2012 - WAEC Economics Past Questions and Answers - page 2
11
Any price below the equilibrium price will lead to
A
increase in supply
B
excess demand
C
equality of demand and supply
D
decreases in demand
correct option: b
Users' Answers & Comments12
The allocation of goods and services in a free market economy is performed by
A
the price system
B
the banking system
C
the central planning body
D
government budgets
correct option: a
Users' Answers & Comments13
Given the demand function Qd = 20 - 1/ 2P. What is Qd when P is $12?
A
6 units
B
10 nits
C
12 units
D
14 units
correct option: d
Users' Answers & Comments14
If a particular consumer derives total utility of 22 units having consumed 4 units of a given product, his average utility will be
A
88 utils
B
18 utils
C
5.5 utils
D
3.5 utils
correct option: c
Users' Answers & Comments15
The law of diminishing marginal utility applies to a
A
firm which minimizes cost
B
consumer who maximizes satisfaction
C
producer who maximizes marginal product
D
consumer who minimizes total utility
correct option: b
Users' Answers & Comments16
why is the law of diminishing returns a short run phenomenon?
A
all inputs are fixed
B
all inputs are variable
C
some outputs are variable
D
some inputs are variable
correct option: a
Users' Answers & Comments17
Which of the following is capable of increasing the population of a country?
A
decrease in death rate
B
increase in death rate
C
poor medical facilities
D
decrease in birth rate
correct option: a
Users' Answers & Comments18
In the firm's production process, marginal cost
A
falls continuously throughout
B
falls and later rises
C
remains unchanged throughout
D
rises and later falls
correct option: b
Users' Answers & Comments19
If a firm's price is less than average cost but more than part of variable cost, the firm is covering
A
all of its fixed cost and variable cost
B
all of its fixed cost and part of variable cost
C
all of its variable cost and part of fixed cost
D
part of its fixed cost and part of varible cost
correct option: a
Users' Answers & Comments20
An arrangement in which the debts of a company can only be paid from its own assets implies
A
unlimited liability
B
transferred liability
C
limited liability
D
capital liability
correct option: c
Users' Answers & Comments