Economics 2020 Waec Past Questions and Answers

Question 21 :

• WAEC 2020

A seller increased the quantity he offered for sale from 200 units to 250 units when the price of his product increased by 12.5%. What is the price elasticity of the supply of his product?

A. 2.00
B. 1.50
C. 1.00
D. 0.50

Question 22 :

• WAEC 2020

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 in market
C. Black market to come into operation
D. Rationing to be introduced

Question 23 :

• WAEC 2020

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

Question 24 :

• WAEC 2020

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

Question 25 :

• WAEC 2020

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