Commerce Waec Past Questions And Answers (Objective and Theory)

Commerce is a vital subject that plays a crucial role in understanding the economic landscape. To help you ace your WAEC exams, here are 20 thought-provoking questions that cover various aspects of commerce, including a theory section with five questions. Let’s dive in!

Multiple Choice Questions:

What is the primary function of a central bank?

a) Issuing passports

b) Controlling the money supply

c) Managing agriculture

d) Operating airlines

Answer: b) Controlling the money supply

In business terms, what does ROI stand for?

a) Return on Investment

b) Rate of Income

c) Risk of Inflation

d) Revenue of Industry

Answer: a) Return on Investment

Which type of market structure is characterized by a large number of buyers and sellers, homogeneous products, and free entry and exit?

a) Oligopoly

b) Monopoly

c) Perfect competition

d) Monopolistic competition

Answer: c) Perfect competition

What is the function of the Securities and Exchange Commission (SEC)?

a) Weather forecasting

b) Regulating the stock market

c) Controlling traffic

d) Managing international trade

Answer: b) Regulating the stock market

What does the term ‘SWOT’ stand for in business analysis?

a) Single Window for Overseas Transactions

b) Strengths, Weaknesses, Opportunities, Threats

c) Software of World Trade

d) System for Workplace Operations and Tasks

Answer: b) Strengths, Weaknesses, Opportunities, Threats

True/False Questions:

Banks only provide financial services and do not play a role in economic development.

True / False

Answer: False

The law of demand states that, all else being equal, as the price of a good or service increases, the quantity demanded decreases.

True / False

Answer: True

Theory Questions:

Define the term ‘Inflation’ and explain its impact on an economy.

Answer: Inflation is the sustained increase in the general price level of goods and services in an economy over time. It can lead to a decrease in the purchasing power of money and affect the standard of living.

Discuss the importance of ethics in business.

Answer: Ethics in business is crucial for maintaining trust and integrity. It involves making morally right decisions and considering the impact of business activities on various stakeholders.

Explain the concept of ‘Globalization’ and its effects on international trade.

Answer: Globalization refers to the interconnectedness of economies worldwide. It facilitates international trade, cultural exchange, and technological advancements, but it can also lead to challenges like income inequality and cultural homogenization.

Differentiate between fixed and variable costs in business.

Answer: Fixed costs remain constant regardless of the level of production, while variable costs change with the quantity of goods or services produced. Fixed costs include rent, salaries, etc., while variable costs include raw materials and direct labor.

What role does the government play in regulating business activities?

Answer: The government regulates business activities to ensure fair competition, consumer protection, and economic stability. It enforces laws, sets standards, and implements policies to create a conducive business environment.