2016 WAEC (WASSCE) Economics Past Questions & Answers

Question 1

Which of the following financial institutions cannot be found on the capital market of a country

Accepted Answer

A. commercial bank

Answer

B. mortgage bank

Answer

C. stock exchange

Answer

D. Agricultural bank

Question 2

Balance of payment surplus implies that receipts for exports are

Accepted Answer

B. greater than payment for imports

Answer

A. at par with payments for imports

Answer

C. less than payment for imports

Answer

D. proportional to payments for imports

Question 3

The difference between GDP and GNP

Accepted Answer

C. net factor income from abroad

Answer

A. consumption of fixed capital

Answer

B. indirect business tax

Answer

D. public transfer payment

Question 4

The tendency for workers to value their leisure hours more than hours of work as wage rate increases gives rise to

Accepted Answer

C. backward bending supply curve

Answer

A. positively sloping supply curve

Answer

B. perfectly elastic supply curve

Answer

D. perfectly inelastic

Question 5

Indigenization policy is a measure aimed at

Accepted Answer

C. reducing foreign economic domination

Answer

A. privating the existing business owned by the state

Answer

B. commercializing state owned businesses

Answer

D. making the indegenes managing directors of businesses

Question 6

A bank note is said to be a legal tender because it is

Accepted Answer

D. backed by law

Answer

A. printed by government

Answer

B. a store of value

Answer

C. signed by the head of state

Question 7

Which of the following cannot be classified as land in economics

Accepted Answer

C. A bulldozer for clearing farm land

Answer

A. Bauxite deposit in the ground

Answer

B. A lake used for irrigation

Answer

D. Grazing field for cattle

Question 8

During Inflation, interest rate will

Accepted Answer

A. rise

Answer

B. flunctuate

Answer

C. remain constant

Answer

D. fall

Question 9

The long run is a period when

Accepted Answer

B. all factors become variable

Answer

A. only the variable factors can be altered

Answer

C. the firm will cease to exist

Answer

D. only the fixed factors can be altered

Question 10

A country allocation to various sectors of the economy is shown in the pie chat below, use it to answer question 5 and 6 If the budget of the country was $7,200, how much is allocated to Education?

Accepted Answer

B. $2,000.00

Answer

A. $2,400.00

Answer

C. $1,200.00

Answer

D. $1,000.00

Question 11

The type of unemployment that occurs as a result physical or mental disability of labour is known as

Accepted Answer

D. residual unemployment

Answer

A. frictional unemployment

Answer

B. structural unemployment

Answer

C. cyclical unemployment

Question 12

In a partnership, the conduct of members is guided by

Accepted Answer

B. the article of partnership

Answer

A. a memorandum of understanding

Answer

C. an article of association

Answer

D. a partnership constitution

Question 13

Charging different prices for the same commodity is a feature of a

Accepted Answer

D. monopoly market

Answer

A. perfect competition

Answer

B. commodity market

Answer

C. monopolistic competition

Question 14

Scale of preference is important for the following reasons except in

Accepted Answer

A. satisfying wants

Answer

B. making rational

Answer

C. making optinum allocation of resources

Answer

D. using scarce resources efficiently

Question 15

An entrepreneur is encouraged to adopt division of labour in production because it

Accepted Answer

B. leads to increased output and lower cost of production

Answer

A. provide more employment opportuinities

Answer

C. brings about equal cost and employment opportuinities

Answer

D. leads to increased cost of production and lower output

Question 16

Which of the following will encourage capital intensive farming

Accepted Answer

C. provision of subsidies on equipment

Answer

A. encouraging  communal system of land ownership

Answer

B. adopting policies that will encourage rural-urban migration

Answer

D. Restrictive lending policies by banks

Question 17

Location of firm in rural areas may

Accepted Answer

C. enhance even or balanced development

Answer

A. enable the firm to enjoy existing infrastructural facilities

Answer

B. make finance readily avalaible

Answer

D. make such firm enjoy external economics of scale

Question 18

If the quantity of men's hat demanded per week is represented by the function Qd=20-$\frac{1}{3}$P, where P is price, how many hats are demanded when the price is $9.00?

Accepted Answer

B. 17

Answer

A. 11

Answer

C. 23

Answer

D. 47

Question 19

Which of the following measures will hinder efficient distribution of goods in West Africa

Accepted Answer

C. instituting price control

Answer

A. Improving roads networks

Answer

B. provision of adequate storage facilities

Answer

D. formation of producers' co-operative societies

Question 20

Price elasticity of demand or supply measures how responsive

Accepted Answer

A. consumers are to a change in price

Answer

B. sellers are to a change in price

Answer

C. sellers are to a change in price

Answer

D. buyers are to a change in income

Question 21

The principle of comparative cost advantage was propounded by

Accepted Answer

A. David Ricardo

Answer

B. Alfred Marshal

Answer

C. J. S Mill

Answer

D. Adam Smith

Question 22

When the international value of a country's currency rises, other things being equal, the country's

Accepted Answer

B. imports tend to increase

Answer

A. net exports tend to increase

Answer

C. net exports tend to decrease

Answer

D. export tend to be stable

Question 23

Human wants are insatiable because wants are

Accepted Answer

D. unlimited while means are scarce

Answer

A. limited while means are scarce

Answer

B. unlimited and means are also unlimited

Answer

C. limited and means are also limited

Question 24

When a number of countries agree to remove all trade barriers among themselves and at the same time charge a common tariff against non member countries, it known as

Accepted Answer

C. custom union

Answer

A. free trade area

Answer

B. common market

Answer

D. economic community

Question 25

In a socialist economy, prices of commodities are determined by

Accepted Answer

C. the central planning authority

Answer

A. forces of demand and supply

Answer

B. producers of the commodities

Answer

D. consumers who are sovereign

Question 26

The rate at which a country's export is exchanged for her imports is

Accepted Answer

C. term of trade

Answer

A. trade balance

Answer

B. balance of payment

Answer

D. balance on current account

Question 27

Which is following is a cause of under-development in West Africa

Accepted Answer

B. increasing population

Answer

A. Availability of manpower

Answer

C. high rate of capital formation

Answer

D. large size of market places

Question 28

Efficiency of labour in a country is determined by the following factor except the

Accepted Answer

D. total polulation

Answer

A. social attitude to work

Answer

B. education and training

Answer

C. working conditions of workers

Question 29

The supply of rice in tons is given by the equation: Qs -80 - 0.7P = 0. Where Qs = Quantity supplied P = price in naira. Find Qs, when P = N40

Accepted Answer

A. 108ton

Answer

B. 52tons

Answer

C. -52tons

Answer

D. -108tons

Question 30

The necessary condition for a firm to be in equilibrium is that marginal revenue is

Accepted Answer

B. equal to marginal

Answer

A. greater than marginal

Answer

C. less than average revenue

Answer

D. equal to average

Question 31

One feature of a growing population

Accepted Answer

A. increase in the number of young people

Answer

B. increase in the number of old people

Answer

C. decrease in the dependent population

Answer

D. decrease in the life expectancy

Question 32

Fiscal policy that can control inflation will include the use of

Accepted Answer

D. budget surplus

Answer

A. balanced budgeting

Answer

B. tax holidays

Answer

C. budget deficit

Question 33

One of the physical measures that can be used to reduce the volume of imports is the

Accepted Answer

C. use of foreign exchange control

Answer

A. reduction of personnel income tax

Answer

B. removal of imports duties

Answer

D. liberalization of credit for importers

Question 34

At which stage of production should a firm shut down? when

Accepted Answer

C. AVC>price

Answer

A. AVC=ATC

Answer

B. AVC

Answer

D. AVC=MC

Question 35

International income accounting, double counting occurs when

Accepted Answer

B. intermediate goods are counted with the final goods

Answer

A. intermediate goods are counted twice

Answer

C. final goods are counted more than twice

Answer

D. different people count the products

Question 36

Which of the following items is not included in the measurement of the national income using the income approach

Accepted Answer

B. government purchases

Answer

A. wages and salary

Answer

C. interest

Answer

D. divedend

Question 37

What effect will an increase in price have on the total revenue of a firm whose product has inelastic demand? total revenue will

Accepted Answer

A. increase

Answer

B. fall

Answer

C. fluctuate

Answer

D. remain unchanged

Question 38

A price floor results in

Accepted Answer

B. excess supply

Answer

A. excess demand

Answer

C. parallel market

Answer

D. hoarding of goods

Question 39

The demand curve for neccessity is usually

Accepted Answer

D. negatively sloped

Answer

A. vertical

Answer

B. backward bending

Answer

C. horizontal

Question 40

The stock market is a market for

Accepted Answer

A. new and second hand shares

Answer

B. debentures

Answer

C. goods and services

Answer

D. short terms securities

Question 41

Which of the following is not a major problem of development

Accepted Answer

D. poor identification of projects

Answer

A. shortage of skilled manpower

Answer

B. inadequate data for planning

Answer

C. political instability

Question 42

Which of the following international organizations is concerned with the stabilization of the balance of payments? the

Accepted Answer

A. International Monetary Fund (IMF)

Answer

B. World Bank (IBRD)

Answer

C. United Nations Organization (UNO)

Answer

D. Economic Commission for Africa (ECA)

Question 43

The demand for torch and batteries is an example of

Accepted Answer

C. complementary demand

Answer

A. competitive demand

Answer

B. composite demand

Answer

D. derived demand

Question 44

Indirect taxes are generally

Accepted Answer

B. regressive

Answer

A. progressive

Answer

C. equitable

Answer

D. proportionate

Question 45

Cost push inflation is likely to arise when

Accepted Answer

D. rise in the cost of production.

Answer

A. there is an increase in banking lending

Answer

B. there is an increase in subsidies

Answer

C. stock exchange

Question 46

How does producers expectation of a price fall affect the supply curve of a product? There will be

Accepted Answer

D. a shift to the right

Answer

A. a moment along the curve

Answer

B. a leftward shift

Answer

C. no shift of the supply curve

Question 47

Which of the following best explains why more foreign investments are not attracted to West Africa

Accepted Answer

C. instability in political and industrial policies

Answer

A. Small population size

Answer

B. small sizes of market places

Answer

D. lack of manpower needed to work in industries

Question 48

One relationship between marginal utility and total utility. When total is

Accepted Answer

B. falling, marginal utility is negative

Answer

A. rising, marginal utility is rising

Answer

C. maximum, marginal utility is maximum

Answer

D. falling, marginal utility is rising

2016 WAEC (WASSCE) Economics Past Questions

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