WAEC Economics Past Questions & Answers - Page 43

211.

The fundamental economic problem in every society is

A.

The large number of the unemployed

B.

Limited supply of productive resources

C.

Inadequate supply of money

D.

Corruption and mismanagement

Correct answer is A

The fundamental economic problem facing all societies is the problem of scarcity or limited resources to satisfy human wants. As we all know, human wants and unlimited, and the resources meant to satisfy these needs are less than required.

212.

Use the information to answer the following question

EXPECTED REVENUE
Items Amount ($m)
Rents and royalties 75.00
Company income tax 150.00
Custom and excise duties 300.20
personal income tax 80.00
Fees and fines 60.00
value added tax 100.00

What is the total revenue from non-tax sources?

A.

$400.20 m

B.

$375.20 m

C.

$135.00 m

D.

$75.00 m

Correct answer is C

Total revenue can be written as P × Q, which is the price of the goods multiplied by the quantity of the sold goods.
Non-tax revenue or non-tax receipts are revenue not generated from taxes and from the table above, only rents and royalties do not fall under taxes. 

They include:

Rents and royalties + fees and fines
75.00 + 60.00 = 135.00m

213.

Use the information to answer the following question

EXPECTED REVENUE
Items Amount ($m)
Rents and royalties 75.00
Company income tax 150.00
Custom and excise duties 300.20
personal income tax 80.00
Fees and fines 60.00
value added tax 100.00

What is the total revenue from indirect tax

A.

$686.0 m

B.

$400.20 m

C.

$135.80 m

D.

$100.00 m

Correct answer is B

Indirect tax is a tax levied on goods and services rather than on income or profits. Thus we have;

Indirect tax = customs and excise duties + value-added tax
300.20 + 100.00 = 400.20

214.

Use the table to answer the following question

 
Quantity Total cost
0 20
1 25
2 28
3 30
4 38
5 55
6 92
7 135

At output level 5, the total variable cost is?

A.

$5.00

B.

$20.00

C.

$55.00

D.

$35.00

Correct answer is D

No explanation has been provided for this answer.

215.

Use the table to answer the following question

 
Quantity Total cost
0 20
1 25
2 28
3 30
4 38
5 55
6 92
7 135

The total fixed cost is?

A.

$7.00

B.

$30.00

C.

$20.00

D.

$135.00

Correct answer is C

No explanation has been provided for this answer.