Welcome back, students! In this revision guide, we will walk through ten highly relevant Economics questions derived directly from your uploaded lesson transcript. Each question is written in the exact A–D exam format, with the correct answer clearly stated and a short, easy-to-understand explanation.
To help you read smoothly, transitions have been strengthened and sentence openings varied for better flow. Let’s begin!
1. A point within the Production Possibility Curve (PPC) indicates
A. Optimum production level
B. Attainable but inefficient production level
C. Unattainable production level
D. Efficient full-employment production
CORRECT ANSWER: B – Attainable but inefficient production level
Explanation: Any point inside the PPC shows that resources are available but not fully used. Consequently, the economy is producing below capacity.
2. Which of the following is not a feature of labour?
A. Labour is an active factor
B. Labour is highly mobile
C. Labour earns wages or salaries
D. Labour is not human effort
CORRECT ANSWER: D – Labour is not human effort
Explanation: Labour is human effort used in production.
3. Which of the following is not a function of an insurance company?
A. Mobilizing funds through premiums
B. Giving protection against risks
C. Assisting businesses to grow
D. Pooling resources together against risk
CORRECT ANSWER: D – Pooling resources together against risk
Explanation: Insurance companies indemnify risks and collect premiums, but they do not literally pool resources “together” like cooperatives do.
4. Which of the following is not emphasized in a Production Possibility Curve (PPC)?
A. Scarcity of resources
B. Inefficiency in resource use
C. Unemployment of labour
D. Economic development
CORRECT ANSWER: D – Economic development
Explanation: The PPC focuses on scarcity, choice, opportunity cost, and efficiency. However, it does not measure or emphasize long-term economic development.
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5. Which of the following is not a method of controlling monopoly?
A. Taxation
B. Encouraging trade and credit
C. Anti-trust regulations
D. Mergers (coming together of firms)
CORRECT ANSWER: D – Mergers
Explanation: Mergers increase business concentration and may strengthen monopoly rather than control it. Consequently, this option is the odd one out.
6. A debenture holder is best described as a
A. Business partner
B. Shareholder
C. Creditor to the company
D. Co-owner
CORRECT ANSWER: C – Creditor to the company
Explanation: Debenture holders lend money to companies in exchange for fixed interest. They are therefore creditors, not owners.
7. When the Production Possibility Curve shifts outward, the economy experiences
A. Decline in output
B. Movement along the curve
C. Growth in productive capacity
D. Scarcity of labour
CORRECT ANSWER: C – Growth in productive capacity
Explanation: An outward shift reflects technological improvement, more resources, or higher efficiency. As a result, the economy can produce more goods and services.
8. In a market economy, the question of what to produce is primarily determined by
A. Government agencies
B. Customs and traditions
C. Consumer demand and price mechanism
D. Trade unions
CORRECT ANSWER: C – Consumer demand and price mechanism
Explanation: Because a market economy operates on capitalism, individuals and firms respond to demand patterns and profit incentives. Prices guide these decisions.
9. When supply increases, what happens?
A. More is sold at the same price
B. Supply curve shifts left
C. Nothing changes
D. Buyers refuse to purchase
CORRECT ANSWER: A – More is sold at the same price
Explanation: With greater supply, sellers become willing to sell more at the existing price or negotiate slightly lower prices. Consequently, quantity supplied rises.
10. A commodity that takes only a very small proportion of a consumer’s income tends to be
A. Income elastic
B. Price elastic
C. Price inelastic
D. Perfectly elastic
CORRECT ANSWER: C – Price inelastic
Explanation: Since the item consumes a very small share of income, demand hardly changes even if price rises. Therefore, it is price inelastic.
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Conclusion
These ten questions capture core concepts such as PPC, labour, monopoly control, insurance, market systems, elasticity, and resource allocation. As you continue preparing for WAEC or NECO, aim to understand why each answer is correct—this ensures long-term mastery, not just memorization.
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WAEC Economics Questions
NECO Economics Likely Questions
Economics Past Questions and Answers
PPC Economics Objective Questions
Features of Labour WAEC
Credit: Allschool, Allcbt
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