1993 - WAEC Economics Past Questions & Answers - page 1

1
Economics is the study of how to
A
choose between alternatives, given limited resources
B
regulate the money that is in circulation in a country
C
be prudent in the use of available resources
D
improve the standard of living of the society at large
CORRECT OPTION: a
2
Scarcity in economics arises because
A
the resources availoable are adequate
B
individuals have limited time
C
resources are limited in supply
D
human beigns have limited wants
CORRECT OPTION: c
3
The real cost of a commodity is
A
the cost of the alternative that has to be sacrificed for it
B
the alternative that has to be forgone in order to purchase it
C
its market price
D
the alternative cost involved when the opportunity of buying the commodity is missed
CORRECT OPTION: b
4
Public corporation in West Africa are set up to
A
make maximum profit
B
provide jobs for the people
C
provide welfare service for the people
D
show that the government can do business
CORRECT OPTION: c
5
Supply in Economics means making
A
goods and services available to consumers
B
goods available to the market at a given price and at a given period
C
available the goods and services which consumers require
D
craete goods
CORRECT OPTION: b
6
An inferior goods is one
A
that is too bad for consumption
B
whose price is lower than the price of other goods
C
that is easily perishable
D
whose demands fall when the income of its consumer increases
CORRECT OPTION: d
7
Price elasticity of demand is define as the
A
responsiveness of demand to change in price
B
responsiveness of price to change in demand
C
increase in demand resulting form a rise in price
D
unit decrease in price resulting from a a fall in demand
CORRECT OPTION: a
8
The rural area of West Africa lack industries because
A
rural people are not meant to work in industries
B
rural people are uneducated
C
of inadequate infrastructure
D
of low population density
CORRECT OPTION: c
9
An entrepreneur will locate his industry in a place
A
nearest to his homw town
B
where the cost of production will be minimized
C
nearest to his wife's hometown
D
where the government direct him to locate
CORRECT OPTION: b
10
which of the following reasons is mainly responsible for the inefficient distribution of goods in West African countries?
A
large number of distribution companies
B
import and export restrictions by the government
C
narrow markets for commodities produced
D
poor transportation and communication system
CORRECT OPTION: d
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