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Paper I: Objectives

1.The fundamental economic problem in every society is A. The large of the unemployed. B. Inadequate supply of money. C. Corruption and mismanagement. D. Limited supply of productive resources.
2. A point x inside a production possibility curve indicates that A. Resources are fully utilized. B. The country is poor. C. some resources are idle. D. resources are not available.
3.the major employer of labour in developing countries is the .A. tertiary sector. B. secondary sector. C. primary sector. D. industrial sector.
4.the desire for profit is a major feature of A. traditional economy. B. mixed economy. C. Market economy. D. Command economy.
5. The wages of group of workers n dollars are stated below : 40,30,70,20,10,10,80,30 and 10. What are the mean wage?A. $35. B. $36 .C. $37. D. $38
6.if the coefficient of price elasticity of demand of a product is zero, then its demand curve will be A. parallel to the quantity axis. B. Parallel to the price axis .C. negatively sloped. D. positively sloped.
7.if the demand function is Qd=0.5p+20, calculate the quantity demanded when price is $15.00. A. -$27.50 . B. -$12.50. C. $12.50. D. $27.50
8.if less of s goods is bought as one’s income increase,such a goods. A. normal goods .B. Luxury. C. necessity. D. An inferior goods.
9.the demand for coffee and tea is a. A. joint. B. competitive .C. Composite. D. Derived.
10.what effect will an increase in the supply of fish have on the meat market? A. fall in equilibrium price and quantity. B. an increase in in equilibrium price and quantity. C. An increase in equilibrium price and a fall in quantity. D. Both equilibrium price and quantity remain unchanged.
11.which of the following factors is not a condition for a change is supply of a commodity? A. Improved technology. B. cost production. C. The price of the commodity. D. Government tax policies.
12.supply of agricultural product is likely to be elastic in the A. Intermediate period .B. Long run. C. Market period. D. Short run.
13. Two commodities x and y are in joint supply when A. X is a buy product Y. B. X and Y are product of the same firm. C. increase in quantity of x leads to decrease in Y. D. X and Y cannot be produced in the same process.
14. Table 1

Table 1 above illustrates the law of A. diminishing returns. B. Diminishing marginal productivity. C. diminishing marginal utility. D. variable proportion.
15.when the price of of a good is above the equilibrium, there will be A. a shortage occur. B. Surplus occurs. C. unemployment .D. inflation.
16.what happens when a minimum price is imposed in a market? A. shortage occurs. B. surplus occurs. C. the market maintains it’s equilibrium. D. many firms will close down.
17.when an increase inputs leads to a more than proportionate increase in output, there is A. Decreasing returns to scale. B. increase in marginal product. C. Increasing returns to scale. D. constant returns to scale.
18.The short-run in production is the time period when A. Techniques of the production can easily be changed. B. All factors if the production are variable. C. At least a factor i s fixed while others are variable. D. Variable factors cannot be changed.
Table ll shows the short-run cost of a firm. Use it to answer question 19.

19.Calculate the value Q. A. $350. B. $340. C. $360. D. $370.
20. A cost of production that is positively related to the output is the A. Total fixed cost. B. Average fixed cost. C. Variable cost. D. Social cost.
21. ln perfect competition, the average revenue curve of a firm A. Below the marginal revenue curve. B. Downward shopping. C. The marginal revenue curve. D. Convex to the origin.
22. which of the following means of funding a business is very reliable and cheap? A. Bank loans. B. Loans from friends. C. Plough back profit. D. Debentures.
23. Government in most cases influences the location of firms to A. To discourage private investors. B. Ensure equitable distribution. C. Reduce cost of production. D. Make the firms enjoy economies of scale.
24. Middlemen are made up of a .A. Manufacturer, wholesalers and consumer. B. Manufacturer’s, wholesalers and retailers. C. Wholesalers, retailers and hawkers. D. Wholesalers, retailers and consumers.
25. The Malthusian theory of population was proved wrong because A. The practice of subsistence farming was encouraged. B. Malthus view was seen as an exaggeration. C. New lands and new method of production were discovered. D. Developing countries adopted birth control method.
26. Human development can be improved if A. Banks gives more loans to businesses men. B. Large family size are encouraged. C. General Education and training is encouraged. D. It is handled by private sectors only.
27. The use of interest rates to control money supply is a A. Monetary policy. B. Control policy. C. Development policy. D. fiscal policy.
28. Agricultural productivity may increased if A. Educational institute are established in rural areas. B. Commercial banks are established in rural areas. C. More infrastructural facilities are provided in rural areas. D. Labour intensive method of agriculture is encouraged.
29. A country is described as industrialized if A. The contribution of industries to national income is high. B. Traditional and modern sectors coexist. C. The country adopts imports promotion strategy. D. Primary industries dominate the economy.
30. Which of the following is a major advantage of establishing a tomato processing factory in a country? A. Local consumption will decrease. B. More unskilled labour will be employed. C. Foreign exchange will be conserved. D. It will attract more tourist.
31. The total value of goods and services produced within the borders of a country is
A. Net national product. B. Gross domestic product. C. Net domestic product. D. Gross national product.
32. Which of the following item is not considered as a transfer payment ? A. Pension pay. B. Government subsidy. C. Students grant. D. Doctors salary.
33. Which if the following factors will not underestimate the national income? A rapid decrease in prices. B. Increase subsistence production. C. Practice of specialization of labour. D. Increase in value of service not paid for.
34. Which of the following is true of the value of money? it A.is positively related to the price level. B .depends on the value of people attach to it. C. Is determined by the Government. D. Is inversely related to the price level.
35. The motive of holding money to meet unforseen events is termed A. Precautionary demand B. Transaction demand. C. Liquidity demand. D. Speculative demand.
36. An increase in the price of factor inputs may be result in A. Demand pull-inflation. B. Stagflation. C. Open inflation. D. Cost- inflation.
37. Insurance company are similar to commercial banks in that way A. Compensate their costumers for losses. B. Act as lender for of last resort. C. Help in maintaining monetary stability in a nation. D. Help In mobilizing savings for investment.
38. What happens when the central bank increase the rate ? A. Amount of borrowing increase. B. Amount of borrowing decrease. C. Supply of money increase. D. Commercial banks are not affected.
39. Citizens are protected from Government arbitrariness in taxation by the canon of A. Flexibility. B. Elasticity. C. Economy. D. Certainty.
40. In a period of unemployment and falling in prices, government should adapt A. Zero-based budget . B. Budget deficit. C. Balanced budget . D. Surplus budget.
41. In most developing country, a large percentage of the labour is engaged in A. Trading. B. Mining. C. Agriculture. D. Manufacturing.
42. In most underdeveloped countries development plans do not achieve their objective due to A. Poor coordination between local and national governments. B. Exportation of more primary products. C. Lack of Educational institutions in those countries. D. Urban and rural migration of citizens.
43. Balance of trade involves exchange. A goods only. B. Service only .C. Goods and service . D. Goods and capital.
44. An improvement in a country’s terms of trade mean that the A. Nation can export more services. B. Nation receipt on export is equal to payment on import.
45. Devaluation of currency may not correct a balance of payment deficit in the demand of export is A. Perfectly inelastic .B. Perfectly elastic. C. Fairly elastic. D. Unitary elastic.
46. One measure for balancing a country’s balance of payments deficit is through. A. Export diversification. B. Import substitution. C. Short term borrowing from IMF.D. international borrowing from commercial banks.
47. The major achievement of the economic community of west African states(ECOWAS) is that it has A. Made capital more mobile. B. Made possible the use of common currency. C. Increase members allegiance to former colonial ministers. D. Widened the market for goods produced .
48. Which of the following institutions is concerned with the expanding developing countries commodity trade? A. World trade organization (WTO). B. United nation conference on trade and development. (UNCTAD). C. Economic commission for Africa (ECA). D. Africa development bank (AFDB).
49. Exploitation of Forrest resources becomes a major problem when A. Community fight over ownership. B. They are not renewed. C. They are neglected. D. The supply is fixed in long- run.
50. Natural resources that are renewable are found in the A. Mining sector. B. traditional sector. C. Agricultural sector. D. Secondary sector.

Answers To 2019 WAEC Economics Objectives Questions

Economic Paper II: Essay 2019

The diagram below represent the equilibrium position of a firm in a perfectly competitive industry. Study it carefully and answer the question that follow.

A.(I). At what level of output and prices is the firm in equilibrium? (ii)calculate the profit in equilibrium. (iii) what type of profit is it ? Explain your answer. b.(i) why is the average revenue (AR) function horizontal?. C. State any two ways in which marginal cost (mc) and average total cost (ATC) are related.



Using the above , calculate the ; (a) balance of trade;(b)invisible trade balance; (c) balance on current account.


Section B.

3. a.(i) define distribution of goods. See answer

(ii) illustrate the normal distribution of goods. See answer
b. Define a cosumers cooperative society.

C. Outline any four roles perform by a consumer cooperative society.
4. a. what is an Industry? See answer

b. explain the following:

(i) division of labour, see answer

(ii) economics of scale. See answer

C. Outline any four internal economics of scale. See answer
5. a. define a joint venture.

b. Identify any three merits of a private company over a partnership.

c. State any three source of finance to a public enterprise.
6. a. distinguish between the following pairs of concepts:

(i) elastic demand and inelastic demand; see answer

(ii) income elasticity of demand and cross elasticity of demand. See answer

b. Using diagrams, explain how an increase in price will affect the total revenue of a producer if demand for his product is ; (i)price elastic, See answer

(ii) price inelastic. See answer
7. a. Distinguish between:

(i) a growing population and a declining population; see answer

(ii) overpopulation and underpopulation. See answer

b. Explain any four disadvantages of a rapidly growing population in an Economy. See answer
8. a. What is public debt?

b. Outline any three reasons why countries borrow. See answer

c. Highlight any three effect of a huge national debt on the economy of a country. See answer

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