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WAEC Economics 2018 Objective — Question 31

Question 31 of 50 from the West African Examinations Council (WAEC) Economics 2018 Objective paper, with the correct answer and a full explanation.

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A baker bought flour and other ingredients for $250.00, spent $52.00 on distribution, sold the bread for $320.00. The value added by the baker is

  • A. $302.00
  • B. $52.00
  • C. $18.00Correct
  • D. $622.00

Explanation

Value added = selling price − (cost of materials + other costs) = $320 − ($250+$52) = $18.00.

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