Welcome, brilliant students! 👋
Today’s revision is focused on Economics past questions that are very likely to appear in your WAEC, NECO, GCE or JAMB exams. We extracted real questions from a classroom lesson and transformed them into a clean exam format to help you understand and remember them easily
Each question below follows the A–D format with the correct answer clearly shown, followed by a short explanation for better understanding. Let’s boost your exam confidence today!
1. What are factors of production?
A. Only money used in business
B. Resources used to produce goods and services
C. Finished goods for consumers
D. Taxes paid by companies
✔️ CORRECT ANSWER: B – Resources used to produce goods and services
Explanation: Factors of production include land, labor, capital, and entrepreneurship. They are the essential inputs required for production in any economy.
2. What is the likely result when government sets a price ceiling below equilibrium price?
A. Surplus
B. Stable market
C. Shortage
D. No effect
✔️ CORRECT ANSWER: C – Shortage
Explanation: When price ceiling is below the market equilibrium, the product becomes cheaper, demand increases, but supply reduces — leading to scarcity.
3. When a product is cheap, it often leads to what?
A. Reduced consumption
B. Increased consumption
C. No change in demand
D. Export of the product
✔️ CORRECT ANSWER: B – Increased consumption
Explanation: According to the law of demand, when the price falls, more consumers are willing to buy the product, raising total demand.
4. A farmer increases production from 200 units to 500 units. What happened to his output?
A. It decreased
B. It remained constant
C. It tripled
D. It more than doubled
✔️ CORRECT ANSWER: D – It more than doubled
Explanation: Moving from 200 to 500 shows a significant increase in output, especially when technology, capital, or labor efficiency improves.
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5. When supply is greater than demand, what happens to the price?
A. It rises
B. It becomes fixed
C. It falls
D. It remains unchanged
✔️ CORRECT ANSWER: C – It falls
Explanation: When there is excess supply, sellers reduce prices to attract buyers. This movement follows the law of supply and demand.
6. What happens when demand exceeds supply?
A. No change
B. Prices decrease
C. Prices increase
D. Government pays producers
✔️ CORRECT ANSWER: C – Prices increase
Explanation: When demand is higher than supply, consumers compete to buy the product, which causes an increase in price.
7. What is the term for goods demanded more as income rises?
A. Inferior goods
B. Normal goods
C. Capital goods
D. Free goods
✔️ CORRECT ANSWER: B – Normal goods
Explanation: Normal goods like clothes and electronics experience increased demand when consumers’ income rises.
8. What are inferior goods?
A. Goods with zero price
B. Goods people buy less when income rises
C. Expensive luxury items
D. Agricultural products only
✔️ CORRECT ANSWER: B – Goods people buy less when income rises
Explanation: As people earn more, they reduce consumption of low-quality or cheap goods and switch to better alternatives.
9. What is the basic economic problem faced by all societies?
A. Choice and scarcity
B. Advertising
C. Money printing
D. Inflation only
✔️ CORRECT ANSWER: A – Choice and scarcity
Explanation: Human wants are unlimited, but resources are limited. This creates the need for economic decisions and proper allocation.
10. What is opportunity cost?
A. Extra money saved
B. The next best alternative forgone
C. Total benefit gained
D. Amount spent on production
✔️ CORRECT ANSWER: B – The next best alternative forgone
Explanation: Opportunity cost is what you give up to choose another option. It helps in decision-making and allocation of resources.
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Conclusion
You have just studied 10 highly examinable Economics questions with answers and explanations. Continue practicing similar questions and understand the logic behind each one. That is how champions prepare for WAEC, NECO, JAMB, and GCE!
Keywords
WAEC Economics Questions
NECO Likely Economics Questions
Factors of Production Explained
Economics Past Questions and Answers
Law of Demand and Supply