Economics WAEC past questions and answers

Economics WAEC past questions and answers

Question: What is the primary function of central banks in a country's economy?

a) Fiscal policy

b) Monetary policy

c) Trade regulation

d) Taxation

Answer: b) Monetary policy

Question: Which economic system relies on market forces to determine prices and allocate resources?

a) Capitalism

b) Socialism

c) Communism

d) Feudalism

Answer: a) Capitalism

Question: What does GDP stand for in economics?

a) Gross Domestic Product

b) General Demand Projection

c) Global Development Protocol

d) Government Debt Percentage

Answer: a) Gross Domestic Product

Question: Inflation is defined as:

a) A decrease in the overall price level

b) The total value of goods and services produced in a country

c) An increase in the overall price level

d) The difference between exports and imports

Answer: c) An increase in the overall price level

Question: Which of the following is a characteristic of a perfectly competitive market?

a) Few sellers

b) Product differentiation

c) Barriers to entry

d) Price taker behavior

Answer: d) Price taker behavior

Question: What is the opportunity cost of a decision?

a) The monetary cost

b) The value of the next best alternative forgone

c) The time cost

d) The fixed cost

Answer: b) The value of the next best alternative forgone

Question: Which factor of production refers to the physical and intellectual effort of people?

a) Capital

b) Land

c) Labor

d) Entrepreneurship

Answer: c) Labor

Question: What is the law of demand?

a) As the price of a good increases, the quantity demanded increases

b) As the price of a good increases, the quantity demanded decreases

c) As the price of a good decreases, the quantity demanded increases

d) As the price of a good decreases, the quantity demanded decreases

Answer: b) As the price of a good increases, the quantity demanded decreases

Question: Which type of unemployment is associated with changes in the business cycle?

a) Frictional unemployment

b) Cyclical unemployment

c) Structural unemployment

d) Seasonal unemployment

Answer: b) Cyclical unemployment

Question: What is the purpose of antitrust laws?

a) To promote monopolies

b) To regulate imports and exports

c) To prevent unfair business practices and promote competition

d) To set minimum wage standards

Answer: c) To prevent unfair business practices and promote competition

Question: The Lorenz curve is used to represent:

a) Consumer preferences

b) Income inequality

c) Production possibilities

d) Demand elasticity

Answer: b) Income inequality

Question: Which economic indicator is often considered a measure of a country's standard of living?

a) Inflation rate

b) Unemployment rate

c) GDP per capita

d) Consumer Price Index

Answer: c) GDP per capita

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

a) Regulating global financial markets

b) Promoting international peace

c) Facilitating trade negotiations and dispute resolution

d) Providing humanitarian aid

Answer: c) Facilitating trade negotiations and dispute resolution

Question: In the context of international trade, what does comparative advantage refer to?

a) The ability of a country to produce a good using fewer resources than another country

b) The total value of a country's exports

c) The level of protectionism in a country

d) The exchange rate between two currencies

Answer: a) The ability of a country to produce a good using fewer resources than another country

Question: Which type of market structure is characterized by a single seller with significant control over the market?

a) Perfect competition

b) Monopoly

c) Oligopoly

d) Monopolistic competition

Answer: b) Monopoly

Question: What is the Phillips curve used to illustrate?

a) The relationship between inflation and unemployment

b) The impact of taxation on consumer behavior

c) The elasticity of demand for a product

d) The effects of government spending on economic growth

Answer: a) The relationship between inflation and unemployment

Question: What is fiscal policy?

a) Government intervention in monetary markets

b) Regulation of international trade

c) Government's use of taxation and spending to influence the economy

d) Setting interest rates to control inflation

Answer: c) Government's use of taxation and spending to influence the economy

Question: What does the term "elasticity" measure in economics?

a) The responsiveness of quantity demanded to changes in price

b) The level of government intervention in the market

c) The total revenue of a firm

d) The rate of inflation

Answer: a) The responsiveness of quantity demanded to changes in price

Question: What is the function of the Federal Reserve in the United States?

a) Regulating international trade

b) Conducting fiscal policy

c) Controlling interest rates and the money supply

d) Enforcing antitrust laws

Answer: c) Controlling interest rates and the money supply

Question: Which of the following is a characteristic of a regressive tax?

a) The tax rate increases as income increases

b) The tax rate decreases as income increases

c) The tax rate remains constant regardless of income

d) The tax burden is higher for lower-income individuals

Answer: d) The tax burden is higher for lower-income individuals