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WAEC WASSCE Economics 2004 past questions and answers

This 2004 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 2004 set with instant marking.

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Sample WAEC WASSCE Economics 2004 questions

1. A furniture workshop assigns cutting, joining and polishing to different workers. The main economic benefit of this arrangement is that it can
  1. increase workers' dexterity through repeated tasks
  2. eliminate the need for capital equipment
  3. make every worker produce a complete item
  4. remove the need for market demand

Answer: A. increase workers' dexterity through repeated tasks

Repeated performance of a specialised task can improve skill and save production time.

2. A large bakery lowers its average cost by spreading the cost of its delivery fleet over more loaves. This is an example of
  1. diseconomies of scale
  2. an internal economy of scale
  3. an external diseconomy
  4. a law of diminishing returns

Answer: B. an internal economy of scale

The bakery reduces its own average cost by using a fixed facility more fully as output expands.

3. Which item is a fixed cost for a small factory in the short run, when its rented premises remain unchanged?
  1. The flour used for each unit produced
  2. Wages paid to workers hired by the day
  3. The monthly rent on the factory building
  4. The electricity charge that rises with machine use

Answer: C. The monthly rent on the factory building

Short-run rent remains payable even when the factory changes its output.

4. A firm produces 60 units at a total cost of N9,000; its total fixed cost is N3,000. What is its average variable cost?
  1. N50
  2. N90
  3. N150
  4. N100

Answer: D. N100

Variable cost is N9,000 minus N3,000, or N6,000, and N6,000 divided by 60 is N100 per unit.

5. A firm increases output from 20 to 21 units and total cost rises from N4,500 to N4,620. What is the marginal cost of the extra unit?
  1. N120
  2. N220
  3. N4,620
  4. N9,120

Answer: A. N120

Marginal cost is the change in total cost divided by the one-unit change in output, which is N120.

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