WAEC Economics 2026 past questions and answers

A producer will supply more of a good if

1. A.average cost of production is increasing
2. B.there is an increase in the demand for the good
3. C.there is an increase in its excise duty
4. D.more competitive firms enter the market for the good

A positive effect of mining solid minerals is that such areas usually

1. A.experience technology transfer
2. B.experience optimum population
3. C.attract much farming activities
4. D.have low living standards

In calculating national income using the income approach, the items included are

1. A.allowances paid to unemployed people
2. B.differences between cost of inputs and price of outputs
3. C.total spending by consumers, firms and government
4. D.rent, wage, interest and profit paid to factor inputs

Use the information below to answer the question.
Farmers have discovered that prices of their crops are never stable. Lower prices are usually recorded during harvests while higher prices are recorded after harvests.
The lower prices recorded during harvests is mainly as a result of

1. A.output being greater than demand
2. B.higher demand with low supply
3. C.poor quality of their produce
4. D.poor market information.

Use the information below to answer the question.
Farmers have discovered that prices of their crops are never stable. Lower prices are usually recorded during harvests while higher prices are recorded after harvests.
A likely reason for the higher prices experienced after harvests is the

1. A.supply being equal to demand
2. B.excess demand for the crop
3. C.inadequate number of middlemen
4. D.absence of market for the crop

The final stage of economic integration will be marked by the

1. A.imposition of common external tariffs on imports
2. B.harmonization of monetary and fiscal policies
3. C.creation of a larger market for goods produced
4. D.removal of all trade barriers among members

Treasury bills and long-term development loans are debt instruments used in the

1. A.financial market
2. B.commodity market
3. C.capital market
4. D.money market

The basic economic problems of all societies arise because of

1. A.inefficiency and corruption
2. B.inadequate productive resources
3. C.mismanagement of resources
4. D.inadequate supply of money

Forest resources are inexhaustible because

1. A.they have low demand in foreign markets
2. B.their prices are low in the world market
3. C.they are not being adequately exploited
4. D.they are natural and renewable

If more of a commodity is supplied at the same price, this will be shown as

1. A.an upward movement along its supply curve
2. B.a new supply curve positioned to the left
3. C.a new supply curve positioned to the right
4. D.a downward movement along its supply curve

A country's per capita income will increase if her

1. A.population increases faster than national income
2. B.national income increases faster than population
3. C.rate of productivity equals population growth rate
4. D.importation of goods is liberalized

The structural arrangement associated with resource allocation for solving the basic economic problems in every society is

1. A.economic system
2. B.economic integration
3. C.economic theory
4. D.economic plan

A feature of a public limited liability company is that

1. A.its number of shareholders ranges from 2 to 50
2. B.it is required by law to publish its accounts
3. C.it is owned by the state
4. D.its shares are not open to private individuals

The importance of the International Bank for Reconstruction and Development (IBRD) to West African countries is in the provision of

1. A.technical assistance
2. B.foreign exchange
3. C.gold reserves
4. D.short-term loans

An entrepreneur is said to be an efficient manager when he

1. A.makes basic decisions in the organization
2. B.combines factor inputs in right proportions
3. C.introduces a new product in the business
4. D.introduces the company's product of a new market

The expenditure on inputs which changes as the output level changes in the short run is obtained from the formula

1. A.Total Cost minus Total Variable Cost
2. B.Total Fixed Cost minus Total Cost
3. C.Total Variable Cost minus Total Fixed Cost
4. D.Total Cost minus Total Fixed Cost

Other things being equal, an increase in the supply of money may lead to

1. A.fall in the velocity of circulation of money
2. B.rise in the general price level
3. C.fall in the demand for commodities
4. D.rise in the rate of unemployment in the short-run

In a country where an income tax of $100 was levied on an income of $1000 while an income of $5000 attracted a levy of $500, the tax system can be said to be

1. A.regressive
2. B.flexible
3. C.progressive
4. D.proportional

Distribution of goods is enhanced by all of the following factors except

1. A.access to credit facilities
2. B.good communication network
3. C.existence of numerous middlemen
4. D.adequate storage facilities

A gas cooker used by a food vendor is an example of

1. A.labour
2. B.intermediate good
3. C.capital
4. D.consumer good

A country can increase her rate of industrialization by

1. A.liberalizing importation of consumer goods
2. B.increasing corporate taxes on companies
3. C.liberalizing exchange control for investors
4. D.increasing interest rate on borrowing by investors

If the demand for a product is described as derived, it means that

1. A.it is used in the production of other goods
2. B.it must be combined with another good to satisfy a want
3. C.consumers' preference for the good is high
4. D.its demand increases with an increase in its price

There will be a fall in the size of a country's labour force if the population is

1. A.increasing
2. B.below optimum
3. C.above optimum
4. D.ageing

Devaluation of the currency of a country is mainly aimed at

1. A.causing a decline in the general prices of goods and services
2. B.increasing the deficit in the balance of payments account
3. C.increasing the outflow of foreign exchange
4. D.increasing the sale of local goods in foreign markets

Crude oil and natural gas are products which are often in

1. A.competitive supply
2. B.composite supply
3. C.aggregate supply
4. D.joint supply

An example of frictional unemployment is that of a

1. A.university graduate who is looking for a job
2. B.toy producer in an area where the birth rate has fallen drastically
3. C.farm labourer who remains unemployed during the dry season
4. D.secretary who lost her job because she is not computer literate

One of the factors that will not hinder international trade is

1. A.labour specialization
2. B.conflicts between countries
3. C.commercial policy
4. D.differences in language

In capitalism, market forces do not determine the provision of

1. A.producer goods
2. B.public goods
3. C.consumer goods
4. D.economic goods

In the short run, perishable foods like fresh tomatoes have

1. A.elastic supply
2. B.unit elastic supply
3. C.perfectly elastic supply
4. D.inelastic supply

The monetary measure that can cause an increase in the supply of money is

1. A.reduction in tax on personal income
2. B.sale of treasury bills by the Central Bank to commercial banks
3. C.purchase of securities by the Central Bank from the open market
4. D.increase in government expenditure

Use the production possibility curve in Figure 1 to answer the question. Point S indicates that the

1. A.production of capital goods is inefficient
2. B.production of both goods are efficient
3. C.economy is employing all its resources
4. D.economy must grow to produce there

The estimated cost of inputs personally-owned and used by an entrepreneur in his business is

1. A.variable cost
2. B.incidental cost
3. C.explicit cost
4. D.implicit cost

If the demand for chicken is inelastic between October and December but elastic at other months in the year, then to increase total revenue, the farmer should

1. A.reduce price throughout the year
2. B.reduce price between October and December and increase price at other months in the year
3. C.increase price throughout the year
4. D.increase price between October and December and reduce price at other months in the year

The sector that should employ the largest number of labour in order to enhance a country's rapid economic development is the

1. A.manufacturing sector
2. B.solid minerals sector
3. C.petroleum sector
4. D.agricultural sector

A rational individual bought a good at $20 per unit and achieved equilibrium when the 10^th unit was consumed, this implies that the marginal utility of this utils is

1. A.10 utils
2. B.200 utils
3. C.2 utils
4. D.20 utils

One feature of imperfect competition is that the

1. A.commodities sold are homogeneous
2. B.goal of the firm is welfare maximization
3. C.demand curve is perfectly elastic
4. D.price is higher than the marginal revenue

A physical measure that can be used to correct a chronic balance of payments deficit is

1. A.a reduction in subsidy on exports
2. B.a rise in government expenditure
3. C.an increase in import tariffs
4. D.a reduction in import quotas

Census figures are not often reliable because

1. A.they are falsified for political gain
2. B.anti-bureaucratic methods are adopted
3. C.personnel are not readily available
4. D.the rate of population growth is too high

The benefit a new firm enjoys by tapping power from an existing electric pole because it is in the same area with other firms is a form of

1. A.risk-bearing economies of scale
2. B.external economies of scale
3. C.technical economies of scale
4. D.financial economies of scale

The formula for measuring own price elasticity of demand can be expressed as

1. A.(ΔQd/ΔP) × (Qd/P)
2. B.(ΔQd/ΔP) × (P/Qd)
3. C.(ΔP/ΔQd) × (P/Qd)
4. D.(ΔQdx/ΔPy) × (Py/Qdx)

Production of export of crops is mostly associated with

1. A.cooperative farming
2. B.subsistence farming
3. C.state farming
4. D.plantation farming

People prefer to hold money as cash rather than invest it because this will make it easy for them to

1. A.measure their level of wealth
2. B.ensure its value remains stable
3. C.save in their deposit accounts
4. D.purchase goods and services

The demand curve for an article of ostentation is illustrated by the diagram in

1. A.A
2. B.B
3. C.C
4. D.D

The burden of a specific tax on a good is wholly on the consumers if its price elasticity of demand equals

1. A.1
2. B.0
3. C.1.5
4. D.0.5

A firm in a perfect market cannot fix its price above the ruling price because

1. A.there will be no demand for the product
2. B.price control officials will not allow it
3. C.other firms will also increase their prices
4. D.the demand curve is perfectly inelastic

The share of the health sector represented by a pie chart with a sector of 125° in a budget of $1,200 million is

1. A.$345.60 million
2. B.$1,500.00 million
3. C.$37.50 million
4. D.$416.66 million

Cheques can be used in place of money mainly because they are

1. A.backed by deposits in current accounts
2. B.standard for deferred payments
3. C.issued by commercial banks
4. D.generally acceptable and homogeneous

Voting in a co-operative society is

1. A.according to the age of members
2. B.on equal basis for members
3. C.according to the number of shares owned
4. D.for board members only

To improve living standards in developing countries, policy makers should

1. A.reduce investment on infrastructure
2. B.impose high tariffs on imports of capital goods
3. C.formulate plans designed to increase industrial productivity
4. D.liberalize immigration of unskilled workers

The law of diminishing returns enables an entrepreneur to know

1. A.the limit to the amount of variable inputs the entrepreneur can employ
2. B.that the input of capital can only be increased in the short run
3. C.that the marginal productivity of labour increases only in the long run
4. D.the type of market structure in which the entrepreneur can operate

Figure 1 below shows the marginal utilities derived from the consumption of different quantities of commodity X which is sold for $4 per unit. Study the graph and answer the questions that follow.
(a) At which level(s) of the consumption of commodity X is: (i) the consumer at the point of saturation; (ii) marginal utility of X (MU_x) declining but positive; (iii) total utility of X (TU_x) decreasing; (iv) total utility of X (TU_x) at maximum?
(b) Identify two laws that the positive segment of the marginal utility curve illustrates.
(c) Explain what the consumer should do in order to achieve equilibrium when consuming: (i) 1 unit of commodity X; (ii) 4 units of commodity X.

The statistical representation in Figure 2 below shows the sources of revenue for Country P in the year 2014. Use it to answer the questions that follow.
(a) What name is given to the diagram above?
(b) Define an excise duty.
(c) If revenue from personal income tax was $800 million, calculate the: (i) total revenue for the year; (ii) total direct tax for the year.
(d) Determine the percentage of total revenue that was collected from indirect tax.
(e) State two advantages indirect taxes have over direct taxes.

(a) Explain why a scale of preference is important to an individual.
(b) Discuss how the knowledge of the basic concepts of Economics can help a producer.
(c) State any four factors that can help a producer to increase the supply of a commodity.

(a) With an example each, differentiate between: (i) consumer goods and producer goods; (ii) primary production and tertiary production.
(b) Explain the following forms of capital and give an example in each case. (i) Fixed capital; (ii) working capital; (iii) social capital

(a) Distinguish between a firm and an industry.
(b) Match the following characteristics to these business entities: sole proprietorship, partnership and public limited liability company: (i) much red tape and legal expense in starting the firm; (ii) owner(s) personal assets can be used to settle business debts; (iii) no specialized management; (iv) has a life independent of its owner(s); (v) permits some but not a great deal of specialization; (vi) greatest ability to acquire funds for expansion of the firm; (vii) unresolved disagreements among members can end the business; (viii) distinct separation of ownership and control of the business.
(c) With the aid of a diagram, explain the equilibrium position of a profit-maximizing firm that is making a loss in a monopolistic competition.

(a) Define industrialization.
(b) Distinguish between location of industry and localization of industry.
(c) Where will an entrepreneur site the following firms? Give reasons for your answer in each case. (i) A sawmill; (ii) A ceramic tile producing factory; (iii) An egg-producing poultry farm

The economy of Country X grew by 5% annually over the past five years, with gross domestic product (GDP) rising from $80 billion to over $100 billion. However, per capita income was low at $838; poverty rates remained high at 37% and unemployment stood at 23%. The government launched an economic plan to improve education and healthcare, but it faced a lot of challenges. As a result, living standards did not significantly improve for many citizens, and the execution of the economic plan was deemed unsuccessful.
Using the scenario above, (a) explain the relationship between economic growth and economic development in Country X;
(b) explain how economic growth relates to the standard of living in Country X;
(c) state any four possible reasons the economic plan of country X was not successfully implemented.

(a) Explain the following terms: (i) import quotas; (ii) embargo; (iii) import licences; (iv) foreign exchange control.
(b) Outline three ways in which exports can be promoted in a country.