The WAEC Economics exam tests candidates on fundamental concepts such as scarcity, demand and supply, production, and market structures. Below are 10 solved WAEC Economics questions with step-by-step explanations to guide your 2025 preparation.

Question 1: Scarcity

Q1. Scarcity in Economics means:
A) Means exceed society’s wants
B) Demand for resources is greater than supply
C) Productive resources are in excess
D) Supply of resources is greater than demand

Solution:
Scarcity occurs when demand for resources exceeds supply. It is the fundamental problem of Economics.
Correct Answer: B (Demand for resources is greater than supply).

Question 2: Opportunity Cost

Q2. Opportunity cost can best be defined as:
A) The money spent on production
B) The next best alternative forgone
C) The total benefit of a choice
D) The resources used in production

Solution:
Opportunity cost is the value of the next best alternative forgone when a choice is made.
Correct Answer: B.

Question 3: Factors of Production

Q3. Which of the following is NOT a factor of production?
A) Land
B) Labour
C) Capital
D) Inflation

Solution:
The four factors of production are land, labour, capital, and entrepreneurship. Inflation is not a factor of production.
Correct Answer: D (Inflation).

Question 4: Demand Curve

Q4. A demand curve normally slopes:
A) Upwards from left to right
B) Downwards from left to right
C) Horizontally
D) Vertically

Solution:
The demand curve slopes downward due to the inverse relationship between price and quantity demanded.
Correct Answer: B.

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Question 5: Supply

Q5. Which of the following is likely to cause an increase in the supply of a commodity?
A) Increase in cost of production
B) Fall in price of the commodity
C) Improvement in technology
D) Decrease in the number of firms

Solution:
Improved technology makes production more efficient, increasing supply.
Correct Answer: C.

Question 6: Market Structures

Q6. Which market structure is characterized by a single seller?
A) Perfect competition
B) Oligopoly
C) Monopoly
D) Monopolistic competition

Solution:
A monopoly exists when there is only one seller in the market.
Correct Answer: C (Monopoly).

Question 7: Inflation

Q7. Inflation can be defined as:
A) A persistent fall in the general price level
B) A persistent rise in the general price level
C) An increase in money supply only
D) A fall in wages and salaries

Solution:
Inflation is a persistent rise in the general price level of goods and services.
Correct Answer: B.

Question 8: National Income

Q8. Which of the following is NOT a method of measuring national income?
A) Output method
B) Income method
C) Expenditure method
D) Consumption method

Solution:
National income is measured by output, income, or expenditure methods. Consumption method is not recognized.
Correct Answer: D.

Question 9: Money

Q9. One of the primary functions of money is:
A) To create inflation
B) To serve as a medium of exchange
C) To increase production
D) To regulate prices

Solution:
The basic function of money is to act as a medium of exchange.
Correct Answer: B.

Question 10: Balance of Payments

Q10. Balance of payments refers to:
A) The difference between exports and imports of goods only
B) The record of all economic transactions of a country with the rest of the world
C) The amount of money in circulation within the country
D) Government’s annual budget

Solution:
Balance of payments is the record of all transactions between a country and the rest of the world.
Correct Answer: B.

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Conclusion

These 10 solved WAEC Economics questions cover core areas: scarcity, opportunity cost, factors of production, demand and supply, inflation, money, and balance of payments. Mastering them will greatly improve your confidence and performance in the 2025 WAEC Economics exam.

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Credit: Allschool, Allcbt

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