Economics WAEC exam past questions and answers

Economics WAEC exam past questions and answers

Here are 20 economics WAEC exam questions with multiple-choice options and answers:

Question: What does GDP stand for?

a) Gross Domestic Product

b) General Development Process

c) Global Distribution Plan

d) Government Debt Projection

Answer: a) Gross Domestic Product

Question: In economics, the term "inflation" refers to:

a) A decrease in the overall price level

b) An increase in the overall price level

c) A stable price level

d) No impact on prices

Answer: b) An increase in the overall price level

Question: Which of the following is an example of a regressive tax?

a) Income tax

b) Property tax

c) Sales tax

d) Corporate tax

Answer: c) Sales tax

Question: The study of how people make choices to satisfy their unlimited wants with limited resources is known as:

a) Sociology

b) Psychology

c) Economics

d) Anthropology

Answer: c) Economics

Question: What is the primary function of a central bank?

a) Regulating international trade

b) Printing currency notes

c) Controlling fiscal policy

d) Managing a country's money supply and interest rates

Answer: d) Managing a country's money supply and interest rates

Question: What is the term for the total value of goods and services produced within a country's borders in a given time period?

a) Gross National Product (GNP)

b) Gross Domestic Product (GDP)

c) Net Export Value (NEV)

d) Domestic Economic Output (DEO)

Answer: b) Gross Domestic Product (GDP)

Question: Which economic concept is represented by the maximum amount a consumer is willing to pay for a product or service?

a) Price ceiling

b) Opportunity cost

c) Marginal cost

d) Willingness to pay

Answer: d) Willingness to pay

Question: When the demand for a good increases while its supply remains constant, what is likely to happen to the price of that good?

a) It will increase

b) It will decrease

c) It will remain the same

d) It is unpredictable

Answer: a) It will increase

Question: Which market structure is characterized by a large number of sellers, similar but not identical products, and ease of entry for new firms?

a) Monopoly

b) Oligopoly

c) Perfect competition

d) Monopolistic competition

Answer: d) Monopolistic competition

Question: The formula for calculating the price elasticity of demand is:

a) (Change in Quantity Demanded) / (Change in Price)

b) (Change in Price) / (Change in Quantity Demanded)

c) (Total Revenue) / (Quantity Demanded)

d) (Quantity Demanded) * (Change in Price)

Answer: a) (Change in Quantity Demanded) / (Change in Price)

Question: Which of the following is not a factor of production?

a) Labor

b) Capital

c) Money

d) Land

Answer: c) Money

Question: What is the term for the measure of how well resources are used to produce goods and services in an economy?

a) Efficiency

b) Equity

c) Elasticity

d) Profitability

Answer: a) Efficiency

Question: What is the primary tool used by the Federal Reserve to influence the money supply in the United States?

a) Fiscal policy

b) Open market operations

c) Foreign exchange rates

d) Social security programs

Answer: b) Open market operations

Question: Which of the following is a macroeconomic variable?

a) Individual income

b) Unemployment rate

c) Consumer preferences

d) Price of a specific product

Answer: b) Unemployment rate

Question: What is the term for the situation in which a country can produce a good at a lower opportunity cost than another country?

a) Absolute advantage

b) Comparative advantage

c) Specialization

d) Protectionism

Answer: b) Comparative advantage

Question: What is the economic term for the cost of forgoing the next best alternative when making a decision?

a) Sunk cost

b) Marginal cost

c) Opportunity cost

d) Fixed cost

Answer: c) Opportunity cost

Question: Which of the following is a leading economic indicator?

a) Gross Domestic Product (GDP)

b) Stock prices

c) Consumer Price Index (CPI)

d) Retail sales

Answer: b) Stock prices

Question: Which economic theory suggests that government intervention in the economy should be minimal, and markets should be left to regulate themselves?

a) Keynesian economics

b) Mercantilism

c) Laissez-faire

d) Socialism

Answer: c) Laissez-faire

Question: What is the term for the total market value of all final goods and services produced in an economy within a given time period?

a) Gross National Product (GNP)

b) Gross Domestic Product (GDP)

c) Net Domestic Product (NDP)

d) National Income (NI)

Answer: b) Gross Domestic Product (GDP)

Question: When a country exports more goods and services than it imports, it is said to have a:

a) Trade deficit

b) Trade surplus

c) Balanced trade

d) Fiscal surplus

Answer: b) Trade surplus