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WAEC WASSCE Economics 2013 past questions and answers

This 2013 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 2013 set with instant marking.

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Sample WAEC WASSCE Economics 2013 questions

1. A country has a comparative advantage in producing a good when it can produce that good at a lower
  1. opportunity cost than another country
  2. money price than every other country
  3. level of output than every other country
  4. cost of labour than every other country

Answer: A. opportunity cost than another country

Comparative advantage is determined by the lower opportunity cost of producing a good.

2. A depreciation of a country's currency is most likely to improve its trade balance when
  1. its import prices are fixed in local currency
  2. the combined price elasticity of demand for exports and imports is sufficiently high
  3. its exports and imports are both completely price inelastic
  4. the country stops producing goods for export

Answer: B. the combined price elasticity of demand for exports and imports is sufficiently high

Under the Marshall-Lerner condition, sufficiently elastic export and import demand allows depreciation to improve the trade balance.

3. The exchange rate changes from US$1 = ₦1,000 to US$1 = ₦1,500; this means that the naira has
  1. appreciated against the dollar
  2. remained unchanged against the dollar
  3. depreciated against the dollar
  4. become convertible into gold

Answer: C. depreciated against the dollar

More naira are now needed to buy one dollar, so the naira has depreciated.

4. A country's net barter terms of trade index is generally calculated as
  1. import price index divided by export quantity index, multiplied by 100
  2. export quantity index divided by import quantity index, multiplied by 100
  3. import price index divided by export price index, multiplied by 100
  4. export price index divided by import price index, multiplied by 100

Answer: D. export price index divided by import price index, multiplied by 100

The net barter terms of trade compares the export price index with the import price index and multiplies by 100.

5. Which item is normally recorded in the current account of a country's balance of payments?
  1. Earnings from exporting cocoa
  2. A foreign purchase of domestic government bonds
  3. A resident's acquisition of shares in a foreign company
  4. A central bank's change in foreign reserves

Answer: A. Earnings from exporting cocoa

Exports of goods such as cocoa are recorded in the current account.

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