Economics 2021 Past Questions | WAEC
16. The supply of mangoes is represented as P=0.3Q, where P is the price ($) and Q is the quantity. What is P when Q is 50?
- A. $1.50
- B. $15.00
- C. $150.03
- D. $166.67
Correct Option: Answer is B
Given that P=0.3Q, but Q =50
Therefore, P=0.3(50)
P = $15.00
17. The output of an extra unit of an input is referred to as________
- A. Output of the input.
- B. Marginal product of the input
- C. Average product of the input
- D. Utility of the input employed
Correct Option: Answer is B
The marginal product of an input, say labour, is defined as the extra output that results from adding one unit of the input to the existing combination of productive factors
18. The law of diminishing returns is applicable to the__________
- A. fixed inputs of production.
- B. variable factors of production.
- C. plants and machinery of the firm.
- D. equipment and other capital.
Correct Option: Answer is B
Law of Diminishing returns is an economic concept where if one factor of production is increased and the other factors are kept constant, the output per variable factor will eventually diminish.
A firm incurred the following costs in production. Use the information in the table to answer the question below.
Output | 0 | 10 | 20 | 30 | 40 | 50 | 60 |
Total Cost ($) | 100 | 200 | 300 | 380 | 440 | 520 | 600 |
19. The fixed cost of production is___________
- A. $I00.
- B. $200.
- C. $300.
- D. $600
Correct Option: Answer is A
Take your total cost of production and subtract the variable cost of each unit multiplied by the number of units you produced. This will give you your total fixed cost
$100 – 0 = $100
A firm incurred the following costs in production. Use the information in the table to answer the question below.
Output | 0 | 10 | 20 | 30 | 40 | 50 | 60 |
Total Cost ($) | 100 | 200 | 300 | 380 | 440 | 520 | 600 |
20. The average cost of producing 40 bags of rice is_____
- A. $10
- B. $11
- C. $60.
- D. $80
Correct Option: Answer is B
The Average Cost is the per unit cost of production obtained by dividing the total cost (TC) by the total output (Q).
Total cost when 40 bags was produced is $440
Therefore, Average Cost = TC/Q = $440/40 = $11
21. The relationship between the marginal revenue (MR) and the average revenue(AR) of a monopolist is that the marginal revenue curve____
- A. is above the average revenue curve
- B. slopes down to the right and is below the AR curve.
- C. and the AR curve are downward sloping and are identical.
- D. is vertical while the average revenue curve is horizontal.
Correct Option: Answer is B
22. A major source of finance to the Railway Corporation in West African countries is_______
- A. sale of shares
- B. government subvention
- C. trade credit
- D. surplus
Correct Option: Answer is B
- Subvention refers to a grant of money in aid or support, mostly by the government.
23. Separation of ownership of resources and their control is mostly found in a __________
- A. sole proprietorship
- B. partnership
- C. joint stock company
- D. consumer co-operative
Correct Option: Answer is C
- A joint-stock company is a business owned by its investors, with each investor owning a share based on the amount of stock purchased
24. By passing the middlemen in the chain of distribution can lead to _________
- A. a problem of unemployment of labour
- B. the creation of artificial scarcity
- C. high prices of goods and services
- D. an increase in government tax revenue
Correct Option: Answer is A
25. Two factors which can improve the efficiency of labour are_________
- A. population size and age of retirement
- B. school leaving age and number of disabled workers
- C. work environment and health status of workers
- D. school leaving age and number of part-time workers
Correct Option: Answer is C
The age distribution of a country’s population is shown below. Use the information is answer the question below.
Age group (YEARS) | Population |
0 – 15 | 30% |
26. What is the percentage of the working population?
- A. 75%
- B. 60%
- C. 45%
- D. 15%
Correct Option: Answer is B
- percentage of the working population are 16 – 40 and 41 – 60, that is 45% + 15% = 60%
The age distribution of a country’s population is shown below. Use the information is answer the question below.
Age group (YEARS) | Population |
0 – 15 | 30% |
27. What is the dependency ratio?
- A. 2:3
- B. 3:2
- C. 1:2
- D. 6:1
Correct Option: Answer is A
- The formula for the dependency ratio is – (the number of people aged between 0 and 15 + age between 41 – 60) divide by the total population between 15 and 60 above, times by 100
- Dependency Ratio = 30 + 10 / 45 + 15
- = 40/60 = 2:3
28. The supply of land for agricultural purposes can be increased through _______
- A. The introduction of mechanized farming
- B. reclamation and irrigation
- C. increase in prices of land
- D. conversion of building sites to farmlands
Correct Option: Answer is B
- Land reclamation is the gain of land from the sea, or wetlands, or other water bodies, and restoration of productivity or use to lands that have been degraded by human activities or impaired by natural phenomena
- Irrigation is a system of supplying (land) with water by means of artificial canals, ditches, etc, especially to promote the growth of food crops
29. Non-economic factors that influence the location of firms include ________
- A. the existence of required materials for production
- B. availability of population of buyers
- C. adequate supply of power, good road and rail network
- D. the activities of politicians in deciding location of firms
Correct Option: Answer is D
30. Which of the following is not an argument for the policy of privatization in West Africa?
- A. To make businesses more profitable
- B. Government is able to participate and control the operation of the privatized businesses
- C. Members of the public are able to acquire shares
- D. It encourages the inflow of capital and expertise from local and foreign sources