JAMB and WAEC Economics questions

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

1. Question 601· Theory of costs and revenue· JAMB

   Total fixed cost is ₦6,000 and output is 300 units. Average fixed cost is

   • A₦200
   • B₦6,000
   • C₦1,800,000
   • D₦20

   Show answer

   Answer: D. ₦20

   Explanation and discussion

2. Question 602· 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

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   Answer: C. fixed cost

   Explanation and discussion

3. Question 603· Theory of costs and revenue· WAEC

   Total revenue is calculated as

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

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   Answer: D. price × quantity sold

   Explanation and discussion

4. Question 604· 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

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   Answer: C. ₦30

   Explanation and discussion

5. Question 605· Theory of costs and revenue· WAEC

   In the short run a firm will continue production as long as price covers

   • Amarginal revenue
   • Baverage total cost
   • Cfixed cost only
   • Daverage variable cost

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   Answer: D. average variable cost

   Explanation and discussion

6. Question 606· Theory of costs and revenue· JAMB

   A firm sells 40 units at ₦25 each. Find its total revenue.

   • A₦625
   • B₦65
   • C₦1,000
   • D₦1.60

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   Answer: C. ₦1,000

   Explanation and discussion

7. Question 607· Theory of costs and revenue· JAMB

   A firm's fixed costs are ₦50,000, its price ₦500 a unit and its variable cost ₦300 a unit. Its break-even output is

   • A100 units
   • B250 units
   • C167 units
   • D500 units

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   Answer: B. 250 units

   Explanation and discussion

8. Question 608· Theory of costs and revenue· JAMB

   Total cost rises from ₦200 to ₦260 when output rises from 10 to 12 units. Find the marginal cost per unit.

   • A₦60
   • B₦30
   • C₦21.67
   • D₦13

   Show answer

   Answer: B. ₦30

   Explanation and discussion

9. Question 609· Theory of costs and revenue· JAMB

   Total cost is ₦30,000 at 100 units and ₦33,000 at 110 units. Marginal cost per unit is

   • A₦300
   • B₦3,000
   • C₦330
   • D₦30

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   Answer: A. ₦300

   Explanation and discussion

10. Question 610· Theory of costs and revenue· JAMB

    In the short run, a firm will shut down if the price falls below its

    • Aaverage fixed cost
    • Baverage variable cost
    • Cmarginal revenue
    • Daverage total cost only

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    Answer: B. average variable cost

    Explanation and discussion

11. Question 611· Theory of costs and revenue· WAEC

    A firm sells 50 units at ₦40 each. Its total revenue is

    • A₦2,000
    • B₦90
    • C₦1,250
    • D₦200

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    Answer: A. ₦2,000

    Explanation and discussion

12. Question 612· Theory of demand· JAMB

    Which of the following shifts the demand curve for a normal good to the right?

    • Aa rise in the price of the good
    • Ba fall in the price of the good
    • Can increase in consumers' income
    • Dan increase in the cost of production

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    Answer: C. an increase in consumers' income

    Explanation and discussion

13. Question 613· Theory of demand· JAMB

    If the cross elasticity of demand between two goods is positive, the goods are

    • Asubstitutes
    • Bcomplements
    • Cunrelated
    • Dinferior

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    Answer: A. substitutes

    Explanation and discussion

14. Question 614· Theory of demand· WAEC

    The demand for labour is described as derived demand because labour is demanded

    • Afor its own sake
    • Bonly by government
    • Cfor what it helps to produce
    • Dat a fixed wage

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    Answer: C. for what it helps to produce

    Explanation and discussion

15. Question 615· Theory of demand· WAEC

    A rise in consumers' incomes leads to a fall in the demand for

    • Aa luxury good
    • Ba normal good
    • Can inferior good
    • Da complementary good

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    Answer: C. an inferior good

    Explanation and discussion

16. Question 616· Theory of demand· JAMB

    The demand for necessities such as salt is usually

    • Aunitary elastic
    • Bperfectly elastic
    • Cprice elastic
    • Dprice inelastic

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    Answer: D. price inelastic

    Explanation and discussion

17. Question 617· Theory of demand· WAEC

    If the price of a good rises from ₦10 to ₦12 and quantity demanded falls from 100 to 80 units, the price elasticity of demand is

    • A0.5
    • B2.0
    • C1.0
    • D0.2

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    Answer: C. 1.0

    Explanation and discussion

18. Question 618· Theory of demand· JAMB

    If income elasticity of demand is negative, the good is

    • Anormal
    • Binferior
    • Cluxury
    • Dnecessity with positive elasticity

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    Answer: B. inferior

    Explanation and discussion

19. Question 619· Theory of demand· JAMB

    A Giffen good is one whose quantity demanded

    • Afalls as income rises
    • Brises as its price rises
    • Cnever changes
    • Drises only when income rises

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    Answer: B. rises as its price rises

    Explanation and discussion

20. Question 620· Theory of demand· JAMB

    Cross elasticity of demand between substitutes is

    • Ainfinite always
    • Bnegative
    • Czero
    • Dpositive

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    Answer: D. positive

    Explanation and discussion