WAEC 2020 Economics Questions and Answers

The complete set of WAEC 2020 Economics questions begins with a question about the definition of Economics and ends with one on the forms of production. In between these two, there are questions on economic systems, agricultural production in West Africa as well as development planning.

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Are you ready to get the questions and answers for the May/June WAEC 2020 Economics objective test paper? Then let’s get it done straight away.


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 behavior 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.

[A]                         [B]                          [C]                         [D]

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

A Couple of Reminders

As usual, all the correct answers are in bold lettering.

We are starting with the first ten of the school candidates’ WAEC 2020 Economics questions and answers. When we are through with this set of questions, we shall move to questions 11 to 20 and so on.

PLEASE NOTE. The diagrams in questions 5 to 8 are not available here. This is the WAEC/WASSCE 2020 Economics questions paper for school candidates. The relevant questions accompanying the diagrams are what you will see. Also, the correct answers are there in bold lettering.

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Questions 1-10

1. Which of the following is central to the definition of Economics?

A. resources                    

B. scarcity             

C. wants                

D. capital

2. When the production possibility curve shifts outwards, the economy experiences

A. inefficient use of resources             

B. over-production

C. growth                                                       

D. under-production

3. Land as a factor of production is made useful through the

A. use of machines                              

B. acts of nature

C. application of fertilizer                   

D. application of human effort

4. In a free market economy, resources are allocated through the

A. government department        

B. trade union

C. price mechanism                             

D. state planning committee

5. The diagram above depicts a

A. Simple bar chart

B. Component bar chart

C. Complex bar chart

D. Multiple bar chart

The diagram below shows a change in demand for commodity X which is a normal good. Use it to answer the question that follows

6. Which of the following caused the change in demand from D1D1 to D2D2?

A. Fall in the income of consumers

B. Rise in the price of a complement

C. Rise in the price of a substitute

D. Fall in the supply of commodity X

Use the diagram below to answer the question that follows.

7. The curves D0D0 and S0S0 are the initial demand and supply curves respectively. What happens when government provides a subsidy to producers?

A. The supply curve will shift from S0S0 to S1S1

B. The supply curve will shift from S0S0 to S2S2

C. The demand curve will shift from D0D0 to D1D1

D. The supply curve will shift from S1S1 to S0S0

8. In the graph above YZ represents

A. Excess demand

B. Equilibrium quantity

C. Excess supply

D. Equilibrium price

9. Goods are described as inferior if their demand

A. decreases as income increases

B. increase as income rises

C. decreases as price falls

D. increases as price increases

10. A consumer is in equilibrium when

A. his market supply is equal to market demand

B. the market is also in equilibrium

C. he maximizes his satisfaction from spending his income

D. he consumes all he wants

Questions 11-20

11. Goods that are abundant in supply usually have low

A. marginal utility                     

B. total utility

C. average utility                                 

D. time utility

12. An increase in supply means that

A. more is sold at different prices

B. there is a leftward shift of the curve

C. more is sold at the same price

D. there is a movement along the supply curve

13. If an increase in the price of crude oil led to an increase in the price of kerosene and grease, then kerosene and grease are in

A.  competitive supply                        

B. joint supply

C. market supply                                            

D. composite supply

14. A seller increased the quantity he offered for sale from 200 units to 250 units when the price of his product increased by 12.5%. what is the price elasticity of supply of his product?

A. 1.00                  

B. 1.50                  

C. 2.00                  

D. 0.50

15. If an increase in the supply of beef increased the supply of hides, then beef and hides are in

A. competitive supply                         

B. composite supply

C. joint supply                                     

D. joint demand

16. If a beef market is in equilibrium at $4.00 per kg, an increase in the price to $6.00 per kg may cause

A. shortage in the market

B. surplus in the market

C. black market to come into operation

D. rationing to be introduced

17. A large firm may experience diseconomies of scale if there is

A. employment of more specialists

B. division of labour in production

C. difficulty in coordinating decisions

D. decrease in cost of production

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18. Increasing return to scale suggests that

A. a firm can make profit by reducing output

B. as the producer increases the quantity of raw materials used, the marginal product will fall

C. as the producer reduces the quantity of raw materials used, the marginal product will double

D. a firm can make more profit by increasing output

19. One feature of the average fixed cost is that it

A. is always higher than the average variable cost

B. is U-shaped and intersects the y-axis

C. rises and falls faster than the marginal cost

D. falls continuously but is never equal to zero

20. If the average fixed cost (AFC) of producing 5 bags of rice is $20.00, the average fixed cost of producing 10 bags will be

A. $2.00                 B. $10.00               C. $4.00                           D. $20.00

2020 WASSCE Economics Questions 21-30

The total revenue schedule of a firm is shown as follows;

Output (units)5060708090
Total revenue (TR)$85$102$119$136$153

Use the information to answer questions 21 and 22.

21. What is the unit price of the firm’s output?

A. $2.00                 B. $2.70                 C. $10.00               D. $1.70

22. What is the firm’s marginal revenue?

A. $153.00             B. $17.00               C. $0.80                 D. $1.70

23. Organization and entrepreneurship are vested in different persons in a

A. cooperative society               

B. public company

C. partnership                                      

D. sole proprietorship

24. The public sector in a mixed economy is not always efficient because of

A. annual planning of activities           

B. the desire to make huge profits

C. bureaucratic practices                      

D. the activities of shareholders

25. Which function of the wholesaler enables him to stabilize prices?

A. transporting goods                                                         

B. advertising the goods

C. granting credit to retailers                                              

D. warehousing goods

26. In the long run, as individuals receive higher wages, it causes

A. demand for food to decrease                               

B. demand for leisure to decrease

C. supply of labour to decrease

D. supply of normal goods to decrease

27. Population growth rate can be calculated

A. birth rate – death rate + immigrants – emigrants

B. birth rate – death rate + migration rate – immigration rate

C. birth rate – death rate

D. Birth rate – death rate – emigrants – immigrants

28. Labour productivity is defined as

A. average output                                                                                                                               

B. output per man-hour

C. the maximum number of hours worked

D. total output of labour

29. Which of the following problems has the least effect on agricultural productivity in West Africa?

A. Incidence of pests and diseases

B. unfavourable weather conditions

C. illiteracy

D. urban-rural migration

30. The location of an iron and steel industry at a place is due to

A. government policy

B. access to cheap labour

C. easy access to raw materials

D. good infrastructure

WAEC 2020 Economics Questions 31-40

Topics from the SHS/WAEC Economics syllabus you will find in our next set of questions include inflation, fiscal policy, monetary policy, national income and industrialization. Here come questions 31 to 40 in the WAEC 2020 Economics past questions paper.

31. Import substitution as a strategy of industrialization is the

A. replacement of locally produced goods with imported ones

B. establishment of firms to process imported raw materials

C. act of using local inputs to produce goods for export

D. development of local firms to produce goods that are imported

32. Which of the following are intermediate goods?

A. furniture and shirt                                                          

B. cement and steel

C. handkerchief and shoe                                                   

D. table and door

33. How is NNP at factor cost derived from GNP at market price?

A. GNP – Depreciation + indirect taxes + subsidies

B. GNP+ Depreciation + in direct taxes – subsidies

C. GNP – Depreciation – indirect taxes + subsidies

D. GNP + Depreciation – indirect taxes + subsidies

34. Which of the following factors may lead to underestimation of national income figures?

A. subsistence production

B. high volume exports

C. emigration of skilled workers to foreign countries

D. availability of skilled statisticians

35. Inflation may occur if

A. rate of productivity is higher than the wage rate

B. wage increase is granted without an increase in productivity

C. prices fluctuate during a particular season of time

D. the government embark on restrictive monetary policy

36. Money would cease to be a good store of value when

A. prices of goods and services are falling slowly

B. prices of goods and services are rising rapidly

C. there is a high level of unemployment

D. prices of goods and services are rising  slowly

37. Governments in West Africa can curtail inflation by

A. purchasing securities in the open market

B. encouraging importation of goods from all countries

C. selling securities in the open market

D. encouraging banks to lend for consumption

38. The central bank can reduce the ability of commercial banks to give out loans by

A. reducing special deposit                                               

B. raising the bank rate

C. reducing the liquidity                                                    

D. issuing more currency

39. Tools of monetary policy do not include

A. open market operations                                                 

B. reserve requirement

C.  tax and public expenditure                                            

D. bank rate

40. During inflation, the appropriate fiscal measure to adopt is to

A. increase direct taxes                                                       

B. increase indirect taxes

C. reduce personal income tax                                           

D. increase government expenditure

Questions 41-50

The final batch of the school candidates’ WAEC 2020 Economics questions and answers feature topics like taxation, development planning, inflation and international trade.

41. Mr X and Mrs Y pay $500.00 and $1,400.00 as taxes on their earnings of $5,000.00 and $7,000.00 respectively. The system of taxation employed is

A. specific tax                                                                     

B. progressive tax

C. regressive tax                                                                 

D. proportional tax

42. Expenditure on food takes a large proportion of the incomes of people in

A. industrialized countries                                                 

B. developing countries

C. advanced countries                                                        

D. capitalist countries

43. A country should embark on development planning to ensure that

A. its scarce productive resources are efficiently utilized

B. it also does what others are doing

C. it becomes popular among the comity of nations

D. the nation is able to contribute its own quota to international organizations.

44. A country is allowed to import just 50,000 tonnes of rice annually. This describes

A. devaluation                

B. tariff                           

C. quota                                                                           

D . embargo

45. Dumping is selling goods in a foreign market at a price

A. above what is sold at the home market

B. below what is sold at the home market

C. equal to what is sold at the home market

D. equal to the cost of producing the goods

46. The principle of comparative advantage encourages a country to

A. produce only consumer goods

B. specialize in the production of all goods

C. engage in trade if it can produce a commodity at a lower cost

D. try as much as possible to be self-sufficient

47. In order to discourage the importation of manufactured goods, a country should adopt

A. import promotion strategy                                             

B. import substitution strategy

C. liberal foreign exchange                                                

D. export-led strategy

48. A free trade area is one in which

A. factors of production are mobile

B. each member operates its own barriers against non-members

C. members adopt common external tariffs against non-members

D. members adopt common fiscal and economic policies

49. The foremost objective of the International Bank of Reconstruction and  Development (IBRD) is to

A. help promote private and public investments

B. assist members achieve balance of payment stability

C. maintain stability of foreign exchange

D. grant long-term loans for infrastructure

50. The exploitation of mineral resources constitutes which form of production?

A. tertiary production                                                         

B. secondary production

C. primary production                                                        

D. services production

Final Thoughts

If you are reading this it means you have most likely read through all the WAEC 2020 Economics past questions and answers. Congratulations. Did you find any question or answer most interesting or a bit problematic? Why don’t you share your thoughts in the comment box below?

And, by the way, there are other equally helpful WAEC/NECO/JAMB past questions at Cegast Academy. All you need is to look around a little and you will be amazed at what you will discover. You may also check out the trial tests and quizzes. Remember all our practice tests and quizzes are completely FREE. You will get instant results that are strictly private and confidential.

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