Economics Waec Past Questions And Answers (Objective and Theory)

Here’s a set of 20 Economics WAEC questions, including a Theory section with 5 questions. Each question comes with options and correct answers.

 

Multiple Choice Questions:

Section A: Microeconomics

What is the main determinant of price elasticity of demand?

a) Income

b) Substitute goods

c) Complementary goods

d) All of the above

 

Answer: b) Substitute goods

 

In a perfectly competitive market, how does a firm maximize profit?

a) Increase production

b) Lower prices

c) Produce where marginal cost equals marginal revenue

d) Reduce fixed costs

 

Answer: c) Produce where marginal cost equals marginal revenue

 

What is the role of the central bank in controlling inflation?

a) Increase government spending

b) Lower interest rates

c) Contractionary monetary policy

d) Encourage borrowing

 

Answer: c) Contractionary monetary policy

 

Define opportunity cost in economics.

a) The cost of production

b) The cost of goods and services

c) The value of the next best alternative foregone

d) The monetary cost of resources

 

Answer: c) The value of the next best alternative foregone

 

Section B: Macroeconomics

What does GDP measure in an economy?

a) The total value of exports

b) The total value of goods and services produced

c) The total government spending

d) The total value of imports

 

Answer: b) The total value of goods and services produced

 

Which of the following is a fiscal policy tool to combat recession?

a) Increase in taxes

b) Decrease in government spending

c) Increase in government spending

d) Increase in interest rates

 

Answer: c) Increase in government spending

 

What is the purpose of the Consumer Price Index (CPI)?

a) Measure inflation

b) Measure unemployment

c) Measure GDP

d) Measure income distribution

 

Answer: a) Measure inflation

 

Section C: International Trade

What is a trade surplus?

a) Exports exceed imports

b) Imports exceed exports

c) No trade with other countries

d) Balanced trade

 

Answer: a) Exports exceed imports

 

What is the function of the World Trade Organization (WTO)?

a) Control currency exchange rates

b) Promote free trade and resolve trade disputes

c) Regulate international migration

d) Set global interest rates

 

Answer: b) Promote free trade and resolve trade disputes

 

Theory Section:

Explain the concept of inflation and its effects on an economy.

 

Discuss the advantages and disadvantages of a centrally planned economy.

 

Elaborate on the factors that determine the labor force participation rate in a country.

 

Examine the role of entrepreneurship in economic development.

 

Describe the impact of government taxation on consumer behavior and market outcomes.