WAEC Economics Past Questions & Answers - Page 202

1,006.

Small firms are important for the development of a country because

A.

The prices of their products are usually high

B.

They render personalized services to the consumers

C.

They usually produce goods for the elites

D.

They do not normally provide after sales services

Correct answer is B

No explanation has been provided for this answer.

1,007.

The main objective of setting up private businesses is to

A.

Protect the interest of the government

B.

Maximize profits

C.

Provide infrastructure

D.

Promote exports

Correct answer is B

No explanation has been provided for this answer.

1,008.

The location of timber and plywood industries in West Africa is mainly influenced by the availability of

A.

Transport

B.

Water

C.

Raw materials

D.

Labour supply

Correct answer is C

No explanation has been provided for this answer.

1,009.

The cost which firm will incur whether it is in production or not, is referred to as

A.

Average cost

B.

Variable cost

C.

Opportunity cost

D.

Fixed cost

Correct answer is D

No explanation has been provided for this answer.

1,010.

Economist speaks about ‘opportunity cost’ when a consumer

A.

He has the change to minimize cost

B.

Has to forgo one thing in order to have another

C.

Can equate his fix costs with his variable costs

D.

Is able to save part of his income

Correct answer is B

No explanation has been provided for this answer.