The major topics in the 2007 WAEC Economics past questions for WASSCE candidates include the scope of the study of Economics, production, opportunity cost, consumer behaviour, the chain of distribution, money, inflation and banking. You will also find objective questions on taxation, economic development, national income and international economic cooperation in the 2007 WAEC Economics past questions paper.
Are you looking for the 2007 WAEC Economics past questions and answers for WASSCE candidates? Then you have come to the right place.
In this post, I will give you all the objective questions for the WAEC/WASSCE 2007 Economics for senior high school students. That is not all. For every Economics objective question, there is an answer. This is meant to assist every WAEC/WASSCE Economics candidate to know the correct answers to the Economics questions that WAEC repeats quite often.
You can now have answers to all the multiple-choice questions in the 2007 WAEC Economics past questions paper.
WASSCE November 2007 Economics Questions 1 – 10
1. The study of economics emphasizes
A. creation of abundant resources B. making a choice in the midst of plenty
C. encouragement of foreign investments
D. the use o scarce resources to satisfy unlimited wants
2. The main aim of productions is to
A. satisfy the wants of consumers
B. make profit
C. turn out high-quality goods D. earn foreign exchange
3. The cost of resources owned and used by the firm in production is called
A. opportunity cost
B. fixed cost
C. implicit cost
D. variable cost
4. The reward for risk-bearing in business is
A. rent B. interest C. wages D. profit
5. All the following are true of the entrepreneur except
A. being a factor of production
B. being an innovator
C. receiving a wage for his reward
D. bearing the risk of the business
6. An economic term synonymous with unlimited want is
A. choice
B. demand
C. resources
D. ends
7. All the following are U-shaped except
A. marginal cost curve
B. average fixed cost curve
C. average total cost curve
D. average variable cost curve
8. The optimum population is desirable because it enables a country to attain
A. maximum per capita income
B. total national output
C. minimum growth rate
D. food sufficiency
9. Which of the following factors is likely to have its supply most inelastic in the
short-run?
A. Street sweepers
B. Taxi drivers
C. Teacher
D. Doctors
10. Which of these does not cause unemployment?
A. Seasonal variation of demand for labour
B. Increase in aggregate supply of resources
C. Change in the structure of the economy
D. Decrease in aggregate demand
Questions 11 – 20
11. As the consumption of a commodity increases, the marginal utility eventually
A. remains constant
B. diminishes
C. increases
D. fluctuates
12. Given the fixed cost as $500.00 the variable cost as $1500.00 and the output as
50 units, what will be the average cost of producing one unit?
A. $20.00
B. $40.00
C. $50.00
D. $60.00
13. Which of the following is not a function of the wholesaler?
A. Breaking the bulk
B. Providing stores for goods
C. Creating markets for goods
D. Advising consumers
14. If X and Y are substitutes, and increase in the price of X will cause
A. an increase in the demand for Y.
B. a decrease in the demand for Y
C. a decrease in the price of Y
D. an increase in the demand for X
15. Which of the following does not hinder the efficient distribution of goods in any
West African country?
A. Inadequate transportation network
B. Inadequate storage facilities for agricultural goods
C. Hoarding and smuggling
D. Government participation in the distributive trade
16. If the price of margarine rises substantially, the quantity of butter demanded will
A. decrease B. increase C. remain constant D. be inelastic
17. All the following factors cause a change in demand except
A. taste of the consumer B. prices of other goods C. income of consumer
D. the price of the good
18. If the price elasticity of taxi ride is 0.9, this means that
A. A fall in taxi fares would lead to a more than proportionate increase in the use of taxis.
B. a fall in taxi fares would lead to an increase in total revenue
C. a rise in taxi fares would lead to an increase in total revenue
D. taxi ride is an inferior good
19. When a 10% increase in price does not alter quantity supplied, supply is
A. perfectly elastic
B. perfectly inelastic
C. relatively elastic
D. relatively inelastic
20. Equilibrium point under a perfect market situation is achieved when
A. the marginal revenue is equal to total cost
B. the marginal cost is equal to marginal revenue
C. the producers fix the price by themselves
D. the marginal cost curve is equal to the total revenue curve
Questions 21 – 30
21. All the following are sources of finance to a joint-stock company except
A. loans
B. shares
C. ploughed-black profits
D. co-operative savings
22. A monopolist will maximize profits by setting its price
A. as high as possible
B. equal to marginal cost
C. equal to marginal revenue
D. such that marginal cost equals marginal revenue
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23. The perfectly competitive firm will tend to expand its output so long as its
A. marginal revenue is positive
B. marginal revenue is greater than the market price
C. marginal cost is greater than marginal revenue
D. marginal revenue is greater than marginal cost
24. Which of the following applies to the long-run equilibrium of the firm in both
perfect competition and monopoly?
A. Marginal revenue equals average revenue
B. Average cost equals marginal cost
C. Marginal cost equals marginal revenue
D. Marginal cost equals average revenue
25. The quality of money undermined by inflation is
A. stability
B. divisibility
C. acceptability
D. durability
26. The group of people who do not gain during inflation are
A. debtors
B. businessmen
C. shareholders
D. creditors
27. The financial market responsible for medium and long term loans is the
A. capital market
B. money market
C. mortgage market
D. retail market
28. Inflation is likely to go up when government
A. increases import tariffs
B. reduces its spending
C. increases income tax
D. freezes wages and salaries
29. One function of a commercial bank is to
A. print banknotes
B. fix the bank rate
C. control money supply
D. accept deposits from customers
30. Which of the following is not a function of the central bank?
A. Banker to the government
B. Accepting deposits from the public
C. Responsibility for monetary policy
D. Lender of last resort
2007 WAEC Economics Questions 31 – 40
31. Which of the following is a money-market institution?
A. The Stock Exchange B. Insurance company
C. Commercial bank
D. Building society
32. A major way of funding government projects is through
A. domestic taxes
B. proceeds from agriculture
C. returns on direct investment
D. earnings of public enterprises
33. The greatest disadvantage o barter is
A. durability
B. divisibility
C. homogeneity of the products
D. double coincidence of wants
34. The long run is a period long enough to enable a firm to
A. change its rate of output
B. vary all factors of production
C. change the price of its products
D. vary the rate at which labour is utilized
35. When a firm has absolute control over an essential resource, it results in
A. intense competition
B. diseconomies of scale
C. economies of scale
D. natural monopoly
36. The ease with which a factor can be transferred from one use to another is known as factor
A. productivity
B. mobility
C. substitution
D. marketability
37. Which of the following is not an indirect tax?
A. Import duty
B. Export duty
C. Profit tax
D. Excise duty
38. A tax is said to be good when
A. it takes more from taxpayers than their ability to pay
B. the cost of collecting it is equal to the revenue it generates
C. it induces workers to prefer more leisure to extra work
D. its payment causes minimum inconvenience to the taxpayer
39. For the burden of a tax to fall wholly on the producer, the demand for the good must be
A. relatively inelastic
B. perfectly elastic
C. fairly elastic
D. perfectly inelastic
40. If estimated revenue is equal to the proposed expenditure the budget is said to be
A. balanced
B. in surplus
C. in deficit
D. supplementary
Questions 41 – 50
This is the last segment of the 2007 WAEC Economics questions and answers.
41. Which of the following items are not included in measuring national income through the income approach?
A. Wages and salaries of public servants
B. Students’ grants and scholarships
C. Profits of companies
D. Rent on property
42. Gross domestic product at market prices plus net factor income from abroad gives
A. Gross capital formation
B. Net capital formation
C. Gross national product
D. Net domestic investment
43. Economic growth is the
A. rate of increase in the country’s real output
B. rate of increase in a nation’s labour force
C. increase in the growth rate of a nation’s population
D. growth in birth rate and reduction in death rate
44. One of the characteristics of an underdeveloped economy is
A. rapid population growth
B. underpopulation
C. high capacity utilization
D. high literacy rates
45. One of the ways by which the government can speed up economic development is through
A. increase in consumption pattern of the people
B. encouraging savings and investment
C. increase in the rate of population growth
D. importation of raw materials to produce consumer goods
46. International trade is necessary mainly because
A. no country can live beyond her means
B. different countries are endowed with the same natural resources
C. countries have comparative cost advantage in the production of commodities
D. the would demand and supply of commodities is expanding very fast
47. What is the correct term for this group of exports: tractors, drugs, and cars?
A. Capital account items
B. Visible exports
C. Balancing items
D. Invisible exports
48. Dumping means the selling of goods in a foreign market at a price
A. below that received in the home market
B. above that received in the home market
C. equal to the cost price in the home market
D. equal to the selling price in the home market
49. The table showing the receipts and payments between a country and the rest of the world is called
A. balance of current account
B. balance of trade
C. balance of payment
D. terms of trade
50. One of the aims of the Economic Community of West African States (ECOWAS) is the
A. liberalization of trade among member states
B. establishment of its headquarters in each of the member states
C. take-over of business in member states
D. encouragement of the production of identical goods for export
Final Thoughts
We have come to the end of the objective test paper for the 2007 WAEC Economics questions. There are lots of other posts about WAEC past questions and answers on English Language, Social Studies as well as your favourite General Arts subjects. Make sure to check them out as well.
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