WAEC 1995 Economics Questions and Answers

The topics that come up strongly in the SSCE WAEC 1995 Economics questions include international trade, depreciation, market structures, the types of demand, indigenization policy and national income accounting. The SSCE WAEC 1995 Economics objective past questions also feature other often repeated topics in the high school Economics syllabus such as production, economic cooperation, agriculture, industrialization and the exchange rate.

Compare the objective past questions from the below 1995 WAEC SSSCE Economics paper with the more recent ones like the Nov/Dec 2021 WASSCE Economics and the 2009 WAEC/WASSCE Economics.

You will find out that studying seemingly old past questions is one of the smartest moves any student can make before the exam.

Because it is the same topics in the same WAEC Economics syllabus that SHS students and Nov-Dec WASSCE candidates are supposed to study for the exam every year.

Now you know the importance of studying all WAEC Economics past questions and answers like the 1995 version below. So let’s quickly dive in to find out more.

Questions 1-10

1. Economics is mainly concerned with

A. using minimum input for maximum output

B. combining factors of production

C.  production, distribution and consumption of goods and services

D. management of natural resources

2. Which of the following has a derived demand?

A. ice cream B. shirt                   C. labour               D. television set

3. The elasticity of demand is indicated by the ratio of

A. price changes to quantity changes

B. quantity changes to price changes

C. percentage change in quantity to percentage change in price

D. percentage change in price to percentage change in quantity

4. A black market is a result of

A. shortage of goods                                       B. price control

C. monopoly                                                             D. imperfect competition

5. If the average product is falling, then

A. marginal product is equal to average product

B. marginal product is less than average product

C. marginal product is equal to zero

D. average product is less than marginal product

6. The consumer  is in equilibrium when

A. prices are very low

B. marginal utility is equal to the price of the commodity

C. the consumer has the desire to buy more

D. the market supply is low

7. Which of the following does not account for the separation of market?

A. differences between products

B. geographical distance

C. differences in consumer preference

D. differences in size of firm

8. A firm can earn abnormal profit in a competitive market

A. in a recession                                   B. in the long-run

C. in the short-run                              D. at all times

9. Which of the following costs is taken into consideration by the economist but ignored by the accountant?

A. the cost of raw materials                            B. labour costs

C. the cost of borrowing money                     D. opportunity cost

10. The size of a country’s population cannot be influenced  by

A. rural-urban migration                            B. the number of births

C. the death rates                                            D. the fertility rate

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1995 WAEC Economics Questions 11-20

11. The best way for the government to stabilize the price of maize is to

A. export maize                                               B. fix a minimum price for maize

C. control the flow of maize in the market     D. import maize

12. Indigenization enables

A. the government to control manufacturing activities

B. local entrepreneurs to increase their contribution to the economy

C. the country to consume more locally produced goods

D. the country to export processed commodities

13. The National Income is the same as

A. Gross Domestic Product at market prices

B. Net Domestic Product at market prices

C. Net National Product at factor costs

D. Gross National Product of factor costs

14. The multiplier is concerned with changes in

A. spending and income                               B. savings and investments

C. consumption and taxes                    D. savings and exports

15. The Central Bank uses Open Market Operations to

A. control the supply of money                              B. auction foreign exchange

C. sell stocks and shares                                           D. withdraw old currency notes

16. Sound commercial banking requires a careful balance between

A. profit and liquidity                                  B. coins and paper money

C. customers and shareholders      D. savings and bank charges

17. A tax which firms treat as a cost of production is known as

A. income tax                   B. indirect tax                 C. profit tax     D. company tax

18. Governments restrict international trade in order to protect

A. employment of labour                                       B. foreign labour

C. revenue collectors                                                 D. negotiable instruments

19. The capital accounts of the balance of payment explain how

A. capital is accumulated in the economy

B. surplus or deficit on the current account is financed

C. foreigners take away money out of the country

D. import bills are settled

20. The fall in the external value of a country’s currency which is determined by the demand and supply is known as

A. devaluation       B. depreciation     C. revaluation                  D. appreciation

Questions 21-30

21. Which of the following is not an argument against free trade?

A. protection of infant industries                    B. prevention of dumping

C. correction of balance of payment deficit    D. diversification of exports

22. Exchange control policy is designed to

A. increase the volume of exports

B. protect the barter terms of trade

C. control the exchange of goods between two countries

D. ration scarce foreign exchange currencies

23. Short-term lending designed to solve balance of payment problems is a function of the

A. World Bank                                                          B. International Finance Corporation

C. International Monetary Fund      D. International Development Association

24. The level of unemployment can be raised by

A. operating public video centres during working hours

B. providing government assistance to the invalid

C. doubling the legal minimum wage

D. decreasing the number of working hours

25. The two main components of the balance of payments are

A. visible and invisible exports            B. exports and imports

C. current and capital accounts                  D. credit and surplus accounts

26. All the following are sources of capital for petty traders n Ghana except

A. personal savings                                                   B. stock exchange

C. credit union                                                D. ploughing back profit

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27. The economic system in which individual initiative is highly rewarded is known as

A. socialism B. communism      C. capitalism                  D. fascism

 28. In a free market economy

A. tools of production are owned by the state

B. the level of output is centrally determined by the state

C. overproduction and economic fluctuation can be avoided

D. profit rather than need s the motive for production

29. A tax on a producer can be shifted to the consumer when the demand for the product is

A. elastic                B. inelastic            C. high                   D low

30. In a joint-stock company shareholders earn

A. profit                 B. interest            C. dividends         D. bonuses

WAEC 1995 Economics Questions 31-40

31. One main aim of the development plan is to

A. increase the growth rate of the economy

B. encourage rural-urban migration

C. level up incomes in the economy

D. integrate the traditional and the modern sectors of the economy

32. The demand for butter and margarine is

A. derived    B. composed                    C. competitive                D. joint

33. Profit is a major feature of a

A. socialist economy                                      B. traditional economy

C. market economy                                       D. command economy

34. A large portion of the labour force in West Africa is employed by the

A. industrial sector                                          B. primary sector

C. secondary sector                                                   D. tertiary sector

35. The population growth rate is not likely to be influenced by the control of

A. unemployment           B. epidemics                    C. marriages               D. abortions

36. The wage rate is determined by the

A. cost of living                                              B. legal minimum wage

C. marginal product of labour                    D. level of employment

37. There is a close relation between marginal utility and

A. average productivity                                  B. opportunity cost

C. demand curve                                           D. supply curve

38. The largest proportion of commercial bank assets consists of

A. cash                   B. investments       C. loans                 D. treasury bills

39. For money to perform its function effectively, it should

A. be backed by gold                             B. be available in very large quantities

C. not be durable                                  D. be stable in value

40. In the long-run, all costs of the firm can

A. rise                    B. fall                               C. fluctuate           D. vary

Questions 41-50

41. Which of the following is likely to offset the operation of the law of diminishing returns?

A. increase in population                      B. intensive use of land

C. technology and innovation                      D. extensive use of land

42. The value which is given up when a resource is used in the best alternative way is

A. operation cost                                             B. economic cost

C. social cost                                                             D. opportunity cost

43. If the interest rate rises, the amount of money people would want to hold will

A. rise                    B. fall                    C. depreciate                    D. appreciate

44. The quantity theory of money says that money will

A. increase the wealth of the nation

B. leave the relative price level unchanged

C. redistribute income in favour of the rich

D. discourage the exchange of goods

45. If persons are unemployed because their skills are not matched with job openings their unemployment is said to be

A. seasonal B. frictional C. structural                   D. temporal

46. The basic force governing the allocation of resources in a market economy is

A. money supply                                  B. social needs      

C. consumer demands                        D. factor prices

47. The Central Bank is not responsible for the management of the

A. foreign exchange reserves                B. national insurance schemes

B. national debt                                    D. monetary policy

48. In a competitive industry, the result of imposing an excise duty on the product will be to

A. leave profit in the industry unchanged

B. raise profits in the industry

C. reduce output in the industry

D. reduce price of the product

49. Goods and services which cannot be satisfactorily provided through the market are often described as

A. public goods                                   B. complementary goods

C. scarce goods                                     D. inferior goods

50. The entry of many inexperienced workers into the workforce is likely to lower

A. the level of wages                           B. productivity

C. product quality                                 D. investment in research

Questions 51-60

51. The exchange  rate refers to

A. the difference between emigration and immigration

B. foreigners who work in one country compared with nationals working outside the country

C. the value of one nation’s currency expressed in terms of another nation’s currency

D. the value of a country’s export compared with the value of its imports

52. If a rise in the price of a good leads to an increase in the quantity demanded, then the good

A. has close substitution                       B. is very expensive

C. is very inferior                                          D. is normal

53. Which of the following conditions will shift the demand curve?

A. a reduction in the quantity of a commodity offered for sale

B. a fall in the price of a commodity

C. a rise in the price of a commodity

D. a change in consumer’s taste for the commodity

54. In West Africa, marketing boards are usually established to handle

A. cereal crops                 B. staple crops                  C. major crops D. export crops

55. An industry whose products gain weight in the process of production is likely to be located near

A. the market                                                             B. the raw materials

C. skilled labour                                             D. support service

56. The standard of living of two countries is compared  by using the

A. Gross Domestic Product                            B. Gross National Product

C. Net National Product                                 D. Per Capita National Income

57. A country which incurs balance of payment deficits is living beyond its means if

A. imports consist largely of capital goods

B. the deficits are temporary

C. the country has large reserves of foreign exchange

D. the deficits are large and chronic

58. A common system of agriculture in West Africa is

A. planting farming                              B. commercial farming

C. peasant farming                  D. cooperative farming

59. Which of the following is not a major problem of distribution in West Africa?

A. packaging                   B. storage    C. transportation    D. credit facilities

60. In economic cooperation, integration between the economic policies of member countries can be found in a/an

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 A. free trade area                                            B. custom union

C. common market                                         D. economic union

Next steps

The above WAEC 1995 Economics questions and answers should help you to know the types of Economics questions to expect in the upcoming exam. However, there are other steps you can take to make sure you are able to pass the senior high school Economics test.

One crucial step to high performance in WAEC Economics is to answer as many Economics past questions as possible. You might also want to try these Economics quizzes.

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