WAEC Economics questions

367 questions with answers and explanations. Tap an option to check yourself.

1. Question 81· Factors of production· WAEC

   Mr. Okon lets his farmland to a cassava farmer for ₦50,000 a year. This payment is

   • Awages
   • Brent
   • Cinterest
   • Dprofit

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2. Question 82· Factors of production· WAEC

   The efficiency of labour can be increased by

   • Aremoving all machines
   • Breducing wages
   • Clonger hours without rest
   • Dtraining and good working conditions

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   Explanation and discussion

3. Question 83· Factors of production· WAEC

   Which of these is an example of capital goods used by a bakery?

   • Athe baker's skill
   • Ba loaf sold to customers
   • Can oven
   • Dthe land under the shop

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4. Question 84· Factors of production· WAEC

   The factor of production that bears the risk of a business is the

   • Alabourer
   • Bentrepreneur
   • Clandlord
   • Dcapitalist

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5. Question 85· Factors of production· WAEC

   The four factors of production are

   • Aworkers, owners, buyers and sellers
   • Bmoney, land, machines and buildings
   • Cland, labour, capital and entrepreneur
   • Dfarms, factories, banks and markets

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6. Question 86· Factors of production· WAEC

   Which of these is an example of capital?

   • Aa baker's skill
   • Ba plot of farmland
   • Ca bakery's oven
   • Drainfall

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   Explanation and discussion

7. Question 87· Factors of production· WAEC

   The total supply of land as a factor of production is

   • Aperfectly elastic
   • Bfixed
   • Cunlimited
   • Dconstantly increasing

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8. Question 88· Financial institutions· WAEC

   A commercial bank creates credit mainly through

   • Aprinting currency
   • Bcollecting taxes
   • Cselling shares
   • Dgranting loans and overdrafts

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9. Question 89· Financial institutions· WAEC

   The market for long-term loanable funds is the

   • Acapital market
   • Bmoney market
   • Ccommodity market
   • Dforeign exchange market

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10. Question 90· Financial institutions· WAEC

    The Central Bank of Nigeria controls the money supply by

    • Aaccepting deposits from the public
    • Bopen market operations
    • Cgranting overdrafts to individuals
    • Dselling insurance

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11. Question 91· Financial institutions· WAEC

    The Nigerian Exchange (NGX) deals mainly in

    • Alending to farmers
    • Bprinting currency
    • Cissuing insurance
    • Dbuying and selling shares and bonds

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    Explanation and discussion

12. Question 92· Financial institutions· WAEC

    The Central Bank of Nigeria is the

    • Abank that lends to traders
    • Bagent of foreign banks
    • Cowner of all commercial banks
    • Dbanker to the government

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13. Question 93· Financial institutions· WAEC

    If the cash reserve ratio is 10% and a bank receives a deposit of ₦100,000, the maximum total deposits that can be created is

    • A₦100,000
    • B₦1,000,000
    • C₦10,000
    • D₦900,000

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14. Question 94· Financial institutions· WAEC

    The Nigerian Exchange (stock exchange) is a market for

    • Ashort-term bills only
    • Bforeign currency only
    • Cagricultural produce
    • Dlong-term securities such as shares

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15. Question 95· Financial institutions· WAEC

    A commercial bank accepts deposits and

    • Acontrols monetary policy
    • Bissues currency
    • Cgrants loans to customers
    • Dfixes exchange rates

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16. Question 96· Financial institutions· WAEC

    To reduce inflation, the Central Bank is likely to

    • Areduce reserve requirements
    • Blower interest rates
    • Cbuy government securities
    • Draise the monetary policy rate

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17. Question 97· Financial institutions· WAEC

    A development bank provides

    • Aforeign exchange only
    • Bonly current accounts
    • Cinsurance
    • Dlong-term loans for development projects

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18. Question 98· Financial institutions· WAEC

    Which institution is the lender of last resort?

    • Athe stock exchange
    • Ba commercial bank
    • Ca mortgage bank
    • Dthe Central Bank

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19. Question 99· Financial institutions· WAEC

    Commercial banks create credit because

    • Athey sell shares
    • Bthey print money
    • Cgovernment gives them money
    • Donly a fraction of deposits is kept as reserves

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20. Question 100· Financial institutions· WAEC

    Commercial banks create credit mainly by

    • Alending out part of their deposits
    • Bprinting currency
    • Cbuying shares
    • Dcollecting taxes

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    Explanation and discussion