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WAEC WASSCE Economics 2003 past questions and answers

This 2003 WAEC WASSCE Economics set has 40 practice questions. Try these 5 free sample questions, tap a question to reveal the answer and explanation. Then practise the whole 2003 set with instant marking.

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Sample WAEC WASSCE Economics 2003 questions

1. When the price of a good rises by 10% and its quantity demanded falls by 20%, the price elasticity of demand in absolute value is
  1. 2
  2. 0.5
  3. 10
  4. 30

Answer: A. 2

Elasticity is the percentage change in quantity divided by the percentage change in price, so 20/10 = 2.

2. In the short run, the law of diminishing returns begins when adding more units of a variable factor to fixed factors causes
  1. total output to become zero
  2. marginal product to decline
  3. average fixed cost to rise
  4. all factors to vary together

Answer: B. marginal product to decline

With at least one factor fixed, diminishing returns describe a fall in marginal product as more variable input is added beyond a point.

3. A likely advantage of dividing a production process into specialized tasks is that it
  1. eliminates the need for capital
  2. guarantees equal incomes
  3. can increase workers' skill and output
  4. removes all production costs

Answer: C. can increase workers' skill and output

Repeated practice on a specialized task can improve workers' speed and skill, raising output.

4. Which cost is most likely to remain unchanged when a factory temporarily produces zero units in the short run?
  1. cost of raw materials
  2. piece-rate wages
  3. electricity used by machines
  4. annual building insurance premium

Answer: D. annual building insurance premium

An annual insurance premium is a fixed cost that is payable even when current output is zero.

5. A competitive firm should normally suspend production in the short run if the market price is below its
  1. average fixed cost
  2. average variable cost
  3. marginal cost
  4. total fixed cost

Answer: B. average variable cost

If price is below average variable cost, revenue cannot cover the variable costs of operating.

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