Economics 2021 Past Questions | WAEC
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 ______________
- A. value added tax
- 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_____________-
- A. Trade account.
- 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
