WASSCE 2021 Economics Questions and Answers

This WAEC/WASSCE 2021 Economics questions and answers post contains past questions on the key topics in the WAEC/SHS Economics syllabus. Expect to see Economics objective questions on demand and supply, price determination, scarcity, production, national income, international trade and taxation.

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The above Economics topics represent just a fraction of the entire WAEC and GES teaching syllabus for high school Economics.

Without wasting much time, let’s begin to answer the WASSCE Nov/Dec 2021 Economics objective questions.


Answer all the questions.

Each question is followed by four options lettered A to D. Find the correct option for each question and shade in pencil on your answer sheet, the answer space which bears the same letter as the option you have chosen. Give only one answer to each question

An example is given below.

“Economics is a science which studies human behaviour as a relationship between ends and scarce means which have alternative uses. Ends here refers to

A. Inputs

B. Wants

C. Choice

D. Outputs

The correct answer is wants, which is lettered B and therefore answer space B would be shaded.

Think carefully before you shade the answer spaces; erase completely any answer(s) you wish to change.

Do all rough work on this question paper

Now answer the following questions.

Questions 1-10

Here comes the first batch of the WASSCE 2021 Economics questions. As always, you will find the correct answers to each Nov/Dec 2021 WAEC Economics objective question in bold lettering.

1. Economic resources are never enough because

A. Their production is low

B. Producers are not adequately rewarded

C. The population of users is low

D. They have alternative uses

2. Which of the following cannot be considered an economic activity by the economist?

A. Putting up a private house near a market

B. Boots and shoots produced for sale

C. The paid services provided by a barber

D. Selling vegetables grown in one’s garden

3. Steel used in the construction of bridges can be considered as

A. A consumer good

B. A natural resource

C. An intermediate good

C. A renewable resource

4. Consumer sovereignty is completely regulated in a

A. Socialist economy

B. Market economy

C. Barter economy

D. Mixed economy

The pie chart below shows the number of students who study science, Economics and Mathematics in a school. Study it and answer question 5.

5. If the number of students is given as 1,080, how many study biology?

A. 270

B. 180

C. 90

D. 450

6. If an increase in the price of a commodity from $10 to $14 made quantity demanded to fall from 100units to 80 units demand is

A. Fairly price elastic

B. Fairly price inelastic

C. Perfectly price inelastic

D. Unitary price elastic

7. If the demand for commodity P falls drastically because of an increase in the price of commodity Q, then commodities P and Q are

A. Normal goods

B. Substitutes.

C. Complements.

D. Giffen goods

8. Demand for cassava as a result of demand for its products is a typical example of

A. Composite demand

B. Competitive demand

C. Complementary demand

D. Derived demand

9. If a shoe seller reduces his price in order to increase his total revenue, the demand for his product is

A. Perfectly inelastic

B. Fairly inelastic

C. Unitary elastic

D. Fairly elastic

10. A movement along a supply curve shows a change in

A. Supply of the commodity

B. The techniques of production

C. All the determinants of supply

D. The quantity supplied of the commodity

Nov/Dec 2021 Economics Questions 11-20

11. Other things being equal, the supply curve of a commodity

A. Can have a negative slope

B. May have both negative and positive slopes

C. Slopes upward from the left to the right

D. Slopes upward from the right to the left

12. If the supply of a commodity is perfectly inelastic, then its supply curve

A. Is horizontal

B. Passes through the origin

C. Is vertical

D. Slopes upward from the left to the right

13. A rightward shift of the supply curve for a commodity is caused by

A. A decrease in subsidy on the commodity

B. A decrease in the price of its complements*

C. A reduction in the price of the commodity

D. An improvement in the level of technology

14. When more of a commodity is consumed, total utility

A. Increases at a decreasing rate

B. Decreases at an increasing rate

C. Increases at a constant rate

D. Attains a maximum and becomes negative

15. Minimum wage legislation sets wages

A. Below those fixed by the trade union

B. Below the market equilibrium wage

C. Above the market equilibrium wage

D. At the equilibrium wage rate

16. The demand and supply of a commodity are represented by the following functions. Qd=0.5p -3,Qs=0.2p.Where P is price in dollars. Determine the equilibrium price.

A. $ 30.00

B. $ 0.10

C. $ 3.00

D. $ 10.00

17. A large firm is able to invent new products and improve production techniques because it enjoys

A. Welfare economies

B. Marketing economies

C. Research economies

D. Managerial economies

18. The scale of production of a firm is determined mainly by the

A. Skills of the entrepreneurs

B. Size of its market

C. Size of its factor input

D. Cost of production of the firm

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19. As the marginal cost of a firm falls, the firm’s

A. Average cost rises

B. Average cost also falls

C. Total fixed cost also falls

D. Average variable cost also falls

20. Which of the following costs is zero when output is zero?

A. Fixed cost

B. Variable cost

C. Total cost

D. Implicit cost

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Questions 21-30

This is the third set of your WASSCE 2021 Economics questions with answers. The theory of the firm, costs of production, population and labour force are some of the main topics you will encounter here.

21. A firm producing shoes for a local market should shut down if the average revenue is

A. Less than the average variable cost

B. More than fixed cost

C. Equal to the fixed cost

D. More than the average variable cost

22. A group of traders set up a partnership. Its membership is expected to be

A. Very large

B. Between 7 and 50

C. Between 2 and 20

D. Unlimited

23. In which of the following business units can members freely transfer shares?

A. Public corporations

B. Public enterprises

C. Private limited liability companies

D. Public limited liability companies

24. Which of the following may facilitate effective distribution of goods

A. Construction of factories everywhere

B. Direct distribution by the government only

C. Provision of adequate aids to trade

D. Employment of expatriates

25. Labour can be made more efficient by

A. Provision of incentives and training

B. Increase output level and incentives

C. Increase output level and education

D. Education and good weather

26. The determinants of the population growth rate of any country are

A. Birth rate, death rate and emigration

B. Birth rate, death rate and net migration

C Birth rate, death rate and immigration

D. Net migration, death rate and urbanization

27. A trade union has a lower bargaining power when

A. Marginal productivity of labour is highest

B. There is an excess demand for labour

C. Labour-intensive production is the only option

D. There is an excess supply of labour

28. Agricultural production in West Africa will increase if governments

A. Pursue integrated rural development.

B. Reduce subsidies on farm inputs

C. Allow communities to control land

D. Establish more schools in rural areas

29. A steel rolling mill is best sited close to

A. Water supply

B. Cheap power supply

C. Market for the commodity

D. Cheap labour supply

30. A benefit of import substitution strategy is that it will

A. Enhance a favourable balance of payments

B. Worsen a country’s term of trade

C. Reduce the volume of foreign investments in a country

D. Encourage people to consume imported goods

WASSCE 2021 Economics Questions 31-40

Items 31 to 40 of the Nov/Dec WASSCE 2021 Economics questions touch on popular high school Economics topics such as national income, inflation, monetary policy and fiscal policy.

31. What must be done to Gross National Product at market prices to arrive at Net National Product at market prices?

A. Add depreciation

B. Add net exports

C. Subtract depreciation

D. Divide by population

32. Other things being equal, with a significant increase in exports, a country’s Gross Domestic Product (GDP) will

A. Decrease

B. Remain unchanged

C. Fluctuate

D. Rise

33. A nation will calculate her Gross National Product (GNP) so as to

A. Compare her standard of living with others

B. Determine the size of her population

C. Know the number of her citizens abroad

D. Be able to correct her unfavourable balance of trade.

34. Which of the following factors can lead to cost-push inflation?

A. Increase in income of workers

B. War-time spending

C. Increase in subsidies on goods

D. Increase in personal income tax

35. If members of a community refuse to accept their currency in transactions, then

A. The value of money has increased

B. Money has failed in performing its functions

C. The currency being used is relatively scarce

D. The community prefers trade by barter

36. A country will budget for a surplus in a particular year when it wants to

A. Increase disposable incomes of workers

B. Increase total spending to boost employment

C. Finance large projects beyond its capacity

D. Reduce aggregate spending to curb inflation

37. Interest rates charged on loans by commercial banks are mainly influenced by

A. Level of income in the society

B. Bank rate

C. Exchange rate

D. Liquidity ratio

38. What is the effect of an increase in the cash-deposit ratio by the central bank?

A. Commercial banks’ reserves with the central bank are reduced

B. Commercial banks will keep a higher percentage of their deposits as reserves

C. Commercial banks’ customers are encouraged to deposit more money

D. The lending power of commercial banks is raised

39. The final burden of an excise tax on a good with perfectly inelastic demand is

A. On the consumer only

B. On the producer only

C. On both the consumer and producer

D. More on the producer than on the consumer

40. One effect of increased borrowing by the government from commercial banks is that

A. The private sector will be deprived of funds for investments

B. External loans will be difficult to obtain

C. Banks will be deprived of foreign exchange

D. Investment resources will flow out of the country

Questions 41-50

Items 41-50 constitute the final segment of your WASSCE 2021 Economics questions for that year’s Nov/Dec private candidates. Economics objective questions here are mainly about economic development, international trade, economic cooperation and international economic organizations.

41. Which of the following is not associated with a country that has experienced economic development?

A. High GNP per head

B. High infant mortality rate

C. High employment

D. High literacy rate

42. A country that is undergoing economic development also experiences

A. A high rate of urban-rural migration

B. An increase in agricultural activities

C. An increase in per capita income

D. A high birth and death rate

43. Other things being equal, a deterioration in the terms of trade of a country means that

A. Volume of exports has risen

B. Export prices have fallen

C. Import prices have fallen

D. Volume of imports has risen

44. In order to improve its current account in the balance of payments, a country must

A. Receive more long-term loans from abroad

B. Encourage non-foreign direct investment

C. Initiate measures to improve tourism in the country

D. Encourage importation of foreign goods

45. There has been little or no trade among West African countries because

A. They are all self-sufficient and need not trade

B. They are primary producers and importers of finished goods

C. Goods produced by these countries are of high quality

D. Their former colonial masters will not allow trade

46. Selling a product cheaper in a foreign market than the home market is

A. Sales promotion

B. Price discrimination

C. Substitution

D. Dumping

47. A benefit of the Economic Community of West Africa States(ECOWAS) to member countries is

A. The creation of wider markets for commodities

B. An increase in the cost of living of the people

C. The conservation of foreign exchange

D. A reduction in governments’ expenditure

48. Which of the following economic organizations was established to assist members to overcome balance of payments problems?

A. International Monetary Fund (IMF)

B. The World Bank

C. African Development Bank (AFDB)

D. Economic Commission for Africa (ECA)

49. Immobility of land in the geographical sense is applicable only to

A. Land as the earth’s surface

B. All natural resources

C. Fishes in water bodies

D. Vegetation and its products

50. Value-added in the petroleum sector may increase if

A. More crude oil is exported

B. Refined petrol is imported

C. The products of the oil refineries are all exported

D. The petrochemical industry is well developed.

Last Words

What answers to the WAEC/WASSCE 2001 Economics past questions did you find most interesting? And what other years of WAEC Economics past questions would you love to see at Cegast Academy? While you are at it, make sure to check out the many high school Economics study guides and revisions notes on this site. Do you need similar revision materials on Government, Literature, English, CRS or History? There is so much waiting for you to discover right here.

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