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WAEC WASSCE Economics 2020 past questions and answers

This 2020 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 2020 set with instant marking.

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Sample WAEC WASSCE Economics 2020 questions

1. A furniture workshop assigns different workers to cutting, joining and polishing. The main economic advantage of this arrangement is that it
  1. increases workers' specialization and skill
  2. eliminates the need for capital
  3. makes all workers produce identical output independently
  4. removes the scarcity of timber

Answer: A. increases workers' specialization and skill

Dividing production into tasks allows workers to specialize and become more proficient.

2. In the short run, additional workers are employed on a fixed plot of land. The law of diminishing returns may operate because
  1. all factors of production increase in equal proportions
  2. the fixed factor becomes increasingly scarce relative to the variable factor
  3. the price of the product must fall
  4. technology necessarily deteriorates

Answer: B. the fixed factor becomes increasingly scarce relative to the variable factor

With land fixed, each additional worker eventually has less land to work with, reducing marginal output.

3. A firm produces 12 units at a total cost of ₦960. What is its average cost per unit?
  1. ₦72
  2. ₦78
  3. ₦80
  4. ₦88

Answer: C. ₦80

Average cost is total cost divided by output, so ₦960 divided by 12 equals ₦80.

4. A large bakery reduces its average cost by purchasing flour in bulk and using specialized machinery. These benefits are examples of
  1. diseconomies of scale
  2. external costs
  3. diminishing marginal utility
  4. internal economies of scale

Answer: D. internal economies of scale

Cost advantages arising within an expanding firm are internal economies of scale.

5. A firm's total cost rises from ₦500 to ₦650 when output increases from 20 units to 25 units. What is the marginal cost per additional unit over this range?
  1. ₦30
  2. ₦32.50
  3. ₦150
  4. ₦1,150

Answer: A. ₦30

The increase in total cost is ₦150 for 5 extra units, giving ₦30 per unit.

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