Year : 
2019
Title : 
Economics
Exam : 
WASSCE/WAEC MAY/JUNE

Paper 1 | Objectives

1 - 10 of 50 Questions

# Question Ans
1.

The fundamental economic problem in every society is

A. the large number of the unemployed

B. Limited supply of productive resources

C. inadequate supply of money

D. corruption and mismanagement

Detailed Solution

The fundamental economic problem facing all societies is the problem of scarcity or limited resources to satisfy human wants. As we all know, human wants and unlimited, and the resources meant to satisfy these needs are less than required.
2.

A point X inside the production possibility curve indicates that

A. resources are fully utilized

B. the country is poor

C. some resources are idle

D. resources are not available

Detailed Solution

Point X in the production possibility curve represents an inefficient use of resources, while points A, B, and C on the PPF curve represent the most efficient use of resources by the economy.
3.

The major employer of labour in developing countries is the

A. tertiary sector

B. secondary sector

C. primary sector

D. industrial sector

Detailed Solution

The primary sector of the economy includes any industry involved in the extraction and production of raw materials, such as farming, logging, hunting, fishing, and mining. This sector of the economy has the highest number of human labour in a developing economy, as it doesn't involve skilled labour and acquisition of a former education.
4.

The wages of a group of workers in dollars is stated below;
40, 30, 70, 20, 60, 10, 10, 80, 30, and 10.
What is the mean wage

A. $35

B. $36

C. $37

D. $38

Detailed Solution

Mean is gotten as the sum of the terms divided by the number of terms. That is,
sum of the terms
number of terms
\(\frac{40 +30 + 70 + 20 + 60 +10 +10 + 80 + 30 + 10}{10}\)
\(\frac{360}{10}\) = $36
5.

The desire for profits is a major feature of

A. traditional economy

B. mixed economy

C. market economy

D. command economy

Detailed Solution

A market economy is an economic system in which the forces of demand and supply determine major economic decisions and the prices of goods and services
In this type of system, there is no central planning authority that determines what should be produced, but rather, private individuals and businesses are in charge of productive resources. Now we all know, private businesses are in business for the main purpose of making profits. A market economy is characterized by business owners who go into business for the sole aim of making profits
6.

If the coefficient of price elasticity of demand of a product is zero, then its demand curve will be

A. parallel to the quantity axis

B. parallel to the price axis

C. negatively sloped

D. positively sloped

Detailed Solution

When the coefficient of price elasticity of demand is equal to zero, it means demand is perfectly inelastic. This means that demand for a good does not change in response to price.
7.

If the demand function is Qd = -0.5 + 20, calculate the quantity demanded when price is $15.0

A. -%27.50

B. -%12.50

C. $12.50

D. -$27.50

Detailed Solution

When price is 15.0, quantity demanded =
Qd = -0.5(15.0)+ 20
Qd = -7.5 + 20 = $12.5
8.

If less of a good is bought as one's income increases, such a good is

A. a normal good

B. a luxury

C. a necessity

D. an inferior good

Detailed Solution

An inferior good is one whose demand drops when people's incomes rise.
9.

The demand for coffee and tea is

A. joint

B. competitive

C. composite

D. derived

Detailed Solution

Competitive demand exists where a number of substitutes exist and one good can be purchased instead of another good. Tea and coffee are substitute goods, a consumer can either decide to consume tea or coffee. A fall or rise in the price of either of the two goods will lead to a fall or rise in the demand for its substitute.
10.

What effect will an increase in the supply of fish have on the meat market

A. a fall in equilibrium price and quantity

B. an increase in equilibrium price and quantity

C. an increase in equilibrium price and a fall in quantity

D. both equilibrium price and quantity will remain unchanged

Detailed Solution

If there is an increase in supply while the demand tends to remain the same, prices will most likely fall.
So an increase in the supply of fish in the market will only affect the demand and price of the fish as they may be more fish in the market than people who are willing and ready to buy the fish. This, however, will not affect the prices or the quantity demanded of meat.
1.

The fundamental economic problem in every society is

A. the large number of the unemployed

B. Limited supply of productive resources

C. inadequate supply of money

D. corruption and mismanagement

Detailed Solution

The fundamental economic problem facing all societies is the problem of scarcity or limited resources to satisfy human wants. As we all know, human wants and unlimited, and the resources meant to satisfy these needs are less than required.
2.

A point X inside the production possibility curve indicates that

A. resources are fully utilized

B. the country is poor

C. some resources are idle

D. resources are not available

Detailed Solution

Point X in the production possibility curve represents an inefficient use of resources, while points A, B, and C on the PPF curve represent the most efficient use of resources by the economy.
3.

The major employer of labour in developing countries is the

A. tertiary sector

B. secondary sector

C. primary sector

D. industrial sector

Detailed Solution

The primary sector of the economy includes any industry involved in the extraction and production of raw materials, such as farming, logging, hunting, fishing, and mining. This sector of the economy has the highest number of human labour in a developing economy, as it doesn't involve skilled labour and acquisition of a former education.
4.

The wages of a group of workers in dollars is stated below;
40, 30, 70, 20, 60, 10, 10, 80, 30, and 10.
What is the mean wage

A. $35

B. $36

C. $37

D. $38

Detailed Solution

Mean is gotten as the sum of the terms divided by the number of terms. That is,
sum of the terms
number of terms
\(\frac{40 +30 + 70 + 20 + 60 +10 +10 + 80 + 30 + 10}{10}\)
\(\frac{360}{10}\) = $36
5.

The desire for profits is a major feature of

A. traditional economy

B. mixed economy

C. market economy

D. command economy

Detailed Solution

A market economy is an economic system in which the forces of demand and supply determine major economic decisions and the prices of goods and services
In this type of system, there is no central planning authority that determines what should be produced, but rather, private individuals and businesses are in charge of productive resources. Now we all know, private businesses are in business for the main purpose of making profits. A market economy is characterized by business owners who go into business for the sole aim of making profits
6.

If the coefficient of price elasticity of demand of a product is zero, then its demand curve will be

A. parallel to the quantity axis

B. parallel to the price axis

C. negatively sloped

D. positively sloped

Detailed Solution

When the coefficient of price elasticity of demand is equal to zero, it means demand is perfectly inelastic. This means that demand for a good does not change in response to price.
7.

If the demand function is Qd = -0.5 + 20, calculate the quantity demanded when price is $15.0

A. -%27.50

B. -%12.50

C. $12.50

D. -$27.50

Detailed Solution

When price is 15.0, quantity demanded =
Qd = -0.5(15.0)+ 20
Qd = -7.5 + 20 = $12.5
8.

If less of a good is bought as one's income increases, such a good is

A. a normal good

B. a luxury

C. a necessity

D. an inferior good

Detailed Solution

An inferior good is one whose demand drops when people's incomes rise.
9.

The demand for coffee and tea is

A. joint

B. competitive

C. composite

D. derived

Detailed Solution

Competitive demand exists where a number of substitutes exist and one good can be purchased instead of another good. Tea and coffee are substitute goods, a consumer can either decide to consume tea or coffee. A fall or rise in the price of either of the two goods will lead to a fall or rise in the demand for its substitute.
10.

What effect will an increase in the supply of fish have on the meat market

A. a fall in equilibrium price and quantity

B. an increase in equilibrium price and quantity

C. an increase in equilibrium price and a fall in quantity

D. both equilibrium price and quantity will remain unchanged

Detailed Solution

If there is an increase in supply while the demand tends to remain the same, prices will most likely fall.
So an increase in the supply of fish in the market will only affect the demand and price of the fish as they may be more fish in the market than people who are willing and ready to buy the fish. This, however, will not affect the prices or the quantity demanded of meat.