Economics

Question 1

What does WAEC stand for?

Answer 1

West African Examinations Council

Question 2

True or False: The primary purpose of WAEC is to conduct examinations for secondary school students in West Africa.

Answer 2

True

Question 3

What is the main focus of economics as a social science?

Answer 3

The study of how societies allocate scarce resources.

Question 4

Fill in the blank: The basic economic problem is scarcity, which leads to _______.

Answer 4

the need for choice.

Question 5

What are the two main branches of economics?

Answer 5

Microeconomics and Macroeconomics.

Question 6

Multiple Choice: Which of the following is a component of GDP?

Answer 6

Consumption

Question 7

What is the definition of opportunity cost?

Answer 7

The value of the next best alternative forgone when a choice is made.

Question 8

True or False: Inflation is a sustained increase in the general price level of goods and services.

Answer 8

True

Question 9

What is the role of the central bank in an economy?

Answer 9

To manage the country’s currency, money supply, and interest rates.

Question 10

Fill in the blank: A ________ is a market structure characterized by a single seller.

Answer 10

monopoly.

Question 11

What does the law of demand state?

Answer 11

As the price of a good falls, the quantity demanded increases, and vice versa.

Question 12

Multiple Choice: Which of the following is NOT a factor of production?

Answer 12

Money

Question 13

What is a budget line?

Answer 13

A graphical representation of all possible combinations of two goods that can be purchased with a given income.

Question 14

True or False: A positive externality occurs when a third party benefits from a market transaction.

Answer 14

True

Question 15

What is the purpose of fiscal policy?

Answer 15

To influence the economy through government spending and taxation.

Question 16

Fill in the blank: The ________ curve shows the relationship between the price level and the quantity of output produced.

Answer 16

aggregate supply.

Question 17

What is meant by ‘economic growth’?

Answer 17

An increase in the production of goods and services in an economy over time.

Question 18

Multiple Choice: Which of the following best describes a ‘public good’?

Answer 18

A good that is non-excludable and non-rivalrous.

Question 19

What is the role of competition in a market economy?

Answer 19

To promote efficiency and innovation among producers.

Question 20

True or False: The invisible hand concept, proposed by Adam Smith, refers to the self-regulating nature of the marketplace.

Answer 20

True

Question 21

Fill in the blank: ________ is a measure of the responsiveness of quantity demanded to a change in price.

Answer 21

Price elasticity of demand.

Question 22

What does a production possibilities frontier (PPF) illustrate?

Answer 22

The trade-offs between two goods that an economy can produce with available resources.

Question 23

Multiple Choice: Which economic system is characterized by private ownership of resources?

Answer 23

Capitalism

Question 24

What is the definition of ‘monetary policy’?

Answer 24

The process by which the central bank controls the money supply to achieve specific goals.

Question 25

True or False: A recession is a period of economic decline characterized by falling GDP.

Answer 25

True

Question 26

Fill in the blank: The ________ is the total market value of all final goods and services produced in a country in a given period.

Answer 26

Gross Domestic Product (GDP).

Question 27

What does the term 'market failure' refer to?

Answer 27

A situation where the allocation of goods and services is not efficient.

Question 28

Multiple Choice: Which of the following is a characteristic of oligopoly?

Answer 28

Few large firms dominate the market.

Question 29

What is the concept of 'demand-pull inflation'?

Answer 29

Inflation caused by an increase in aggregate demand.

Question 30

True or False: The consumer price index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Answer 30

True

Question 31

Fill in the blank: The ________ effect refers to the change in quantity demanded due to a change in consumers' purchasing power.

Answer 31

income.

Question 32

What is a 'negative externality'?

Answer 32

A cost suffered by a third party as a result of an economic transaction.

Question 33

Multiple Choice: What is the primary goal of a firm in a market economy?

Answer 33

To maximize profit.

Question 34

What is meant by 'absolute advantage'?

Answer 34

The ability of a party to produce a greater quantity of a good or service than competitors using the same amount of resources.

Question 35

True or False: Trade barriers are government-imposed restrictions on international trade.

Answer 35

True

Question 36

Fill in the blank: The ________ curve represents the relationship between the price level and the quantity of goods and services supplied.

Answer 36

aggregate supply.

Question 37

What is the definition of 'consumer surplus'?

Answer 37

The difference between what consumers are willing to pay for a good and what they actually pay.

Question 38

Multiple Choice: Which of the following is a tool of monetary policy?

Answer 38

Open market operations