WAEC Economics questions

367 questions with answers and explanations. Tap an option to check yourself.

1. Question 281· Theory of consumer behaviour· WAEC

   Consumer sovereignty means that

   • Aconsumers produce goods
   • Bthe government decides consumption
   • Cproducers decide prices
   • Dconsumers determine what is produced through their spending

   Show answer

   Explanation and discussion

2. Question 282· Theory of consumer behaviour· WAEC

   A consumer buying several goods is in equilibrium when

   • Amarginal utility is at its highest
   • Bhe spends all his money on one good
   • Cmarginal utility divided by price is the same for every good
   • Dtotal utility is zero

   Show answer

   Explanation and discussion

3. Question 283· Theory of consumer behaviour· WAEC

   A thirsty boy enjoys his first bottle of water more than his third. This illustrates the law of

   • Acomparative advantage
   • Bdemand
   • Csupply
   • Ddiminishing marginal utility

   Show answer

   Explanation and discussion

4. Question 284· Theory of consumer behaviour· WAEC

   Total utility from 1, 2 and 3 oranges is 20, 35 and 45 utils. Find the marginal utility of the third orange.

   • A35
   • B45
   • C15
   • D10

   Show answer

   Explanation and discussion

5. Question 285· Theory of consumer behaviour· WAEC

   If total utility from 3 oranges is 30 and from 4 oranges is 36, the marginal utility of the 4th orange is

   • A9
   • B36
   • C6
   • D66

   Show answer

   Explanation and discussion

6. Question 286· Theory of consumer behaviour· WAEC

   Total utility is at its maximum when marginal utility is

   • Azero
   • Brising
   • Cat its highest
   • Dat its lowest positive value

   Show answer

   Explanation and discussion

7. Question 287· Theory of costs and revenue· WAEC

   A bakery has fixed costs of ₦50,000 and a variable cost of ₦200 per loaf. What is the total cost of 300 loaves?

   • A₦110,000
   • B₦60,000
   • C₦50,200
   • D₦160,000

   Show answer

   Explanation and discussion

8. Question 288· Theory of costs and revenue· WAEC

   Costs that do not change with the level of output are

   • Afixed costs
   • Bvariable costs
   • Cmarginal costs
   • Daverage costs

   Show answer

   Explanation and discussion

9. Question 289· Theory of costs and revenue· WAEC

   Which of these is a variable cost to a factory?

   • Ainsurance premium
   • Brent of the building
   • Ccost of raw materials
   • Dthe manager's salary

   Show answer

   Explanation and discussion

10. Question 290· Theory of costs and revenue· WAEC

    Marginal cost is

    • Athe addition to total cost from producing one more unit
    • Btotal cost divided by output
    • Cfixed cost per unit
    • Dtotal revenue minus total cost

    Show answer

    Explanation and discussion

11. Question 291· Theory of costs and revenue· WAEC

    A firm sells 50 units at ₦400 each. What is its total revenue?

    • A₦20,000
    • B₦8
    • C₦450
    • D₦2,000

    Show answer

    Explanation and discussion

12. Question 292· Theory of costs and revenue· WAEC

    A firm's total cost is ₦5,000 for 10 units and ₦5,450 for 11 units. Find the marginal cost of the 11th unit.

    • A₦500
    • B₦495.45
    • C₦5,450
    • D₦450

    Show answer

    Explanation and discussion

13. Question 293· Theory of costs and revenue· WAEC

    A firm's total cost rises from ₦500 to ₦560 when output rises from 10 to 11 units. Its marginal cost is

    • A₦50.91
    • B₦560
    • C₦60
    • D₦1,060

    Show answer

    Explanation and discussion

14. Question 294· Theory of costs and revenue· WAEC

    If a firm's total cost of producing 10 units is ₦500 and of producing 11 units is ₦540, the marginal cost of the 11th unit is

    • A₦50
    • B₦49
    • C₦40
    • D₦540

    Show answer

    Explanation and discussion

15. Question 295· Theory of costs and revenue· WAEC

    Rent paid on a factory building is an example of

    • Amarginal cost
    • Bvariable cost
    • Cfixed cost
    • Dopportunity cost

    Show answer

    Explanation and discussion

16. Question 296· Theory of costs and revenue· WAEC

    Total cost rises from ₦12,000 to ₦12,800 when output increases from 40 to 50 units. The marginal cost per unit is

    • A₦80
    • B₦800
    • C₦256
    • D₦300

    Show answer

    Explanation and discussion

17. Question 297· Theory of costs and revenue· WAEC

    A firm's fixed cost is ₦5,000 and variable cost for 100 units is ₦15,000. The average total cost is

    • A₦200
    • B₦150
    • C₦50
    • D₦20,000

    Show answer

    Explanation and discussion

18. Question 298· Theory of costs and revenue· WAEC

    The rent a bakery pays for its shop, whatever the number of loaves baked, is a

    • Amarginal cost
    • Bvariable cost
    • Cfixed cost
    • Dopportunity cost

    Show answer

    Explanation and discussion

19. Question 299· Theory of costs and revenue· WAEC

    Total revenue is calculated as

    • Aprice ÷ quantity
    • Bcost × quantity
    • Cprofit ÷ cost
    • Dprice × quantity sold

    Show answer

    Explanation and discussion

20. Question 300· Theory of costs and revenue· WAEC

    A firm's total revenue is ₦1,200 when it sells 40 units. Its average revenue is

    • A₦20
    • B₦40
    • C₦30
    • D₦48

    Show answer

    Explanation and discussion