WAEC PC 2020

1. Adam Smith defined economics as "an inquiry into the nature and causes of wealth of nations". To him economics is concerned with

• A. resource allocation.

• B. wealth making.

• C. nature of businesses.

• D. science of economics.

2. A rightward shift in the production possibility frontier may be due to

• A. inefficiency in production techniques.

• B. improvement in production technique and practices.

• C. inadequate resources.

• D. use of inferior inputs.

3. Roads and electricity provided by the government are best described as

• A. circulating capital.

• B. human capital.

• C. social capital.

• D. personal capital.

4. The following economic systems are the same except

• A. controlled economy.

• B. capitalist economy.

• C. socialist economy.

• D. planned economy.

5. Which of the following will best illustrate relative sectoral contributions to the Gross Domestic Product (GDP) of a country?

• A. Pie chart.

• B. Pictogram.

• C. Line graph.

• D. Tables.

6. Which of the following situations may occur if the demand for bread falls? The

• A. demand for its substitutes may fall.

• B. demand for bakers' services may fall.

• C. price of flour may rise.

• D. price of bread may increase.

7. The demand curve for a commodity with zero price elasticity is

• A. perfectly elastic.

• B. fairly inelastic.

• C. perfectly inelastic.

• D. fairly elastic.

8. If demand is inelastic and price is raised, total revenue will

• A. rise.

• B. decrease.

• C. remain unchanged.

• D. fall to zero.

9. If at the same price, more of a commodity is bought, it indicates an increase in

• A. quantity demanded.

• B. demand.

• C. demand of a substitute.

• D. demand for a complement.

10. The law of supply implies that the supply curve

• A. has a positive slope.

• B. has a negative slope.

• C. is vertical.

• D. is horizontal.