Waec Economics 2013 Past Questions and Answers

Question 46:

• WAEC 2013

The International Bank for Reconstruction and Development (IBRD) is important to developing nations because it

A. Gives aid for defence
B. Offers loans for public projects
C. Offers aid to finance private projects
D. Gives loans for legal proceedings

Question 47:

• WAEC 2013

Which of the following can be used to calculate the price elasticity of demand?

A. \(\frac{\text{percentage change in quality demand}}{\text{percentage change in price}}\)
B. \(\frac{\text{percentage change in price}}{\text{percentage change inquantity demand}}\)
C. \(\frac{\text{percentage change in quality demand}}{\text{percentage change in income}}\)
D. \(\frac{\text{percentage change in income}}{\text{percentage change in quantity demand}}\)

Question 48:

• WAEC 2013

The output and cost of production of rice (in bags) are presented in the table below. Use the information in the table to answer the questions that follow.

Output of rice (in bags)	0	1	2	3	4
Total Variables Coat (TVC) $	0	5	7	10	20
Total Cost (TC) $	7	12	14	17	27

(a) Calculate the
(i) Average Fixed Cost (AFC) at output levels 0,2 and 4
(ii) Marginal Cost (MC) at all levels of output
(b) If the price of a bag of rice were $10,
(i) calculate the profit/loss at all levels of output.
(ii) at what output level(s) is the maximum profit made?
(c) Draw the marginal cost curve (the use of graph sheet is essential).

Question 49:

• WAEC 2013

The table below shows the scale of preference of a student - Mr Smith whose disposable income is $7.00. Use the information in the table to answer the auestoins that follow.

Items needed	Price ($)
Textbook	5.00
Shirt	2.00
Shoes	3.00
Trousers	3.00
Notebook	1.00
School fees	7.00
Mattress	10.00

(a)(i) What will Mr. Smith spend his money on?
(ii) Explain your answer in 2(a)(i).
(b)(i) What is the opportunity cost of Mr. Smith's decision in 2(b)(i)?
(ii) Explain your answer in 2(b)(i).
(c)(i) If Mr. Smith's disposable income increases to $10.0, what will he spend it on?
(ii) What is the opportunity cost of the decision in 2(c)(i)?
(d) Define "scale of preference" and "opportunity cost".
(e) What is the importance of a scale of preference?

Question 50:

• WAEC 2013

(a) What is:
(i) peasant farming?
(ii) commercial farming?
(b) Describe five ways in which agriculture contributes to the economic development of your country.