This is to inform the general public, as well as candidates sitting for the West African Senior School Certificate Examination (WASSCE) for Private Candidates, popularly known as WAEC GCE (Nov/Dec), that the Economics Objective and Essay papers will hold as follows:
Friday, 14th November, 2025
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Economics 2 (Essay) – 2hrs – 08:30 hrs – 10:30 hrs
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Economics 1 (Objective) – 1hr – 10:30 hrs – 11:30 hrs
Below, you will find 30 likely Objective questions with answers, and Essay practice questions with solutions to guide your preparation.
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WAEC GCE Economics Objective and Essay Questions and Answers 2025
SECTION A: OBJECTIVES
Instruction: Answer all questions.
1. Economics is defined as the study of how individuals and societies:
A. Eliminate poverty
B. Allocate scarce resources
C. Increase money supply
D. Make profit
Answer: B
2. The basic economic problem is:
A. Unemployment
B. Scarcity
C. Inflation
D. Overproduction
Answer: B
3. Goods that satisfy wants directly are known as:
A. Capital goods
B. Consumer goods
C. Free goods
D. Public goods
Answer: B
4. Which of the following is NOT a factor of production?
A. Labour
B. Land
C. Money
D. Capital
Answer: C
5. The reward for capital is:
A. Wage
B. Rent
C. Interest
D. Profit
Answer: C
6. In demand theory, an increase in the price of a good leads to:
A. Increase in demand
B. Decrease in demand
C. Increase in supply
D. Decrease in supply
Answer: B
7. A rightward shift in the supply curve indicates:
A. Decrease in supply
B. Increase in supply
C. Decrease in demand
D. Excess demand
Answer: B
8. The point where demand equals supply is called:
A. Break-even point
B. Equilibrium point
C. Surplus point
D. Marginal point
Answer: B
9. A firm enjoys economies of scale when:
A. Average cost rises with output
B. Average cost falls with output
C. Marginal cost equals total cost
D. Fixed cost increases with output
Answer: B
10. The price elasticity of demand measures:
A. Change in cost over time
B. Responsiveness of quantity demanded to price changes
C. Movement of supply over time
D. Marginal utility of consumption
Answer: B
11. Public goods are characterized by:
A. Excludability and rivalry
B. Non-excludability and non-rivalry
C. Divisibility and rivalry
D. Rivalry and scarcity
Answer: B
12. Which of the following is an example of direct tax?
A. Excise duty
B. Customs duty
C. Income tax
D. Value Added Tax (VAT)
Answer: C
13. When a country imports more than it exports, it is said to have:
A. Balance of trade surplus
B. Balance of trade deficit
C. Balance of payment surplus
D. Equilibrium of trade
Answer: B
14. One advantage of division of labour is:
A. It reduces interdependence
B. It increases efficiency
C. It reduces unemployment
D. It eliminates wages
Answer: B
15. The central bank controls money supply mainly through:
A. Taxation
B. Monetary policy
C. Fiscal policy
D. Imports
Answer: B
16. Opportunity cost refers to:
A. Cost of production
B. The value of the next best alternative forgone
C. Total expenditure
D. Average cost
Answer: B
17. Which of the following is NOT an example of a developing economy problem?
A. Unemployment
B. Low per capita income
C. Technological advancement
D. Inflation
Answer: C
18. An industry where a single seller dominates is called:
A. Perfect competition
B. Monopoly
C. Oligopoly
D. Monopolistic competition
Answer: B
19. The difference between GDP and GNP is:
A. Net export
B. Depreciation
C. Net income from abroad
D. Investment
Answer: C
20. Which of these is a qualitative tool of monetary policy?
A. Open market operations
B. Credit rationing
C. Cash reserve ratio
D. Bank rate
Answer: B
21. A regressive tax takes:
A. Higher percentage from the rich
B. Lower percentage from the poor
C. Higher percentage from the poor
D. Equal percentage from all
Answer: C
22. One major function of money is:
A. Store of value
B. Production of goods
C. Increasing demand
D. Raising inflation
Answer: A
23. Terms of trade is measured as:
A. Export price index × Import price index
B. Export price index ÷ Import price index × 100
C. Import price index ÷ Export price index × 100
D. Balance of trade ÷ Balance of payment
Answer: B
24. Inflation caused by excess demand is called:
A. Cost-push inflation
B. Hyperinflation
C. Demand-pull inflation
D. Imported inflation
Answer: C
25. Privatization means:
A. Transfer of ownership of public enterprises to private hands
B. Reduction of government spending
C. Increasing taxation on firms
D. Nationalization of industries
Answer: A
26. A situation where only one buyer exists in the market is called:
A. Oligopoly
B. Duopoly
C. Monopsony
D. Monopoly
Answer: C
27. The difference between fixed cost and variable cost is that:
A. Fixed cost changes with output, variable does not
B. Fixed cost remains constant, variable changes with output
C. Variable cost remains constant, fixed changes with output
D. Both vary with output
Answer: B
28. A country’s currency appreciates when:
A. Imports rise sharply
B. Exports increase and foreign demand for currency grows
C. Inflation increases
D. Balance of payment is negative
Answer: B
29. Which of the following is NOT an advantage of international trade?
A. Wider market for goods
B. Promotes specialization
C. Encourages monopoly power
D. Increases variety of goods
Answer: C
30. The largest contributor to Nigeria’s GDP in recent years is:
A. Oil sector
B. Agriculture
C. Manufacturing
D. Mining
Answer: B
WAEC GCE Economics Objective and Essay Questions and Answers 2025
SECTION B: ESSAY (THEORY)
Question 1
(a) Define opportunity cost.
(b) Explain with examples five areas of life where opportunity cost applies.
Answer (Guide):
(a) Opportunity cost is the value of the next best alternative forgone when a choice is made.
(b) Examples: Education vs. work, consumption vs. savings, government spending on health vs. defense, farming one crop vs. another, leisure vs. overtime work.
Question 2
Discuss five functions of the Central Bank of Nigeria.
Answer (Guide):
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Issuing legal tender currency
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Controlling inflation through monetary policy
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Managing foreign reserves
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Supervising commercial banks
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Acting as lender of last resort
Question 3
Explain five problems of the Nigerian agricultural sector.
Answer (Guide):
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Poor infrastructure (roads, storage)
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Inadequate credit facilities
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Overdependence on traditional tools
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Rural-urban migration
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Unpredictable climate conditions
Question 4
(a) Define inflation.
(b) Explain four effects of inflation on the economy.
Answer (Guide):
(a) Inflation is a persistent rise in the general price level of goods and services.
(b) Effects: Reduces purchasing power, distorts investment, discourages savings, causes uncertainty in business.
Question 5
Discuss five reasons why government engages in international trade.
Answer (Guide):
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To earn foreign exchange
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To access goods not produced locally
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To promote economic growth
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To foster international relations
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To benefit from specialization
Question 6
Describe five differences between direct and indirect taxes.
Question 7
With examples, explain five causes of unemployment in Nigeria.
Question 8
Discuss the role of transportation in economic development.
Question 9
Explain the law of diminishing returns with the aid of a diagram.
Question 10
Write short notes on the following:
(a) Balance of trade
(b) Balance of payments
(c) Terms of trade
Conclusion
This post has provided the full WAEC GCE Economics Questions and Answers 2025 (Nov/Dec Expo Room) including:
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The official exam timetable and date
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30 likely Objective questions with answers
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Essay practice questions with full solutions
NOTE: You are advised to study these questions thoroughly, as they mirror the actual exam structure and boost your confidence on exam day.
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