WAEC Economics Past Questions & Answers - Page 61

301.

If the weight of five puppies in kilograms are 3.5, 3.0, 4.2, 5.0 and 4.3, the mean weight of the puppies is?

A.

3.5 kg

B.

4.0 kg

C.

4.2 kg

D.

5.0 kg

Correct answer is B

The mean is the average of the numbers. It is easy to calculate: add up all the numbers, then divide by how many numbers there are. In other words it is the sum divided by the count. 

thus we have; 

mean = 3.5 + 3.0 + 4.2 + 5.0 + 4.3 = 20 / 5 = 4

302.

In a market economy, the problem of what goods to produced is solved primarily by

A.

Directives of the government

B.

The pattern of consumers spending

C.

Producers of consumer goods

D.

People producing what they want

Correct answer is B

Consumer preferences and resource scarcity determine which goods are produced and in what quantity; the prices in a market economy act as signals to producers and consumers who use these price signals to help make decisions. Governments play a minor role in the direction of economic activity.

303.

Which of the following items is not an example of circulating capital?

A.

Raw material

B.

Money

C.

Fuel

D.

Machinery

Correct answer is D

Circulating capital can consist of cash, operating expenses, raw materials, inventory in process, finished goods inventory and accounts receivable.

Circulating capital is frequently referred to as working capital or alternatively, revolving capital.

304.

The opportunity cost of a worker going to the university is

A.

Tuition, fees and books

B.

Boarding and lodging

C.

The wages given up to attend the university

D.

Transportation and entertainment

Correct answer is C

Opportunity cost is the value of the next best thing you give up whenever you make a decision. It is "the loss of potential gain from other alternatives when one alternative is chosen". it is simply the forgone alternative

If, for example, you spend time and money going to a movie, you cannot spend that time at home reading a book, and you can't spend the money on something else.

305.

Economics is regarded as a science because

A.

Its issues can be easily verified by reference to facts

B.

It adopts scientific methods in making its analysis

C.

Its issues are relevant for national development

D.

Its subject matter studies human behaviour

Correct answer is B

Economics is regarded as a social science because it uses scientific methods to build theories that can help explain the behavior of individuals, groups, and organizations.