2018 WAEC (WASSCE) Economics Past Questions & Answers

Question 1

if workers at the school canteen sell during the holidays, this is an example of?

Accepted Answer

C. seasonal unemployment

Answer

A. structural unemployment

Answer

B. frictional unemployment

Answer

D. residual unemployment

Question 2

one benefit a country can derive from the extraction of crude oil is increase in?

Accepted Answer

B. employment

Answer

A. population

Answer

C. money

Answer

D. demand for imports

Question 3

The International bank for reconstruction and development (IBRD) performs the following functions except?

Accepted Answer

C. reducing tariff among members

Answer

A. granting long-term loans

Answer

B. assisting with technical expertise

Answer

D. developing human resource

Question 4

The largest component of national income in developing countries consist of?

Accepted Answer

D. wages and salaries

Answer

A. profits

Answer

B. profit and rent

Answer

C. rent

Question 5

the organisation of productive factors is the reponsibility of the?

Accepted Answer

B. entrepreneur

Answer

A. management

Answer

C. production manager

Answer

D. labour union

Question 6

Nations engage in international trade because of difference in?

Accepted Answer

B. comparative cost

Answer

A. absolute cost

Answer

C. fixed cost

Answer

D. variable cost

Question 7

public limited liability companies are democratic in nature because?

Accepted Answer

D. shareholders elect the board of directors

Answer

A. government appointees are members of the board

Answer

B. they are run by elected public officers

Answer

C. electoral principles are adopted in the day-to-day management

Question 8

in the event of bankruptcy owners of joint-stock companies lose?

Accepted Answer

C. only the capital invested

Answer

A. their private properties

Answer

B. both company and private properties

Answer

D. only their dividends

Question 9

one advantage of international trade is that

Accepted Answer

D. it makes possible the consumption of variety of goods

Answer

A. prices of goods become stable

Answer

B. countries become self-sufficient

Answer

C. goods consumed are produced at a very high cost

Question 10

which of the following factors is not a reason for farmer's unstable incomes

Accepted Answer

A. dependence on too many crops

Answer

B. poor storage facilities

Answer

C. adverse weather condition

Answer

D. recession in the world economy

Question 11

what happens when the central bank increases bank rate in an economy

Accepted Answer

A. borrowing is discouraged

Answer

B. customers increase their borrowing

Answer

C. banks can increase their lending

Answer

D. money supply increases

Question 12

Economic problem arise in all society because?

Accepted Answer

C. resources are not in adequate supply

Answer

A. resources are mismanaged by leaders

Answer

B. there is no proper planning

Answer

D. the services of economist are not employed

Question 13

in the the longrun, a firm must shut down if its average revenue is?

Accepted Answer

B. less than average variable cost

Answer

A. greater than average cost

Answer

C. equal to the minimum average cost

Answer

D. equal to the average cost

Question 14

which of the following is not a measure for reducing balance of payments deficits?

Accepted Answer

B. reducing tarriffs

Answer

A. export drive

Answer

C. adding to export goods

Answer

D. increasing local production

Question 15

which of the following measure can be adopted to stabilize the external value of the local currency?

Accepted Answer

D. reduce the demand for imports

Answer

A. reduce the volume of export

Answer

B. increase the demand for imports

Answer

C. increase domestic money supply

Question 16

if a housewife has meat and tomatoes, she must find someone who wants meat and has tomatoes to give. this concept is described as?

Accepted Answer

D. double of coincidence of wants

Answer

A. opportunity cost

Answer

B. scale of preference

Answer

C. complementary demand

Question 17

which of the following cannot be classified as a natural resource

Accepted Answer

A. iron rod

Answer

B. wild life

Answer

C. solar energy

Answer

D. gold

Question 18

local firms can help in reducing unemployment in a country when?

Accepted Answer

B. imports of substitutes are reduced

Answer

A. land acquisition becomes centralized

Answer

C. waste in the firm is eliminated

Answer

D. subsidies to firms are decreased

Question 19

a downward sloping demand curve means that?

Accepted Answer

D. price must be lowered to sell more

Answer

A. total revenue declines as price is lowered

Answer

B. demand falls as output rises

Answer

C. demand falls as output falls

Question 20

which of the following is true about supply of land?

Accepted Answer

D. is fixed

Answer

A. its higher in the urban than rural areas

Answer

B. varies with time

Answer

C. rises with demand

Question 21

A market is in equilibrium when?

Accepted Answer

B. the demand is the same as the supply

Answer

A. there is no government intervention

Answer

C. buyers and sellers are free to sell more goods

Answer

D. there is no free entry and exit

Question 22

wholesalers play an important role in the distribution of goods and services because they?

Accepted Answer

B. finance both producers and retailers

Answer

A. are located very close to consumers

Answer

C. pass information on from retailers to consumers

Answer

D. sell in small units to consumers

Question 23

goods whose demand vary directly with money income are called?

Accepted Answer

D. normal goods

Answer

A. inferior goods

Answer

B. complementary goods

Answer

C. substitutes

Question 24

which of the following forms of economic integration is a member nation free to impose duty against

Accepted Answer

B. free trade area

Answer

A. custom union

Answer

C. common market

Answer

D. economic community

Question 25

which of the following activities will not lead to economic growth?

Accepted Answer

D. massive importation of consumer goods

Answer

A. massive importation of capital goods

Answer

B. intensive capital formation locally

Answer

C. use of modern technology

Question 26

at output level 5, the total variable cost is?

Accepted Answer

C. $55.00

Answer

A. $5.00

Answer

B. $20,00

Answer

D. $35.00

Question 27

in a country with large population of full-time housewives, national income

Accepted Answer

D. figures will be grossly under-stated

Answer

A. will be composed of goods produced by women

Answer

B. figures will be grossly over-stated

Answer

C. statistics will be difficult to calculate

Question 28

positive checks as envisaged by Thamos Malthus can be prevented if

Accepted Answer

D. more restraint is adopted

Answer

A. date rate is reduced

Answer

B. marriage is abolished

Answer

C. more hospitals are built

Question 29

Holding money to take care of contigencies is?

Accepted Answer

C. a precautionary motive

Answer

A. a speculative motive

Answer

B. a transaction motive

Answer

D. an expansionary motive

Question 30

an industry is described as a group of firms

Accepted Answer

C. which produces similar products

Answer

A. that provides jobs for many people

Answer

B. which uses advance technology in production

Answer

D. that provides jobs for few people

Question 31

which of the following is not emphasized in a production possibility curve

Accepted Answer

B. economic development

Answer

A. scarcity of resources

Answer

C. inefficiency in the use of resources

Answer

D. unemployment of labour

Question 32

demand pull inflation is likely to be caused by?

Accepted Answer

D. increasingly large budget deficit

Answer

A. an increase in the cost of factors inputs

Answer

B. increase in the income tax rate

Answer

C. increase in bank lending rates

Question 33

if the marginal utility of a commodity is equal to its price then

Accepted Answer

A. the consumer is in equilibrium

Answer

B. more of the commodity can be consumed

Answer

C. total utility is also equal to its price

Answer

D. the market is not in equilibrium

Question 34

A baker bought flour and other ingredients for $250.00, spent $52.00 on distribution, sold the bread for $320.00. the value added by the baker is?

Accepted Answer

C. $18.00

Answer

A. $302.00

Answer

B. $52.00

Answer

D. $622.00

Question 35

A price floor is usually fixed

Accepted Answer

D. above the equilibrium and causes surplus

Answer

A. at the equilibrium and causes shortage

Answer

B. above the equilibrium and causes shortage

Answer

C. below the equilibrium and causes shortage

Question 36

A firm average cost decreases in the longrun because?

Accepted Answer

A. increasing returns to scale

Answer

B. diminishing average returns

Answer

C. decreasing marginal returns

Answer

D. decreasing average fixed cost

Question 37

income is redistributed when the rich are progressively taxed and?

Accepted Answer

C. more public goods are provided

Answer

A. more private schools are established

Answer

B. subsidy is provided on petroleum products

Answer

D. farmers are given guaranteed prices

Question 38

palm oil and palm kernel are in?

Accepted Answer

A. joint supply

Answer

B. competitive demand

Answer

C. competitive supply

Answer

D. complementary demand

Question 39

if the price of commodity X rises and consumers shift to commodity Y, then commodity X and Y are?

Accepted Answer

A. substitutes

Answer

B. complements

Answer

C. inferior goods

Answer

D. bought goods

Question 40

the stock exchange is an example of the?

Accepted Answer

D. capital market

Answer

A. labour market

Answer

B. money market

Answer

C. commodity market

Question 41

the backward bending supply curve of labour indicates?

Accepted Answer

A. an abnormal supply situation

Answer

B. the law of supply

Answer

C. that labour supply and wage are directly related

Answer

D. that the elasticity of supply is uniform

Question 42

An electrical engineer who is teaching physics in a secondary school is said to be

Accepted Answer

A. under-employed

Answer

B. unemployed

Answer

C. fully employed

Answer

D. technically unemployed

Question 43

an exceptional demand curve can result from?

Accepted Answer

C. expectation of future price increase

Answer

A. increase in prices of raw materials

Answer

B. increase in the size of the population

Answer

D. change in taste of the consumer

Question 44

in order to increase revenue, government should tax commodities for which demand is?

Accepted Answer

B. price inelastic

Answer

A. perfectly price inelastic

Answer

C. price elastic

Answer

D. unitary elastic

Question 45

the poorer the country, the larger the percentage of labour force engaged in?

Accepted Answer

A. Agricultural

Answer

B. mining

Answer

C. trading

Answer

D. manufacturing

Question 46

producers operating in a free market economy are more efficient as a resulf of?

Accepted Answer

A. the existence of competition

Answer

B. the very few number of participants

Answer

C. the commitment of the shareholders

Answer

D. government regulation of their activities

Question 47

The larger a firm, the lower its cost of production This statement explains the?

Accepted Answer

B. concept of economies of scale

Answer

A. law of diminishing marginal returns

Answer

C. law of comparative cost advantage

Answer

D. theory of division of labour

Question 48

A supply curve parallel to the X- axis indicates?

Accepted Answer

B. infinitely elastic supply

Answer

A. fairly elastic supply

Answer

C. fairly inelastic supply

Answer

D. perfectly inelastic

Question 49

the total fixed cost is?

Accepted Answer

A. $7.00

Answer

B. $30.00

Answer

C. $20.00

Answer

D. $135.00

2018 WAEC (WASSCE) Economics Past Questions

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