Economics 2020 Past Questions | WAEC
16. If a beef market is in equilibrium at $4.00 per kg, an increase in price to $6.00 per kg may cause
- A. surplus in the market
- B. shortage in the market
- C. black market to come into operation
- D. rationing to be introduced
17. A large firm may experience diseconomies of scale if there is
- A. difficulty in coordinating decisions
- B. division of labor in production
- C. employment of more specialist
- D. decrease in the cost of production
18. Increasing returns to scale suggests that
- A. a firm can make a profit by reducing output
- B. a firm can make more profit by increasing output
- C. as the producer reduces the quantity of raw materials used, the marginal product will double
- D. as the producer increases the quantity of raw materials used, the marginal product will fall
19. One feature of the average fixed cost is that it
- A. falls continuously but is never equal to zero.
- B. is U-shaped and intersects the Y-axis
- C. rises and falls faster than the marginal cost
- D. is always higher than the average variable cost
20. If the average fixed cost (AFC) of producing 5 bags of rice is $20.00, the average fixed cost of producing 10 bags will be
- A. $2.00
- B. $4.00
- C. $10.00
- D. $20.00
21. The table below shows the total revenue schedule of a firm. Use the information to answer the question that follows
Output (units) | 50 | 60 | 70 | 80 | 90 |
Total revenue (TR) $ | 85 | 102 | 119 | 136 | 153 |
What is the unit price of the firm’s output
- A. $10.00
- B. $2.70
- C. $2.00
- D. $1.70
22. The table below shows the total revenue schedule of a firm. Use the information to answer the question that follows
Output (units) | 50 | 60 | 70 | 80 | 90 |
Total revenue (TR) $ | 85 | 102 | 119 | 136 | 153 |
What is the firm’s marginal revenue?
- A. $153.00
- B. $17.00
- C. $1.70
- D. $O.80
23. Organization and entrepreneurship are vested in different persons in a
- A. cooperative society
- B. sole proprietorship
- C. partnership
- D. public company.
24. The public sector in a mixed economy is not always because of
- A. bureaucratic practice
- B. the desire to make huge change
- C. annual planning of activities
- D.the activities of shareholders
25. Which function of the wholesaler enables him to stabilize prices?
- A. Warehousing goods
- B. Advertising the goods
- C. Granting credit to retailers
- D. Transporting goods
26. In the long run, as individuals receive higher wages, it causes
- A. demand for food to decrease
- B. demand for leisure to decrease
- C. supply of normal goods to decrease
- D. supply of labour to decrease
27. Labor productivity is defined as
- A. output per man-hour
- B. average Output
- C. the maximum number of hours Worked
- D. total output of labour
28. Which of the following problem has the least effect on agricultural productivity in West Africa?
- A. Incidence of pests and diseases
- B. Unfavourable weather conditions
- C. Urban-rural migration
- D. Illiteracy
29. The location of iron and steel industry at a place is due to
- A. easy access to raw materials
- B. access to cheap labour
- C. government policy
- D. good infrastructure
30. Import substitution as a strategy of industrialization is the
- A. replacement of locally produced goods with imported ones
- B. development of locally produced goods with imported ones
- C. establishment of firms to process imported raw materials
- D. act of using local inputs to produce goods for export
