Waec Economics Past Questions and Answers

Question 26:

• WAEC 1988

Which of these does not relate to the law of comparative advantage?

A. The law of comparative advantage was propounded by David Ricardo
B. The law stresses the importance of relative efficiency
C. In order to specialize, a country must have absolute advantage
D. The law is based on opportunity cost principle
E. The principle if followed, should increase total world output

Question 27:

• WAEC 1988

A condition which adversely affects expansion of production is

A. Effective management
B. Limited size of the market
C. Availability of funds
D. Increased profit prospects
E. Increasing returns to scale

Question 28:

• WAEC 1988

International trade and domestic trade are similar in all aspects except that

A. Transportation by land, water and air is involved
B. Goods are exchanged
C. Services are exchanged
D. The same currency is used as the medium of exchange
E. Specialization and increased consumption is encouraged

Question 29:

• WAEC 1988

The drawer of a cheque is the

A. Person who is to be paid the sum of money as written on the cheque
B. Person who takes the cheque to the bank
C. Bank on which the cheque is drawn
D. Person who writes out the cheque
E. Bank official who certifies the payment

Question 30:

• WAEC 1988

Which of the following is not an item of capital expenditure?

A. Building of roads and bridges
B. Supply of electricity
C. Building of damns
D. Building of habours
E. Payment of interest on loans