WAEC SSCE - Economics - 1991 (Objective)

Question 1 Report

The price system refers to the system by which

the government controls price in the economic system

prices tends to rise to a general level

price allocates resources between consumer and producer goods

government allocate resources to consumers and producers

the producers fix the price for their products

Theory Of Price Determination

Theory Of Production

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Question 2 Report

The natural growth rate of a population is the

sum of the birth rate and death rate

sum of the birth rate and the net immigration rate

birth rate minus the death rate

birth rate divided by the net immigration

death rate minus the net immigration

Factors Of Production And Their Theories

Population And Labour Market

Population

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Question 3 Report

Which of the following is not an argument for locating industries in rural areas?

Rural areas supply agricultural raw materials

the pace of development of rural areas will be quicken

Employment will be for rural inhabitants

capital is easily available in rural areas

Rural-urban migration will decrease

Answer Details

The argument that "capital is easily available in rural areas" is not a reason for locating industries in rural areas. Explanation: Capital refers to the money needed to start or invest in a business. Generally, it is easier to access capital in urban areas where there are more financial institutions, investors, and a larger economy. Rural areas may have less access to capital, which can be a challenge for starting businesses. Therefore, this argument does not support the idea of locating industries in rural areas.

Read lesson note on Industry And Industrialization (JAMB)

Industry And Industrialization

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Question 4 Report

The value of money is determined by the

rate of interest

general price level

quantity of money in circulation

level of economic development

weight of the currency notes and coins

Answer Details

The value of money is determined by the general price level. In other words, the purchasing power of money is determined by the amount of goods and services it can buy. If the general price level of goods and services in an economy is high, the value of money will be low and vice versa. The rate of interest, quantity of money in circulation, level of economic development, and weight of the currency notes and coins are not direct determinants of the value of money, but they can affect it indirectly.

Read lesson note on Money And Inflation (WAEC)

Money And Inflation

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Question 5 Report

Which of the following functions do retailers perform in an economy?

Production

Exchange

Hoarding

Distribution

Investment

Answer Details

Retailers perform the function of distribution in an economy. They buy goods from manufacturers or wholesalers and sell them to consumers at a markup price. This involves the physical movement of goods from the producers to the consumers through the distribution channels, which may include intermediaries such as wholesalers, agents, and retailers. Retailers may also provide storage facilities for the goods they sell, but this is not the primary function. Retailers do not engage in production, investment or hoarding of goods.

Read lesson note on Agriculture (WAEC)

Read lesson note on Distributive Trade (WAEC)

Agriculture

Distributive Trade

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Question 6 Report

which of the following item is not included in measuring national income by the income approach?

Wages and salaries of public servants

Student's grants and scholarships

Profits of companies

Income earned by self-employed persons such as lawyers

Rents on property

Answer Details

The income approach is one of the methods used to measure the national income of a country. It calculates the total income earned by all factors of production in the country during a given period of time. Out of the options given, student's grants and scholarships are not included in measuring national income by the income approach. This is because grants and scholarships are considered transfers of income, which means they are not earned through the production of goods or services. Therefore, student's grants and scholarships are not included in the calculation of national income by the income approach, while wages and salaries of public servants, profits of companies, income earned by self-employed persons such as lawyers, and rents on property are included.

Read lesson note on National Income (WAEC)

National Income

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Question 7 Report

Which of the following statements is not true in an inflationary period?

the purchasing power diminishes

Wages rise simultaneously with prices

More money runs after a limited quantity of goods

Fixed income earners lose

Aggregate real demand exceeds aggregate real supply

Answer Details

The statement that is not true in an inflationary period is: "Wages rise simultaneously with prices." Inflation is a period when the general price level of goods and services increases continuously, resulting in a decline in the purchasing power of money. During this period, wages may increase due to increased labor demand or negotiations by labor unions, but they may not necessarily rise simultaneously with prices. Inflation is caused by various factors, such as an increase in the money supply, cost-push factors, demand-pull factors, and supply shocks. As the general price level rises, the purchasing power of money diminishes, leading to a reduction in real income for fixed income earners. Inflation also creates a situation where more money is chasing a limited quantity of goods, which results in an excess demand for goods and services over the available supply.

Read lesson note on Money And Inflation (WAEC)

Read lesson note on National Income (WAEC)

Money And Inflation

National Income

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Question 8 Report

A shift of the demand curve to the right when the supply curve remains constant , implies that

both price and quantity demanded will increase

only price increases

both price and quantity demanded will decrease

the price remains constant

the price falls

Answer Details

In economics, the demand curve shows the relationship between the price of a product and the quantity that consumers are willing to buy at that price. When there is a shift of the demand curve to the right while the supply curve remains constant, it means that at every price point, consumers are willing to buy more of the product. This could be due to factors such as an increase in consumer income, a change in tastes and preferences, or an increase in the availability of credit. As a result, both the price and quantity demanded will increase. Therefore, the correct answer is: "both price and quantity demanded will increase."

Read lesson note on The Theory Of Demand (JAMB)

Read lesson note on Demand (WAEC)

The Theory Of Demand

Demand

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Question 9 Report

Which of the following is a function of money? It is

portable

A standard of diferred payment

relatively stable in value

generally acceptable

an easily divisible item

Answer Details

The function of money is to serve as a medium of exchange, a unit of account, and a store of value. Among the options given, the function of money that is described is "a standard of deferred payment". This means that money can be used to make payments that will be settled at a future date. For example, if you take out a loan from a bank, you are using money as a standard of deferred payment, as you will be paying back the loan with money in the future.

Read lesson note on Methods And Tools Of Economic Analysis (JAMB)

Read lesson note on International Economic Organizations (JAMB)

Read lesson note on Economics As A Science (JAMB)

Read lesson note on Money And Inflation (JAMB)

Methods And Tools Of Economic Analysis

International Economic Organizations

Economics As A Science

Money And Inflation

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Question 10 Report

if an economy is growing at an annual rate of 7% and 4% of it is known to be due to the improvement in labour ans capital combined, the balance of 3% is usually attributed to

land and enterprenuer

abundance of natural resources

level of human capital

technical progress and related factors

discipline in political leadership

International Economic Organizations

The Theory Of Production

Theory Of Production

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Question 11 Report

in the event of a limited liability company going into liquidation, each shareholder

may lose a maximum of the amount he has invested

lose nothing

loses everything including his house

may have unlimited liability

will lose the amount he has invested plus a proportion of his bank account

Answer Details

In the event of a limited liability company going into liquidation, each shareholder may lose a maximum of the amount he has invested. This means that if a shareholder invested $10,000 in the company, the maximum he can lose if the company goes into liquidation is $10,000. The shareholder is not personally responsible for any debts or liabilities incurred by the company beyond the amount of his investment. This is the main advantage of investing in a limited liability company, as it protects the personal assets of the shareholders in the event of the company's failure.

Read lesson note on Business Organizations (WAEC)

Read lesson note on Population And Labour Market (WAEC)

Read lesson note on The Theory Of Demand (JAMB)

Business Organizations

Population And Labour Market

The Theory Of Demand

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Question 12 Report

open market operation are the process by which

the Central Banks purchases and sells securities

Commercial Banks purchases and sells securities

business firms buys raw materials freely

huseholds buys consumer goods openly

the money market takes over the function of the Central Banks

Answer Details

Open market operations refer to the process by which the Central Bank of a country buys or sells securities in the open market in order to influence the money supply, interest rates, and ultimately, the overall economy. This involves the Central Bank purchasing or selling government securities, such as bonds or treasury bills, from or to commercial banks or other financial institutions. By doing so, the Central Bank can increase or decrease the amount of money in circulation, affecting the interest rates at which banks lend and borrow money from each other, and ultimately impacting the broader economy. Open market operations are one of the primary tools used by Central Banks to control inflation, stabilize the currency, and promote economic growth.

Read lesson note on Banking (JAMB)

Banking

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Question 13 Report

International trade is necessary mainly because

no country can live in economic isolation

different countries are endowed with the same natural; and man-made resources

some countries have comparative cost advantage in the production of certain commodities

the world demand for and supply od various categories of commodities is expanding very fast

countries wants to build up their foreign exchange reserve

International Trade

Economic Integration

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Question 14 Report

The monetary system that requires a double coincidence of wants is known as the

gold standard

barter system

commodity system

gold exchange standard

cheque system

Answer Details

The monetary system that requires a double coincidence of wants is known as the barter system. In a barter system, goods or services are directly exchanged without the use of money. In order for a trade to occur, both parties must have what the other wants, creating a double coincidence of wants. For example, if you have a cow and want some wheat, you would need to find someone who has wheat and wants a cow. This can be difficult and time-consuming, which is why barter systems are not commonly used in modern economies.

Read lesson note on Economics As A Science (JAMB)

Economics As A Science

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Question 15 Report

Which of the following is not a reason why people migrate from one place to another ?

to find jobs and improve their standard of living

To live in a more suitable climate

For the sake of change and adventure

to escape from a religious. political or social situation in a country

To buy foreign goods for sale in their country

Answer Details

The reason that is not a typical reason why people migrate from one place to another is "To buy foreign goods for sale in their country." People may travel for trade, but migration implies moving from one place to another with the intention of living there permanently or for an extended period. People usually migrate to find jobs and improve their standard of living, to live in a more suitable climate, for the sake of change and adventure, or to escape from a religious, political, or social situation in a country. These reasons are driven by the desire for better opportunities, safety, and a better quality of life.

Read lesson note on Population (JAMB)

Population

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Question 16 Report

A tax is said to be good when

it yields more revenue to the state at the expense of the people's ability to pay

the cost of collecting it is equal to the revenue it generates

it is imposed so suddenly that no one can dodge its payment

its payment causes minimum incovenience to the tax payer

it induces workers to prefer more leisure to extra work

Answer Details

A tax is considered good when its payment causes minimum inconvenience to the taxpayer. In other words, a good tax is one that does not burden the taxpayers too much while still generating revenue for the government to finance public services and infrastructure. A good tax system aims to be fair, efficient, and simple, taking into consideration the ability of taxpayers to pay and the impact of taxation on the economy. So, a good tax system balances the needs of the state to collect revenue and the taxpayers' ability to pay.

Read lesson note on Public Finance (JAMB)

Read lesson note on Economics As A Science (JAMB)

Public Finance

Economics As A Science

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Question 17 Report

A major function of the middlemen in Nigeria is the distribution of

commodities to all consumers regardless of income

commodities to consuming centres

economic welfare facilities to all

waelth to all

income within the society

Agriculture

Distributive Trade

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Question 18 Report

Which of the following are direct taxes?

Sale taxes

Excise duties

income and company taxes

Tarrif duties

Commodity taxes

Answer Details

Direct taxes are taxes that are imposed directly on individuals or organizations and cannot be passed on to others. Therefore, the direct taxes from the given options are income and company taxes. These taxes are paid by individuals and companies directly to the government based on their income or profit. On the other hand, sales taxes, excise duties, tariff duties, and commodity taxes are indirect taxes as they are imposed on the sale of goods and services and can be passed on to the final consumer.

Read lesson note on Public Finance (JAMB)

Read lesson note on Banking (JAMB)

Public Finance

Banking

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Question 19 Report

Palm oil industry in located in Bendel State because the state

imports raw materials for the industry

has a poor soil which is unsuitable for other crops

is a palm-tree growing area

government does not engage in the growing of other crops

has the highest demands for apl oil in Nigeria

Answer Details

The palm oil industry is located in Bendel State because the state is a palm-tree growing area. The climate and soil conditions in Bendel State are suitable for growing palm trees, which are the main source of palm oil. Therefore, the state has a comparative advantage in palm oil production.

Read lesson note on Petroleum And The Nigerian Economy (JAMB)

Read lesson note on Money And Inflation (JAMB)

Petroleum And The Nigerian Economy

Money And Inflation

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Question 20 Report

The productivity of labour does not depend only o its own effort and efficiency, but also on I the level of technical knowledge II. the quality of other factors III. racial qualities which allow persons from certain races to have good physique and be very active . Which of the above statements is /are correct?

I only

I and II only

I and III only

II and III only

III only

Factors Of Production

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Question 21 Report

Agriculture plays a dominant role in West African economies because

the Green Revolution in Nigeria is agricultural

it supplies all the food stuffs consumed in Ghana alone

there are large plantation of cocoa, groundnut and oil palm in West Africa

it is the main source of revenue in Sirera Leon alone

it emplys more than 50% of the total labour force in West Africa

Answer Details

Agriculture plays a dominant role in West African economies because it employs more than 50% of the total labour force in the region. In other words, a significant portion of the population in West African countries depend on agriculture for their livelihood. Additionally, there are large plantations of crops such as cocoa, groundnut, and oil palm in the region, which provide a major source of revenue for these countries. The abundance of arable land and favorable weather conditions in West Africa also make agriculture a viable and important economic activity.

Read lesson note on Money And Inflation (JAMB)

Money And Inflation

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Question 22 Report

Choice is necessary because resources

are available

can be found everywhere

are constant

are scarce

are unlimited

Answer Details

Choice is necessary because resources are scarce. This means that there are not enough resources available to satisfy all the wants and needs of people. As a result, people have to make choices about how to allocate the resources they have in order to best meet their needs and wants. These choices involve trade-offs, where the decision to use a resource for one purpose means that it cannot be used for another purpose. Therefore, choice is necessary in order to make the best use of the limited resources available.

Read lesson note on Economics As A Science (JAMB)

Read lesson note on Economic Systems (JAMB)

Economics As A Science

Economic Systems

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Question 23 Report

if over a period of time there is more money in the economy than the available goods and services , the economy is likely to experience

devaluation

inflation

deflation

demonetization

over-valuation

Answer Details

If over a period of time there is more money in the economy than the available goods and services, the economy is likely to experience inflation. This is because when there is too much money chasing too few goods, the prices of goods and services will rise. This can lead to a decrease in purchasing power of the currency, as it requires more money to buy the same amount of goods and services. Inflation can have negative effects on an economy, such as reducing the value of savings, decreasing investment, and causing social and political unrest.

Read lesson note on Money And Inflation (WAEC)

Money And Inflation

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Question 24 Report

Dumping in Economics means the selling of goods in a foreign market

ata a price below that received in the home market

at a price above that received in the home market

at a price equal to the cost price in the home market

in order to encourage indigenious producers

at a price equal to the selling price in the home market

Answer Details

Dumping in economics refers to the practice of selling goods in a foreign market at a price below that received in the home market. This is done in order to gain a competitive advantage in the foreign market and increase market share. The purpose of dumping is to drive competitors out of the market and establish a monopoly. Dumping is generally considered an unfair trade practice, as it can cause harm to domestic producers in the foreign market. It can also lead to a race to the bottom in terms of pricing, which can be detrimental to all producers involved.

Read lesson note on Economics As A Science (JAMB)

Read lesson note on Economic Systems (JAMB)

Economics As A Science

Economic Systems

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Question 25 Report

Which of the following is not regarded as money in Economics?

Coins

Currency notes

bank depisits

cheques

Naira and Kobo

Money And Inflation

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Question 26 Report

Which of the following is a public corporation?

Roads (Nigeria) Plc

National Oil and Chemical Marketing Co. Plc

Union Bank of Nigeria Plc

Volkswagen of Nigeria Plc

National Electric Power authority

Answer Details

The public corporation among the options listed is the National Electric Power Authority (NEPA). A public corporation is a legal entity established by the government to carry out specific public functions. NEPA was a government-owned utility company responsible for generating, transmitting, and distributing electricity across Nigeria before it was restructured and privatized into various successor companies. The other options listed are private corporations or limited liability companies that are owned and operated by private individuals or organizations for profit-making purposes.

Read lesson note on Public Finance (JAMB)

Read lesson note on Business Organizations (JAMB)

Public Finance

Business Organizations

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Question 27 Report

In a sole proprietorship decisions are made by the

government

owner

shareholder's conference

management

board of directors

Answer Details

In a sole proprietorship, decisions are made by the owner. This is because a sole proprietorship is a type of business organization in which an individual owns and operates the business alone, and therefore has complete control over all decisions related to the business. The owner is responsible for making all major decisions, such as setting business goals, determining strategies, hiring employees, and managing finances. Since there are no other shareholders, directors or partners involved, the owner has full autonomy over the business and can make decisions without needing to consult or seek approval from anyone else.

Read lesson note on Business Organizations (WAEC)

Business Organizations

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Question 28 Report

Devaluation means

a reduction in the value of the National currency

a reduction in the purchasing power of the foreign currency

a reduction in the value of the domestic currency relative to foreign currencies

an increase in the value of the national currency

a decrease in the purchasing power of the foreign currencies

Answer Details

Devaluation means a reduction in the value of the national currency relative to foreign currencies. This usually occurs when a government intentionally lowers the value of its currency in relation to other currencies, usually by reducing the exchange rate. Devaluation can lead to a decrease in the purchasing power of the domestic currency, making imports more expensive and exports more competitive.

Read lesson note on National Income (WAEC)

Read lesson note on Economics As A Science (JAMB)

Read lesson note on Agriculture In Nigeria (JAMB)

National Income

Economics As A Science

Agriculture In Nigeria

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Question 29 Report

Which of the following is the approximate working agent in Nigeria?

1 - 15

15 - 65

30 - 40

40 - 65

65 and above

Answer Details

The approximate working age range in Nigeria is which is between 15 and 65 years old. This is because the legal age for employment in Nigeria is 15 years old, and the retirement age is 65 years old. However, it's important to note that this range may vary depending on the industry or occupation. Some jobs may have lower or higher age requirements, and some people may choose to retire earlier or later than the official retirement age.

Read lesson note on Population And Labour Market (WAEC)

Read lesson note on Population (JAMB)

Population And Labour Market

Population

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Question 30 Report

A government treasury bill is a form of debt instrument which falls due for repayment after

3 months

9 months

2 years

5 years

10 or more years

Answer Details

A government treasury bill is a short-term debt instrument issued by the government to raise funds from the public. It is usually issued for a period of 91 days, which means it falls due for repayment after three months. The government uses these funds to finance its short-term expenditures such as infrastructure development, education, healthcare, etc. Treasury bills are considered to be one of the safest forms of investment because they are backed by the government and are considered to have very low risk.

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Question 31 Report

A movement along the demand curve for some goods may be caused by a change in

consumer income

the price of goods

consumers taste

the price of other goods

population

Answer Details

A movement along the demand curve for some goods is caused by a change in the price of that particular good. When the price of a good changes, it directly affects the quantity of that good that consumers are willing and able to buy. If the price of a good decreases, consumers will typically demand more of it, whereas if the price of a good increases, consumers will typically demand less of it. Changes in consumer income, tastes, the price of other goods, and population can also affect the demand for a good, but they do not cause a movement along the demand curve. Instead, they cause a shift in the demand curve itself, which represents a change in the amount of a good that consumers are willing and able to buy at any given price level.

Read lesson note on The Theory Of Demand (JAMB)

Read lesson note on Demand (WAEC)

The Theory Of Demand

Demand

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