# Economics 2020 Past Questions | WAEC

Study the following Economics past questions and answers for JAMBWAEC  NECO and Post-JAMB. Get prepared with official past questions and answers for upcoming examinations.

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
• 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

• 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

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