Waec Economics 1998 Past Questions and Answers

Question 11:

• WAEC 1998

Total cost is the addition of

A. Real cost and money cost
B. Price and taxes
C. Fixed cost and variable cost
D. Average cost and marginal cost
E. Cost of raw materials and wages

Question 12:

• WAEC 1998

external economies refer to the

A. Cost-saving advantage a firm enjoys when by being close to other firm in the same industry
B. Disadvantage to a firm that is close to other firms
C. Economies of large scale production
D. Economies of low scale production
E. Artificial scarcity of goods

Question 13:

• WAEC 1998

To the economist, efficiency of resource use means

A. The maximum use of resource to achieve minimum objectives
B. The reduction of cost for adequate output
C. Realting value of input to that of output
D. Using appropriate resources for desired wants
E. Maximizing output from a given amount of resource

Question 14:

• WAEC 1998

The shape of the average cost (AC) shows that as production increases

A. Total cost decreases
B. Average cost decreases and then increases
C. Average cost increaeses
D. Marginal cost steadily increase
E. Total cost remains constant

Question 15:

• WAEC 1998

one of the advantages of localization of industry is that firms

A. Make abnormal profits
B. Are given tax holidays
C. Are unified under one management
D. Pay high wages
E. Can have a large pool of skilled labours