1998 - WAEC Economics Past Questions and Answers - page 3

21
The problem of small markets in West Africa can be solved through
A
separate planning among the West African countries
B
meaningful- co-operation among the West African countries
C
political stability in West Africa
D
imposing of high tarrifs on West African exports
correct option: c
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22
An imperfect competitor is in equilibrium when
A
Marginal cost (MC) is equal to Marginal Revenue (MR)
B
Marginal Revenue (MR) equal to Price (P)
C
Average Revenue(AR) is equal to Average Cost (AC)
D
Output (Q) is equal to Average Revenue (AR)
correct option: a
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23
Which of the following is used to measure inflation?
A
Opem market operation
B
Cash-deposit ratio
C
price index
D
Multiplier
correct option: c
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24
If a government which owned a company N10,000 in 19196 paid the debt fully in 1985 when the value of money has depreciated by 20 Percent , such a government had
A
lost
B
been placed at par with the company
C
gained
D
stabilizing the value of money
correct option: c
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25
Banks create money by
A
giving drafts to customers
B
printing more money
C
lending our deposits to borrowers
D
issuing cheques
correct option: c
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26
The West African house was established to
A
finance development projects in Africa
B
enhance financial transaction among memebers countries
C
provide technical assistance to memebers countries
D
stabilize price in developing countries
correct option: b
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27
which of the following is a factor affecting the size of national income?
A
size of the active population
B
taste of the consumers
C
Number of registered trade unions
D
Credit-worthiness of the neighbouring countries
correct option: a
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28
The expenditure of a firm on goods and services for the expansion of its productive capacity is known as
A
income
B
investment
C
savings
D
profits
correct option: b
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29
An increase in marginal propensity to save will lead to
A
an increase in marginal propensity to consume
B
a decrease in the level of consumption
C
an immediate decrease in the net national income
D
an increase in the level of consumption
correct option: b
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30
progressive system of taxation implies that the
A
poor pay relatively more
B
tax rate falls as the tax base increases
C
tax rate increases as the tax base increases
D
average and marginal rate of tax will be the same
correct option: c
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