Economics 2019 Past Questions | WAEC
16. What happens when a minimum price is imposed in a market?
- A. Shortage occurs
- B. Surplus occurs
- C. market maintains its equilibrium
- D. Many firms will close down
17. When an increase in inputs leads to a more than proportionate increase in output, there is
- A. decreasing returns to scale
- B. Increase in marginal product
- C. increasing returns to scale
- D. constant returns to scale
18. The short-run in production is the time period when
- A. techniques of production can easily be changed
- B. all factors of production are variable
- C. at least a factor is fixed while others are variable
- D. variable factors cannot be changed
The table below shows the short-run cost of a firm. Use it to answer the question below
Quantity (kg) | Fixed cost ($) | Variable cost ($) | Total cost ($) | Marginal cost ($) | Average cost ($) |
1 | 750 | 200 | 950 | – | 950 |
2 | 750 | 560 | 1310 | 360 | 655 |
3 | 750 | 900 | P | Q | 550 |
19. Calculate the value of Q
- A. $350
- B. $340
- C. $360
- D. $370
20. A cost of production that is positively related to output is the
- A. total fixed cost
- B. average fixed cost
- C. variable cost
- D. social cost
21. In perfect competition, the average revenue curve of a firm is
- A. below the marginal revenue curve
- B. downward sloping
- C. the marginal revenue curve
- D. convex to the origin
22. Which of the following means of funding a business is very reliable and cheap?
- A. Bank loans
- B. Loans from friends
- C. Plough back profits
- D. Debentures
23. Government in most cases influences the location of firms to
- A. discourage private investors
- B. ensure equitable distribution
- C. reduce the cost of production
- D. make the firms enjoy economies of scale
24. Middlemen are made up of
- A. manufacturers, wholesalers, and consumers
- B. manufacturers, wholesalers, and retailers
- C. wholesalers, retailers and hawkers
- D. wholesalers, retailers, and consumers
25. Malthusian theory of population was proved wrong because
- A. the practice of subsistence farming was encouraged
- A. Malthus view was seen as an exaggeration
- B. developing countries adopted birth control method
- C. new lands and new methods of production were discovered
26. Human development can be improved if
- A. banks give more loans to businessmen
- B. large family sizes are encouraged
- C. general education and training are encouraged
- D. it is handled by the private sector only
27. The use of interest rates to control the money supply is a
- A. control policy
- B. monetary policy
- C. developmental policy
- D. fiscal policy
28. Agricultural productivity may be increased if
- A. educational institutions are established in rural areas
- B. commercial banks are established in rural areas
- C. more infrastructural facilities are provided in rural areas
- D. labour intensive method of agriculture is encouraged
29. Which of the following is a major advantage of establishing a tomato-processing factory in a country?
- A. Local consumption will decrease
- B. More unskilled labour will be employed
- C. Foreign exchange will be conserved
- D. It will attract more tourists
30. A country is described as industrialized if
- A. the contributions of industries to national income are high
- B. traditional and modern sectors coexist
- C. the country adopts an import promotion strategy
- D. primary industries dominate the economy
