2011 Economics WAEC Theory Past Questions
Quiz Summary
0 of 12 Questions completed
Questions:
Information
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading…
You must sign in or sign up to start the quiz.
You must first complete the following:
Results
Results
0 of 12 Questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 point(s), (0)
Earned Point(s): 0 of 0, (0)
0 Essay(s) Pending (Possible Point(s): 0)
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- 12
- Current
- Review
- Answered
- Correct
- Incorrect
-
Question 1 of 12
1. Question
The supply situation for rice in country X over a period is as shown in the table below.
Use the information in the table to answer the questions that follow:
(a) Calculate the coefficient of price elasticity of supply for rice between December 2004 and January 2007.
(b) Is the supply of rice elastic or inelastic? Give a reason for your answer.
(c) State any three reasons which may cause an increase in the supply of rice.
-
This response will be reviewed and graded after submission.
Grading can be reviewed and adjusted.Grading can be reviewed and adjusted.Hint
Es = 50% x 33.3% = 1.5%
(b) The supply of rice is elastic. The coefficient of price elasticity of supply is greater than 1
(c) Factors that can cause an increase in the supply of rice:
(i) Increase in subsidies
(ii) Favorable weather condition
(iii) Reduction in the price of inputs
(iv) Reduction in tax
(v) Increase in the number of producers or importers of rice.
(vi) Improvement in technology
-
-
Question 2 of 12
2. Question
The following are the loans granted by a Commercial bank to different categories of individuals.
Use the information to answer the questions that follow:
Bakers $8,000; Farmers $8,000; Miners $7,000; Retailers $5,000;
Tailors $4,000; Teachers $6,000; Drivers $4,000; Fishermen $3,000.1. Arrange the information in the form of a table grouping the individuals into:
(i) Primary sector;
(ii) Secondary Sector;
(iii) Tertiary Sector.
2. Express the loan to each sector as a ratio of the total loan granted.
3. Present the total loans granted to the sector in a simple bar chart. (use of graph sheet is essential).-
This response will be reviewed and graded after submission.
Grading can be reviewed and adjusted.Grading can be reviewed and adjusted.Hint
(a)
Sector Primary Sector Secondary Tertiary Sector Farmer $8,000 Bakers $8,000 Retailers $5,000 Miners $7,000 Tailors $4,000 Drivers $4,000 Fishermen $3,000 Teachers $6,000 TOTAL $18,000 $12,000 $15,000 (b)
Ratio of Primary Sector = $ 18,000/$45,000 = 1:2.5
Ratio of Secondary Sector = $12,000/$45,000 = 1:3.75
Ratio of Tertiary Sector = $15,000/ $45,000 = 1.3
(c)
-
-
Question 3 of 12
3. Question
(a) What is a centrally planned economy?
(b) Outline any four features of a capitalist economy
-
This response will be reviewed and graded after submission.
Grading can be reviewed and adjusted.Grading can be reviewed and adjusted.Hint
(a) A centrally planned economy is one in which there is public ownership of the means of production and in which the decision as to what to produce, how to produce and for whom to produce are made by the government.
(b) Features of Capitalist economy:
(i) There is private ownership of resources.
(ii) Production decision are taken mainly by private individuals and organizations.
(iii) The motive is for profit.
(iv) There is very limited government participation in economic activity.
(v) Market forces determine the allocation of resources.
(vi) There are various forms of competition.
(vii) There is consumer sovereignty.
-
-
Question 4 of 12
4. Question
(a) Define mobility of labour.
(b) Describe any four factors influencing the supply of labour.
-
This response will be reviewed and graded after submission.
Grading can be reviewed and adjusted.Grading can be reviewed and adjusted.Hint
(a) Mobility of labour is the ease with which labour can move from one place to another or from one occupation to another.
(b) Factors influencing the supply of labour:
(i) The size of the population
(ii) Official retirement age: the higher the retirement age, the higher the supply of labour.
(iii) Wage level: The higher the wage level, the higher the supply of labour
(iv) Age distribution : where a large number of people fall within the working age group , the supply of labour will be high.
(v) Immigration and Emigration: Immigration will increase the supply of labour and emigration will reduce the supply of labour.
(vi) Official school leaving age.
-
-
Question 5 of 12
5. Question
(a) What is international trade?
(b) Explain any four advantages of international trade
-
This response will be reviewed and graded after submission.
Grading can be reviewed and adjusted.Grading can be reviewed and adjusted.Hint
(a) International trade: is the exchange of goods and services among countries
(b) Advantages of international trade:
(i) It provides income to traders
(ii) It is a source of revenue to the government.
(iii) A source of foreign exchange earnings.
(iv) It leads to the exchange of skills and technology.
(v) It leads to various forms of co-operation among countries
(vi) It opens up the world market for local producers.
(vii) It generates employment for firms engaged in international trade
(viii) It leads to competition which brings about higher quality products
-
-
Question 6 of 12
6. Question
Outline any five reasons why small scale firms are common in West Africa.
-
This response will be reviewed and graded after submission.
Grading can be reviewed and adjusted.Grading can be reviewed and adjusted.Hint
In West Africa, small scale firms are common for the following reasons:
(i) It requires simple legal and administrative procedures to set up.
(ii) Small firms are easy to set up because of small capital requirements.
(iii) For security sake: It may be a risk to depend only on large suppliers, therefore orders may be placed with small firms regularly just to keep them in business.
(iv) Where the market size is small, production must be on a small scale.
(v) The self motive: Some people like to remain their own boss to enjoy the pride of ownership. They, therefore, remain since expanding may mean inviting partners and so sharing ownership.
(vi) Government policy: Governments may institute anti-monopoly policies or policies to assist small firms
(vii) The size of the business unit tends to be small where the work involves the provision of direct services
(viii) Fear of the risk: The nature of the product may be such that there are frequent changes in demand hence production will be on a small scale so as to minimize loss if there is a fall in demand.
-
-
Question 7 of 12
7. Question
(a) Explain with examples the terms competitive demand and complementary demand.
(b) With the aid of diagram, analyse the effect of a decrease in the import duty on cars on the price and consumption of petrol
-
This response will be reviewed and graded after submission.
Grading can be reviewed and adjusted.Grading can be reviewed and adjusted.Hint
(a) Competitive demand refers to commodities that serve the same purpose i.e. an increase in demand for one will lead to a decrease in the demand for the other. e.g fish and meat are close substitutes, Coca-cola and Pepsi Cola.
Complimentary demand refers to commodities that are used together. i.e. without one of the commodities, the other will be rendered useless e.g. car and petrol, toothpaste and toothbrush.
(b)
A decrease in the import duty on cars results in a reduction in the price of cars from P to P1. This leads to an increase in the quantity demanded of cars from Q0 to Q1. An increase in the quantity demanded of cars brings about an increase in the consumption of petrol. This shifts the demand curve from Do to D1.
The price of petrol increases from Po to P1 as shown below ;
-
-
Question 8 of 12
8. Question
(a) What is demographic transition theory ?
(b) Explain the three stages of the theory.
-
This response will be reviewed and graded after submission.
Grading can be reviewed and adjusted.Grading can be reviewed and adjusted.Hint
(a) Demographic Transition theory is concerned with the historical population growth of a society.
It attempts to explain the relationship between fertility and mortality on population growth.
The theory explains how all developed countries in contemporary times have passed through three identical stages of population history.
(b) Stages of the theory:
Stage 1: (Pre-transition phase/stage): This stage is characterized by high fertility and high mortality rates. In this stage, the population is fairly stable, static or increasing at a low rate. It is a feature of the pre-industrial society.
Stage 2:(Transitional stage/phase): In this stage, both fertility and mortality are declining. Fertility declines less rapidly at first and then grows more rapidly than mortality leading to an increase in population. It is a period of population explosion as a result of high birth rates and low death rates.
It is a feature of an economy at the industrial take-off. It is a feature of a developing economy.Stage 3: (Post- transition phase/stage): Both fertility and mortality are low and under control at this stage. The growth rate is controlled as population remains, more or less stable i.e it is a period of low birth rate. and low death rates, which leads to little or no population growth. It is a feature of an advanced economy.
-
-
Question 9 of 12
9. Question
(a) Differentiate between shares and debentures.
(b) Identify any four problems encountered by firms in raising capital .
-
This response will be reviewed and graded after submission.
Grading can be reviewed and adjusted.Grading can be reviewed and adjusted.Hint
(a) A share is the smallest unit into which the capital of a company is divided. It is a unit of ownership of a business concern. It is usually expressed in terms of money-capital. Shares can take different forms.
A shareholder receives dividend when the company makes and declares profit. He also has a voting right. While a Debenture is a loan capital or corporate bond. A debenture holder is a creditor to the company.
He receives interest in his capital whether or not the company makes profit.(b) Problems encountered by firms in raising capital :
(i) Low level of loanable funds for investment.
(ii) The inability of firms to provide the required collateral securities to obtain loans from financial institutions limits their ability to raise capital.
(iii) The high rate of defaulters in repayment discourages financial institutions from giving out loans easily
(iv) High cost of loans/high-interest rates.
(v) Inadequate demand reduces the level of profits which could have been plowed back.
(vi) The risk involved and the fluctuation of share prices discourages some people from subscribing to the shares of companies.
(vii) Stringent government financial regulations
(viii) High cost of production reduces the level of profits which could have been plowed back
-
-
Question 10 of 12
10. Question
(a) Describe the following types of co-operative societies:
(i) consumers’ cooperatives;
(ii) producers’ cooperatives
(iii) thrift and credit cooperatives
(b) Highlight any two problems faced by cooperative societies in West Africa
-
This response will be reviewed and graded after submission.
Grading can be reviewed and adjusted.Grading can be reviewed and adjusted.Hint
(a)
(i) Consumers’ Co-operative: are associations of consumers who pool their resources together, buy goods in bulk at wholesale prices from producers and then sell the goods at retail prices to members and non-members. The intention is to eliminate middlemen by making the goods readily available to members at reasonable prices. The profits are shared among members in the form of dividends.
(ii) Producers` co-operative society: This is the association of producers who are in the same line of production and come together to do joint business.(iii) Thrift and credit co-operative society; these are associations of usually low-income earners who contribute money. The total of which goes to members in turn.At times the money is given as loan to a needy member at minimal interest. Members are encouraged to save and they also enjoy a greater bulk of the money at a time. Members share profits/surplus in the form of dividends.
(b) Problems faced by Co-operative Societies :
(i) Competition from other outlets
(ii) Cases of embezzlement by officials.
(iii) Conflicting interest as members have other jobs.
(iv) Divided loyalty.
(v) Unqualified people are elected atimes to head the affairs of the co-operatives.
(vi) Low income of members affects the society purse.
-
-
Question 11 of 12
11. Question
(a) What is economic development ?
(b) Outline any five features of a developing economy.
-
This response will be reviewed and graded after submission.
Grading can be reviewed and adjusted.Grading can be reviewed and adjusted.Hint
(a) Economic development is the process by which there is a long period of sustained growth in the per capita real income of a country, accompanied by fundamental changes in the structure of the economy.
(b) Features of a developing economy :
(i) High level of poverty
(ii) Inadequate infrastructural facilities
(iii) Rapid population growth
(iv) Use of crude technology
(v) High dependency on foreign nations.
(vi) The use of crude technology
(vii) Low per capita income
(viii) Political instability.
(ix) Inadequate medical care.
(x) High level of illiteracy
-
-
Question 12 of 12
12. Question
(a) Outline any three objectives of the African Development Bank.
(b) State any two achievements of the African Development Bank.
-
This response will be reviewed and graded after submission.
Grading can be reviewed and adjusted.Grading can be reviewed and adjusted.Hint
(a) Objectives of African Development Bank :
(i) To finance projects aimed at promoting the socio-economic development of African Countries.
(ii) To aid mobilization of funds from within and outside the continent.
(iii) To participate in selecting projects for member nations to ensure their orderly development.
(iv) To undertake activities and provide services aimed at improving the welfare of the African people
(v) To provide technical assistance to African nations in areas of project appraisal, finance, and execution.
(b) Achievements of the African Development Bank ;
(i) African Development Bank has granted loans to member nations since its inception.
The loans are for the development of agriculture, water supply, rural infrastructure, and industry.
(ii) It has helped to mobilize funds from within and outside the continent.
(iii) It has involved itself in activities that help to improve the welfare of African people, provision of basic amenities and reduction of unemployment.
(iv) It has provided technical assistance to African nations in technical areas.
-
I want to practice