Economics Past Questions and Answers with Objectives (OBJ)
“Prepare for WAEC and JAMB Economics exams with these 100 theory and 100 OBJs past questions and answers. Covering key topics like demand and supply, elasticity, national income, and more to boost your success!”
Mastering Economics Past Questions for WAEC and JAMB Success
Economics is a vital subject for students in the social sciences, offering insights into how societies allocate resources to meet their needs. For candidates preparing for WAEC (West African Examinations Council) NECO and JAMB (Joint Admissions and Matriculation Board) exams, Economics is one of the core subjects that require a solid understanding of concepts, theories, and their practical applications.
One of the best strategies for acing Economics is by practicing past questions and understanding the answers. This blog post will guide you on the importance of using past questions, effective strategies for studying them, and a list of questions to aid your preparation.
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Why Study Economics Past Questions?
- Understand Exam Patterns:
Past questions help you familiarize yourself with the structure of WAEC, NECO and JAMB exams, including the types of questions asked and the marking scheme. - Identify Frequently Asked Topics:
Certain topics like demand and supply, elasticity, and national income are often repeated. Studying past questions helps you identify these areas. - Enhance Problem-Solving Skills: Regular practice improves your analytical skills and your ability to tackle numerical and theoretical problems effectively.
- Boost Confidence: Familiarity with question patterns and solving them repeatedly builds confidence for the actual exam.
List of 100 Economics past questions and answers, grouped into key topics to help you prepare effectively for WAEC, NECO, GCE and JAMB.
1. BASIC ECONOMIC CONCEPTS
- What is Economics?
Answer: Economics is the study of how individuals and societies allocate scarce resources to satisfy unlimited wants. - What is scarcity?
Answer: Scarcity refers to the limited nature of resources relative to unlimited human wants. - Define opportunity cost.
Answer: Opportunity cost is the value of the next best alternative forgone when a choice is made. - What are the factors of production?
Answer: Land, labor, capital, and entrepreneurship. - What is the production possibility curve (PPC)?
Answer: A graph showing the maximum combinations of goods and services that can be produced with available resources. - Define utility.
Answer: Utility is the satisfaction derived from consuming a good or service. - What is marginal utility?
Answer: The additional satisfaction gained from consuming one more unit of a good or service. - What is the law of diminishing marginal utility?
Answer: As a consumer consumes more units of a good, the additional satisfaction from each additional unit decreases. - What is an economic system?
Answer: An economic system is the way a society organizes the production, distribution, and consumption of goods and services. - What are the types of economic systems?
Answer: Capitalism, socialism, and mixed economy.
2. DEMAND AND SUPPLY
Economics past questions and answers,
- Define demand.
Answer: Demand is the quantity of a good or service that consumers are willing and able to buy at various prices. - State the law of demand.
Answer: The law of demand states that, ceteris paribus, the quantity demanded of a good decreases as its price increases and vice versa. - What is a demand curve?
Answer: A graph showing the relationship between price and quantity demanded. - What factors affect demand?
Answer: Income, price of substitutes, price of complements, consumer preferences, and population. - Define supply.
Answer: Supply is the quantity of a good or service that producers are willing and able to offer for sale at various prices. - State the law of supply.
Answer: The law of supply states that, ceteris paribus, the quantity supplied of a good increases as its price increases and vice versa. - What is a supply curve?
Answer: A graph showing the relationship between price and quantity supplied. - What factors affect supply?
Answer: Cost of production, technology, taxes, subsidies, and weather conditions. - What is equilibrium price?
Answer: The price at which quantity demanded equals quantity supplied. - What happens when there is excess demand?
Answer: Prices will rise until equilibrium is restored.
3. ELASTICITY
Economics past questions and answers
- What is price elasticity of demand?
Answer: The responsiveness of quantity demanded to changes in the price of a good. - State the formula for price elasticity of demand.
Answer: Ed = Percentage change in quantity demanded / Percentage change in price - What is income elasticity of demand?
Answer: The responsiveness of quantity demanded to changes in consumer income. - What is cross elasticity of demand?
Answer: The responsiveness of quantity demanded of one good to changes in the price of another good. - What does it mean if demand is elastic?
Answer: A small change in price leads to a large change in quantity demanded. - What does it mean if demand is inelastic?
Answer: A change in price leads to a small change in quantity demanded. - What is perfectly elastic demand?
Answer: When quantity demanded changes infinitely with any change in price. - What is perfectly inelastic demand?
Answer: When quantity demanded does not change regardless of price changes. - What is unitary elasticity?
Answer: When the percentage change in quantity demanded equals the percentage change in price. - What factors affect price elasticity of demand?
Answer: Availability of substitutes, proportion of income spent, and necessity of the good.
4. NATIONAL INCOME
Economics past questions and answers
- What is national income?
Answer: The total value of goods and services produced in a country over a period. - What are the methods of measuring national income?
Answer: Output method, income method, and expenditure method. - What is GDP?
Answer: Gross Domestic Product, the total value of goods and services produced within a country. - What is GNP?
Answer: Gross National Product, GDP plus net income from abroad. - What is per capita income?
Answer: National income divided by the population of a country. - What is disposable income?
Answer: The income left after taxes have been deducted. - What is economic growth?
Answer: The increase in a country’s output of goods and services over time. - What is economic development?
Answer: Improvement in living standards, income distribution, and infrastructure. - What are the components of national income?
Answer: Wages, rents, interests, and profits. - What is inflation?
Answer: A sustained increase in the general price level of goods and services.
5. MONEY AND BANKING
Economics past questions and answers
- What are the functions of money?
Answer: Medium of exchange, store of value, unit of account, and standard of deferred payment. - What are the types of money?
Answer: Commodity money, fiat money, and bank money. - What is the central bank?
Answer: The institution responsible for issuing currency and regulating the banking system. - What is the function of commercial banks?
Answer: Accepting deposits, granting loans, and facilitating payments. - What is inflation?
Answer: A sustained rise in the general price level of goods and services. - What is deflation?
Answer: A sustained fall in the general price level of goods and services. - What is monetary policy?
Answer: The regulation of money supply and interest rates to control inflation and stabilize the economy. - What is fiscal policy?
Answer: The use of government spending and taxation to influence the economy. - What are the instruments of monetary policy?
Answer: Open market operations, reserve requirements, and discount rate. - What is liquidity?
Answer: The ease with which an asset can be converted to cash.
6. INTERNATIONAL TRADE
Economics past questions and answers
- What is international trade?
Answer: The exchange of goods and services between countries. - What is balance of trade?
Answer: The difference between the value of a country’s exports and imports of goods. - What is balance of payments?
Answer: A comprehensive record of all economic transactions between a country and the rest of the world. - What is a trade surplus?
Answer: When a country’s exports exceed its imports. - What is a trade deficit?
Answer: When a country’s imports exceed its exports. - What is exchange rate?
Answer: The rate at which one currency is exchanged for another. - What are the types of exchange rates?
Answer: Fixed exchange rate and floating exchange rate. - What is protectionism?
Answer: Economic policies aimed at restricting imports to protect domestic industries. - What are tariffs?
Answer: Taxes imposed on imported goods. - What is free trade?
Answer: The unrestricted exchange of goods and services between countries. - What are quotas in trade?
Answer: Limits on the quantity of a good that can be imported or exported. - What are the advantages of international trade?
Answer: Access to a variety of goods, economies of scale, and improved international relations. - What are the disadvantages of international trade?
Answer: Over-reliance on foreign goods, loss of local industries, and trade imbalances. - What is comparative advantage?
Answer: The ability of a country to produce a good at a lower opportunity cost than another country. - What is absolute advantage?
Answer: When a country can produce a good more efficiently than other countries.
7. ECONOMIC SYSTEMS AND DEVELOPMENT
Economics past questions and answers
- What is capitalism?
Answer: An economic system where resources are privately owned, and decisions are driven by market forces. - What is socialism?
Answer: An economic system where resources are owned and controlled by the state. - What is a mixed economy?
Answer: An economic system that combines elements of capitalism and socialism. - What are the advantages of capitalism?
Answer: Efficiency, innovation, and consumer choice. - What are the disadvantages of capitalism?
Answer: Income inequality and exploitation of workers. - What are the advantages of socialism?
Answer: Economic equality and provision of basic services. - What is economic development?
Answer: A process of improving the standard of living, reducing poverty, and increasing economic opportunities. - What are indicators of economic development?
Answer: GDP per capita, literacy rate, life expectancy, and employment rates. - What are the challenges of economic development in developing countries?
Answer: Poor infrastructure, political instability, and corruption. - What is industrialization?
Answer: The process of transforming an economy from primarily agricultural to one based on manufacturing.
8. LABOR ECONOMICS
Economics past questions and answers
- What is labor?
Answer: Human effort used in the production of goods and services. - What are the types of labor?
Answer: Skilled labor, unskilled labor, and semi-skilled labor. - What factors influence the supply of labor?
Answer: Population, education, wages, and working conditions. - What factors influence the demand for labor?
Answer: Wage rates, productivity, and demand for goods and services. - What is unemployment?
Answer: A situation where individuals who are willing and able to work cannot find jobs. - What are the types of unemployment?
Answer: Frictional, structural, cyclical, and seasonal unemployment. - What is the labor market?
Answer: A market where workers offer their services, and employers hire labor. - What is wage determination?
Answer: The process by which wages are established through the interaction of demand and supply of labor. - What is minimum wage?
Answer: The lowest legal wage that employers can pay workers. - What is trade union?
Answer: An organization of workers formed to protect their rights and interests.
9. PUBLIC FINANCE
Economics past questions and answers
- What is public finance?
Answer: The study of government revenue, expenditure, and debt. - What are the sources of government revenue?
Answer: Taxes, loans, grants, and fees. - What is a budget?
Answer: A financial plan that outlines expected revenue and expenditure. - What is a fiscal deficit?
Answer: When government expenditure exceeds revenue. - What is taxation?
Answer: A compulsory payment made by individuals and businesses to the government. - What are the types of taxes?
Answer: Direct taxes (e.g., income tax) and indirect taxes (e.g., VAT). - What is progressive taxation?
Answer: A tax system where higher incomes are taxed at higher rates. - What is regressive taxation?
Answer: A tax system where lower incomes bear a higher tax burden. - What is a subsidy?
Answer: A financial aid given by the government to reduce the cost of goods or services. - What is public debt?
Answer: Money borrowed by the government to finance its activities.
10. ECONOMIC PLANNING
Economics past questions and answers
- What is economic planning?
Answer: The process of allocating resources to achieve specific economic goals. - What are the types of economic planning?
Answer: Indicative and imperative planning. - What are the objectives of economic planning?
Answer: Economic growth, poverty reduction, and employment creation. - What are the problems of economic planning?
Answer: Lack of accurate data, corruption, and political interference. - What is the role of government in economic planning?
Answer: Resource allocation, policy formulation, and implementation of plans.
100 NECO Economics past multiple-choice objective questions
Economics past questions and answers: Objective Questions (1–100)
- If government revenue is less than expenditure, the budget is
A. Balanced
B. Surplus
C. Deficit
D. Recurrent
Answer: C - The reward for capital is
A. Rent
B. Wages
C. Profit
D. Interest
Answer: D - The basic economic problem is
A. Production
B. Scarcity
C. Distribution
D. Wants
Answer: B - A graph that shows supply and demand is called a
A. Bar chart
B. Histogram
C. Demand schedule
D. Market graph
Answer: D - Money can be defined as
A. The currency in circulation
B. Anything generally acceptable as a medium of exchange
C. Legal tender only
D. Bank-issued currency
Answer: B - The economic system where the government controls all factors of production is
A. Mixed economy
B. Capitalism
C. Socialism
D. Feudalism
Answer: C - Which of the following is not a function of money?
A. Store of value
B. Medium of exchange
C. Unit of account
D. Producer of goods
Answer: D - Price elasticity of demand measures
A. How consumers respond to income
B. How price affects supply
C. How price affects quantity demanded
D. The slope of supply
Answer: C - The central bank is known as
A. Bank of the public
B. Apex bank
C. Merchant bank
D. Credit house
Answer: B - Demand is defined as
A. Desire for goods
B. Willingness to buy at all prices
C. Willingness and ability to buy at a given price
D. Amount bought
Answer: C - Which of the following is a direct tax?
A. Value added tax
B. Company income tax
C. Excise duty
D. Import duty
Answer: B - One of the disadvantages of division of labour is
A. Increased cost
B. Monotony of work
C. Increased energy
D. Wastage of time
Answer: B - Utility refers to
A. Usefulness of a good
B. Amount paid for a good
C. Demand of a commodity
D. Total supply
Answer: A - Which one is not a factor of production?
A. Land
B. Labour
C. Capital
D. Currency
Answer: D - The best definition of economics is
A. Production of goods
B. Study of scarcity and choice
C. Use of resources
D. Distribution of income
Answer: B - A monopolist is a
A. Price taker
B. Price maker
C. Competitive buyer
D. Supply controller
Answer: B - Nigeria’s currency is issued by
A. Ministry of Finance
B. Commercial banks
C. Central Bank
D. IMF
Answer: C - Which of these is not a characteristic of money?
A. Durability
B. Portability
C. Fragility
D. Divisibility
Answer: C - Inflation can best be described as
A. Increase in output
B. Increase in income
C. Continuous rise in prices
D. Fall in money value
Answer: C - Recurrent expenditure is
A. Capital spending
B. Day-to-day government expenses
C. One-time investment
D. Development fund
Answer: B - A country is said to have balance of trade surplus if
A. Imports equal exports
B. Imports exceed exports
C. Exports exceed imports
D. It has no trade
Answer: C - The combination of resources to produce goods is known as
A. Consumption
B. Distribution
C. Production
D. Allocation
Answer: C - A cooperative society is owned by
A. Individuals
B. Government
C. Group of persons with common interest
D. Shareholders
Answer: C - What is the major cause of unemployment in Nigeria?
A. High birth rate
B. Industrialization
C. Rural-urban migration
D. Over-dependence on oil
Answer: D - A pie chart is used to represent
A. Bar data
B. Time series
C. Proportions
D. Frequency
Answer: C - The price mechanism is mostly used in
A. Planned economy
B. Mixed economy
C. Traditional economy
D. Capitalist economy
Answer: D - An example of fixed capital is
A. Raw material
B. Machine
C. Labour
D. Cash
Answer: B - A cheque can be defined as
A. Currency
B. Bank instruction
C. Payment method
D. Bill
Answer: B - The Law of Diminishing Returns applies only in the
A. Short run
B. Long run
C. Market economy
D. Public sector
Answer: A - Total revenue is calculated as
A. Price × Quantity
B. Cost + Price
C. Profit – Tax
D. Price ÷ Quantity
Answer: A - An entrepreneur is responsible for
A. Land
B. Buying
C. Organizing other factors
D. Government duties
Answer: C - What is barter?
A. Exchange using currency
B. Exchange of goods for money
C. Exchange of goods for goods
D. Trade by cheque
Answer: C - Import substitution means
A. Replacing foreign goods with local production
B. Increasing imports
C. Reducing tariffs
D. Encouraging foreign industries
Answer: A - The most important objective of production is
A. Profit
B. Utility
C. Growth
D. Value
Answer: B - Statistics in economics is used for
A. Business
B. Data analysis
C. Education
D. Forecasting
Answer: D - Which of the following reduces inflation?
A. Reducing tax
B. Increasing money supply
C. Reducing interest rate
D. Increasing interest rate
Answer: D - The excess of government income over expenditure is
A. Surplus
B. Deficit
C. Capital
D. Recurrent
Answer: A - Which is an invisible item in trade?
A. Machinery
B. Food
C. Insurance
D. Cement
Answer: C - The use of statistical tables helps in
A. Producing data
B. Storing data
C. Presenting data
D. Gathering data
Answer: C - When price falls and demand rises, it shows
A. Law of supply
B. Law of demand
C. Law of elasticity
D. Law of utility
Answer: B - Devaluation of currency means
A. Increase in value
B. Decrease in foreign reserves
C. Reduction in external value
D. Increase in GDP
Answer: C - Which is a cause of inflation?
A. Low interest
B. High production
C. Excess demand
D. Low prices
Answer: C - Which is a feature of perfect competition?
A. Price discrimination
B. Many buyers and sellers
C. Monopoly pricing
D. Product branding
Answer: B - Who prepares the national budget?
A. Minister of Education
B. President
C. Minister of Finance
D. Auditor General
Answer: C - Which of these is a monetary policy tool?
A. Tariff
B. Open market operations
C. Minimum wage
D. Budget
Answer: B - The primary aim of saving is to
A. Invest
B. Spend
C. Accumulate
D. Secure future needs
Answer: D - Distribution in economics refers to
A. Selling goods
B. Getting to buyers
C. Sharing income among factors
D. Creating goods
Answer: C - Which of the following is a short-term credit source?
A. Mortgage
B. Cooperative loan
C. Bond
D. Debenture
Answer: B - Which one of the following does not affect supply?
A. Cost of production
B. Price of other goods
C. Consumers’ income
D. Government policy
Answer: C - A demand schedule shows
A. Price and supply
B. Price and quantity demanded
C. Demand and profit
D. Cost and quantity
Answer: B
Economics past questions and answers: Objective Questions (51–100)
- Labour is said to be mobile when
A. It is skilled
B. It can move from one job to another
C. It earns high wages
D. It requires training
Answer: B - The tendency of workers to lose interest in their jobs due to repetition is called
A. Fatigue
B. Monotony
C. Absenteeism
D. Laziness
Answer: B - The difference between export and import of goods is
A. Net export
B. Balance of trade
C. Terms of trade
D. Surplus
Answer: B - The most liquid form of money is
A. Savings
B. Gold
C. Demand deposit
D. Cash
Answer: D - An advantage of sole proprietorship is
A. Unlimited liability
B. Personal control
C. High capital
D. Easy expansion
Answer: B - Which of the following is a variable cost?
A. Rent
B. Insurance
C. Raw materials
D. Salaries
Answer: C - A point inside the production possibility curve indicates
A. Efficient production
B. Underutilization of resources
C. Full employment
D. Overproduction
Answer: B - The function of wholesalers is to
A. Sell to final consumers
B. Manufacture goods
C. Break bulk and distribute to retailers
D. Advertise products
Answer: C - What is meant by legal tender?
A. Any cheque
B. Gold reserves
C. Money legally acceptable for payment
D. Government bond
Answer: C - When a company has complete control over a product, it is said to be a
A. Perfect competitor
B. Monopoly
C. Duopoly
D. Cartel
Answer: B - The size of the working population is determined by
A. Birth rate
B. Death rate
C. Labour force
D. Age distribution
Answer: D - Which of the following is not a source of government revenue?
A. Grants
B. Taxes
C. Subsidies
D. Licenses
Answer: C - What is the full meaning of OPEC?
A. Oil Production and Exporting Countries
B. Organization of Petroleum Exporting Countries
C. Oil Producers Economic Council
D. Organization of Petrol Export Council
Answer: B - The supply of a commodity increases when
A. Its price rises
B. Its demand falls
C. Income increases
D. Resources are scarce
Answer: A - The effectiveness of division of labour depends on
A. The production method
B. Size of market
C. Age of worker
D. Price of output
Answer: B - A market where only two firms dominate is
A. Monopoly
B. Duopoly
C. Oligopoly
D. Bilateral
Answer: B - Which factor of production is rewarded with rent?
A. Labour
B. Capital
C. Land
D. Entrepreneur
Answer: C - Which of these is not included in national income?
A. Salaries
B. Wages
C. Transfer payments
D. Interest
Answer: C - Inflation hurts
A. Debtors
B. Savers
C. Producers
D. Traders
Answer: B - Which organization provides short-term loans to countries?
A. IMF
B. ECOWAS
C. OPEC
D. WTO
Answer: A - The concept of utility is concerned with
A. Profit
B. Usefulness
C. Price
D. Scarcity
Answer: B - Which of these measures national development?
A. GDP
B. Literacy rate
C. Employment
D. All of the above
Answer: D - One of the following is not a component of money supply
A. Coins
B. Bank notes
C. Treasury bills
D. Demand deposits
Answer: C - The elasticity of supply is defined as
A. Responsiveness of quantity demanded to price
B. Responsiveness of supply to price changes
C. Supply in the long run
D. Quantity produced
Answer: B - Which of these is not a reason for population census?
A. Know population size
B. Resource allocation
C. Forecast rainfall
D. Development planning
Answer: C - What is a progressive tax?
A. Same tax for everyone
B. High-income earners pay more
C. Rich are exempt
D. Tax on imports
Answer: B - Public debt is
A. Government loan
B. National income
C. Capital expenditure
D. Private savings
Answer: A - If the government spends more than its income, it results in
A. Balanced budget
B. Deficit budget
C. Development budget
D. Trade surplus
Answer: B - Which agency regulates commercial banks in Nigeria?
A. Ministry of Commerce
B. Federal Reserve
C. Central Bank
D. NDIC
Answer: C - Which of the following is not a function of the central bank?
A. Printing money
B. Lender of last resort
C. Accepting public deposits
D. Issuing currency
Answer: C - Which of these is not a type of unemployment?
A. Structural
B. Frictional
C. Seasonal
D. Permanent
Answer: D - The Law of Demand states that
A. Price and demand are inversely related
B. Price and demand rise together
C. Demand depends on supply
D. Supply determines price
Answer: A - The most important objective of taxation is
A. Raise revenue
B. Discourage luxury
C. Penalize the rich
D. Reduce supply
Answer: A - The equilibrium price is determined at the point where
A. Supply exceeds demand
B. Demand exceeds supply
C. Supply equals demand
D. Price is high
Answer: C - When government owns and controls all means of production, it is a
A. Mixed economy
B. Capitalist system
C. Socialist economy
D. Communal economy
Answer: C - What is capital formation?
A. Growth in land
B. Increase in labour
C. Increase in tools and equipment
D. Growth of markets
Answer: C - A major reason for market failure is
A. Price increase
B. Government control
C. Externalities
D. Taxation
Answer: C - The law of supply states that
A. Price and supply are inversely related
B. Price and supply are directly related
C. Supply depends on cost
D. Higher income reduces supply
Answer: B - Which of these is not a form of business unit?
A. Sole proprietorship
B. Partnership
C. Capital market
D. Cooperative
Answer: C - An entrepreneur performs all except
A. Bearing risks
B. Organizing resources
C. Pricing regulation
D. Decision making
Answer: C - Money performs all the following functions except
A. Store of value
B. Medium of exchange
C. Standard of deferred payment
D. Means of production
Answer: D - Occupational mobility refers to
A. Movement between locations
B. Movement between jobs
C. Migration abroad
D. Population transfer
Answer: B - Which of the following is not part of the tertiary sector?
A. Banking
B. Transportation
C. Teaching
D. Farming
Answer: D - The major determinant of demand is
A. Price
B. Cost
C. Supply
D. Tax
Answer: A - Overpopulation occurs when
A. There are few people
B. Resources exceed population
C. Population exceeds available resources
D. Income is high
Answer: C - Invisible trade includes
A. Furniture export
B. Oil import
C. Tourism
D. Automobile
Answer: C - A stock exchange is a
A. Warehouse
B. Market for shares
C. Bank
D. Ministry
Answer: B - Terms of trade refer to
A. Ratio of imports to exports
B. Taxes on trade
C. Price of goods locally
D. Balance of payment
Answer: A - The value of total output produced within a country in a year is
A. NNP
B. GNP
C. GDP
D. Per capita income
Answer: C - Which of these is not a function of NDIC?
A. Insuring deposits
B. Licensing banks
C. Supervising banks
D. Protecting depositors
Answer: B
These 100 theory and 100 OBJs Economics past questions and answers comprehensively cover all major topics to help students prepare effectively for WAEC, NECO, GCE and JAMB.
Follow here also for – NECO Economics Examination 2025: Questions and Answers EXPO
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