Economics Past Questions | West African Examinations Council (WAEC)

Question 1

Which of the following international organization organizations is concerned with the stabilization of the balance of payments? the

Options

A) International Monetary Fund (IMF)

B) World Bank (IBRD)

C) United Nations Organization (UNO)

D) Economic Commission for Africa (ECA)

The correct answer is A.

Question 2

The rate at which a country's export is exchanged for her imports is

Options

A) trade balance

B) balance of payment

C) term of trade

D) balance on current account

The correct answer is C.

Question 3

Balance of payment surplus implies that receipts for exports are

Options

A) at par with payments for imports

B) greater than payment for imports

C) less than payment for imports

D) proportional to payments for imports

The correct answer is B.

Question 4

When the international value of a country's currency rises, other things being equal, the country's

Options

A) net exports tend to increase

B) imports tend to increase

C) net exports tend to decrease

D) export tend to be stable

The correct answer is A.

Question 5

One of the physical measures that can be used to reduce the volume of imports is the

Options

A) reduction of personnel income tax

B) removal of imports duties

C) use of foreign exchange control

D) liberalization of credit for importers

The correct answer is C.

Question 6

When a number of countries agree to remove all trade barriers among themselves and at the same time charge a common tariff against non member countries, it known as

Options

A) free trade area

B) common market

C) custom union

D) economic community

The correct answer is C.

Question 7

Indirect taxes are generally

Options

A) progressive

B) regressive

C) equitable

D) proportionate

The correct answer is A.

Question 8

Fiscal policy that can control inflation will include the use of

Options

A) balanced budgeting

B) tax holidays

C) budget deficit

D) budget surplus

The correct answer is A.

Question 9

Which is following is a cause of under-development in West Africa

Options

A) Availability of manpower

B) increasing population

C) high rate of capital formation

D) large size of market places

The correct answer is B.

Question 10

Which of the following is not a major problem of development

Options

A) shortage of skilled manpower

B) inadequate data for planning

C) political instability

D) poor identification of projects

The correct answer is D.

Question 11

The principle of comparative cost advantage was propounded by

Options

A) David Ricardo

B) Alfred Marshal

C) J. S Mill

D) Adam Smith

The correct answer is A.

Question 12

A bank note is said to be a legal tender because it is

Options

A) printed by government

B) a store of value

C) signed by the head of state

D) backed by law

The correct answer is D.

Question 13

During Inflation, interested rate will

Options

A) rise

B) flunctuate

C) remain constant

D) fall

The correct answer is A.

Question 14

Cost push inflation is likely to arise when

Options

A) there is an increase in banking lending

B) there is an increase in subsidies

C) stock exchange

D) Agricultural bank

The correct answer is C.

Question 15

Which of the following financial institutions cannot be found on the capital market of a country

Options

A) commercial bank

B) mortgage bank

C) stock exchange

D) Agricultural bank

The correct answer is D.

Question 16

The stock market is a market for

Options

A) new and second hand shares

B) debentures

C) goods and services

D) short terms securities

The correct answer is A.

Question 17

Location of firm in rural areas may

Options

A) enable the firm to enjoy existing infrastructural facilities

B) make finance readily avalaible

C) enhance even or balanced development

D) make such firm enjoy external economics of scale

The correct answer is C.

Question 18

International income accounting, double counting occurs when

Options

A) intermediate goods are counted twice

B) intermediate goods are counted with the final goods

C) final goods are counted more than twice

D) different people count the products

The correct answer is B.

Question 19

The difference between GDP and GNP

Options

A) consumption of fixed capital

B) indirect business tax

C) net factor income from abroad

D) public transfer payment

The correct answer is C.

Question 20

The difference between GDP and GNP

Options

A) consumption of fixed capital

B) indirect business tax

C) net factor income from abroad

D) public transfer payment

The correct answer is C.

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