Last Updated on March 15, 2023 by Ralph Nyadzi
Among the July 2002 WAEC Economics questions are well-known high school Economics concepts like opportunity cost, types of demand, the elasticity of supply and economies of scale. There are other topics from the secondary school Economics syllabus such as agriculture, industrialization, demand for money and depreciation. But there is more than that.
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With this post, you will have the opportunity to refresh your memory about the key Economics topics and concepts that you will encounter in the coming Economics test.
There is something critical I want you to do. It will go a long way to prepare you sufficiently for the next Economics paper.
Make an attempt to establish the reason why one possible answer is chosen as the most suitable one over the rest. Here is the truth. A clear understanding of the various concepts is the best way to make sure you are able to answer a similar question, no matter how it is worded.
Are you ready to check out the July 2002 WAEC Economics objective questions and answers? Then let’s get going.
Questions 1-10
1. “I cannot go to the disco with you because I have an assignment”, says Kwame to Kweku. Kwame’s statement refers to the issue of
A. scarcity of resources B. scale of preference
C. opportunity cost D. choice of two goods
2. Which of the following is a secondary economic activity?
A. banking B. storage C. baking D. fishing
3. The test scores of seven students are as follows; 60, 70, 55, 65, 60, 60, and 50. What is the modal mark?
A. 65 B. 60 C. 55 D. 50
4. If as a result of the establishment of F.M. radio stations, the sale of newspapers has gone down, then the F.M. radio station and the newspaper are in
A. competitive demand B. composite demand
C. derive demand D. complementary demand
5. Gold and silver are obtained from the same ore in Ethiopia. Gold and silver are in
A. joint demand B. joint supply
C. competitive supply D. competitive demand
6. If the demand for a good is price elastic and the producer reduces the price, total revenue will
A. remain unchanged B. decrease C. fluctuate D. increase
7. Government will raise more revenue when it imposes taxes on commodities with
A. elastic demand B. inelastic supply
C. elastic supply D. inelastic demand
8. The demand for cement increases as a result of a boom in the housing sector. What will be the most likely effect on the cement market?
A. supply of cement will increase
B. both prices and quantity supplied of cement will increase
C. only the quantity supplied of cement will increase
D. only the price of cement will increase
9. If the government imposes a minimum guaranteed price on maize,
A. there will be a shortage of maize
B. the demand for maize will exceed the supply
C. the supply of maize will exceed the demand
D. some farmers will shift to other crops
10. Which of the following is necessary for the existence of a market?
A. contact between producers and the government
B. When there are more producers
C. contact between producers and consumers
D. when there is a good transportation system
July 2002 WAEC Economics Questions 11-20
Major Economics topics you will find in this part of the WAEC Economics question paper for July 2002 include utility, market structures and population growth.
11. At what point in the total utility curve (TU) below will marginal utility be zero?
Use this diagram to answer question 11.
A. point M B. point S C. point T D. point P
12. A medical doctor working at a government hospital will be classified as
A. an entrepreneur B. a natural resource C. labour D. capital
Use this diagram to answer question 13.
13. The price elasticity of the supply curve OS is
A. equal to one B. less than one
C. greater than one D. equal to zero
| Amount Consumed | Total Utility | Marginal Utility |
| 1 | 8 | 8 |
| 2 | 15 | 7 |
| 3 | 21 | 6 |
| 4 | 25 | X2 |
| 5 | X1 | 3 |
14. What is the total utility for consuming the 5th unit?
A. 30 B. 31 C. 28 D. 26
15. The firm enjoying internal economies of scale has lower average cost because
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A. it is competing for resources B. there is growth of auxiliary facilities
C. it is utilizing equipment more efficiently D. it is utilizing its by-product
16. Marginal product (MP) is equal to
A. total products/ Fixed input
B. change in total product/ change in fixed input
C. total product/ variable input
D. change in total product/ change in variable input
17. When a firm’s revenue exceeds only its explicit cost, it enjoys
A. economic profit B. accounting profit
C. subnormal profit D. abnormal profit
18. The time frame in which all inputs of a firm are variable is called
A. short run B. market period C. long run D. intermediate period
19. The accountant’s cost is made up of
A. explicit cost only B. implicit cost only
C. variable cost only D. fixe cost only
20. All the following curves are U shaped except the
A. average total cost curve B. average variable cost curve
C. average fixed cost curve D. marginal cost curve
Questions 21-30
21. Which of the following factors can raise the productivity of agriculture in Ghana?
A. growth in population B. use of irrigational schemes
C. high rural-urban migration D. increase in food importation
22. One common feature of both perfectly competitive market and imperfect market is
A. many buyers and sellers B. homogeneous products
C. differentiated products D. horizontal demand curve
23. A monopolist can sell 10 units of a good at ₵10.00 each, but 11 units at ₵9.50 each. What is the marginal revenue of the 11th unit?
A. ₵4.50 B. ₵9.50 C. ₵10.00 D. ₵104.50
24. Which of the following would affect the natural increase in population size?
A. birth rate and age distribution B. death rate and net migration
C. death rate and age distribution D. birth rate and death rate
25. Which of the following can have the most influence on the level of wages?
A. level of literacy B. death rate and net migration
C. death D. non-government organization
26. Optimum population is reached when
A. real income per head is at its highest
B. birth rate and death rate are equal
C. national income is at its highest
D. emigration and immigration are equal
27. Which of the following sub-sectors employs the largest proportion of the agricultural labour force in Ghana?
A. fisheries B. food crops C. livestock D. export crops
28. Ghana can reduce her post-harvest losses if
A. the communication system is improved
B. more irrigation schemes should be built
C. better storage facilities could be provided
D. the land tenure system could be reformed
29. Which of the following is/are true of agriculture in Ghana?
I. it contributes substantially to foreign exchange earning
II. it attracts most foreign investors
III. it provides employment for the labour force
IV. It depends heavily on irrigation
A. I and III only B. II and III only
C. I and IV only D. II and IV only
30. Which of the following firms is normally established close to the market?
A. bakery B. sawmill C. oil refinery D. stone quarry
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Questions 31-40
National income accounting, inflation and international trade are some of the topics from the SHS Economics syllabus that are on display in this segment of the July 2002 WAEC Economics past questions.
31. Import substitution industries are important because they can
A. decrease transport cost B. reduce inflation
C. create employment D. lead to budget surplus
32. If the government sells out state-owned enterprises, the action is referred to as
A. indigenization B. privatization C. nationalization D. domestication
33. Government can promote the consumption of locally manufactured goods by
A. improving the quality of the goods
B. charging high duties on imported goods
C. increasing tax holidays for investors
D. charging lower duties on new materials
34. If over the last twelve months, prices have gone up by 5% and nominal income has risen by 5%, then
A. real income has not changed B. real income has increased
C. cost of living has fallen D. standard of living has fallen
35. Which of the following terms describes the total market value of all final goods and services produced within the country in any given year?
A. gross national product B. gross domestic product
C. net domestic product D. net national product
36. To avoid double counting whilst estimating the income national change, it is normal to ignore
A. subsistent products B. import of raw materials
C. capital consumption D. intermediate goods
37. If the simple investment multiplier is 5, by how much will national income change if investment increases by 2 million? National income will
A. increase by 5 million B. decrease by 10 million
C. fall by 5 million D. rise by 10 million
38. Which of the following would be described as an initial cause of cost-push inflation?
A. an increase in consumption expenditure
B. an increase in minimum wages
C. an increase in marginal tax rate
D. an increase in marginal propensity to save
39. When a country’s exports exchange for more imports than before, the terms of trade is said to
A. have fallen B. unfavourable C. have improved D. in surplus
40. The objective of exchange control is to
A. increase the volume of exports
B. ration scarce foreign exchange
C. improve the terms of trade
D. increase the volume of imports
Questions 41-50
You are about to understand better some of the most important topics in your WAEC/SHS Economics syllabus.
See how WAEC set their questions on topics like the difference between economic growth and economic development, features of developing countries and more in this part of the July 2002 WAEC Economics past questions.
41. The percentage change in the total output of an economy in a year at a stable price defines
A. the standard of living B. economic growth
C. the cost of living D. the economic development
42. Economic planning aims at all the following except resource
A. ownership B. allocation C. accumulation D. management
43. Which of the following business organizations does not enjoy limited liability?
A. public corporation B. private joint stock company
C. sole proprietorship D. public joint stock company
44. A tax on profit is
A. an indirect tax B. a direct tax
C. a value added tax D. an excise tax
45. If gross investment is less than depreciation then the economy is
A. expanding b. declining C. static D. fluctuating
46. A rise in the interest rate will lead to a
A. rise in investment B. rise in the demand for money
C. fall in the demand for money D. fall in the rate of savings
47. Which of the following is not considered part of the firm’s cost?
A. interest on capital B. wages of labour
C. normal profit D. supernormal profit
48. A tax rate which declines as income increases is considered to be
A. progressive B. regressive C. proportional D. equitable
49. Which of the following is high in a developing country?
A. per capita income B. rate of savings
C. illiteracy rate D. life expectancy
50. Costs that change directly with output are
A. average costs B. marginal costs C. variable costs D. fixed costs
July 2002 WAEC Economics Questions 51-60
The July 2002 WAEC Economics questions end with important topics you cannot afford to ignore. Pay close attention to questions about the demand for money, the value of money, and international financial institutions.
51. Which of the following is likely to rise when the growth rate of the population is very high?
A. per capita income B. the dependency burden
C. life expectancy D. land-Labour ratio
52. The function of money as a store of value will be adversely affected by a high rate of
A. devaluation B. unemployment C. inflation D. investment
53. Agricultural productivity in West Africa is low because of
A. high dependence on irrigation
B. post-harvest losses
C. inadequate research and extension services
D. the introduction of new techniques
54. One significant effect of rural-urban migration is
A. the creation of job opportunities in the rural areas
B. reduction in rural production
C. increasing wages in the cities
D. increasing house rent in the rural areas
55. Which of the following is not a valid argument for government intervention in the economy?
A. failure of the market system to allocate resources efficiently
B. prevent the exploitation of consumers by monopoly producers
C. promote economic stability and growth
D. prevent conspicuous consumption of the well-to-do
56. In the market economy system, emphasis is laid on the
A. government as the pivot of production and management
B. individual as consumer and owner of resources
C. need to distribute resource fairly to consumers and producers
D. control of national resources by the government
57. When the demand for foreign exchange exceeds its supply in a country , the value of the domestic currency
A. inflates
B. depreciates
C. deflates
D. appreciates
58. Which of the following will affect the speculative demand for money?
A. the expected future level of the interest rate
B. the level of money kept for unforeseen expenses
C. the income velocity of circulation
D. the value of transactions undertaken
59. Economic integration of countries is described as a customs union when member countries have
A. common tariffs on imports
B. A common military defence
C. the same currency
D. remove all tariffs and barriers to trade
60. Which of the following institutions assists governments with loans to finance long-term development projects?
A . World Trade Organization
B. The World Bank
C. International Monetary Fund
D. African Development Bank
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I want the subjective part