WAEC Past Questions and Answers

13,701.

Country M enjoys absolute advantage over country N in the production of commodities X and Y, if country M

Is inefficient in the production of both commodities X and Y

Is more efficient than country N in producing both commodities X and Y

Can produce only commodity Y cheaper than country N

And country N are efficient in the production of both goods

Correct answer is B

Country M enjoys absolute advantage over country N in the production of commodities X and Y if country M is more efficient than country N in producing both commodities X and Y.

Absolute advantage refers to the ability of a country to produce a good or service using fewer resources than another country. In this case, country M is able to produce both commodities X and Y using fewer resources than country N. This means that country M can produce more of both commodities with the same amount of resources, or it can produce the same amount of both commodities with fewer resources.

13,702.

A small scale firm located within an industrial estate will enjoy

Government protection and funding

Technological economies of scale

Financial economies of scale

External economies of scale

View answer & explanation

Correct answer is D

A small scale firm located within an industrial estate will enjoy external economies of scale. This is because the firm will be able to benefit from the shared infrastructure and services that are available in the industrial estate.

External economies of scale are cost savings that are enjoyed by firms as a result of the growth of the industry as a whole. These savings can be realized through the sharing of infrastructure, such as roads, water, and electricity, and the pooling of resources, such as research and development.

In addition, the firm may also be able to benefit from the clustering of firms in the industrial estate. This clustering can lead to increased competition, which can drive down prices and improve the quality of products and services.