Economics past questions: WAEC SSCE 2025

50 objective questions, with answers. Free to read and practise.

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50 questions, one at a time, marked as you go or at the end. No account needed.

1.
A consumer with $10 needs a dress, a pair of shoes, a handbag and jewellery costing $20, $10, $7 and $3 respectively. The opportunity cost of buying the pair of shoes is the
1. A.dress
2. B.jewellery
3. C.handbag and jewellery
4. D.dress and jewellery
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Answer: C handbag and jewellery
2.
A country may be able to earn more from exports if she
1. A.allows her currency to appreciate
2. B.increases her export
3. C.devalues her currency
4. D.increases her import duty
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Answer: C devalues her currency
3.
A customs union is an economic grouping which has
1. A.common military defence
2. B.common tariffs against non-members
3. C.free movement of factors of production
4. D.common currency for trading
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Answer: B common tariffs against non-members
4.
A firm incurred the following costs in production. Use the information in the table to answer questions below
Output(bags of rice) 0 10 20 30 40 50 60
Total cost$ 100 200 300 380 440 520 600
The average cost of producing 40 bags of rice is
1. A.$10
2. B.$60
3. C.$80
4. D.$11
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Answer: D $11
5.
A firm incurred the following costs in production. Use the information in the table to answer questions below
Output(bags of rice) 0 10 20 30 40 50 60
Total cost$ 100 200 300 380 440 520 600
The fixed cost of production is
1. A.$100
2. B.$600
3. C.$200
4. D.$300
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Answer: A $100
6.
A floating exchange rate means that the exchange rate is fixed by the
1. A.Ministry of Finance
2. B.forces of demand of supply
3. C.central bank of the country
4. D.International Monetary Fund(IMF)
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Answer: B forces of demand of supply
7.
A leftward shift in the supply curve for a commodity indicates
1. A.a reduction in quantity supplied
2. B.a decrease in supply
3. C.an increase in quantity supplied
4. D.an increase in supply
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Answer: B a decrease in supply
8.
A major source of finance to the Railway Corporation in West African countries is
1. A.surplus
2. B.sale of shares
3. C.trade credit
4. D.government subvention
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Answer: D government subvention
9.
A measure that can be adopted to correct a country's balance of payments deficit is to
1. A.allow the currency to appreciate to encourage inports
2. B.restrict trade with all countries
3. C.allow the currency to depreciate to encourage imports
4. D.adopt import substitution strategy
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Answer: D adopt import substitution strategy
10.
Abundant natural resources do not contribute to economic growth in developing countries because of
1. A.urban congestion
2. B.high rate of inflation
3. C.over-reliance on multiple commodities
4. D.mismanagement and corruption
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Answer: D mismanagement and corruption
11.
An increase in cash ratio by the central bank will
1. A.increase banks' lending
2. B.increase the supply of money
3. C.reduce the supply of money
4. D.encourage borrowing
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Answer: C reduce the supply of money
12.
An increase in market supply is caused by the following factors except
1. A.an increase in the price of the commodity
2. B.a reduction in the cost of raw materials
3. C.a favourable weather condition
4. D.an improvement in innovation and technology
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Answer: A an increase in the price of the commodity
13.
An increase in rice harvest, all things being equal, may cause
1. A.price to increase substantially
2. B.farmer's incomes to be more than doubled
3. C.price to fall substantially
4. D.demand to fall substantially
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Answer: C price to fall substantially
14.
Balance of payments and trade problems that arose after the world wars were resolved by the
1. A.International Monetary Fund
2. B.African Development Bank
3. C.Organization of Petroleum Exporting Countries
4. D.International Bank for Reconstruction and Development
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Answer: A International Monetary Fund
15.
By-passing the middlemen in the chain of distribution can lead to
1. A.a problem of unemployment of labour
2. B.high prices of goods and services
3. C.an increase in government tax revenue
4. D.the creation of artificial scarcity
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Answer: A a problem of unemployment of labour
16.
Demand -Pull inflation can be as a result of
1. A.deficit financing by the government
2. B.increase in the cost of production
3. C.increase in import duties
4. D.excessive supply of foodstuff
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Answer: A deficit financing by the government
17.
Examples of land that are non-renewable include
1. A.marshy and water-logged land
2. B.some natural resources such as natural gas
3. C.oxygen and carbon dioxide in the atmosphere
4. D.farmlands already used for many years
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Answer: B some natural resources such as natural gas
18.
Functions of money does not include
1. A.standard of deferred payment
2. B.medium of exchange
3. C.general acceptability
4. D.store of value
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Answer: C general acceptability
19.
Government can curb inflation by
1. A.increasing her own expenditure
2. B.selling securities in the open market
3. C.buying treasury bills in the open market
4. D.encouraging banks to lend for may purpose
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Answer: B selling securities in the open market
20.
Governments can increase farmers' incomes by
1. A.encouraging them to produce surplus output
2. B.fixing minimum price
3. C.increasing taxes on inputs
4. D.fixing maximum prices
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Answer: B fixing minimum price
21.
If a country's import bill is high, she can encourage exports by
1. A.allowing her currency to appreciate
2. B.liberalizing importation
3. C.increasing taxes on all locally produced goods
4. D.allowing her currency to depreciate
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Answer: D allowing her currency to depreciate
22.
If a country's imposes a barrier on trade, the resultant effect will be
1. A.a halt in buying and selling
2. B.an increase in the demand for locally produced goods
3. C.shutdown of infant industries
4. D.high quality goods from local industries
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Answer: B an increase in the demand for locally produced goods
23.
In order to enable the government of a country to increase its tax revenue, it will be advisable for it to increase taxes on
1. A.textile materials with elastic demand
2. B.agricultural products with inelastic supply
3. C.luxury goods with elastic supply
4. D.alcoholic beverages with inelastic demand
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Answer: D alcoholic beverages with inelastic demand
24.
Market supply may increase if there is an increase in the
1. A.prices of factors of production
2. B.subsidies on raw materials
3. C.tax paid on raw materials
4. D.price of the product
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Answer: B subsidies on raw materials
25.
Non-economic factors that influence the location of firms include
1. A.adequate supply of power, good road, and rail network
2. B.availability of population of buyers
3. C.the activities of politicians in deciding location of firms
4. D.the existence of required materials for production
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Answer: C the activities of politicians in deciding location of firms
26.
One way of obtaining the median of a given data is to
1. A.arrange the data in either ascending or descending order and find what item divides the set in two equal parts
2. B.arrange the data in descending order and add each item to the least
3. C.sum the value and divide by the number of items
4. D.arrange the data in ascending order and subtract each item from the mean
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Answer: A arrange the data in either ascending or descending order and find what item divides the set in two equal parts
27.
People who dispose of their assets are expected to pay
1. A.expenditure tax
2. B.value added tax
3. C.sales tax
4. D.capital gains tax
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Answer: D capital gains tax
28.
Records of a country's invisible trade are recorded in her
1. A.capital account
2. B.current account
3. C.financial account
4. D.trade account
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Answer: B current account
29.
Separation of ownership of resources and their control is mostly found in a
1. A.joint stock company
2. B.partnership
3. C.sole proprietorship
4. D.consumer co-operative
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Answer: A joint stock company
30.
The age distribution of a country's population is shown below. Use the information to answer questions below
AGE GROUP (YEARS) POPULATION
0-15 30%
16-40 45%
41-60 15%
Over 60 10%
What is the dependency ratio?
1. A.6:1
2. B.1:2
3. C.3:2
4. D.2:3
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Answer: D 2:3
31.
The age distribution of a country's population is shown below. Use the information to answer questions below
AGE GROUP (YEARS) POPULATION
0-15 30%
16-40 45%
41-60 15%
Over 60 10%
What is the percentage of the working population?
1. A.60%
2. B.15%
3. C.45%
4. D.75%
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Answer: A 60%
32.
The coefficient of price elasticity of supply of land is usually
1. A.less than one
2. B.one
3. C.zero
4. D.greater than one
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Answer: C zero
33.
The demand for wood and labour is an example of
1. A.derived demand
2. B.effective demand
3. C.competitive demand
4. D.complementary demand
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Answer: A derived demand
34.
The distinguishing function of an entrepreneur is
1. A.planning
2. B.control
3. C.risk-bearing
4. D.management
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Answer: C risk-bearing
35.
The following data relates to the national income of a country. Gross domestic product = $2800 Net factor income from abroad =$250 Depreciation = $700 Indirect taxes = $120 Use it to answer questions 31 and 32 What is the country's Gross National Product (GNP)?
1. A.$2,680
2. B.$2,100
3. C.$2,350
4. D.$3,050
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Answer: D $3,050
36.
The law of diminishing returns is applicable to the
1. A.fixed inputs of production
2. B.variable factors of production
3. C.equipment and other capital
4. D.plants and machinery of the firm
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Answer: B variable factors of production
37.
The output of an extra unit of input is referred to as
1. A.marginal product of the input
2. B.average product of the input
3. C.utility of the input employed
4. D.output of the input
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Answer: A marginal product of the input
38.
The price of soap rose from $10 to $20, causing a trader to increase her supply from 50 to 120 boxes per week. This makes supply
1. A.inelastic
2. B.fairly elastic
3. C.unitary elastic
4. D.perfectly inelastic
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Answer: B fairly elastic
39.
The relationship between the marginal revenue (MR) and the average revenue (AR) of a monopolist is that the marginal revenue curve
1. A.is vertical while the average revenue curve is horizontal
2. B.slopes down to the right and is below the AR curve
3. C.and the AR curve are downward sloping and are identical
4. D.is above the average revenue curve
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Answer: B slopes down to the right and is below the AR curve
40.
The standard of living in two countries can be compared using the
1. A.gross national product per head
2. B.number of industries in each country
3. C.size of their national incomes only
4. D.size of their arms and ammunition
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Answer: A gross national product per head
41.
The study of economics is important to every society because it
1. A.helps producers to know what to produce
2. B.restore equilibrium between producers and consumers
3. C.enables individuals to satisfy all their wants
4. D.helps in the utilization of scarce resources
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Answer: D helps in the utilization of scarce resources
42.
The supply of land for agricultural purpose can be increased through
1. A.reclamation and irrigation
2. B.the introduction of mechanized farming
3. C.conversion of building sites to farmlands
4. D.increase in prices of land
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Answer: A reclamation and irrigation
43.
The supply of mangoes is represented as P = 0.3Q, where P is the price ($) and Q is the quantity. What is P when Q is 50?
1. A.$150.03
2. B.$166.67
3. C.$1.50
4. D.$15.00
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Answer: D $15.00
44.
Two factors which can improve the efficiency of labour are
1. A.school leaving age and number of disabled workers
2. B.population size and age of retirement
3. C.work environment and health status of workers
4. D.school leaving age and number of part-time workers
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Answer: C work environment and health status of workers
45.
What is the country's Net National Product (NNP) at factor cost?
1. A.$2,220
2. B.$2,230
3. C.$3,050
4. D.$2,680
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Answer: B $2,230
46.
What will be the reaction of consumers in a market if there is a fall in the price of the substitute of commodity X?
1. A.Demand for the substitute of commodity X will decrease
2. B.Demand for commodity X will decrease
3. C.Supply of both commodity X and its substitute will increase
4. D.Price of commodity X will increase
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Answer: B Demand for commodity X will decrease
47.
When a commodity market operates without government interference, commodities are distributed through
1. A.the operation of price mechanism
2. B.retailers only
3. C.a central planning committee
4. D.government distribution agencies
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Answer: A the operation of price mechanism
48.
When market supply increases, the equilibrium price
1. A.and quantity fall
2. B.and quantity increase
3. C.rises and quantity falls
4. D.falls and quantity rises
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Answer: D falls and quantity rises
49.
When the government cuts down her expenditure to reduce inflation, she has embarked on
1. A.implementing budget deficit
2. B.an expansionary monetary policy
3. C.physical policy
4. D.a restrictive fiscal policy
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Answer: D a restrictive fiscal policy
50.
Which of the following is not an argument for the policy of privatization in West Africa?
1. A.It encourages the inflow of capital and expertise from local and foreign sources
2. B.Members of the public are able to acquire shares
3. C.To make businesses more profitable
4. D.Government is able to participate and control the operation of the privatized businesses
Show answerHide answer
Answer: D Government is able to participate and control the operation of the privatized businesses

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Output(bags of rice)	0	10	20	30	40	50	60
Total cost$	100	200	300	380	440	520	600

AGE GROUP (YEARS)	POPULATION
0-15	30%
16-40	45%
41-60	15%
Over 60	10%