2016 - WAEC Economics Past Questions and Answers - page 1

1
Human wants are insatiable because wants are
A
limited while means are scarce
B
unlimited and means are also unlimited
C
limited and means are also limited
D
unlimited while means are scarce
correct option: d
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2
Scale of preference is important for the following reasons except in
A
satisfying wants
B
making rational
C
making optinum allocation of resources
D
using scarce resources efficiently
correct option: a
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3
In a socialist economy, prices of commodities are determined by
A
forces of demand and supply
B
producers of the commodities
C
the central planning authority
D
consumers who are sovereign
correct option: c
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4
Which of the following cannot be classified as land in economics
A
Bauxite deposit in the ground
B
A lake used for irrigation
C
A bulldozer for clearing farm land
D
Grazing field for cattle
correct option: c
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5
A country allocation to various sectors of the economy is shown in the pie chat below, use it to answer question 5 and 6

If the budget of the country was $7,200, how much is allocated to Education?
A
$2,400.00
B
$2,000.00
C
$1,200.00
D
$1,000.00
correct option: a
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6
What is the ratio of expenditure on health to agriculture?
A
2.3
B
3.4
C
4.3
D
5.4
correct option: b
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7

The demand curve for neccessity is usually

A
vertical
B
backward bending
C
horizontal
D
negatively sloped
correct option: a

Necessity goods are products and services that consumers will buy regardless of the changes in their income levels, therefore making these products less sensitive to income change.

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8

What effect will an increase in price have on the total revenue of a firm whose product has inelastic demand? total revenue will

A
increase
B
fall
C
fluctuate
D
remain unchanged
correct option: a

if prices for inelastic goods are increased, the total revenue increases, but it would lead to a small decrease in quantity demanded. This means that firms that deal in inelastic goods or services can increase prices, selling a little less but making higher revenues.

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9
If the quantity of men's hat demanded per week is represented by the function Qd=20-\(\frac{1}{3}\)P, where P is price, how many hats are demanded when the price is $9.00?
A
11
B
17
C
23
D
47
correct option: b
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10

The demand for torch and batteries is an example of

A
competitive demand
B
composite demand
C
complementary demand
D
derived demand
correct option: c

complementary demand. Demand for a product generated by the demand for a related but different product, such as by computers for software, vehicles for tires, shaving razors for blades.

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