WAEC past questions and answers, Economics, 2016, part 2

WAEC Economics, Objectives, Year 2016, Part 2:

26. One feature of growing population is _______.

1. Increase in the number of young people
2. Increase in the number of old people
3. Decrease in the dependent population
4. Decrease in the life expectancy

 

27. Efficiency of labour in a country is determined by the following factor EXCEPT the ______.

1. Social attitude to work
2. Education and training
3. Working conditions of workers
4. Total population

 

28. Which of the following will encourage capital intensive farming?

1. Encouraging communal system of land ownership
2. Adopting policies that will encourage rural-urban migration
3. Provision of subsidies on equipment
4. Restrictive lending policies by banks

 

29. Which of the following best explains why more foreign investments are not attracted to West Africa?

1. Small population size
2. Small sizes of market places
3. Instability in political and industrial policies
4. Lack of manpower needed to work in industries

 

30. Location of firms in rural areas may _______.

1. Enable the firm to enjoy existing infrastructural facilities
2. Make finance readily available
3. Enhance even or balanced development
4. Make such firm enjoy external economics of scale

 

31. International income accounting, double counting occurs when _______.

1. Intermediate goods are counted twice
2. Intermediate goods are counted with the final goods
3. Final goods are counted more than twice
4. Different people count the products

 

32. The difference between GDP and GNP is _______.

1. Consumption of fixed capital
2. Indirect business tax
3. Net factor income from abroad
4. Public Transfer payment

 

33. The difference between GDP and GNP is _______.

1. Consumption of fixed capital
2. Indirect business tax
3. Net factor income from abroad
4. Public Transfer payment

 

34. Which of the following items is not included in the measurement of the national income using the income approach?

1. Wages and Salary
2. Government Purchases
3. Interest
4. Dividend

 

35. A bank Note is said to be a legal tender because it is _______.

1. Printed by the Government
2. A store of value
3. Signed by the head of state
4. Backed by Law

 

36. During inflation, interest rate will _______.

1. Rise
2. Fluctuate
3. Remain constant
4. Fall

 

37. Cost push inflation is likely to arise when?

1. There is an increase in banking lending
2. There is an increase in subsidies
3. There is an increase in stock exchange
4. There is an increase in Agricultural Bank

 

38. Which of the following financial institutions cannot be found on the capital market of a country?

1. Commercial bank
2. Mortgage bank
3. Stock exchange
4. Agricultural Bank

 

39. The stock market is a market for _______.

1. New and second hand shares
2. Debentures
3. Goods and Services
4. Short term securities

 

40. Indirect taxes are generally _______.

1. Progressive
2. Regressive
3. Equitable
4. Proportionate

 

41. Fiscal policy that can control inflation will include the use of

1. Balanced budgeting
2. Tax holidays
3. Budget deficit
4. Budget surplus

 

42. Which of the following is a cause of under-development in West Africa?

1. Availability of manpower
2. Increasing population
3. High rate of capital formation
4. Large size of market places

 

43. Which of the following is NOT a major problem of development?

1. Shortage of skilled manpower
2. Inadequate data for planning
3. Political instability
4. Poor identification of projects

 

44. The principle of comparative cost advantage was propounded by _______.

1. David Ricardo
2. Alfred Marshal
3. J.S Mill
4. Adam Smith

 

45. The rate at which a country’s export is exchanged for her imports is _______?

1. Trade balance
2. Balance of payment
3. Term of trade
4. Balance on current account

 

46. Balance for payment surplus implies that receipts for exports are _______.

1. At par with payments for imports
2. Greater than payment for imports
3. Less than payment for imports
4. Proportional for payments for imports

 

47. When the international value of a country’s currency rises, other things being equal, the country’s _______.

1. Net export tend to increase
2. Imports tend to increase
3. Net export tend to decrease
4. Export tend to be stable

 

48. One of the physical measures that can be used to reduce the volume of imports is the _______.

1. Reduction of personnel tax income
2. Removal of import duties
3. Use of foreign exchange control
4. Liberalization of credit for importers

 

49. When a number of countries agree to remove all trade barriers among themselves and at the same time charge a common tariff against non member countries, it’s known as _______.

1. Free trade area
2. Common market
3. Custom union
4. Economic community

 

50 Which of the following international organizations is concerned with the stabilization of the balance of payments? The _______.

1. International Monetary Fund (IMF)
2. World Bank (IBRD)
3. United Nations Organization (UNO)
4. Economic Commission for Africa (ECA)

 

Answers to WAEC Economics past questions, year 2016

1. D   2. A   3. C   4. C   5. A   6. B   7. A   8. A   9. B   10. C

11. C   12. A   13. B   14. B   15. A   16. B   17. B   18. B   19. C   20. A

21. B   22. C   23. C   24. D   25. B   26. A   27. D   28. C   29. C   30 C

31. B   32. C   33. C   34. B   35. D   36. A   37. C   38. D   39. A   40. A

41. A   42. B   43. D   44. A   45. C   46. B   47. A   48. C   49. C   50.A

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