax.
4. D.regressive tax.

An example of government's recurrent expenditure is

1. A.the cost of building a school.
2. B.paying salaries of workers.
3. C.purchase of new vehicles.
4. D.electrification projects in rural areas.

A country is described as developing if

1. A.the population is decreasing.
2. B.there is low labour supply.
3. C.the contribution of tertiary sector to national income is high.
4. D.the income per head is low.

Tariffs, quotas and embargoes are examples of

1. A.foreign exchange policies.
2. B.trade restriction policies.
3. C.fiscal policies.
4. D.monetary policies.

Trade protection will assist economic growth in developing countries if it can

1. A.eliminate importation of all commodities.
2. B.generate enough revenue through export duties.
3. C.effectively safeguard newly established firms.
4. D.allow the importation of cheaper goods people want.

A government may cause a favourable change in her invisible trade account by

1. A.increasing the export of her primary products.
2. B.imposing high tariff on exports.
3. C.developing tourism and other services.
4. D.encouraging people to go for medical treatment abroad.

Country M enjoys absolute advantage over country N in the production of commodities X and Y, if country M

1. A.can produce only commodity Y cheaper than country N.
2. B.is more efficient than country N in producing both commodities X and Y.
3. C.is inefficient in the production of both commodities X and Y.
4. D.and country N is efficient in the production of both goods.

Which of the following is not a problem facing the Economic Community of West African States (ECOWAS)?

1. A.Language barriers
2. B.Production of the same commodities
3. C.Poor transportation and communication
4. D.Inadequate supply of labour

Assisting members to solve temporary balance of payments problems is the reason for the establishment of the

1. A.World Bank.
2. B.International Monetary Fund.
3. C.African Development Bank.
4. D.Economic Commission for Africa.

Which of the following is a non-renewable natural resource?

1. A.Cocoa
2. B.Oil palm
3. C.Coal
4. D.Rubber

The equilibrium position of a firm is illustrated in the diagram below. Study the diagram and answer the questions that follow.
(a) Determine the firm's: (i) equilibrium output level; (ii) equilibrium price.
(b) At the equilibrium output level, calculate the firm's: (i) total cost; (ii) total revenue; (iii) total profit.
(c) Is the firm operating in the long-run or short-run? Explain your answer.
(d)(i) What type of market is the firm operating in? (ii) List three features of the market type identified in d (i).

Table 1 below represents the output levels of a firm producing hand sanitizer. Use the information to answer the questions that follow.
Output (units) | 0 | 10 | 18 | 28 | 36 | 45
If the cost function of the firm is given as C = 30 + 4q, where C is the total cost and q is the units produced, calculate the:
(a) total cost in dollars of producing: (i) 18 units; (ii) 36 units.
(b) Average cost in dollars of producing: (i) 28 units; (ii) 45 units.
(c) What is the marginal cost in dollars of producing 28 units?
(d) Determine the profit made from producing 45 units when the market price is fixed at $5.00 per unit.
(e) Determine the fixed cost of the firm. Explain your answer.

(a) Distinguish between: (i) money cost and opportunity cost; (ii) normal good and inferior good.
(b) Explain how the scale of preference assists the following economic groups in making efficient allocation of their resources: (i) individuals; (ii) firms; (iii) governments.

(a) Define economic system.
(b) Distinguish between a capitalist economy and a socialist economy under the following: (i) aim of production; (ii) consumer sovereignty; (iii) competition.
(c) State three features of land as a factor of production.

(a) Differentiate between a sole proprietorship and a partnership.
(b) List four characteristics of a sole proprietorship.
(c) Outline four advantages of a public limited liability company.

(a) Define location of industry.
(b) Explain how the following factors influence where a firm is sited: (i) raw materials; (ii) market; (iii) government policy.
(c) Outline three advantages of localization of industry.

(a) Define Gross Domestic Product (GDP).
(b) Describe the output approach as a method of computing national income.
(c) Identify any three problems associated with the expenditure approach of calculating national income.

(a) What is an embargo?
(b) Outline any three reasons for imposing tariffs on imports.
(c) Explain any three reasons against the use of tariffs.