Economics 2021 Past Questions | WAEC
- The study of economics is important to every society because it______
- A. Enables individuals to satisfy all their wants
- B. Helps in the utilization of scarce resources.
- C. Helps producers to know what to produce.
- D. Restores equilibrium between producers and consumers
2. A consumer with $10 needs a dress, a pair of shoes, a handbag and jewelry costing $20, $10, $7 and $3 respectively. The opportunity cost of buying the pair of shoes Is the________
- A. Dress.
- B. Jewelry.
- C. Handbag and Jewelry.
- D. Dress and Jewelry
3. The distinguishing function of an entrepreneur is_______
- A. Planning.
- B. Control.
- C. Risk-bearing.
- D. Management.
4. When a commodity market operates without government interference, commodities are distributed through_______
- A. A government distribution agencies.
- B. The operation of price mechanism.
- C. A central planning committee
- D. Retailers only.
5. One way of obtaining the median of a given data is to__________
- A. Sum the value and divide by the number of items.
- B. Arrange the data in ascending order and subtract each item from the mean.
- C. Arrange the data in descending order and add each item to the least.
- D. Arrange the data in either ascending or descending order and find what item divides the set in two equal
6. An increase in the rice harvest, all things being equal, may cause____________
- A. Price to increase substantially.
- B. Price to fall substantially.
- C. Demand to fall substantially.
- D. Farmer’s incomes to be more than doubled
7. The demand for wood and labour is an example of______
- A. Effective demand.
- B. Complementary demand
- C. Derived demand
- D. Competitive demand
8. What will be the reaction of consumers in a market if there is a fall in the price of the substitute commodity X?
- A. Price of commodity X will increase
- B. Demand for the substitute of commodity X will decrease
- C. Demand for commodity X will decrease
- D. Supply of both commodity X and its substitute will increase.
9. An increase in market supply is caused by the following factors except_________
- A. An improvement in innovation and technology.
- B. An increase in the price of the commodity
- C. A reduction in the cost of raw materials.
- D. A favourable weather condition.
10. The coefficient of price elasticity of supply of land is usually____________
- A. One
- B. Greater than one
- C. Zero
- D. Less than one.
11. The price of soap rose from $10 to $20 causing a trader to increase her supply from 50 to 120 boxes per week. This makes supply_________
- A. Unitary elastic.
- B. Perfectly inelastic.
- C. Fairly elastic.
- D. Inelastic.
12. The leftward shift in the supply curve for a commodity indicates_________
- A. An increase in quantity supplied
- B. A decrease in supply.
- C. A reduction in quantity supplied.
- D. An increase in supply.
13. Market supply may increase if there is an increase in the________
- A. Price of the product
- B. Prices of factors of production.
- C. Tax paid on raw materials
- D. Subsidies on raw materials.
14. Government can increase farmers’ incomes by__________
- A. Fixing maximum prices.
- B. Fixing minimum prices.
- C. Encouraging them to produce surplus output.
- D. Increasing taxes on inputs.
15. When market supply increases, the equilibrium price_________
- A. Rises and quantity falls.
- B. Falls and quantity rises.
- C. And quantity increase
- D. And quantity fall