Preparing for the West African Examinations Council (WAEC) can be a daunting task, especially when it comes to subjects like Economics.
However, with the right resources and guidance, you can excel in this subject.
In this blog post, we will discuss some key concepts in economics and provide sample objective and essay questions to help you practice and enhance your understanding.
- Scarcity in Economics: Scarcity refers to the fundamental economic problem of unlimited wants and needs with limited resources. It means that resources, such as land, labor, and capital, are scarce in relation to human desires. The correct answer to this question is D – resources are limited.
- Paradox of Value: The paradox of value refers to the situation where some non-essential goods, like diamonds, command a higher price compared to essential goods, like air. The correct answer to this question is B – value.
- Economies of Scale: Economies of scale occur when the average cost of production decreases as the scale of production increases. This usually happens when fixed costs are spread over a larger quantity of output, leading to lower average costs. The correct answer to this question is B – average cost is falling with input.
- Efficiency in Production: Efficiency in production involves producing a given output with the lowest cost combination of factors of production. It aims to minimize wastage and maximize productivity. The correct answer to this question is B – producing a given output with the lowest cost combination of factors of production.
- Effects of Inflation: Inflation, which refers to a sustained increase in the general price level of goods and services, has several effects. One of them is that it favors debtors at the expense of creditors, as the real value of debt decreases over time due to inflation. The correct answer to this question is B – favors debtors at the expense of creditors.
- Opportunity Cost: The opportunity cost of a decision is the value of the next best alternative forgone. In this case, the opportunity cost of a nuclear power station would be the alternative energy sources that could have been pursued instead. The correct answer to this question is B – a coal-fired power station.
- Equilibrium in the Market: If the price of a good increases while the quantity traded decreases, it indicates a movement along the demand curve to a new equilibrium. This suggests that the demand curve moved to the left. The correct answer to this question is A – the demand curve moved to the left.
- Demand Curve: A demand curve shows the relationship between the quantity demanded and the price of a product. It represents how consumer demand changes as the price of a product changes. The correct answer to this question is D – the price of the product.
- Government Subsidies: When the government subsidizes the production of pineapples, it encourages an increase in the supply of pineapples at every price. The correct answer to this question is D – cause the supply of pineapples to increase at every price.
- External Costs: The existence of external costs is indicated when private costs of production are less than social costs. This means that the negative consequences of production are not fully borne by the producer but are instead imposed on society as a whole. The correct answer to this question is C – private costs of production are less than social costs.
Conclusion
Economics is a subject that requires a solid understanding of key concepts and the ability to apply them to real-world scenarios.
By practicing with sample questions like the ones provided above, you can enhance your comprehension and prepare effectively for the WAEC Economics examination.
Remember to study the subject thoroughly, seek clarification when needed, and practice regularly to improve your chances of success.
