WASSCE ECONOMICS MAY/JUNE 2006 (SSCE WAEC MAY/JUNE 2006 ECONOMICS)
1. The study of Economics enables individual to
A. Change jobs
B. evades taxes
C. accumulate huge wealth
D. make ration decisions
2. Most of the problems of economics arises as a result of
A. competing demands for scarce resources
B. Increase in the demand for more goods and services
C. the desire of producers to supply more goods and services
D. the need to reduce the level of poverty
3. Which of the following tools of economic analysis is used when data contains more than one category?
A. Bar charts
B. Component bar charts
C. graphs
D. symbolic statement
4. The reward to capital as a factor of production is
A. Rent
B.rent
C. interest
D. commission
5. Mining is an example of
A. tertiary production
B. Primary production
C. secondary production
D. advanced production
6. An owner-manager of a firm can also be called
A. a shareholder
B. an entrepreneur
C. an employer
D. a chairman
7. If the fixed cost of a firm is 800Naira and its variable cost 2,700Naira, while its total output is 100 units. What is the average cost of the firm?
A. 25Naira
B. 35Naira
C. 45naira
D. 50 Naira
8. Distribution of goods and services is hindered by
A. good road network
B. efficient storage facilities
C. too many middlemen
D. adequate market information
9. A movement along the same demand curve either upward or downwards as a result of changes in prices implies
A. A change in demand
B. a change in quantity demanded
C. an increase in demand
D. a shift in the demand
10. Middlemen in an economy perform the function of
A. distribution
B. exchange
C. hoarding
D. protection
11. One of the factors affecting geographical distribution of population is
A. high birth rate
B. high death rate
C. encouragement of early marriages in the rural areas
D. Climatic conditions of the different parts of the country
12. Standardization of products or services is a feature of
A. large firms
B. retailers
C. small firms
D. wholesalers
13.The amount of satisfaction obtained from the consumption of a commodity at a particular time is called
A. Marginal utility
B. diminishing utility
C. average utility
D. fixed utility
14. What are inferior good? These are goods
A. that are generally in short supply
B. that are no longer in demand
C. whose demand falls as income increases
D. whose price falls as demand increases
15. In the analysis of utility theory, the basis of demand is
A. marginal utility
B. average utility
C. fixed utility
D. Diminishing utility
16. In the normal market situation, when the price of a commodity rises, the
A. demand for the commodity will rise
B. demand for the commodity will fall
C. supply of the commodity will be constant
D. supply of the commodity will fall
18. When the quantity of a commodity supplied is normally determined by the
A. law of demand
B. interaction of the forces of demand and supply
C. total number in the market
D. total quantity of the commodity in the market
19. The mechanism which allows price of a commodity to be fixed either above or below the equilibrium is known as
A. Monopolistic competition
B. price discrimination
C. perfect competitive market
D. price control
20. A debenture holder is entitled to payment in the form of
A. allowance
B. Interest
C. salary
D. donation
21. The main difference a private and public enterprise is
A. Amount of profit realized
B. Mode of operation
C. Objective of the business
D. ownership structure
22. The total amount of money raised by a company through issuance of shares to the public is
A. debentures
B. nominal capital
C. ordinary shares
D. paid up capital
23. Buying and selling shares is a function performed mostly by the
A. insurance companies
B. stock exchange
C. merchant banks
D. Discount houses
24. Which of the following is not reason for establishing public enterprises?
A. Discouraging investors
B. Opening up neglected parts of the country
C. effective control of a natural monopoly
D. rapid economic development
25. For a monopolist, the average (AR) curve is
A. above the total cost curve
B. the same as the marginal cost curve
C. above the marginal revenue curve
D. the same as that of the perfect competitor
26. Advertising expenses would not be necessary under perfect competition because
A. consumer would have complete knowledge of goods
B. cost of production would be at the maximum level
C. every firm would enjoy the benefits of large scale production
D. incomes of the consumers in the community would be high
27. The equilibrium level of output of a monopolist is determined at a point where
A. Marginal cost equal average revenue
B. marginal cost equal average cost
C. marginal cost equals marginal revenue
D. marginal revenue equals average cost
28. Which of the following is a legal tender in West Africa?
A. treasury bills
B. Shares
C. Credit card
D. currency
29. The policy of government to increase the supply of money to meet its own expenditure plans is likely to be
A. Speculative
B. deflationary
C./ Inflationary
D. Contractionary
30. The tendency for prices to rise while the value of money falls is known as
A. bill of exchange
B. Inflation
C. depreciation
D. deflation
31. One way to solve the economic problem of inflation in a country is by increasing the
A. Supply of commodities
B. supply of surrency
C. salaries of workers
D. demand of commodities
32. The motive for holding money for investing in securities is referred to as
A. transactionary
B. Speculative
C. Accumulation
D. deflationary
33. A cheque book is issued to customers to a bank operating a
A. Savings account
B. time deposit account
C. current account
D. fixed deposit account
34. Amount proposed for payment of wages and salaries in a budget is regarded as part of
A. recurrent expenditure
B. direct investment
C. recurrent revenue
D. capital receipts
35. The difference between the Gross National Product (GNP) and Gross Domestic Product (GDP) is
A. total interest payment
B. net income payment
C. total national savings
D.net income from abroad
36. Which of the following agricultural systems is mainly for cultivation of food crops for family consumption?
A. co-operative farming
B. commercial farming
C. subsistence farming
D. plantation farming
37. Agriculture is important to the economy of West African Countries because it is the source of
A. power
B. equipment supply
C. industrial input
D. technological progress
38. The economic system in which the state takes economic decisions throught detailed planning is
A. capitalism
B. Socialism
C. traditional economic system
D. mixed economy system
39. A mixed economy combines the characteristics of both
A. planned and capitalist economies
B. exchange and subsistence economies
C. subsistence and planned economies
D. capitalist and exchange economies
40. In a rapidly growing economy a change in technology which is labour saving is likely to cause
A. residual unemployment
B. structural unemployment
C. disguised unemployment
D. frictional unemployment
41. Which of the following is a form of tax evasion
A. Wrong declaration of earnings
B. payment of flat rate tax
C. constant change of employment
D. low capacity utilization
42. Where the burden of a tax finally rest is called
A. tax object
B. tax rate
C. incidence of taxation
D. system if taxation
43. An increase in the quantity of goods and services produced in a country which raises her national income is known as
A. economic development
B. economic growth
C. domestic investment
D. productivity
44.The formula is used to measure the
A. volume of trade between countries
B. direction of international trade
C. commodity terms of trade
D. volume of imports
Use the table below to answer question 45
|
Products |
Ghana |
Sierra Leone |
|
Coffee |
8 tonnes |
2 tonnes |
|
Cocoa |
7 tonnes |
5 tonnes |
45. If specialization should take place, then
A. Ghana should produce coffee and cocoa
B. Ghana would benefit by producing cocoa only
C. Sierra Leone should produce not produce any of the products
D.. Sierra Leone should produce cocoa and Ghana coffee
46. Which of the following is an invisible item?
A. Banking services
B. Petroleum products
C. processed rice
D. processed milk
47. In an attempt to correct a deficit balance of payments, acountry may decide to increase
A. domestic production
B. imports
C. domestic expenditure
D. tax on infant industry
48. Which of the following is an objective of economic integration?
A, Harmonization of cultural practices
B. free movement of persons, goods and services
C. payment of high tariffs
D. Dumping of goods and services in less developed countries
49. One of the functions of the international Monetary Fund IMF is to
A. devalue the currency of member countries
B. reduce drastically the size of deficit financing of member states
C. give financial assistance to member states that have temporary balance of payment
D. Discourage the rapid industrialization process in the less developed nations of the world
50. The full of meaning of OPEC is
A. Oil and Petroleum Exporting Countries
B. Original Petroleum Exporting Companies
C.. Organization of Petrol Exporting Countries
D. Organization of Petroleum Exporting Countries
Economics 2005
1. Economic activities are untaken to solve the problem of
A. Consumption
B. Opportunity cost
C. production
D. Scarcity
2. Farming, Mining and fishing are
A. Primary production
B. Secondary production
C. tertiary production
D. intermediate production
3. A list of consumers’ wants arranged in order of priority is known as
A. a budget
B an opportunity cost
C. a scale of preference
D .a choice
4. The 150.00 Naira which Olu would have used to purchase a textbook was used to buy a T-Shirt. This implies that
A. Olu’s real cost is 150.00 Naira
B. Olu’s opportunity cost is T-shirt he brought
C. Olu’s opportunity cost is the textbook
D.Olu’s money cost is also the real cost
5. The remuneration of the entrepreneur as a factor of production is called
A. Wages
B. Salary
C. Interest
D. profit
6. The production factor whose entire world supply is fixed is
A. land
B. skilled labour
C. capital goods
D. entrepreneurship
7. When all factor inputs are reduced by half, the production possibility curve wlll shift
A. outwards
B. inwards
C. downwards
D. upwards
8. When a worker changes from one type of job to another, it is called
A. geographical mobility of labour
B. occupational mobility of labour
C. immobility of labour
D.rural –urban migration
9. Which of the following determines the sizes of a country’s population
I. Birth rate
II. Death rate
III. Migration rate
IV. Unemployment rate
A. I, II and IV
B. II and IV
C. I, II and III
D. I and IV
10. Age distribution is important because it helps the government to
A. check rural-urban drift
B. determine the number of foreigners
C. determine the number of factories
D. undertake effective planning
11. A group of firm producing similar commodities for the same market constitute
A. a cartel
B. an industry
C. a co-operative
D. wholesalers
12. A factor that has slowed down the rate of industrial development in West Africa
A. inadequate technology
B. increasing rate of manpower production
C. increasing demand for local goods
D. intervention of the government in business activities
13. To achieve an equilibrium position, the consumer must buy so much of each commodity whose price is equal to its
A. marginal utility
B. total utility
C. average utility
D. variable utility
14. Price control refers to
A. the ways of making more goods available in the market
B. a policy of ensuring stable price in the market
C. a general reduction in the price level
D. effective working of the forces of demand and supply
15. The desire for goods without ability to pay is called
A. choice
B. effective demand
C. joint demand
D. wants
16. Amount of goods offered ti the market at respective prices and presented in a table is called
A. price schedule
B. supply schedule
C. scale of preference
D. demand schedule
17.At the equilibrium price, quantity demand is a
A. greater that quantity supplied
B. equal to quantity supplied
C. less than the quantity supplied
D. equal to excess supply
18.If the government fixed a price of a commodity above the equilibrium price, the quantity supplied will be
A. less than quantity demanded
B. equal to the quantity demanded
C. greater than quantity demanded
D. equal to zero
19. One of the factors determining price elasticity of demand for a commodity is the
A. availability of close substitute
B. number of producers
C. government policy
D. price of other commodities
20.If the elasticity of demand for a commodity is less than one, demand is
A. unitary elastic
B.inelastic
C. infinitely elastic
D. zero elastic
21. The transfer of ownership of a public enterprise to individual and firms is called
A. commercialization
B. nationalization
C. privatization
D. restructuring
22.One-man businesses are popular in West Afric because of all the following except
A. ease of entry
B small capital required
C. limited entrepreneur skill needed
D. tendency to become joint stock companies
23.Wholesalers are often criticised because they
A. help to break the bulk
B. finance producers
C. increase prices
D. provide after sale services
24. In which of the following business units are the owners mostly the customers?
A. co-operatives
B. Limited liability companies
C. Partnerships
D. Public corporations
25.Information about new goods is passed on to buys through
A. advertising
B. retail trade
C. the manufacturer
D. the wholesale trade
26. In the figure in the graph PN equals average revenue or the marginal revenue curve of
A. An imperfect competitive firm
B. a monopoly
C. a perfectly competitive firm
D. a monopolistic competitive firm
27. The profit of the producer can be calculated as
A. total cost less cost revenue
B. average revenue less average cost
C. total revenue less total cost
D. marginal revenue less marginal cost
28. The direct exchange of one good for another without the use of money is known as
A. foreign exchange
B. exchange money from people
C. desire of an individual to invest all his money in project
D. willingness of people to hold money
D willingness of people to keep all their resources in asset
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30
31. A persistent and appreciable rise in the general level of price is known as
A. depreciation
B. inflation
C. deflation
D. production
32. To a commercial bank, deposit are
A. liabilities
B. assets
C. capital
D. cash at hand
33. The lender of last resort in the banking system is the
A. Industrial bank
B. mortgage bank
C. commercial bank
D. central bank
34. Discount a bill of exchange mean the bill is
A, cashed over the counter
B. sold on the stock exchange
C. brought for less than its face value
35. The central bank control credit in the economy through the use of
A. legal tender
B. traveller cheque
C. foreign exchange instruments
D. open market operations
36. Among the principles of taxation propounded by Adam Smith was that
A. a tax should be impossible to evade
B. a tax should be convenient to pay
C. no tax should be levied on food
D. there should be no taxation without representation
37. Mr Bala’s income is $800 per month while that of Mr Jatau is $1,200If Messrs Bala and Jatau pay $80.00and $120.00 respectively as taxes, the tax system is
A. progressive
B. regressive
C. proportional
D.ad-valorem
38. Government revenue from groundnut industry is from
A. lincense
B. rents
C. royalities
D.taxes
39. The theory of comparative cost advantage is associated with
A. Alfred Marshall
B. Adam Smith
C. David Ricardo
B. J.B. say
40.When the value of a nation’s export is greater than its imports
A. a favourable balance of trade exist
B. an unfavourable balance of payment exists
C. The net foreign trade is zero
D. inflation occurs
41. To improve the balance of payments position of West African countries, there must be
A. a favourable balance of trade exists
B. an unfavourable balance of payment exists
C. the net foreign trade is zero
D. inflation occurs
42. The Economic Community of West Africa States (ECOWAS) is an example of
A. bilateral trade
B. economic integration
C.
43. One reason for the low agricultural production in West African Countries is that
A. agriculture employs the highest percentage of the labour force
B. too much money is invested in agriculture
C. farmers lack the finance and technology required
D. the farms are too large
44. Mono-product economies are those that
A. produce one main commodity
B. produce one raw material
C. depend on the export on their raw materials
D. specialize in agricultural industries
45.An essential characteristics of a market economy is
A. government control
B. producer surplus
C. consumer surplus
D. consumer sovereignty
46. In a capitalist system, goods are produced for those who
A. wants them most but cannot pay for them
B. can pay for them but do not want them
C. want them and can also pay for them
D. are dependent on the labour force
47. An economy which exhibit features of both private and state enterprises is known as
A. capitalist economy
B. mixed economy
C. communist economy
D. socialist economy
48.In calculating the national income of a country X, the cost of both raw material and the finished products were included . This is case of
A. double counting
B. price fluctuations
C. price differentiation
D. price discrimination
49. Economic development is defined as
A. outward shift of the production possibility curve
B. availability of more goods and services
C. growth accompanied by qualitative change in living standards
D. growth in the national income
50. Which of the following is not an objective of the Organization of petroleum Exporting Countries (OPEC)?
A. Stabilization of oil prices
B. co-ordinating oil prices
C. harmonizing oil price
D.stagnation of developed economies