WAEC Economics Past Questions & Answers - Page 84

416.

The combination of two commodities each yielding the same level of satisfaction to the consumer is

A.

Consumer surplus

B.

Indifference curve

C.

Budget constant

D.

Goods of necessity

Correct answer is B

An indifference curve is a graph showing combination of two goods that give the consumer equal satisfaction and utility.

417.

All the following are factors that would bring about a change in supply except​​​​​​​

A.

Level of technology

B.

Government policy

C.

Entry of new firms

D.

Price of the commodity

Correct answer is C

Factors Affecting the Supply of a Commodity

  • i. Price of the given Commodity
  • ii. Cost of Production:
  • iii. Natural Conditions
  • iv. State of Technology
  • v. Transport Conditions
  • vi. Factor Prices and their Availability
  • vii. Government's Policies
  • viii. Prices of Related Goods

418.

Revenue can be expressed as

A.

Total Profit made after sales

B.

Amount of goods produced

C.

Total money realized from sales

D.

Amount spent on purchases

Correct answer is C

Revenue can be defined as the income generated by a firm from the sales of its goods and services.

419.

All the following are problems identified with agriculture in West Africa except

A.

Land tenure system

B.

Ignorance of the farmers

C.

Use of crude implement

D.

Provision of food for the teeming population

Correct answer is D

No explanation has been provided for this answer.

420.

The law of variable proportions is also known as

A.

Law of demand

B.

Law of diminishing returns

C.

Law of diminishing marginal utility

D.

Law of returns to scale

Correct answer is B

The law of variable proportions is also known as the law of diminishing returns. It states that, when the quantity of one factor of production is increased, while keeping all other factors constant, it will result in the decline of the marginal product of that factor.