WAEC Economics Past Questions & Answers - Page 102

506.

A situation in which the estimated government revenue is less than the proposed expenditure for a given year can be described as

A.

Surplus budgeting

B.

Supplementary budgeting

C.

Balanced budgeting

D.

Deficit budgeting

Correct answer is D

If revenue expenses of the government exceed revenue receipts, it results in revenue account deficit. When the revenue is less than the estimated expenditure, it results to a budget deficit.

507.

The following are reasons for failure of agricultural policies in West Africa except

A.

Vague policy statements

B.

Negation of polices

C.

Creation of agro-service stations

D.

Provision of obsolete implements

Correct answer is C

Agro Service Centres are an innovative idea and interesting experiment which holds the great promises to increase agricultural production.  They are geared towards agricultural development. It isnt a reason for agricultural failure.

508.

In open market operations, what the Central Banks sells or buys are

A.

Shares

B.

Debentures

C.

Securities

D.

Equities

Correct answer is C

Open market operations is where the federal government through the central bank buys and sells government securities to control the money supply and interest rates. 

509.

The different between birth rate and death rate is known as

A.

Demographic transition

B.

Natural growth rate

C.

Migration rate

D.

Fertility rate

Correct answer is B

The natural growth rate refers to the difference between the number of live births and the number of deaths occurring in a year.

510.

A price index as a statistic, measures

A.

How the value of money changes over time

B.

The volume of currency in the economy

C.

The exchange rate of a country's currency

D.

The composition of goods and services

Correct answer is A

A price index is a measure of how prices change over a period of time, or it is a way to measure inflation.