Duncan AsanaenyiI believe that you’re here because you don’t know the nature of how exams are being set by WAEC. If you don’t, then you’re at the right place.
In this guide, we will talk extensively on WAEC past questions and answers for Economics, show you possible questions that may likely fall into the exams paper in the proceeding year.
Not only that, you’ll be given adequate instructions on how to answer questions on WAEC
Recently, I wrote on two interesting topics WAEC Past Questions and Answers on Civic Education and WAEC Past Questions and Answers on Chemistry , I strongly recommend you to click on the links above and read.
The WAEC past questions and answers are mostly repeated year after year, which is why you have to read this guide carefully till the end and take notice of those questions.
Most times, I hear students giving complains about how hard the questions is, reason behind it is that they failed to study using our guide.
I believe if you’re reading this, you will definitely want to pass your exams with flying colours. See more details on the instructions and guidelines given by WAEC to follow while writing the exams below.
Important Guidelines to follow in your WAEC Examination
There are alot of guidelines and instructions you as a student need to follow. We will bring to light what needs to be done accordingly.
The examination paper is divided into three different parts, which is Part 1 & 2
Part 1 is Objectives. You should expect 50 questions from this section.
Part 2 is the theory section, you should be expecting 10 questions to answer 5 from this section. This section carries the highest point.
Meaning that if you do well with this section and a little of part 1 ..then you’re good to go.
You should also note that the West African Examination Council frowns at cheating. Any candidate who is caught cheating will be sentenced to life imprisonment.
WAEC Economics Objective Questions
The questions you see below are possible questions that might be repeated in this year’s examination.
Endeavor to read this guide to the end carefully with understanding, where possible ask relevant questions and we’ll reply prompt.
SECTION A:
1. Which of the following measures can be used to control inflation?
A. Buying of securities in the open market
B. Increase in wages and salaries
C. Increased production
D. Reduction in bank rate
E. Reduction in taxation
2. The economic situation where total demand exceeds total supply of goods and services is called
A. Deflationary gap
B. Depression
C. Inflationary gap
D. Reflation
E. Stagflation
3. The reason for Nationalization Policy in Nigeria is to
A. Encourage trade liberalization
B. Guarantee efficient use of resources
C. Maximize profit
D. Promote private participation
E. Provide essential services to the people
4. Which of the following countries us known for the practice of socialism?
A. Italy
B. Russia
C. Spain
D. United Kingdom
E. United States of America
5. Given that fixed cost is N150, variable cost is N450 and quantity is 20 units, what is the average cost?
A. 10
B. 20
C. 30
D. 40
E. 45
6. A curve which shows alternative combination of commodities consumed that yields the same level of satisfaction is referred to as ______ curve.
A. Demand
B. Indifference
C. Marginal cost
D. Marginal product
E. Supply
7. The sum of all the marginal utilities of a commodity equals to ______ utility.
A. Average
B. Fixed
C. Marginal
D. Total
E. Variable
8. Which of the following is not a factor that affects change in supply?
A. Change in technology
B. Government policy
C. Price of other commodities
D. Price of the commodity
E. Weather and climate
9. If Mr Ogedenge’s demand for Milo increased from 200 to 400 units, due to change in income from N200 to N250, determine the income elasticity.
A. 1
B. 2
C. 3
D. 4
E. 5
10. An increase in tax rate can be used in an economy to
A. Create bank credits.
B. Guarantee revenue for the government
C. Increase people’s spending habits
D. Increase population growth rate
E. Promote importation
11. Mr Sanusi earned N50,000 monthly and be was taxed 5% of his salary, calculate his disposable income for the month.
A. N2,500
B. N42,000
C. N47,500
D. N48,000
E. N50,000
12. Mortgage bank makes fund available for _____ Development.
A. Agricultural
B. Educational
C. Financial
D. Housing
E. Industrial
13. Which of the following financial institution is responsible for long term loan?
A. Central bank
B. Commercial bank
C. Development bank
D. Merchant bank
E. Microfinance bank
14. Which of the following factors is not a government strategy to promote industrialization?
A. Encouraging foreign investment in large scale industries
B. Establishing cottage and small scale industries
C. Locally producing previously imported goods
D. Promoting exports
E. Relying on foreign technology
15. If the quantity of oranges purchased by Aisha decreased from 50 to 35 units as a result of increase in price from N10 to N15, calculate the elasticity of demand
A. – 0.6.
B. – 0.5.
C. 0.5.
D. 0.6.
E. 0.9
16. If the co-efficient elasticity of demand is 0.6, it is said to be
A. Elastic
B. Inelastic
C. Infinitely elastic
D. Unitary elastic
E. Zero elastic
17. A market condition where profits is maximized when MR = AR = MC = P is known as
A. Duopoly
B. Monopolistic competition
C. Monopsony
D. Oligopoly
E. Perfect competition
18. The market structure that has the characteristics of pure monopoly and perfect competition is referred to as _______ market.
A. Duopoly
B. Imperfect
C. Monopsony
D. Monopolistic competition
E. Oligopoly
19. The Capital Consumption Allowance (CCA) is also known as
A. Deflation
B. Depreciation
C. Factor income
D. National income
E. Recession
20. If change in consumption is N20m and change in National income is N40m, calculate the marginal propensity to consume.
A. 0.2
B. 0.3
C. 0.4
D. 0.5
E. 2.5
21. Terms of trade can simply be defined as price
A. of export minus price of import
B. ratio of export multiplied by import
C. ratio of export multiplied by price of import
D. ratio of export to import
E. ratio of import to export
22. The theory of external trade is based on the principle of comparative cost advantage as propounded by
A. A. C. Pigou
B. Adam Smith
C. David Ricardo
D. H. J. Davenport
E. J. S. Mill
23. An increase in the value of a country’s currency in terms of the value of the currencies of other nations of the world is referred to as
A. Deflation
B. Depreciation
C. Devaluation
D. Inflation
E. Revaluation
24. The loss of skilled intellectual and technical labour to other countries is referred to as
A. Brian Drain
B. Capital flight
C. Depreciation
D. Labour
E. Migration
25. The following are problems of ECOWAS, except
A. Difference in currencies
B. Idealogical difference
C. Language barriers
D. Leadership tussles
E. Political instability
26. The following are countries that make up the Asian tigers, except
A. Hong Kong
B. Malaysia
C. Singapore
D. South Korea
E. Taiwan
WAEC Economics Theory Questions
Question 1
The table below shows the composition of exports and imports of a hypothetical country.
Use the information in the table to answer the questions that follow.
| Exports | Amount | Imports | Amount |
| Crude oil | 120,000,000 | Rice and flour | 140,000,000 |
| Groundnuts | 40,000,000 | Petroleum product | 80,000,000 |
| Tourism | 45,000,000 | Vehicles and accessories | 50,000,000 |
| Shipping & Insurance | 60,000,000 | Banking services | 60,000,000 |
| Bauxite | 80,000,000 | Freight and insurance | 40,000,000 |
- Calculate the value of visible exports.
- Calculate the balance of trade for the country.
- List the items of invisible exports and imports.
- Calculate the current account balance of the country.
- Is the country developed or developing? Give one reason for your answer.
Question 2
(a) Define optimum population.
(b) In what three ways can rapid population growth slow down the rate of economic development?
(c) Describe any three measures that can be adopted to control rapid population growth.
Question 3
(a) What are state-owned enterprises?
(b) State any three reasons for the establishment of state-owned enterprises.
(c) Highlight any four problems associated with state-owned enterprises.
Question 4
(a) Differentiate between unemployment and underemployment.
(b) With one example each, explain the following:
(i) seasonal unemployment;
(ii) structural unemployment;
(iii) frictional unemployment;
(iv) cyclical unemployment.
Question 5
a) What is commodity money?
(b) Identify any three problems associated with trade by barter.
(c) Explain any three ways by which the advent of money has solved the problems of the barter system.
Question 5
(a) What is a demand schedule?
(b) State the law of demand.
(c) Using appropriate examples, explain the following types of demand:
(i) competitive demand;
(ii) derived demand;
(iii) joint demand;
(iv) composite demand.
…
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OFONIMEH JOHNSON
Mitrobe Staff