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2020 WAEC Economics Essay / OBJ Question & Answers [19th Aug, 2020]

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2020 WAEC Economics Expo (Obj And Theory) Questions And Answers Expo Runs

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Wednesday, 19th August 2020

  • Economics 2 (Essay) – 9:30am – 11:30am
  • Economics 1 (objective) – 11:30 am – 12:30pm




X=80=-9.8|80-70=Y|z=5 50/2
X=80-9.8 | Y | z=25
X = 70.2 |

(i) Increasing returns ( level 0 to level 2)
(ii) Decreasing returns ( level 3 to level 6)
(iii) negative returns ( level 6)

The law of diminishing returns states that if increasing quantities of one factor are combined with a fixed supply of others in productions, a point is reached from which each extra variable factor added yields loss and less addition to the total output.


(i) The total product at any given level of labour input is equal to the sum of all the marginal product up to that
(ii) The MP is zero of the point where TP is maximum

(2) [img] https://funloaded.org.ng/wp-content/uploads/2020/08/wp-1597831019585.jpg[/img]

Consumer goods can be defined as goods that mainly used for immediate purpose and which can not last long before it will expire.
It’s a consumer goods that can satisfy consumer wants.

Fixed capital: These are capital or assets that do not change their form in the process of production. It’s a durable asset of a business that can last for a very long time. Example land, building, tools etc

Social capital: These are these capital or assets provided by the government that helps production. It’s a capital set aside by the government to provide essential amenities to the general public in order to have standard of living. Example electricity, roads, water etc.

Circulating capital: This is also known as working capital. These consists of capital goods which with change their form or are used up in the process of production. It is a capital used in day to day transaction of a business. Eg raw material, water etc

(i) Economic growth: High growth and consumer confidence encourages higher spending and fall in saving ratio
(ii) Low income discourages savings
(iii) Inflation: High inflation may discourage cash saving.


Capital expenditure is primarily expenditure on the creation of fixed assets and on the acquisition of land, buildings and intangible assets while Recurrent expenditure refers mainly to expenditure on
operations, wages and salaries, purchases of goods and
services, and current grants and subsidies.

Monetary policy refers to government activities that are directed toward influencing the quantity of money and credit in an economy while Fiscal policy involves the use of government spending and revenue raising (taxation) to impact a number of aspects of the economy

(i) General Administrative Purposes: The administrative machinery of a country may collapse if there is
no money to maintain it; tax therefore forms one of the sources of
such money.

(ii) Defence Purposes: Taxation contributes part of the money used in maintaining a country’s armed forces.

(iii) The Maintenance of Law and Order: For internal peace and stability of a country to be guaranteed, laws
must be made and executed, which require money.

(iv) Redistribution of Incomes: To achieve this, income tax is made to be progressive in nature.


(i)Commercial farming is mainly practised in developed countries whereas subsistence farming in less developed or developing countries.

(ii) Commercial farming is cultivated for profits whereas subsistence farming is for the consumption of the farmer and his/her family.

(iii) Commercial farms are very large while that of the subsistence farming are quite small.

(iv) Commercial farming is not dependent much on man power or animal power whereas subsistence farming is dependent.

(v) In commercial farming, there are proper irrigation facilities whereas subsistence farming is generally dependent upon the monsoon.

(i) It is usually grown in a piece of land where the land is quite small in the area.
(ii) This type of farming is usually done for the food crop where the farming is done just to satisfy the requirement of the farmers family and not for the purpose of selling it into the market.
(iii) The machineries which are used for the farming process usually primitive.
(iv) Primitive form of irrigation or little irrigation is done for this type of farming.

Positive effects:
(i) It serves as source of revenue for the government
(ii) It creates job opportunities for people in the area.

Negative effects:
(i) It causes loss of valuable lands
(ii) It causes environmental pollution and pose health hazards


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