Hello and Welcome to SSCE (WAEC and NECO) Practice Test - Economics 1. You will attempt 50 randomly generated objective questions for 40 minutes. 2. Don't guess answers. Leave answer blank if not sure. Incorrect answers attracts -1 (negative one) and it is cumulative. 3. If time allowed elapsed, your quiz ends immediately and scores will displayed and ranked. 4. Your performance in each of the question attempted alongside step-by-step solutions to attempted questions will be displayed on the screen at the end of the assessment. 5. Fill the form below and Click on the Next button to Begin Full Name: (Surname First) Location email address: 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. D A C BPost harvest losses in West African countries can be reduced if A. the land tenure system could he reformed. B. more irrigation schemes could be provided. C. better storage facilities could be provided. D. erosion is controlled. B C A DIn order to develop the banking habit of rural dwellers, the traditional money lenders should be A. proscribed. B. legalized. C. subsidized. D. heavily taxed. A B D CAll the following are features of optimum population except A. full employment of available resources. B unlimited amount of unexploited resources. C. maximum per capita production and income. D. high standard of living. D B A CA decrease in the demand for a product X resulted in a decrease in the demand for another product Y. The demand for X and Y is A. derived. B. composite. C. joint. D. competitive. D C B AAll rates of interest in a country are influenced by the A. bank rate. B. population growth rate. C. wage rate. D. mortgage rate. B C D AGeneral rise in the price level induced by increased price of inputs is referred to as A. run-away inflation. B. cost-push inflation. C. demand-pull inflation. D. imported inflation. B C D AIn open market operations, what the Central Bank sells or buys are A. shares. B. debentures. C. securities. D. equities. D B A CWhich of the following features best describes peasant agriculture in West Africa? It A. specializes in the production of one crop. B involves the use of small farm holdings. C. is a capital-intensive system of farming. D. is mostly associated with tree crops. C D B AGoods which have to be paid for are known as A. physical goods. B. economic goods. C. free goods. D. intangible goods. D A C BWhich of the following problems arises where there are more than one technically possible methods of production? A. Where to produce B. For whom to produce C. How to. produce D. What to produce B D C AWhich of the following items is not included in measuring national income by the income approach? A. Profits of companies B. Rents on property C. Students’ grants and scholarships D. Wages and salaries of public servants A C D BTrade between two countries is known as A. bilateral trade. B. unilateral trade. C. multilateral trade. D. internal trade. B D A CThe national income is the A. Gross Domestic Product at market prices. B. Gross National Product at factor cost. C. Net National Product at factor cost. D. Net National Product at market prices. A D C BIn Economics, a market is defined as any A. agreement made for consumers to buy all they need. B. agreement to sell commodities at low prices. C. arrangement made for producers to sell all their goods. D. arrangement whereby the buyers and sellers are in contact. D C B AThe law of diminishing marginal utility applies to a A. firm which minimizes cost. B. consumer who maximizes satisfaction. C. producer who maximizes marginal product. D. consumer who minimizes total utility. D C A BGoods are said to be in competitive demand when they are A. substitutes. B. complementary. C. jointly demanded. D. identical. C A B DDemand is elastic when percentage change in A. quantity demanded is greater than percentage change in price. B. price is greater than percentage change in quantity demanded. C. price is equal to one. D. quantity demanded is zero. A C B DBalance of payments problem can be corrected through A. increasing foreign reserves. B. increasing domestic borrowing. C. import promotion strategies. D. export promotion strategies. D C B AOne reason why small scale businesses are very common in West Africa is that A. they can easily float shares. B their management boards are easily formed. C. their initial capital is easy to raise. D. their dividend payments are very regular. A B D CExchange control is a weapon used in regulating A. barter trade. B. stock exchange. C. foreign trade. D. international trade. B D C AWhich of the following is not a form of money? A. Coins B. Bank notes C. Bank balance D. Bank deposit B A D CAn agricultural production process which uses more machinery relative to labour is referred to as A. large-scale farming. B. capital intensive farming. C. commercial farming. D. land intensive farming. B C A DThe type of monopoly that develops as a result of granting patent right is known as A. natural monopoly. B. state monopoly C. legal monopoly. D. discriminating monopoly. A B C DWhich of the following controls a limited liability company? A. The general manager. B. The managing director. C. Tax payers. D. The board of directors. C B A DThe allocation of goods and services in a free market economy is performed by A. the price system. B the banking system. C. the central planning body. D. government budgets B D A CA budget is balanced when expected total revenue is A. greater than expected expenditure. B. less than total expenditure. C. equal to expected expenditure. D. greater than total expenditure. D B A CA government that wants to get more revenue will increase the tax on commodities with a A. high price elasticity of demand. B. low price elasticity of demand. C. high income elasticity of demand. D. low income elasticity of demand. B A C DWhich of the following markets determines its own price or output? A. Perfect market B. Common market C. Monopoly market D. Commodity market B C D AThe difference between the number of immigrants and emigrants is A. natural growth rate. B. natural increase. C. net migration. D. census. A C D BPoints outside a production possibility curve indicate A. unattainable production levels. B. attainable production levels. C. inefficient, but attainable production levels. D. optimum production levels. D C B AA demand schedule shows the quantities of goods that are A. bought at given prices at a time. B. supplied at given prices at a time. C. produced at given prices at a time. D. reserved for future consumption. C B D AWhich of the following is the main outcome of a trade union’s interference with the wage rate? Wages are A. lowered but more employment opportunities are created. B. lowered but employment level remains unchanged. C. increased and employment levels are unchanged. D. increased but employment levels are reduced. D B C AWhich of the following is not a function of the West African Development Bank? A. Promotion of both private and public investments in member states B. Financing and executing projects in member states C. Promotion of social development of member states D. harmonization of oil prices to the advantage of member states C B D AWhich of the following best explains what to produce? A. How much goods are to be produced. B. The combination of resources to be used. C. Which goods and services to be produced. D. How many wants are to be satisfied. C A B DWhich of the following statements is not a feature of a monopoly? A. Seller is allowed to fix his own price. B. Buyers and sellers are price takers. C. New entrances are restricted. D. There is only one seller of the commodity. D A B CThe financial institution that specializes in risk spreading is called A. an investment bank. B. a development bank C. an insurance company. D. the stock exchange. A D B CWhich of the following is capable of increasing the population of a country? A. Decrease in death rate B. Increase in death rate C. Poor medical facilities D. Decrease in birth rate B C D AAn excise tax is imposed on goods A. smuggled into the country. B. manufactured locally. C. imported into the country. D. seized by custom officials. C D B AMr. Okpoti has meat and wants maize, while Mr. Adama has maize and wants meat. A transaction is possible because of A. joint demand. B. scale of preference. C. double coincidence of wants. D. opportunity cost. D B C AThe main advantage of large scale production is that A. unit cost of production falls. B. decision-making is quick. C. worker-management relationship is improved. D. the quality of the product increases. B D C AA situation in which the estimated government revenue is less than the proposed expenditure for a given year can be described as A. surplus budgeting. B. supplementary budgeting: C. balanced budgeting. D. deficit budgeting. D B C AOne of the reasons why government may erect a trade barrier is to A. control foreign currencies. B. protect infant industries. C. promote importation. D. diversify the economy. A D C BWhen there is improvement in a country’s terms of trade, it means that the country’s A. exports are cheaper relative to imports. B. imports are cheaper relative to exports. C. volume of imports has declined. D. volume of exports has declined. C D B AWhich of the following will shift the demand curve for cocoa to the right? A. An increase in consumers’ income. B. A rise in the price of cocoa. C. A tax on cocoa producers. D. A fall in the quantity demanded of cocoa. C A B DIf V = Income, C = Consumption I = Investment, X = Export and M = Import, then national income is A. Y= C – I + (x + m) B. Y= C + I + (x + m) C. Y= C + I + (x - m) D. Y= C + I + (m - x). B A D CIf a firm’s price is less than average cost but more than average variable cost, the firm is covering A. all of its fixed Cost and variable cost. B. all of its fixed cost and part of variable cost. C. all of its variable cost and part of fixed cost. D. part of its fixed cost and part of variable cost. D B C AA shift in the demand curve indicates A. exceptional demand. B. change in demand. C. change in quantity demanded. D. elasticity of demand. D B A CA condition for consumer utility maximization is A. equality of the ratio of marginal utilities and the ratio of prices. B. equality of the ratio of average utilities and the ratio of prices. C. equality of the marginal utility to total utility ratio for both commodities. D. total utility and marginal utility must be zero. B D C AThe following are advantages of sole proprietorship except A. quick and easy decision-making. B. keeping its business affairs private. C. assurance of raising huge capital for expansion. D. high level of commitment. B C A D51 out of 50Are you ready to submit? You have enough time to attempt skipped questions and review your answers by clicking the Previous Button, else click the Submit Quiz button to see your results! Categories: 0 Comments Leave a Reply Cancel reply You must be logged in to post a comment. This site uses Akismet to reduce spam. Learn how your comment data is processed.