# Economics 2021 Past Questions | WAEC

Study the following Economics past questions and answers for JAMBWAEC  NECO and Post-JAMB. Get prepared with official past questions and answers for upcoming examinations.

Use this data below to answer the question

The following data relates to the national income of a country.
Gross domestic product = $2800 Net factor income from abroad =$250
Depreciation = $700 Indirect taxes =$120

31. What is the country’s Gross National (GNP)?

• A. $3.050 • B.$ 2.680
• C. $2,350 • D.$2,100

Use this data below to answer the question

The following data relates to the national income of a country.
Gross domestic product = $2800 Net factor income from abroad =$250
Depreciation = $700 Indirect taxes =$120

32. What is the country’s Net National Product (NNP) at factor cost?

• A. $3.050 • B.$2,680
• C. $2,230 • D.$2.220

33. The standard of living in two countries can be compared using the___________

• A. number of industries in each country
• B. size of their arms and ammunition
• C. size of their national incomes only
• D. gross national product per head

34. Government can curb inflation by_________

• A. encouraging banks to lend for any purpose.
• B. increasing her own expenditure.
• C. buying treasury bills in the open market.
• D. selling securities in the open market

35.  Functions of money does not include_______

• A. store of value.
• B. medium of exchange
• C. standard of deferred payment.
• D. general acceptability.

36. Demand-pull inflation can be as a result of___________

• A. increase in the cost of production.
• A. deficit financing by the government.
• B. excessive supply of foodstuff
• D. increase in import duties.

37.  An increase in cash ratio by the central bank will_______

• A. Increase the supply of money.
• B. Increase banks lending
• C. Encourage borrowing.
• D. Reduce the supply of money.

38. When a government cuts down her expenditure to reduce inflation, she has embarked on___________

• A. A restrictive Fiscal policy.
• B. An expansionary monetary policy.
• C. Physical policy.
• D. Implementing budget deficit

39. In order to enable the government of a country to increase its tax revenue, it will be advisable for it to increase taxes on_______

• A. Textile materials with elastic demand
• B. Alcoholic beverages with inelastic demand
• C. Agricultural products with inelastic supply
• D. Luxury goods with elastic supply

40. People who dispose of their assets are expected to pay ______________

• B. capital gains tax
• C. expenditure tax
• D. sales tax

41.  A floating exchange rate means that the exchange rate is fixed by the __________

• A. Central bank of the country
• B. Forces of demand and supply
• C. International monetary fund (IMF)
• D. Ministry of Finance

42.  A measure that can be adopted to correct a country ‘s balance of payments deficit is ____________

• A. Allow the currency to appreciate to encourage imports.
• B. Allow the currency to depreciate to encourage imports
• C. Adopt import substitution strategy
• D. Restrict trade with all countries

43. Records of a country’s invisible trade are recorded in her_____________-

• B. Capital account.
• C. Current account
• D. Financial account.

44. If a country’s import bill is high, she can encourage exports by___________

• A. Allowing her currency to depreciate
• B. Allowing her currency to appreciate
• C. Liberalizing importation
• D. Increasing taxes on all locally produced goods

45.  If a country imposes a barrier on trade, the resultant effect will be _________

• A. a halt in buying and selling
• B. high quality goods from local industries
• C. an increase in the demand for locally produced goods
• D. shutdown of infant industries

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