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WAEC WASSCE Economics 2008 past questions and answers

This 2008 WAEC WASSCE Economics set has 40 practice questions. Try these 5 free sample questions, tap a question to reveal the answer and explanation. Then practise the whole 2008 set with instant marking.

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Sample WAEC WASSCE Economics 2008 questions

1. When demand for a good is less price-elastic than its supply, which group is likely to bear the larger share of a tax imposed on the good?
  1. The producers, because supply is more elastic
  2. The consumers, because demand is less elastic
  3. The government, because it collects the tax
  4. The producers and consumers must always share it equally

Answer: B. The consumers, because demand is less elastic

The less elastic side has fewer alternatives and therefore bears more of the tax burden.

2. A government's budget is balanced when its planned total expenditure is
  1. greater than its planned revenue
  2. less than its planned revenue
  3. equal to its planned revenue
  4. equal to its foreign borrowing

Answer: C. equal to its planned revenue

A balanced budget occurs when planned government revenue equals planned expenditure.

3. In an economy, consumption is N400 million, investment is N70 million, government spending is N80 million, exports are N50 million and imports are N40 million; what is GDP using the expenditure approach?
  1. N400 million
  2. N360 million
  3. N440 million
  4. N480 million

Answer: A. N400 million

GDP is C + I + G + (X - M), which equals 240 + 70 + 80 + (50 - 40) = N400 million.

4. A household's income rises from N400 to N500 while its consumption rises from N320 to N390; what is its marginal propensity to consume?
  1. 0.3
  2. 0.5
  3. 0.6
  4. 0.7

Answer: D. 0.7

The marginal propensity to consume is the change in consumption divided by the change in income, or 70/100 = 0.7.

5. To increase commercial banks' reserves and expand the money supply, a central bank can
  1. sell government securities to the public
  2. buy government securities from the public
  3. raise the required cash reserve ratio
  4. increase the bank rate

Answer: B. buy government securities from the public

When the central bank buys securities, it pays funds into the banking system and increases bank reserves.

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