WAEC past questions and answers, Economics, 2016

WAEC Economics, Objectives, Year 2016:

1. Human wants are insatiable because wants are _______.

1. Limited while means are scarce
2. Unlimited and means are also unlimited
3. Limited and means are also limited
4. Unlimited while means are scarce

2. Scale of preference is important for the following reasons EXCEPT in _______.

1. Satisfying wants
2. Making rational
3. Making optimum allocation of resources
4. Using scarce resources efficiently

3. In a socialist economy, prices of commodities are determined by _______.

1. Forces of demand and supply
2. Producers of the commodities
3. The central planning authority
4. Consumers who are sovereign

4. Which of the following cannot be classified as land in economics?

1. Bauxite deposit in the ground
2. A lake used for irrigation
3. A bulldozer for clearing farmland
4. Grazing field for cattle

A country allocation to various sectors of the economy is shown in the table below.

Use it to answer questions 5 and 6.

5. If the budget of the country was $7,200; How much will be allocated to Education?

1. $2,400.00
2. $2,000.00
3. $1,200.00
4. $1,000.00

6. What is the ratio of expenditure on health to agriculture?

1. 2:3
2. 3:4
3. 4:3
4. 5:4

7. The demand curve for necessity is usually _______.

1. Vertical
2. Backward bending
3. Horizontal
4. Negatively sloped

8. What effect will an increase in price have on the total revenue of a firm whose product has inelastic demanding? The total revenue will _______.

1. Increase
2. Fall
3. Fluctuate
4. Remain unchanged

9. If the quantity of men’s hat demanded per week is represented by the function Qd=20-1313P, where P is price. How many hats are demanded when the price is $9.00?

1. 11
2. 17
3. 23
4. 47

10. The demand for torch and batteries is an example of _______.

1. Competitive demand
2. Composite demand
3. Complementary demand
4. Derived demand

11. Price elasticity of demand of supply measures how responsive _______.

1. Consumers are to a change in price
2. Producers are to a change in price
3. Sellers are to a change in price
4. Buyers are to a change in price

12. The tendency for workers to value their leisure hours more than hours of work as wage rate increases give rise to _______.

1. Positively sloping supply curve
2. Perfectly elastic supply curve
3. Backward bending supply curve
4. Perfectly inelastic.

13. The price of rice in tons is given by the fraction Qs-80-0.7=0. Where Qs=Quantity supplied.

When P=N40, find Qs? P=Price in Naira.

1. 108ton
2. 52tons
3. -52tons
4. -108tons

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

1. A movement along the curve
2. A leftward shift
3. No shift of the supply curve
4. A shift to the right

15. A price floor results in _______.

1. Excess demand
2. Excess supply
3. Parallel market
4. Hoarding of goods

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

1. Provide more employment opportunities
2. Leads to increased output and lower cost of production
3. Brings about equal cost and employment opportunities
4. Leads to increased cost of production and lower output

17. The long run is a period when _______.

1. Only the variable factors can be altered
2. All factors become variable
3. The firm will cease to exist
4. Only the fixed factors are altered.

18. The necessary condition for firm to be in equilibrium is that marginal revenue is _______.

1. Greater than marginal
2. Equal to marginal
3. Less than average revenue
4. Equal to average

19. At which stage of production should a firm shut down? When _______.

1. AVC=ATC
2. AVC
3. AVC > Price
4. AVC=MC

20. Charging different prices for the same commodity is a feature of _______.

1. Perfect competition
2. Commodity Market
3. Monopolistic Competition
4. Monopoly market

21. In a partnership, the conduct of members is guided by _______.

1. A memorandum of understanding
2. The article of partnership
3. An article of association
4. A partnership of constitution

22. Indigenization policy is a measure aimed at _______.

1. Privatizing the existing business owned by the state
2. Commercializing state owned businesses
3. Reducing foreign economic domination
4. Making the indigenes managing directors of businesses

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

1. Improving Road Networks
2. Provision of adequate storage facilities
3. Instituting price control
4. Formation of producers’ co-operative societies

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

1. Frictional unemployment
2. Structural employment
3. Cyclical unemployment
4. Residual unemployment

25. One relationship between marginal utility and total utility is _______.

1. Rising, marginal utility is rising
2. Falling, marginal utility is negative
3. Maximum, marginal utility is maximum
4. Falling, marginal utility is rising

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