WAEC 2021 Economics | Objective

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Question 1 View Details
The study of economics is important to every society because it
Correct A. enables individuals to satisfy all their wants.
B. helps in the utilization of scarce resources.
C. helps producers to know what to produce.
D. restores equilibrium between producers and consumers.

Correct Answer: A

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Question 2 View Details
A consumer with $10 needs a dress, a pair of shoes, a handbag and jewellery costing $20, $10, $7 and $3 respectively. The opportunity cost of buying the pair of shoes is the
A. dress.
B. jewellery.
C. handbag and jewellery.
Correct D. dress and jewellery.

Correct Answer: D

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Question 3 View Details
The distinguishing function of an entrepreneur is
Correct A. planning.
B. control.
C. risk-bearing.
D. management.

Correct Answer: A

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Question 4 View Details
When a commodity market operates without government interference, commodities are distributed through
A. government distribution agencies.
Correct B. the operation of price mechanism.
C. a central planning committee.
D. retailers only.

Correct Answer: B

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Question 5 View Details
One way of obtaining the median of a given data is to
A. sum the value and divide by the number of items.
Correct B. arrange the data in ascending order and subtract each item from the mean.
C. arrange the data in descending order and add each item to the least.
D. arrange the data in either ascending or descending order and find what item divides the set in two equal parts.

Correct Answer: B

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Question 6 View Details
An increase in rice harvest, all things being equal, may cause
A. price to increase substantially.
Correct B. price to fall substantially.
C. demand to fall substantially.
D. farmer's incomes to be more than doubled.

Correct Answer: B

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Question 7 View Details
The demand for wood and labour is an example of
Correct A. effective demand.
B. complementary demand.
C. derived demand.
D. competitive demand.

Correct Answer: A

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Question 8 View Details
What will be the reaction of consumers in a market if there is a fall in the price of the substitute of commodity X?
A. Price of commodity X will increase.
B. Demand for the substitute of commodity X will decrease.
Correct C. Demand for commodity X will decrease.
D. Supply of both commodity X and its substitute will increase.

Correct Answer: C

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Question 9 View Details
An increase in market supply is caused by the following factors except
A. an improvement in innovation and technology.
Correct B. an increase in the price of the commodity.
C. a reduction in the cost of raw materials.
D. a favourable weather condition.

Correct Answer: B

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Question 10 View Details
The coefficient of price elasticity of supply of land is usually
A. one.
B. greater than one.
Correct C. zero.
D. less than one.

Correct Answer: C

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Question 11 View Details
The price of soap rose from $10 to $20, causing a trader to increase her supply from 50 to 120 boxes per week. This makes supply
A. unitary elastic.
B. perfectly inelastic.
Correct C. fairly elastic.
D. inelastic.

Correct Answer: C

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Question 12 View Details
A leftward shift in the supply curve for a commodity indicates
A. an increase in quantity supplied.
Correct B. a decrease in supply,
C. a reduction in quantity supplied.
D. an increase in supply.

Correct Answer: B

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Question 13 View Details
Market supply may increase if there is an increase in the
A. price of the product.
B. prices of factors of production.
C. tax paid on raw materials.
Correct D. subsidies on raw materials.

Correct Answer: D

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Question 14 View Details
Governments can increase farmers' incomes by
A. fixing maximum prices.
Correct B. fixing minimum prices.
C. encouraging them to produce surplus output.
D. increasing taxes on inputs.

Correct Answer: B

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Question 15 View Details
When market supply increases, the equilibrium price
A. rises and quantity falls.
Correct B. falls and quantity rises.
C. and quantity increase.
D. and quantity fall.

Correct Answer: B

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Question 16 View Details
The supply of mangoes is represented as \( \mathrm{P}=0.3 Q \), where \( P \) is the price \( (\$) \) and \( Q \) is the quantity. What is P when Q is 50?
A. $1.50
Correct B. $15.00
C. $150.03
D. $166.67

Correct Answer: B

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Question 17 View Details
The output of an extra unit of an input is referred to as
A. output of the input.
Correct B. marginal product of the input.
C. average product of the input.
D. utility of the input employed.

Correct Answer: B

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Question 18 View Details
The law of diminishing returns is applicable to the
A. fixed inputs of production
Correct B. variable factors of production.
C. plants and machinery of the firm
D. equipment and other capital.

Correct Answer: B

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Question 19 View Details
TABLE - T1
A firm incurred the following costs in production. Use the information in the table to answer questions 19 and 20. \begin{tabular}[t]{|l|l|l|l|l|l|l|l|} \hline Output (bags of rice) & 0 & 10 & 20 & 30 & 40 & 50 & 60 \\ \hline Total Cost (\$) & 100 & 200 & 300 & 380 & 440 & 520 & 600 \\ \hline \end{tabular}
The fixed cost of production is
Correct A. $100.
B. $200.
C. $300.
D. $600.

Correct Answer: A

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Question 20 View Details
TABLE - T1
A firm incurred the following costs in production. Use the information in the table to answer questions 19 and 20. \begin{tabular}[t]{|l|l|l|l|l|l|l|l|} \hline Output (bags of rice) & 0 & 10 & 20 & 30 & 40 & 50 & 60 \\ \hline Total Cost (\$) & 100 & 200 & 300 & 380 & 440 & 520 & 600 \\ \hline \end{tabular}
The average cost of producing 40 bags of rice is
A. $10.
Correct B. $11.
C. $60.
D. $80.

Correct Answer: B

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Question 21 View Details
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. is below the average revenue curve C. and AR curve downward sloping are identical D. is vertical while the average revenue curve is horizontal.
Correct A. is above the average revenue curve
B. is below the average revenue curve
C. and AR curve downward sloping are identical
D. is vertical while the average revenue curve is horizontal.

Correct Answer: A

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Question 22 View Details
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 A. sale of shares
B. government subvention
C. trade credit
D. surplus.

Correct Answer: A

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Question 23 View Details
Separation of ownership of resources and control is mostly found in A. sole proprietorship B. partnership C. joint stock company D. co-operative.
A. sole proprietorship
B. partnership
Correct C. joint stock company
D. co-operative.

Correct Answer: C

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Question 24 View Details
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 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 Answer: A

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Question 25 View Details
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 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 Answer: A

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