The WASSCE 2002 Economics past questions include objective test questions on such key senior high school Economics topics as consumer behaviour, taxation, money and inflation. You will also find questions on population, economic systems and mobility of labour.
But that is definitely not all.
In this post, I will give you both the questions and answers from the Nov-Dec WASSCE 2002 Economics objective past questions paper. So if you are looking for quick answers to all the 2002 WASSCE Economics past questions then you are in the right place.
Are you ready to have all the 2002 WAEC/WASSCE Economics past questions and answers for SHS students? Then come with me.
November 2002 WASSCE Economics Questions 1-10
1. Operating below a society’s production possibility frontier is
A. a means to stimulate growth
B. an indication of efficient use of resources
C. a sign that the population is growing rapidly
D. a demonstration of economic depression
2. The cost that the entrepreneur incurs for using his own resources for production is referred to as
A. explicit cost b. implicit cost C. fixed cost D. variable cost
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3. If the quantity demanded of a commodity remains unchanged when its price changes, the demand curve for the commodity will be
A. vertical B. horizontal C. negatively sloped D. positively sloped
4. When a consumer spends all his resources on a single commodity, he will be in equilibrium when
A. marginal utility is equal to the price of the commodity
B. total utility is equal to the price of the commodity
C. marginal utility is greater than the price of the commodity
D. total utility is greater than the price of the commodity
Use the diagram below to answer Question 5 to 6
5. The curved labelled K represents
A. marginal product B. average product
C. marginal revenue D. average revenue
6. At point b marginal product will be
A. minimum B. maximum C. zero D. rising
7. Queuing and black marketing are the normal results of
A. price control B. oversupply of goods
C. excessive competition D. price discrimination`
8. Which of the following factors may affect the supply of oranges?
A. The taste of consumers B. the gestation period
C. a change in demand for banana
D. the number of market days per month
9. The main source of finance for cooperative societies is
A. trade bills B. government finance
C. contribution from members D. sales of shares
10. Which of the following does the central bank use as a measure for controlling money supply in an economy?
A. granting of overdraft B. calling for special deposits
C. acting as bankers’ bank D. issuing banknotes
Questions 11-20
The elasticity of demand, types of inflation and economies of scale are among the topics in the WAEC/SHS Economics syllabus that you will find in the next set of 2002 Nov-Dec WASSCE Economics past questions.
11. Cost-push inflation is likely to arise when
A. there is an increase in government spending
B. there is an increase in direct taxes
C. demand for higher wages is granted
D. there is an increase in bank lending
12. The term under population refers to a situation where the population is
A. concentrated in a few areas
B. less than the available resources
C. thinly spread over the country
D. greater than the available resources
13. To consider economics as a positive science implies that economic issues
A. can be easily verified with reference to facts
B. lend themselves to subjective appraisal only
C. are relevant for national development
D. are based on political judgement only
14. Individual economic units economise their resources in order to:
A. eliminate the problem of scarcity B. maximize utility
C. increase their level of savings D. eliminate waste
15. Total utility is the satisfaction derived from the
A. additional unit of commodity B. first unit of commodity
C. amount spent on a commodity D. stock of commodity one has
16. The economic system in which the individual directly produces what he wants is the
A. subsistence system B. capitalist system
C. socialist system D. communist system
17. A fall in the price of a commodity will lead to
A. a fall in the quantity demanded
B. an increase in the quantity demanded
C. no change in the quantity demanded
D. an increase in demand
18. A protective tariff is tax on
A. imported goods B. manufactured goods
C. semi-processed goods D. exported goods
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19. The value of an asset stored in the form of money can fall as a result of
A. deprecation B. deflation C. inflation D. devaluation
20. Diseconomies of scale set in when a firm
A. produces within its optimum size
B. produces under installed capacity
C. becomes too large for effective operation
D. uses more variable inputs
Questions 21-30
21. If changes in price cause no changes in the quantity demanded then demand is said to be
A. relatively inelastic B. perfectly inelastic
C. perfectly elastic D. relatively elastic
22. Which of the following types of taxes cannot be passed on to others?
A. excise tax B. customs only C. income tax D. value added tax
23. Consumer sovereignty can only be assured in a
A. capitalized economy B. socialized economy
C. communist economy D. subsistent economy
24. If farmers expect the future price of maize to raise then at the current price
A. more maize will be offered for sale
B. less maize will be offered for sale
C. the quantity of maize offered for sale will remain unchanged
D. farmers will be indifferent to the quantity offered for sale
25. A normal supply curve reflects
A. an inverse relationship between price and quantity
B. no relationship between price and quantity
C. a direct relationship between price and quantity supplied
D. a fixed relationship between price and quantity demanded
26. A business organization which can raise capital most easily is the
A. sole proprietorship B. partnership
C. joint stock company D. cooperative society
27. Which of the following is normally subtracted in estimating the Gross National Product using the expenditure approach?
A. import B. investment C. export D. consumption
28. National income aggregates of one year can be compared with that of other years only when they are presented at
A. constant price B. current price C. factor cost D. market price
29. If potters are thrown out of work by a firm making aluminium wares, such unemployment can be described as
A. seasonal B. frictional C. structural D. cyclical
30. Which of the following is likely to gain during inflation
A. savers B. debtors C. pensioners D. creditors
WASSCE Nov-Dec 2002 Economics Questions 31-40
31. Changes in government spending and tax revenue designed to stabilise the economy are referred to as
A. fiscal policy B. monetary policy
C. income policy D. financial policy
32. The gap between supply and demand above the equilibrium price is considered to be a
A. profit B. loss C. shortage D. surplus
33. If the demand is elastic, total revenue can be increased if price is
A. raised B. reduced
C. left unchanged D. allowed to fluctuate
34. A bumper harvest is likely to reduce farmers’ income because demand for food is normally
A. perfectly inelastic B. perfectly elastic
C. inelastic D. elastic
35. The use of the price mechanism to direct and co-ordinate economic activity is a feature of
A. capitalism B. the command economy
C. socialism D. the traditional economy
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36. Commercial banks can create credit by
A. increasing the bank rate B. increasing the cash ratio
C. lending money against the deposits received
D. Obtaining special loans from the central banks
37. A budget which takes more money out of the economy in the form of taxes than it puts back through spending is
A. balanced B. in deficit C. stable D. in surplus
38. Which of the following could be an advantage of free trade?
A. It will equalize prices B. it could increase government revenue
C. it may generate more employment
D. infant industries will be promoted
39. Supply is relatively inelastic during the
A. short run B. market period C. long run D. intermediate period
40. Geographical mobility of labour is likely to be low for
A. young workers B. unmarried people
C. elderly people D. school leavers
Questions 41-50
Discover WAEC 2002 objective Economics questions and answers on the location of industries, agriculture, national income and a lot more.
41. If a country lives beyond its means it would incur
A. internal debts B. balance of payment deficits
C. wide saving-investment gap D. a large capital consumption
42. Which of the following is equivalent to the national income?
A. Gross National Product at factor cost
B. Net National Product at factor cost
C. Net National Product at market cost
D. Gross National Product at market cost
43. If the supply is perfectly elastic, the changes in demand
A. have no effect on price B. can cause price to fall
C. can cause price to increase D. can stabilise price
44. Which of the following does not constitute a limitation on the market system?
A. the possible breakdown of competition
B. immobility of factors of production
C. distortion in consumers’ choice through persuasive advertisement
D. perfect awareness of conditions in the market
The table below shows the production alternatives of a country using the scares resources to the full. Use the table below to answer Questions 45 and 46.
| Agricultural Goods | Manufactured goods |
| 100 | 0 |
| 80 | 25 |
| 60 | 40 |
| 40 | 45 |
| 30 | 48 |
| 0 | 50 |
45. If the country decided to produce 60 units of agricultural goods, what is its opportunity cost?
A. 50 units of manufactured goods B. 40 units of manufactured goods
C. 30 units of manufactured goods D. 10 units of manufactured goods
46. The table indicates that the country in question can produce
A. any quantity of manufactured goods
B. any quantity of agricultural goods
C. 100 units of agricultural goods 50 units of agricultural goods
D. 100 units of agricultural goods only when it forgoes all manufactured goods
47. For efficient utilization of economic resources, one must avoid
A. underdevelopment of factors of production
B. combining resources in the right proportion
C. relating production to specific needs in society
D. the applicants of new techniques of production
48. The problem of limited resources in relation to unlimited wants necessitates
A. demand and supply B. the study of economics
C. making choice D. increased production
49. From which of the following can marginal cost be derived?
A. average fixed cost B. average variable cost
C. total variable cost D. increased production
50. Commercial banks can create money by
A. increasing the bank rate B. printing banknotes
C. borrowing from the government D. lending money against deposits
Questions 51-60
51. Barter is not an efficient means of exchange because it requires:
A. division of labour B. unlimited wants
C. indivisibility of goods D. double coincidence of wants
52. In commercial farming,
A. production is for export only B. production is on a large scale
C. only tree crops are grown D. farmers use only family labour
53. Gross Domestic Product minus Gross National Product is equal to
A. deprecation B. net investment
C. net income from abroad D. net tax deductions
54. Households are assumed to maximise
A. consumption B. satisfaction C. profits D. production
55. Which of the following is not an advantage of localization of industry?
A. development of subsidiary industry
B. development of organized markets
C. development of slums D. regional division of labour
56. The portion of the change in quantity demanded due solely to a change in relative price is known as
A. income effect B. consumption effect
C. substitution effect D. production effect
57. Cross elasticity of demand is positive for
A. normal goods B. inferior goods
C. substitute goods D. complementary goods
58. Which of the following is a function of money? It
A. must be readily acceptable B. is a standard for deferred payments
C. should be easily portable D. must not be easy to counterfeit
59. Ad valorem tax is a levy
A. based on the weight of an imported good
B. based on the size of an imported good
C. on the value of an imported good
D. on the appreciation of share prices
60. A favourable terms of trade means that
A. prices of imports have risen relative to the prices of export
B. the volume of export has risen relative to the volume of import
C. the volume of export has risen
D. prices of exports have risen relative to the prices of imports
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This is the end of the WASSCE 2002 Economics past questions and answers you’ve been looking for. Now is the time to explore other WAEC Economics objective questions for both senior high school students and private candidates.
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