Economics 2020 Past Questions | WAEC
31. Which of the following are intermediate products?
- A. Cement and steel
- B. Furniture and shirt
- C. Handkerchief and shoe
- D. Table and door
32. How is NNP at factor cost derived from GNP at market prices?
- A. GNP – Depreciation + Indirect taxes + Subsidies
- B. GNP Depreciation – Indirect taxes + Subsidies
- C. GNP + Depreciation Indirect taxes – Subsidies
- D. GNP+ Depreciation- Indirect taxes + Subsidies
33. Inflation may occur if
- A. rate of productivity is higher than the wage rate
- B. prices fluctuate during a particular season of the year
- C. wage increase is granted without an increase in productivity
- D. the government embarks on restrictive monetary policies
34.
- Money would cease to be a good store of value when
- A. prices of goods and services are falling slowly
- B. there is a high level of unemployment
- C. prices of goods and services are rising rapidly
- D. prices of goods and services are rising slowing
35. Which of the following factors may lead to the underestimation of national income figures?
- A. Availability of skilled statisticians
- B. High Volume of exports
- C. Emigration of skilled workers to foreign countries
- D. Subsistence production
36. Governments in West Africa can curtail inflation by
- A. purchasing securities in the open market
- B. selling securities in the open market
- C. encouraging importation of goods from all countries
- D. encouraging banks to lend for
37. The central bank Can reduce the ability of commercial banks to give out loans by
- A. raising the bank rates
- B. reducing special deposits
- C. reducing the liquidity ratio
- D. issuing more currency
38. Tools of monetary policy do not include
- A. open market operations
- B. reserve requirement
- C. bank rate
- D. tax and public expenditure
39. During inflation, the appropriate fiscal measure to adopt is to
- A. increase indirect taxes
- B. increase direct taxes
- C. reduce personal income tax
- D. increase government expenditure
40. X and Mrs. Y pay $500.00 and $1,400.00 as taxes on their earning of S5,000.00 and $7,000.00 respectively. The system of taxation employed is
- A. specific tax
- B. proportional tax
- C. regressive tax
- D. progressive tax
41. Expenditure on food takes a large proportion of the incomes of people in
- A. industrialized countries
- B. advanced countries
- C. developing countries
- D. capitalist countries
42. A country should embark on development planning to ensure that
- A. it becomes popular among the comity of nations
- B. it also does what others are doing
- C. its scarce productive resources are efficiently utilized
- D. the nation is able to contribute its own quota to international organizations.
43. A country is allowed to import just 50,000 tonnes of rice annually. This describes
- A. devaluation
- B. tariff
- C. embargo
- D. quota
44. Dumping is selling goods in a foreign market at a price
- A. below what is sold at the home market
- B. above what is sold at the home market.
- C. equal to what is sold at the home market
- D. equal to the cost of producing the goods
45. The principle of comparative advantage encourages a country to
- A. produce only consumer goods
- B. engage in trade if it can produce a commodity at a lower cost
- C. specializes in the production of all goods
- D. try as much as possible to be self-sufficient
