Economics 2019 Past Questions | WAEC
31. The total value of goods and services produced within the borders of a country is
- A. net national product
- B. net domestic product
- C. gross domestic product
- D. gross national product
32. Which of the following factors will not underestimate the national income?
- A. Rapid decrease in prices
- B. Increased subsistence production
- C. Practice of specialization of labour
- D. Increase in value of services not paid for
33. Which of the following items is not considered as a transfer payment?
- A. Pension pay
- B. Government subsidy
- C. Students’ grant
- D. Doctor’s salary
34. Which of the following is true of the value of money? It
- A. is positively related to the price level
- B. depends on the value people attach to it
- C. is determined by the government
- D. is inversely related to the price level
35. The motive for holding money to meet unforeseen events is termed
- A. precautionary demand
- B. transactions demand
- C. liquidity demand
- D. speculative demand
36. An increase in the prices of factor inputs may result in
- A. demand-pull inflation
- B. stagflation
- C. open inflation
- D. cost-push inflation
37. Citizens are protected from the government’s arbitrariness in taxation by the canon of
- A. elasticity
- B. flexibility.
- C. economy
- D. certainty
38. What happens when the central bank increases the bank rate?
- A. Amount of borrowing increases
- B. Amount of borrowing decreases
- C. Supply of money increases
- D. Commercial banks are not affected
39. Insurance Companies are similar to commercial banks in that they
- A. Compensate their customers for losses
- B. act as lender of last resort
- C. help in maintaining monetary stability in a nation
- D. help in mobilizing savings for investment
40. In most developing countries, a large percentage of the labour force is engaged in
- A. trading
- B. mining
- C. agriculture
- D. manufacturing
41. In most underdeveloped countries, development plans do not achieve their objective due to
- A. poor coordination between local and national governments
- B. exportation of more primary products
- C. lack of educational institutions in those countries
- D. urban-rural migration of citizens
42. In a period of unemployment and falling prices, the government should adopt a
- A. zero-based budget
- B. budget deficit
- C. balanced budget
- D. surplus budget
43. Agricultural productivity may be increased if
- A. educational institutions are established in rural areas
- B. commercial banks are established in rural areas
- C. more infrastructural facilities are provided in rural areas
- D. labour intensive method of agriculture is encouraged
44. Devaluation of currency may not correct a balance of payments deficit if the demand for export is
- A. perfectly inelastic
- B. perfectly elastic
- C. fairly elastic
- D. unitary elastic
45. An improvement in a country’s terms of trade means that the
- A. nation can export more services
- B. nation’s receipts on export are equal to payments on imports
- C. value of her imports is lower than her exports
- D. visible exports is less than visible imports
