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WAEC
1. Economics is regarded as a science because it _____
A. studies laws that governs human behaviour
B. uses scientific method to explain human behaviour
C. makes use of controlled experiments to explain human behaviour
D. makes use of machines to study human behaviour
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WAEC literary device
2. Which of the following cannot be described as land?
A. Forest
B. Diamond
C. Road
D. Crude oil
WAEC poetry terms
3. An outward shift of the production possibility curve shows that _____
A. production is shifting to the right
B. resources are under-utilized
C. economic growth has taken place
D. factors of production are moving outward
WAEC drama terms
4. The following constitute the criteria for identifying an economic system except _____
A. ownership of resources
B. scarcity of resources
C. method of decision-making
D. motivation for production
WAEC poetry terms
5. A disadvantage of the mean as a measure of central tendency is that it _____
A. is affected by extreme values
B. can only be used for continuous data
C. cannot be used to measure the qualities of a production
D. cannot be determined in grouped data
WAEC figures of speech
6. Which of the following is not an effect of many middlemen in the chain of distribution?
A. Shortage of commodities
B. Low retail prices
C. Hoarding of goods
D. High retail prices
WAEC rhyme scheme
7. If the price of flour rises, then bread’s _____
A. demand curve will shift to the left while supply curve will shift to the right
B. supply curve will shift to the left
C. supply curve will shift to the right
D. demand curve will shift to the right while supply curve remains unchanged
WAEC poetry terms
8. Which of the following is not a reason for abnormal demand?
A. Price of the commodity
B. Goods of ostentation
C. Giffen goods
D. Rare commodity
WAEC drama terms
9. Increase in production subsidies will shift _____
A. the demand curve to the left
B. the supply curve to the right
C. both the supply and demand curves to the left
D. the supply curve to the left and the demand curve to the right
WAEC poetry terms
10. The market supply curve slopes upward from left to right indicating that _____
A. producers pay high taxes
B. two commodities can be supplied at the same time
C. at a lower price, less is supplied
D. at a lower price, more is supplied and demanded
WAEC rhyme scheme
11. Government revenue will increase if taxes are levied on goods with _____
A. perfectly elastic demand
B. fairly elastic demand
C. perfectly inelastic demand
D. unitary elastic demand
WAEC prose terms
12. If a given change in price brings about a proportionately larger change in quantity demanded, then _____
A. demand is relatively price elastic
B. demand is relatively price inelastic
C. price elasticity of demand is unitary
D. price elasticity of demand is constant
WAEC literary device
13. If the price of a commodity Z falls and a consumer buys less of it, then commodity Z is _____
A. necessity
B. good of ostentation
C. giffen good
D. normal good
WAEC literary device
14. In order to calculate Total Utility (TU) from given levels of Marginal Utility (MU), one has to _____
A. subtract MU from TU
B. add MU from the various levels
C. multiply Mu by the initial TU
D. divide current MU by previous MU
WAEC figures of speech
15. Which of the following will not affect the market price of a commodity?
A. increase in demand
B. changes in taste
C. intersection of demand and supply
D. increase in supply
WAEC drama terms
16. All the following are methods of determining prices except ____
A. maximum pricing
B. rationing
C. minimum pricing
D. auctioning
WAEC poetry terms
17. The law of diminishing returns relates to _____
A. total utility
B. average utility
C. total product
D. marginal product
WAEC drama terms
18. By adding all the marginal products at each level of employment of the variable input, we obtain a value equal to _____
A. average product
B. total product
C. average variable cost
D. total cost
WAEC figures of speech
19. Total cost is obtained by _____
A. adding up the marginal cost at each level
B. dividing the total cost by output at each level
C. adding up the average variable cost at each level
D. adding up the average variable cost and total cost
WAEC literary device
20. Which of the following cost curve is not U-shaped? The _____
A. marginal cost curve
B. average fixed cost curve
C. average total cost curve
D. average variable cost curve
WAEC literary device
21. Which of the following business organizations is likely to experience disagreements between management and shareholders?
A. Co-operative society
B. Sole trader
C. Partnership
D. Joint-stock company
WAEC figures of speech
22. Which of the following is not a method of controlling monopoly?
A. preventing mergers
B. indigenization
C. privatization
D. imposing high profit tax
WAEC literary device
23. Which of the following features distinguishes a public limited company from a private limited company?
A. Perpetual existence
B. Limited liability
C. Legal entity
D. Sale of shares to the public
WAEC figures of speech
24. Inflation may occur if there is _____
A. excess supply over demand
B. increase in productivity
C. excessive demand with limited supply
D. increased government spending in a depressed economy
WAEC prose terms
25. Frictional unemployment occurs when _____
A. there is a change in the technique of production
B. job seekers lack information where jobs exist
C. bad weather prevents work from progressing
D. job seekers have disabilities
WAEC rhyme scheme
26. Which of the following will increase the demand for labour?
A. Increased wage rate
B. Labour’s demand for output
C. Low wage rate
D. Low marginal productivity of labour
WAEC poetry terms
27. One reason for low agricultural productivity in most West African countries is that _____
A. farmers are not capable for cultivating cash crops
B. it does not provide income to farmers with large families
C. farmers find it difficult getting help from financial institutions
WAEC literary device
28. The movement of labour from one grade to an entirely different grade is an example of _____
A. industrial labour mobility
B. horizontal occupational mobility
C. vertical occupational mobility
D. geographical mobility
29. Ten bags of wheat bought for $50 by a flour miller were sold for $65. What is the value added tax payable by the flour miller if the tax rate is 15%?
A. $7.50
B. $3.75
C. $2.25
D. $0.75
30. Which of the following is not a strong basis for trade union’s demand for higher wages? The _____
A. company is making higher profits
B. productivity of the workers has increased
C. members of the union have higher qualification
D. commodity produced by the workers is very essential
WAEC Shakespeare (The Tempest)
31. The difference between the gross domestic product (GDP) and the gross national product (GNP) is _____
A. depreciation
B. transfer payment
C. net income from abroad
D. direct taxes
32. Location of firms of an industry is not influenced by _____
A. availability of raw materials
B. existence of other firms
C. nearness to the source of money supply
D. government policy
WAEC Shakespeare (The Tempest)
33. In national income accounting, the term “net” is used to indicate that a value _____
A. includes income of foreigners
B. excludes income of citizens
C. includes depreciation
D. excludes depreciation
34. Which of the following best describes token money?
A. Money in the vaults of commercial banks
B. Currency and coins in circulation
C. Money with face value higher than its material content
D. Coins and notes made of poor quality materials
WAEC Shakespeare (The Tempest)
35. An industry is best described as _____
A. firms that sells a set of closely related commodities
B. a factory that produce different lines of products
C. a group of firms that sell a closely related products
D. industrial concern that is into production and selling of goods
36. In developing countries, a larger percent of the labour force is employed in the _____
A. trade sector
B. tertiary sector
C. primary sector
D. secondary sector
WAEC Shakespeare (The Tempest)
37. The main item traded on a stock exchange market is _____
A. treasury bills
B. traveller’s cheques
C. foreign currencies
D. new shares
38. The proportion of commercial banks total assets kept in the form of highly liquid assets is known as _____
A. demand deposit
B. fixed deposit
C. cash ratio
D. moral suasion
Use the information contained in the table above to answer questions 39 and 40
EXPECTED REVENUE
| ITEMS | AMOUNT ($)m |
| Rents and royalties | 75.00 |
| Company income tax | 150.00 |
| Customs and excise duties | 300.20 |
| Personal income tax | 80.00 |
| Fees and fines | 60.80 |
| Value added tax | 100.00 |
WAEC Shakespeare (The Tempest)
39. What is the total revenue from indirect tax?
A. $686.00 m
B. $400.20 m
C. $135.80 m
D. $100.00 m
40. What is the total revenue from non-tax sources?
A. $400.20 m
B. $375.20 m
C. $135.80 m
D. $75.00 m
WAEC Shakespeare (The Tempest)
41. Which of the following is not an objective of economic planning? Its _____
A. need to direct economic development of the country towards the direct direction
B. desire to ensure a sustained structural development of the country
C. desire to widen the gap between developing countries and the developed world
D. management of scarce resources in the face of unlimited wants of the citizens
42. In order to control inflation, the government should _____
A. reduce the cost of borrowing
B. buy securities in the open markets
C. adopt restrictive monetary policy
D. discourage savings
43. When the demand for foreign exchange exceeds its supply, the value of the domestic currency _____
A. appreciates
B. depreciates
C. remains unchanged
D. expands
44. The exports of West African countries are mainly composed of _____
A. services
B. raw materials
C. manufactured goods
D. consumer goods
45. A conscious effort of government to achieve a specific set of goals is _____
A. economic planning
B. economic development
C. economic growth
D. economic target
WAEC Shakespeare (The Tempest)
46. A country has favourable terms of trade when the prices of her _____
A. exports rise relative to the prices of imports
B. exports fall relative to prices of imports
C. imports rises faster than the prices of exports
D. imports and exports move in the same direction
47. The abolition of all forms of trade barriers among member counties while maintaining common external tariffs against non-members is a feature of a _____
A. free trade
B. customs union
C. common market
D. economic union
48. In order to correct adverse balance of payment problem, government should _____
A. reduce tariffs
B. increase subsidies on exports
C. increase tax on local industries
D. reduce personal income tax
49. Which of the following is a benefit to a member country of the World Bank?
A. Easy access to long-term loans
B. Management of foreign exchange
C. Mediating in labour disputes
D. Financing balance of payment deficit
50. Which of the following is an objective of OPEC? To _____
A. prevent fluctuation in prices of all commodities
B. protect the economic interest of all countries
C. control the level of output of oil
D. discover oil in other countries
- This past questions were extracted from the official WAEC 2015 Economics paper 1.
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