Welcome to our WAEC past question and answer series. In this post, we will be sharing Economics 2018 past questions and their answers for various subjects. Stay tuned enjoy while learning.
1. Economic problem arise in all society because?
A. resources are mismanaged by leaders
B. there is no proper planning
C. resources are not in adequate supply
D. the services of economist are not employed
2 Which of the following is not emphasised in a production possibility curve
A. scarcity of resources
B. economic development
C. inefficiency in the use of resources
D. unemployment of labour
3. The organisation of productive factors is the responsibility of the?
A. management
B. entrepreneur
C. production manager
D. labour union
4. Producers operating in a free market economy are more efficient as a result of?
A. the existence of competition
B. the very few number of participants
C. the commitment of the shareholders
D. government regulation of their activities
5. A downward sloping demand curve means that?
A. total revenue declines as price is lowered
B. demand falls as output rises
C. demand falls as output falls
D. price must be lowered to sell more
6. If the price of commodity X rises and consumers shift to commodity Y, then commodity X and Y are?
A. substitutes
B. complements
C. inferior goods
D. bought goods
7. Goods whose demand vary directly with money income are called?
A. inferior goods
B. complementary goods
C. substitutes
D. normal goods
8. An exceptional demand curve can result from?
A. increase in prices of raw materials
B. increase in the size of the population
C. expectation of future price increase
D. change in taste of the consumer
9. Palm oil and palm kernel are in?
A. joint supply
B. competitive demand
C. competitive supply
D. complementary demand
10. Which of the following is true about supply of land?
A. its higher in the urban than rural areas
B. varies with time
C. rises with demand
D. is fixed
11. The backward bending supply curve of labour indicates?
A. an abnormal supply situation
B. the law of supply
C. that labour supply and wage are directly related
D. that the elasticity of supply is uniform
12. A supply curve parallel to the X- axis indicates?
A. fairly elastic supply
B. infinitely elastic supply
C. fairly inelastic supply
D. perfectly inelastic
13. If the marginal utility of a commodity is equal to its price then
A. the consumer is in equilibrium
B. more of the commodity can be consumed
C. total utility is also equal to its price
D. the market is not in equilibrium
14. A price floor is usually fixed
A. at the equilibrium and causes shortage
B. above the equilibrium and causes shortage
C. below the equilibrium and causes shortage
D. above the equilibrium and causes surplus
15. A market is in equilibrium when?
A. there is no government intervention
B. the demand is the same as the supply
C. buyers and sellers are free to sell more goods
D. there is no free entry and exit
16. A firm average cost decreases in the long-run because?
A. increasing returns to scale
B. diminishing average returns
C. decreasing marginal returns
D. decreasing average fixed cost
17. The larger a firm, the lower its cost of production
This statement explains the?
A. law of diminishing marginal returns
B. concept of economies of scale
C. law of comparative cost advantage
D. theory of division of labour
18. In the the long-run, a firm must shut down if its average revenue is?
A. greater than average cost
B. less than average variable cost
C. equal to the minimum average cost
D. equal to the average cost
19. Public limited liability companies are democratic in nature because?
A. government appointees are members of the board
B. they are run by elected public officers
C. electoral principles are adopted in the day-to-day management
D. shareholders elect the board of directors
20. In the event of bankruptcy owners of joint-stock companies lose?
A. their private properties
B. both company and private properties
C. only the capital invested
D. only their dividends
21. Wholesalers play an important role in the distribution of goods and services because they?
A. are located very close to consumers
B. finance both producers and retailers
C. pass information on from retailers to consumers
D. sell in small units to consumers
22. If workers at the school canteen sell during the holidays, this is an example of?
A. structural unemployment
B. frictional unemployment
C. seasonal unemployment
D. residual unemployment
23. Positive checks as envisaged by Thamos Malthus can be prevented if
A. date rate is reduced
B. marriage is abolished
C. more hospitals are built
D. more restraint is adopted
24. Which of the following factors is not a reason for farmer’s unstable incomes
A. dependence on too many crops
B. poor storage facilities
C. adverse weather condition
D. recession in the world economy
25. Local firms can help in reducing unemployment in a country when?
A. land acquisition becomes centralised
B. imports of substitutes are reduced
C. waste in the firm is eliminated
D. subsidies to firms are decreased
26. An industry is described as a group of firms
A. that provides jobs for many people
B. which uses advance technology in production
C. which produces similar products
D. that provides jobs for few people
27. The largest component of national income in developing countries consist of?
A. profits
B. profit and rent
C. rent
D. wages and salaries
28. 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?
A. $302.00
B. $52.00
C. $18.00
D. $622.00
29. In a country with large population of full-time housewives, national income
A. will be composed of goods produced by women
B. figures will be grossly over-stated
C. statistics will be difficult to calculate
D. figures will be grossly under-stated
30. Demand pull inflation is likely to be caused by?
A. an increase in the cost of factors inputs
B. increase in the income tax rate
C. increase in bank lending rates
D. increasingly large budget deficit
31. Holding money to take care of contingencies is?
A. a speculative motive
B. a transaction motive
C. a precautionary motive
D. an expansionary motive
32. If a housewife has meat and tomatoes, she must find someone who wants meat and has tomatoes to give. this concept is described as?
A. opportunity cost
B. scale of preference
C. complementary demand
D. double of coincidence of wants
33. The stock exchange is an example of the?
A. labour market
B. money market
C. commodity market
D. capital market
34. What happens when the central bank increases bank rate in an economy
A. borrowing is discouraged
B. customers increase their borrowing
C. banks can increase their lending
D. money supply increases
35. Income is redistributed when the rich are progressively taxed and?
A. more private schools are established
B. subsidy is provided on petroleum products
C. more public goods are provided
D. farmers are given guaranteed prices
36. In order to increase revenue, government should tax commodities for which demand is?
A. perfectly price inelastic
B. price inelastic
C. price elastic
D. unitary elastic
37. Which of the following activities will not lead to economic growth?
A. massive importation of capital goods
B. intensive capital formation locally
C. use of modern technology
D. massive importation of consumer goods
38. The poorer the country, the larger the percentage of labour force engaged in?
A. Agricultural
B. mining
C. trading
D. manufacturing
39. Which of the following measure can be adopted to stabilize the external value of the local currency?
A. reduce the volume of export
B. increase the demand for imports
C. increase domestic money supply
D. reduce the demand for imports
40. Which of the following is not a measure for reducing balance of payments deficits?
A. export drive
B. reducing tariffs
C. adding to export goods
D. increasing local production
41. Nations engage in international trade because of difference in?
A. absolute cost
B. comparative cost
C. fixed cost
D. variable cost
42. One advantage of international trade is that
A. prices of goods become stable
B. countries become self-sufficient
C. goods consumed are produced at a very high cost
D. it makes possible the consumption of variety of goods
43. Which of the following forms of economic integration is a member nation free to impose duty against
A. custom union
B. free trade area
C. common market
D. economic community
44. The International bank for reconstruction and development (IBRD) performs the following functions except?
A. granting long-term loans
B. assisting with technical expertise
C. reducing tariff among members
D. developing human resource
45. An electrical engineer who is teaching physics in a secondary school is said to be
A. under-employed
B. unemployed
C. fully employed
D. technically unemployed
46. One benefit a country can derive from the extraction of crude oil is increase in?
A. population
B. employment
C. money
D. demand for imports
47. Which of the following cannot be classified as a natural resource
A. iron rod
B. wild life
C. solar energy
D. gold
use the table to answer the following question
Quantity         Total cost
0Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 20
1Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 25
2Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 28
3Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 30
4Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 38
5Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 55
6Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 92
7Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 135
48. The total fixed cost is?
A. $7.00
B. $30.00
C. $20.00
D. $135.00
49. At output level 5, the total variable cost is?
A. $5.00
B. $20,00
C. $55.00
D. $35.00
50. The largest component of national income in developing countries consist of?
A. profits
B. profit and rent
C. rent
D. wages and salaries
Answers To Questions
- C
- B
- B
- A
- B
- A
- D
- C
- A
- D
- C
- B
- C
- D
- B
- A
- B
- B
- B
- D
- B
- C
- D
- B
- C
- C
- D
- C
- D
- A
- C
- D
- D
- A
- C
- A
- D
- A
- D
- B
- B
- D
- D
- C
- A
- B
- C
- C
- D
- D
