WASSCE ECONOMICS MAY/JUNE 2013 (SSCE WAEC MAY/JUNE 2013 ECONOMICS)

WASSCE ECONOMICS MAY/JUNE  2013 (SSCE WAEC MAY/JUNE 2013 ECONOMICS)

1. The action of government to forgo road construction in order to provide more health facilities denotes

A. sound economic decision

B. opportunity cost

C. practicable government policy

D. scale of preference

 

2. In Economics, a market is defined as any

A. agreement made for consumers to buy all they need

B. agreement made for producers sell all their goods

C. agreement to sell commodities at low prices

D. arrangement whereby the buyers and sellers are in contact

 

3. Which of the following is not a function of an insurance company?

A. pooling resources together against risks

B. Mobilization of funds through premiums collected

C. Encouragement of investment by security of capital

D. collection of deposits from the public for investment

 

4. A debenture holder earns

A. commission

B. profits

C. fixed interest

D. quasi-rent

 

5. All economic systems must decide what to produce because

A. resources are not available

B. consumers want maximum satisfaction

C. resources are limited in supply

D. producers want maximum profit

 

6. Trade between two countries is known as

A. bilateral trade.

B. unilateral trade

C. multilateral trade

D. internal trade

 

7. In the balance of payments of a country, tourism is classified under

A. capital account

B. invisible trade

C. merchandise trade

D. official reserves

 

8. General rise in the price level induced by increased price of inputs is referred to as

A. run-away inflation

B. cost -push inflation

C. demand -pull inflation

D. imported inflation

 

9. Which of the following is a function of merchant banks?

A. Acting as bankers' bank.

B. Lending to the commercial banks as a last resort

C. controlling inflation in the economy

D. underwriting and issuing of shares

 

10. Demand is elastic when percentage change in

A. quantity demanded is greater than percentage change in price

B. price is greater than percentage change in quantity demanded

C. price is equal to one

D. quantity demanded is zero

 

11. A budget is balance when expected total revenue is

A. greater than expected expenditure

B. less than total expenditure

C. equal to expected expenditure

D. greater than total expenditure

 

12. A co-operative society is a

A. finance house

B. self -help business organization

C. public corporation

D. non-democratic business organization

 

13. The value of money is effected by the

A. speculative motive

B. price level

C. precautionary motive

D. intervention of development

 

14. Which of the following is a function of money?

A. Medium of Communication

B. Measure of securities

C. Store of Wealth

D. Discounting bills of exchange

 

15. Which of the following is an asset of a commercial bank?

A. Reserve funds

B. Shareholders capital

C. Customers' deposits

D. Treasury bills

 

16. An increase in the supply of a commodity X automatically results in an increase in the supply of another commodity Y. This is a cause of

A. elastic supply

B. joint supply

C. exceptional supply

D. competitive supply

 

17. Why would an individual increase his level of consumption during inflationary periods?

A. The real value of any amount saved falls over time

B. Interest rates are generally low

C. There are varieties of goods to buy

D. Wages and salaries stagnate during inflation

 

18. The type of monopoly that develops as a result of uneven distribution of resources is called

A. legal monopoly

B. natural monopoly

C. state monopoly

D. international monopoly

 

19. A major disadvantage of partnership form of business is that

A. every partner has to consulted during decision

B. partners could be too friendly with their customers

C. affairs can be kept private

D. partners could take long holidays

20. Goods which have to be paid for are known as

A. physical goods

B. economic goods

C. free goods

D. intangible goods

 

21. Goods are said to be in competitive demand when they are

A. substitutes

B. complementary

C. jointly demanded

D. identical

 

22. In the long term run factors of production are considered to be

A. at maximum

B. fixed

C. variable

D. increasing

 

23. Which of the following will shift the demand curve for cocoa to the right?

A.  An increase in consumers’ income

B. A rise in the price of cocoa

C. A tax on cocoa producers

D. A fall in the quantity demanded of cocoa

 

24. An agricultural production process which uses more machinery relative to labour is referred to as

A. large scale farming

B. capital intensive farming

C. commercial farming

D. land intensive farming

 

25. Which of the following will enhance productivity in an economy?

A. The use of obsolete capital

B. Technological change

C. Expansion of land under cultivation

D. An increase in the labour force

 

26. Post-harvest losses in West African countries can be reduced if

A. the land tenure system could be reformed

B. more irrigation schemes could be provided

C. better storage facilities could be provided

D. erosion is controlled

 

27. Which of the following best explains what to product?

A. How much goods are to be produced

B. The combination of resources to be used

C. Which goods and services to be produced

D. How many wants are to be satisfied?

 

28. The demand for money is described as a

A. competitive demand

B. joint demand

C. derived demand

D. composite demand

 

29. Which of the following is the main outcome of a trade union's interference with the wage rate? Wages are

A. lowered but more employment opportunities are created

B. lowered but employment level remains unchanged

C. increased and employment levels are unchanged

D. increased but employment levels are reduced

 

30. The introduction of tariffs and quotas

A. reduce the prices of imports

B. increase the demand for locally made goods

C. discourage domestic industries from becoming more efficient

D. reduce the prices of locally made goods

 

31. A government that wants to get more revenue will increase the tax on commodities with a

A. high price elasticity of demand

B. low price elasticity of demand

C. high income elasticity of demand

D. low income elasticity of demand

 

32. Which of the following is involved in the money market?

A. Building society

B. Development banks

C. Commercial banks

D. Stock exchange

 

33. Demand pull inflation can aptly be described as

A. inflation induced by rising costs of production

B. reduction in government expenditure

C. persistent rise in prices due to increase in expenditure

D. massive importation of goods from a country with hyper inflation

 

34. In order to develop the banking habit of rural dwellers, the traditional money lenders should be

A. proscribed

B. legalized

C. subsidized

D. heavily taxed

 

35. All rates of interest in a country are influenced by the

A. bank rate

B. population growth rate

C. wage rate

D. mortgage rate

 

36. Exchange control is a weapon used in regulating

A. barter trade

B. stock exchange

C. foreign trade

D. internal trade

 

37. When the marginal product is negative, the total product will be

A. constant

B. at a maximum

C. increasing

D. decreasing

 

38. Physical productivity is affected by all the under listed factors except the

A. state of technology

B. quantity of inputs

C. quality of inputs

D. price of output

 

39. If a commodity has a high marginal utility, its market price will be

A. stable

B. high

C. zero

D. constant

 

40. Price fluctuation is a feature of

A. common market

B. imperfect market

C. supermarkets

D. market failure

 

41. Which of the following statements is not a feature of a monopoly?

A. Seller is allowed to fix his own price

B. Buyers and sellers are price takers

C. New entrances are restricted

D. There is only one seller of the commodity

 

42. The following are advantages of sole proprietorship except

A. quick and easy decision-making

B. keeping its business affairs private

C. assurance of raising huge capital for expansion

D. high level of commitment

 

43. Which of the following controls a limited liability company?

A. the general manager

B. the managing director

C. tax payers

D. the board of directors

 

44. Given that Qd = 80 - 2p where Qd is quantity demanded and P is the price, what quantity would be demanded when the price (P) is $3?

A. 86 units

B. 80 units

C. 76 units

D. 74 units

 

45.  Which of the following can be used to calculate the price elasticity of demand

A. $\frac{\text{Percentage change in the change in the quantity demanded}}{\text{percentage change in price}}$

B.  $\frac{\text{percentage change in price percentage}}{\text{change in the quantity demanded}}$

C. $\frac{\text{percentage change in the quantity demanded }}{\text{percentage change in income}}$

D. $\frac{\text{percentage change in income}}{\text{percentage change in the quantity demanded}}$

 

46. The main advantage of large scale production is that

A. unit cost of production fails

B. decision -making is quick

C. worker-management relationship is improved

D. the quality of the product increases

 

47. Which of the following items is not included in measuring national income by the income approach?

A. Profits of companies

B. Rents on property

C. Student's grants and scholarships

D. Wages and salaries of public servants

 

48. Gold, diamond, iron ore and limestone are collectively referred to as

A. human resources

B. mineral resources

C. artificial resources

D. forest resources

 

49. Points outside a production possibility curve indicate

A. unattainable production levels

B. attainable production levels

C. inefficient, but attainable production levels

D. optimum production levels

 

50. The International Bank for Reconstruction and Development (IBRD) is important to developing nations because it

A. gives aid for defence

B. offers loans for public projects

C. offers aid to finance private projects

D. gives loans for legal proceedings


 

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