Economics past questions: WAEC SSCE 2024

50 objective questions, with answers. Free to read and practise.

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50 questions, one at a time, marked as you go or at the end. No account needed.

1.
A commodity with perfectly inelastic demand has the burden of tax borne by
1. A.both the sellers and the buyers.
2. B.the buyers alone.
3. C.the government alone.
4. D.both the buyers and the government.
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Answer: B the buyers alone.
2.
A major feature of the socialist economic system is
1. A.setting of production targets by public authorities.
2. B.freedom of choice for consumers.
3. C.determination of price by market forces.
4. D.private ownership of productive inputs.
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Answer: A setting of production targets by public authorities.
3.
An advantage a small firm has over a large firm is that the former can better
1. A.enjoy financial economics of scale
2. B.satisfy individual tastes
3. C.enjoy internal economics of scale
4. D.attract huge discounts on inputs
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Answer: C enjoy internal economics of scale
4.
An increase in a country's production capacity usually leads to economic
1. A.development
2. B.stability
3. C.growth
4. D.efficiency
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Answer: C growth
5.
Balance of payments is defined as the
1. A.difference between the values of visible imports and visible exports
2. B.record of financial transactions between a country and the rest of the world
3. C.relationship between prices of exports and prices of imports
4. D.difference between a country's expected revenue and proposed expenditure
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Answer: B record of financial transactions between a country and the rest of the world
6.
Capital market operators deal in the
1. A.supply of and demand for short term loans only.
2. B.supply of and demand for long term loans for investment.
3. C.sales and purchases of treasury bills.
4. D.sales and purchases of capital equipment.
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Answer: B supply of and demand for long term loans for investment.
7.
Devaluation of currency will help to correct balance of payments deficit if a country's
1. A.exports have perfectly inelastic demand.
2. B.imports have inelastic demand.
3. C.exports have elastic demand.
4. D.productivity is low.
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Answer: C exports have elastic demand.
8.
Expansionary fiscal policy implies
1. A.decreasing bank loans.
2. B.raising tax rates.
3. C.increasing the bank rate.
4. D.decreasing tax rates.
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Answer: D decreasing tax rates.
9.
Exploitation of solid minerals in developing countries can stabilize their revenue base mainly because it helps in
1. A.promoting a mono-economy.
2. B.the transfer of technology.
3. C.the diversification of the economy.
4. D.the provision of energy.
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Answer: B the transfer of technology.
10.
Firms in perfect competition break even in the long-run because
1. A.new firms can not enter the market due to copyright laws.
2. B.more firms can enter the industry due to attractive prof its.
3. C.marginal revenue is greater than marginal cost at all levels.
4. D.profits are not enough to repay traders' loans.
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Answer: A new firms can not enter the market due to copyright laws.
11.
Harmonised monetary and fiscal policies is a feature of
1. A.a free trade area.
2. B.an economic union.
3. C.a customs union.
4. D.a common market.
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Answer: A a free trade area.
12.
If the budget on education is $50 m out of an annual national budget of $300 m. The sector of a pie chart representing education is
1. A.16.6°
2. B.60°
3. C.150°
4. D.300°
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Answer: B 60°
13.
If the coefficient of price elasticity of supply of a commodity is 0.8, then supply is
1. A.perfectly elastic.
2. B.fairly inelastic.
3. C.perfectly inelastic.
4. D.fairly elastic.
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Answer: B fairly inelastic.
14.
If the quantity demanded of rice de- creased from 150 bags to 100 bags, the percentage change in quantity demanded is
1. A.30.0 %
2. B.33.3 %
3. C.50.0%
4. D.66.7%
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Answer: B 33.3 %
15.
In determining the growth of a country's population, infant mortality is a component of
1. A.immigration rate.
2. B.fertility rate.
3. C.net migration.
4. D.death rate.
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Answer: D death rate.
16.
In the short-run, a firm can increase output by
1. A.increasing the size of its machines.
2. B.purchasing more equipment.
3. C.changing its organizational structure.
4. D.increasing the quantity of raw materials.
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Answer: D increasing the quantity of raw materials.
17.
Locating firms in urban areas
1. A.reduce rural-urban migration.
2. B.ensure balanced development of rural areas.
3. C.make a firm enjoy the bene- fits of the existence of other firms.
4. D.increase urban-rural migration.
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Answer: C make a firm enjoy the bene- fits of the existence of other firms.
18.
Malthus predictions did not come to pass mainly because
1. A.food supply and population grew at the same rate.
2. B.the use of machines in agriculture was discouraged.
3. C.a lot of people died during epidenties.
4. D.many people emigrated to the new lands.
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Answer: D many people emigrated to the new lands.
19.
Minimum price legislation is used to protect the interests of
1. A.Small scale producers.
2. B.foreign companies.
3. C.government.
4. D.consumers.
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Answer: A Small scale producers.
20.
Money supply will increase when the Central Bank
1. A.buys securities from the public.
2. B.increases the reserve requirements.
3. C.increases the bank rate.
4. D.sells securities to the public.
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Answer: A buys securities from the public.
21.
National income estimates will be understated as a result of the activities of
1. A.subsistence farmers.
2. B.musicians.
3. C.laundry women.
4. D.housekeepers.
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Answer: A subsistence farmers.
22.
One effect of inflation is that
1. A.money's purchasing power will increase.
2. B.the real incomes of workers will rise.
3. C.both borrowers and lenders benefit from it.
4. D.money's purchasing power will fall.
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Answer: D money's purchasing power will fall.
23.
One indicator of the low level of cap ital formation in developing countries is
1. A.low per capita income
2. B.high rate of investment
3. C.low importation of consumer goods
4. D.high rate of household savings
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Answer: A low per capita income
24.
One major achievement of the Eco- nomic Commission for Africa (ECA) is the
1. A.setting up of the African Development Bank (AfDB).
2. B.provision of long-term loans to non-members.
3. C.reduction of balance of payments problems in Africa.
4. D.removing the gap between African countries and the rich nations.
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Answer: A setting up of the African Development Bank (AfDB).
25.
Other things being equal, an increase in the demand for land in the short-run will cause an increase in the
1. A.price only.
2. B.price and supply.
3. C.quantity supplied only.
4. D.supply only.
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Answer: B price and supply.
26.
Points within a Production Possibilities Curve (PPC) indicate
1. A.optimum production levels.
2. B.attainable but inefficient production levels.
3. C.unattainable production levels.
4. D.attainable and efficient production levels.
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Answer: B attainable but inefficient production levels.
27.
Price elasticity of demand is the responsiveness of quantity demanded to a change in
1. A.demand for the product.
2. B.price of another product.
3. C.income of the buyer.
4. D.price of the product.
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Answer: D price of the product.
28.
Separation of ownership from control is more pronounced in a
1. A.partnership
2. B.joint-stock company
3. C.sole proprietorship
4. D.constimer co- operative society
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Answer: B joint-stock company
29.
Short-term deficits in the current account of the balance of payments can be financed by balancing with the
1. A.invisible account.
2. B.capital account.
3. C.visible account.
4. D.national income account.
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Answer: C visible account.
30.
Supply of money is best defined as the
1. A.money in circulation plus bank deposits
2. B.money given out as loans to members of the public
3. C.amount of currency printed annually by the government
4. D.amount of money spent on consumer goods
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Answer: A money in circulation plus bank deposits
31.
Terms of trade is favourable when the
1. A.value of visible imports is greater than that of visible exports
2. B.price on imports is greater than that of exports
3. C.payments on imports is greater than receipts from exports
4. D.price of exports is rising faster than that of imports
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Answer: D price of exports is rising faster than that of imports
32.
The diagram above shows the demand for milk. Use it to answer questions this question. If demand for postal services decline as a result of increased use of e-mails, then the two services are in
1. A.composite demand.
2. B.derived demand.
3. C.competitive demand.
4. D.complementary demand.
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Answer: C competitive demand.
33.
The diagram above shows the demand for milk. Use it to answer questions this question. The movement from point x to z might have been caused by
1. A.a change in taste in favour of milk.
2. B.a decrease in price of milk.
3. C.an increase in income of consumers.
4. D.a favourable weather condition.
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Answer: B a decrease in price of milk.
34.
The fixed cost of producing 100 units of a good is $600. If the variable cost is $400. the average total cost of one unit of the good is
1. A.$4
2. B.$6
3. C.$8
4. D.$10
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Answer: D $10
35.
The function of money that enables credit purchases of goods and services is
1. A.unit of account
2. B.store of value
3. C.standard for deferred payment
4. D.D. relative scarcity
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Answer: C standard for deferred payment
36.
The government policy that encourages public corporations to operate profitably is
1. A.liberalization
2. B.nationalization
3. C.commercialization
4. D.indigenization
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Answer: C commercialization
37.
The law of demand will not hold when
1. A.normal goods are involved.
2. B.size of the population changes.
3. C.rare commodities are involved.
4. D.incomes of consumers increase.
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Answer: C rare commodities are involved.
38.
The low productivity per worker in agriculture experienced in West African countries is due to
1. A.laziness on the part of farmers.
2. B.the use of simple traditional implements.
3. C.the presence of many extension workers.
4. D.the law of increasing returns to scale.
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Answer: B the use of simple traditional implements.
39.
The negative slope of the demand curve is best explained by
1. A.consumer's choice
2. B.increasing returns to scale
3. C.diminishing returns to scale
4. D.diminishing marginal utility
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Answer: D diminishing marginal utility
40.
The pursuit of private profits is a feature of
1. A.command economies.
2. B.Socialist economies.
3. C.capitalist economies.
4. D.statutory corporations.
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Answer: C capitalist economies.
41.
The supply of labour to an occupation will tend to rise when
1. A.there are less monetary benefits.
2. B.holiday entitlement is cut.
3. C.welfare packages improve.
4. D.unemployment benefit rises.
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Answer: C welfare packages improve.
42.
The table below shows the supply and demand schedule for apples. Use it to answer question 17
Price ($) Quantity demanded Quantity supplied
10 50 25
20 35 35
30 20 45
40 5 55
At what price is excess supply equal to 25?
1. A.$10
2. B.$30
3. C.$30
4. D.$40
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Answer: C $30
43.
There is scarcity when
1. A.the means exceed society's wants.
2. B.demand for resources is greater than its supply.
3. C.productive resources are in excess.
4. D.supply of resources is greater than its demand.
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Answer: B demand for resources is greater than its supply.
44.
Use the table below to answer this question.
Gross National Product $400m
Depreciation $100m
Total Population 25m
The value of Net National Product is
1. A.$100 m
2. B.$275 m
3. C.$300 m
4. D.$500m
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Answer: C $300 m
45.
Use the table below to answer this question.
Gross National Product $400m
Depreciation $100m
Total Population 25m
The value of per capita income is
1. A.$20.
2. B.$12.
3. C.$16.
4. D.$4.
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Answer: C $16.
46.
Warehousing of goods in the process of distribution is the function of
1. A.Supermarkets
2. B.departmental stores
3. C.retailers
4. D.wholesalers
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Answer: D wholesalers
47.
What will be the likely effect if agriculture is fully mechanized in West Africa?
1. A.More jobs will be available for farm labourers
2. B.Labour intensive method of farming will still be dominant
3. C.Less labour will be required on the farm
4. D.Governments will no longer be involved in agriculture
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Answer: C Less labour will be required on the farm
48.
When total revenue increases as price falls, the coefficient of price elasticity of demand is
1. A.greater than one
2. B.one
3. C.less than one
4. D.zero
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Answer: A greater than one
49.
Which of the following best explains diseconomies of scale? Increase in output causes the
1. A.average cost to rise.
2. B.marginal revenue to fall.
3. C.marginal cost to fall.
4. D.firm to be de- stabilized.
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Answer: A average cost to rise.
50.
Which of the following is not a feature of labour?
1. A.It is an active factor
2. B.It is highly mobile
3. C.Its reward is wages or salaries
4. D.Its efficiency depends on its size
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Answer: D Its efficiency depends on its size

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Price ($)	Quantity demanded	Quantity supplied
10	50	25
20	35	35
30	20	45
40	5	55

Gross National Product	$400m
Depreciation	$100m
Total Population	25m