WAEC

ECONOMICS Theory
Past questions
[SSCE / GCE]

Years: 2011 2012

2013 2014 2015

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 2011 WAEC ECONOMICS THEORY QUESTIONS

SECTION A

Answer one question only from this section

1. The supply situation for rice in country X over a period is as

shown in the table below. Use the information in the table to
answer the questions that follow:

Periods Price ($) Quantity Supplied

(bags)
December 2004 30 100
January 2007 40 150
April 2009 50 160

(a) Calculate the co-efficient of price elasticity of supply for

rice between December 2004 and January 2007.

(b) Is the supply for rice elastic or inelastic? Give a reason for

your answer.

(c) State any three reasons which may cause an increase in

the supply of rice.

2. The following are the loans granted by a commercial bank to

different categories of individuals. Use the information to
answer the questions that follow:

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Bakers $8,000, Farmers $8,000, Miners $7,000, Retailers
$5,000, Tailors $4,000, Teachers $6,000, Drivers $4,000,
Fishermen $3,000

(a) Arrange the information in the form of a table

grouping the individuals into:

(i) primary sector

(ii) secondary sector

(iii) tertiary sector

(b) Express the loan to each sector as a ratio of the total

loan granted.

(c) Present the total loans granted to the sectors in a

simple bar chart. (Use of graph sheet is essential)

SECTION B
Answer four questions only from this section

3. (a) What is centrally planned economy?

(b) Outline any four features of a capitalist economy.

4. (a) Define mobility of labour?

(b) Describe any four factors influencing the supply of

labour.

5. (a) What is international trade?

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 (b) Explain any four advantages of international trade.

6. Outline any five reasons why small scale firms are

common in West Africa.

7. (a) Explain with examples the terms competitive demand

and complementary demand.

(b) With the aid of diagrams, analyse the effect of a

decrease in the import duty on cars on the price and

consumption of petrol.

8. (a) What is the demographic transition theory?

(b) Explain the three stages of the theory.

9. (a) Differentiate between shares and debentures.

(b) Identify any four problems encountered by firms in

raising capital.

10. (a) Describe the following types of co-operative

societies:

(i) consumers’ co-operatives

(ii) producers’ co-operatives

(iii) thrift and credit co-operatives

(b) Highlight any two problems faced by co-operative

societies in West Africa.

11. (a) What is economic development?

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 (b) Outline any five features of a developing economy.

12. (a) Outline any three objectives of the African

Development Bank.

(b) State any two achievements of the African

Development Bank.

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 2012 WAEC ECONOMICS THEORY QUESTIONS

SECTION A

Answer one question only from this section

1. The diagram below represent the cost and revenue situation

of a firm. Use the information in the diagram to answer the
questions that follow:

(a) Why would the firm not produce at;

(i) Q1

(ii) Q3

(b) How much profit does the firm make at P 2

(c) If the price falls to P 1

(i) what quantity would the firm produce?

(ii) what type of profit does the firm make?

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 (iii) explain your answer in c(ii).

(d) In which type of market is the firm operating?

2. The tables below show the expected revenues and projected

expenditures from the low budget of a hypothetical country in
1998. Use the information in the tables to answer the questions
that follow:

EXPECTED REVENUE
ITEMS AMOUNT
($ millions)
Rents, royalties and profits 75.00
Company income tax 150.00
Customs and excise duties 300.20
Personal income tax 80.00
Fees and specific charges 60.80
Value added tax 100.00

PROJECTED EXPENDITURE
ITEM AMOUNT
($ millions)
General administration 220.10
Maintenance of foreign mission 50.00
Transfer payments 65.00
Building of schools and hospital 200.00
Road construction 180.90

(a) Calculate the total revenue from;

(i) direct taxes

(ii) indirect taxes

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 (iii) non-tax sources

(b) Determine the total;

(i) capital expenditure

(ii) recurrent expenditure

(c) Determine whether the budget is surplus or deficit.

SECTION B
Answer four questions only from this section

3. Explain how the following factors will affect the demand for a

commodity X;

(a) a decrease in the price of a complement Y

(b) an increase in consumers’ disposable income

(c) a decrease in the supply of substitute P

(d) an increase in income tax

4. (a) State and explain the law of comparative cost

advantage.

(b) Give two limitations to the law as a theory of

international trade.

5. (a) Define money.

(b) State the three motives for holding money

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 (c) Mention two determinants for each of the motives for

holding money.

6. (a) Distinguish between economic activities and an

economic system.

(b) Explain the following terms;

(i) production

(ii) distribution

(iii) consumption

7. (a) Define

(i) elasticity of demand

(ii) price elasticity of demand

(b) State any four determinants of price elasticity of

demand.

(c) Draw curves illustrating;

(i) fairly elastic demand

(ii) perfectly inelastic demand

8. (a) Define market in economics.

(b) State any three features of a monopoly.

(c) Outline any three sources of monopoly power.

9. (a) With the aid of a diagram, explain a minimum price.

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 (b) State five measures by which a minimum price for an

agricultural produce can be made effective.

10. (a) What is supply schedule?

(b) Using an example, show how a market supply

schedule of a product is obtained from individual supply

schedules.

(c) State three examples of exceptional demand.

11. Distinguish between the following;

(a) wants and effective demand

(b) demand schedule and demand curve

(c) individual demand and market demand

(d) change in demand and change in quantity demanded

12. (a) Describe the output method of measuring the gross

domestic product of a country.

(b) How is the net national product at factor cost is

obtained from gross domestic product?

(c) State two problems associated with the output

method.

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 2013 WAEC ECONOMICS THEORY QUESTIONS

SECTION A

Answer one question only from this section

1. The output and cost of production of rice (in bags) are

presented in the table below. Use the information in the table
to answer the questions that follow:

Output of rice (in bags) 0 1 2 3 4

Total Variable Cost (TVC) $ 0 5 7 10 20
Total Cost (TC) $ 7 12 14 17 27

(a) Calculate the;

(i) Average Fixed Cost (AFC) at the output levels 0, 2

and 4

(ii) Marginal Cost (MC) at all levels of output.

(b) If the price of a bag of rice were $10

(i) calculate the profit/loss at all levels of output.

(ii) at what output level(s) is the maximum profit

made?

(c) Draw the marginal cost curve (the use of graph sheet

is essential).

2. The table below shows the scale of preference of a student –

Mr. Smith whose disposable income is $7.00. Use the

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information in the table below to answer the questions that
follow:

Items Needed Price ($)

Textbook 5.00
Shirts 2.00
Shoes 3.00
Trousers 3.00
Notebook 1.00
School fees 7.00
Mattress 10.00

(a) (i) What will Mr. Smith spend his money on?

(ii) Explain your answer in 2(a)(i).

(b) (i) What is the opportunity cost of Mr. Smith’s decision

in 2(a)(i)?

(ii) Explain your answer in 2(b)(i).

(c) (i) If Mr. Smith’s disposable income increases to $10.0,

what will he spend it on?

(ii) What is the opportunity cost of his decision in

2(c)(i)?

(d) Define “scale of preference” and “opportunity cost”.

(e) What is the importance of a scale of preference?

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 SECTION B

Answer four questions only from this section

3. (a) What is;

(i) peasant farming

(ii) commercial farming

(b) Describes five ways in which agriculture contributes

to the economic development of your country.

4. (a) Distinguish between small-scale production and large-

scale production.

(b) Describe any five internal economies of large-scale

production.

5. (a) Explain any four benefits of industrial development in

an economy.

(b) Outline any four measures that will encourage

industrial growth in your country.

6. (a) Differentiate between direct and indirect taxation.

(b) Highlight any five advantages of indirect taxation to

developing countries.

7. (a) What is competitive supply?

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 (b) With the aid of illustrations, differentiate between a

supply schedule and a supply curve.

(c) Explain how the supply of a commodity is affected by

the following;

(i) an improvement in technology

(ii) a rise in input prices

(iii) a rise in the prices of other commodities

(iv) an increase in government subsidies on

production

8. (a) State two characteristics of monopolistic competition.

(b) With the aid of diagrams, explain why a firm in

monopolistic competition is unable to earn abnormal

profits in the long run.

(c) Differentiate between natural monopoly and legal

monopoly.

9. (a) Highlight the difference between creeping inflation

and hyper inflation.

(b) List any four negative effects of inflation.

(c) Outline four ways in which the government of your

country can control inflation.

10. (a) What is perfect competition?

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 (b) With the aid of diagrams, compare the short run

equilibrium position of a perfect competitor and an

imperfect competitor.

(c) State any two features of an imperfect market.

11. (a) Distinguish between cash ratio and special deposits.

(b) Explain how cash ratio and special deposits are used

as instruments of monetary policy.

(c) Describe any two instruments of fiscal policy in West

Africa.

12. (a) Outline any four problems of a barter economy.

(b) How has the introduction of money solved the

problems outlined in 12(a) above?

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 2014 WAEC ECONOMICS THEORY QUESTIONS

SECTION A

Answer one question only from this section

1. The table below shows an extract from balance of payments

for country A. Use the table to answer the questions that
follow:

Items of transactions Receipt Payment

($) ($)

1. Merchandise (visible trade) 52,000.00 40,000.00

2. Shipping, other transport and travel 4,000.00 8,000.00
3. Investment income 20,000.00 5,000.00
4. Other services 2,500.00 7,500.00
5. Unrequited transfers 22,800.00 7,000.00
6. Direct investment 50,000.00 26,000.00
7. Other long-term capital 254,000.00 289,000.00
8. Short-term capital 221,000.00 238,000.00

Calculate the;

(a) balance of trade

(b) balance on current account

(c) balance on capital account

(d) balance of payments

2. The table below presents the price and quantity supplied by

a palm oil producer. Use the information in the table to answer
the following questions.

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Price ($) Quantity Supplied (gallons)

6 200
12 300
18 400
20 500
24 600

(a) If the price of palm oil falls from $20.00 to $18.00,

calculate the price elasticity of supply.

(b) Interpret your answer in question 2(a) above.

(c) Study the extract below and answer the following

questions:

The price of palm oil remains $6.00 per gallon and an

increase in the price of a related product causes an

increase in the supply of palm oil.

(i) Give a graphical presentation to illustrate this

change.

(ii) Indicate the type of supply for the two products.

(d) State three reasons that can cause a change in

supply.

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 SECTION B

Answer three questions only from this section

3. (a) Define occupational mobility of labour.

(b) Identify any four barriers to the occupational mobility

of labour.

(c) State any two factors that will make labour efficient.

4. (a) What is crop farming?

(b) Outline any four measures that can be adopted to

increase crop production in your country.

(c) State any two contributions of the industrial sector to

agriculture in your country.

5. (a) Highlight any four differences between a public

limited liability company and a private limited liability

company.

(b) Explain any four advantages of a limited liability

company.

6. (a) Define gross national income.

(b) Using appropriate examples, distinguish between;

(i) personal income and disposable income

(ii) nominal income and real income

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 (c) Outline any three uses of national income statistics

7. (a) What is the normal chain of distribution?

(b) State any three functions of middlemen in the chain

of distribution.

(c) Highlight any four problems involved in the

distribution of goods in West Africa.

8. (a) What is specific tax?

(b) Explain with the aid of diagrams, the effect of specific

tax on a commodity that has a:

(i) perfectly elastic demand

(ii) perfectly inelastic demand

(c) State two differences between a direct and indirect

tax.

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 2015 WAEC ECONOMICS THEORY QUESTIONS

SECTION A

Answer one question only from this section

1. The total fixed cost (TFC) and total cost (TC) functions of a
hypothetical firm are shown in the graph below. Study it and
answer the questions that follow:

(a) Determine the firm’s;

(i) variable cost at output levels 2, 4 and 6

(ii) average total cost at output levels 2 and 3

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 (iii) marginal cost at output levels 4 and 6

(b) If the price of the firm’s product is $40, calculate the

firm’s profit or loss when the following units are sold:

(i) 2 units

(ii) 4 units

2. The table below shows the incomes and rates of income tax
levied on four professionals in an economy.

Profession Income per Tax rate (%) Disposable

month ($) income($)
Doctor 8,000 10
Engineer 7,000 12
Civil servant 5,000 18
Nurse 6,000 15

Use the above data to answer the questions that follow.

(a) Calculate the disposable incomes of the four

individuals.

(b) What system of taxation was employed?

(c) Give reasons for your answer in 2(b).

(d) With the aid of a diagram, explain the system of

taxation employed in 2(b).

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 SECTION B

Answer three questions only from this section

3. (a) What is a trade union?

(b) Describe any four functions of trade unions.

(c) Outline any two weapons used by trade unions to

achieve their objectives.

4. (a) Outline any four objectives of a price control policy.

(b) Highlight any four effects of a maximum price control

policy.

5. (a) What are infant industries?

(b) State any four reasons for protecting infant

industries.

(c) Outline any three ways by which industries can be

financed in West Africa.

6. (a) What is balance of payment disequilibrium?

(b) Explain the two types of balance of payment

disequilibrium.

(c) Highlight any four reasons most West African

countries are experiencing balance of payment problem.

7. (a) What is deflation?

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 (b) Outline any three positive effects of deflation.

(c) Explain the ways by which inflation affects any three

functions of money.

8. (a) What is protective tariff?

(b) Outline any four reasons in favour of protective tariff.

(c) State any two reasons against protective tariff.

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 DISCLAIMER

These are NOT expo questions for WAEC but past

questions of previous years.

You are advised to study these past questions

with the Economics syllabus and textbooks to be

well-prepared for your WAEC Economics paper.

Speaking of which,

Would you like to see or download the current

WAEC syllabus and textbooks for Economics?

Click the link below...

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