WAEC GCE Economics Questions and Answers 2023
by Sona
Updated May 30, 2023
WAEC GCE Economics Exam
The WAEC GCE Economics Exam is an examination conducted by the West African Examinations Council (WAEC) for students taking the General Certificate of Education (GCE) in Economics. The GCE is an internationally recognized qualification typically taken by students in West Africa.
The Economics Exam assesses students' knowledge and understanding of economic concepts, principles, and theories. It covers various topics, including microeconomics, macroeconomics, economic systems, market structures, inflation, monetary and fiscal policies, international trade, and economic development.
The exam is designed to test students' analytical and problem-solving skills, as well as their ability to apply economic theories to real-world situations. It consists of multiple-choice questions, structured and essay-type questions, requiring students to demonstrate their comprehension and critical thinking abilities.
The WAEC GCE Economics Exam plays a crucial role in evaluating students' proficiency in economics and is an important factor in their overall academic performance and future educational and career opportunities. Successful completion of the WAEC GCE Economics exam can open up various opportunities for further studies in economics-related fields at the tertiary level or provide a foundation for a career in economics, finance, business, or related disciplines.
It is essential for candidates to familiarize themselves with the specific exam syllabus, exam structure, and marking scheme provided by the West African Examinations Council to effectively prepare for and excel in the WAEC GCE Economics exam.
WAEC GCE Economics Questions and Answers 2023
The West African Examinations Council (WAEC) is a recognized examination board responsible for conducting examinations for students in West Africa. As part of their assessment, WAEC administers the GCE (General Certificate Examination) Economics exam. This exam is designed to evaluate students' understanding and knowledge of economics concepts and principles.
The WAEC GCE Economics exam consists of two sections: multiple choice questions and essay writing. The multiple choice section assesses students' ability to analyze economic scenarios, apply economic theories, and make informed decisions. Students are presented with a series of questions and must select the most appropriate answer from the given options.
The essay section of the WAEC GCE Economics exam allows students to demonstrate their comprehension of economic concepts in a more detailed and analytical manner. Students are required to critically analyze economic issues, provide evidence-based arguments, and present well-structured responses. This section assesses students' ability to apply economic theories to real-world situations, evaluate economic policies, and propose potential solutions.
To excel in the WAEC GCE Economics exam, students should develop a strong foundation in key economic principles, such as supply and demand, market structures, economic indicators, and government policies. They should also practice problem-solving skills, critical thinking, and effective communication in written form.
WAEC GCE Economics Questions and Answers
PAPER I OBJECTIVES
The following are WAEC GCE Economics past questions for candidates to practice:
1. The following factors can cause a change in demand except?
ANSWER: E (Price of other commodities)
The latest Objectives answers for WAEC Economics are coming your way…..
2. When the demand for a commodity becomes inelastic, total revenue will fall if…
ANSWER: B (Price is reduced)
3. Developments outside a given firm that reduce the firm’s costs are called
ANSWER: B (external economics)
4. If at 10K per kg, 1000kg of yam were purchased, the resultant point elasticity of demand is
ANSWER: C (1)
5. A situation in which all inputs are doubled and output also doubles is known as
ANSWER: D (constant returns to scale)
PAPER 2 [Essay]
1. (a) Distinguish between small-scale production and large-scale production.
(b) Describe any five internal economies of large-scale production.
ANSWER: (a) Small-scale production is a production with the small capital outlay and therefore at a low level of output. On the other hand, large-scale production is a production with a large-scale outlay and therefore results in a high level of output.
(b) Some of the internal economies of large-scale production are:
(i) Technical economies: a large firm has the advantage in the use of factor inputs which results in lower cost per unit of output.
(ii) Financial economies: a large-scale producer can borrow money from financial institutions at a lower rate because it can offer better collateral security.
(iii) Marketing economies: a large firm can buy inputs in bulk and possibly at discounts. It can also pay less on transportation and advertisement which result in lower operating cost.
(iv) Managerial economies: when output is increasing managerial cost increases at a slower rate. The number of managerial staff may increase with output. OR as output increases, specialists can be employed to take charge of the various processes e.g. marketing.
(v) Risk-bearing economies: a large firm is able to bear losses arising from its operations as it can provide insurance coverage. OR It can also diversify its product and its market.
(vi) Welfare economies: a large firm can provide better conditions of service which may enhance the level of productivity and also attract highly skilled manpower.
(vii) Research economies: a large firm can invest a huge amount in research and thereby experience technical progress.
2. A village consists of twenty (20) households with the following annual incomes:
(Incomes N)
30
20
50
40
60
40
40
50
20
60
80
40
20
20
70
40
70
30
40
80
(a) Determine the (i) mean income;
(ii) modal income;
(iii) median income.
(b) What is the range of the income distribution?
(c) Calculate the total tax that could be generated from the village if
(i) a flat-rate tax of 7% is imposed on all households;
(ii) a flat-rate tax of 15% is imposed on all households earning N4,000 per annum and above.
3. (a) Why is scarcity a fundamental problem in Economics?
(b) Give a reason why Economics is a;
(i) Science;
(ii) Social Science.
ANS: (a) Economics seeks to study the relationship between ends and means. Ends are unlimited while the means are limited. Scarcity means resources are limited in relation to the ends. Economics is therefore concerned with allocating the limited resources among competing and unlimited wants.
(b) (i) Economics is a science because it adopts the scientific method.
(ii) Economics is a social science because it studies human behaviour. e.g. If the price of a commodity rises, people will buy less, other things equal.
4. (a) Differentiate between direct and indirect taxation.
(b) Highlight any five advantages of indirect taxation to developing countries.
ANS: (a) Direct taxation refers to taxes on income and properties of individuals and organizations e.g. personal income tax, profit tax.
On the other hand, indirect tax refers to taxes on goods and services e.g. excise duties, custom duties, etc.
(b) (i) In developing countries where incomes are generally low, indirect taxes yield more revenue to the government.
(ii) Where unemployment is high, indirect taxes yield more revenue.
(iii) It is cheap and easy to collect, e.g. custom duties.
(iv) It has a wider coverage than direct tax.
(v) It is not easy to evade. Consumers pay as they consume the commodities.
(vi) It is not a disincentive to work.
(vii) It is used to discourage consumption of harmful goods.
(viii) It is used to protect infant industries.
(ix) It is used to correct balance of payments deficit.
(x) It is used to prevent dumping.
5. (a) Define labour.
(b) Give four factors that affect the efficiency of labour in your country.
ANS: (b) (i) Education and Training: All kinds of labour require training which may include formal training, training on the job.
(ii) Availability of equipment and tools: Labour efficiency also depends on the equipment and tools available to workers.
(iii) Physical Environment: The environment in which labour works helps to determine its efficiency as well as its productivity e.g. harsh physical environment.
(iv) Human environment – conducive management style will increase labour efficiency.
6. (a) Define money.
(b) State the three motives for holding money.
(c) Mention two determinants of each of the motives for holding money.
ANS: Transactions motive
(i) size of income;
(ii) the interval between wage payments;
(iii) availability of credit;
(iv) family size.
Precautionary motive
(i) size of income;
(ii) the interval between wage payments;
(iii) availability of credit;
(iv) perception of risks.
Speculative motive
(i) the rate of interest;
(ii) the degree of risk aversion.
7. (a) With the aid of a diagram, explain a minimum price.
(b) State any five measures by which a minimum price for agricultural products can be made effective.
8. (a) What is a supply schedule?
(b) Using an example, show how a market supply schedule of a product is obtained from individual supply schedules.
(c) State three examples of exceptional demand.
ANS: (c) Exceptional demand:
i. Fixed demand or perfectly inelastic demand e.g. salt
ii. Perfectly elastic demand
iii. Expectation of future increase in price.
iv. Articles of ostentation.
v. Giffen goods.
9. (a) With examples, distinguish between direct and indirect tax.
(b) Explain any four problems of tax collection in any West African Country.
ANS: (a) A direct tax is a tax on incomes and properties. Examples include personal income tax, company tax, death duties, inheritance tax, capital gains taxes, etc.
Whereas, an indirect tax is a tax on goods and services. Examples include sales tax, import and export duties, excise tax, purchase tax, value-added tax, etc.
(b) (i) absence of reliable records of business activities and revenues collected.
(ii) the prevalence of subsistence production.
(iii) corruption on the part of tax officials.
(iv) high level of tax evasion and tax avoidance etc.
10. (a) What is the demographic transition theory?
(b) Explain the three stages of the theory.
ANS: (a) Demographic Transition Theory is concerned with the historical population growth of society. It explains the relationship between fertility and mortality on population growth and how developed countries in contemporary times have passed through three identical stages of population history.
(b) Stages of the Theory;
stage 1 (pre-transition phase/ stage)
stage 2 (transition phase/ stage)
stage 3 (post transition phase /stage)
11. (a) Differentiate between shares and debentures.
(b) Identify any four problems encountered by farmers in raising capital
ANS: (a) A share is the smallest unit into which the capital of a company is divided. It is a unit of ownership of a business concern while a debenture is a loan capital or corporate bond. A debenture holder is a creditor to a company.
(b) (i) low level of loanable funds;
(ii) the inability of firms to produce the required collateral facilities;
(iii) under-developed money and capital markets;
(iv) the high cost of loans;
(v) the fluctuation of share prices;
(vi) Government financial regulation.
12. (a) What is a Capital market?
(b) Describe any three instruments used in the capital market.
ANS: (a) The capital market is a financial market in which funds for medium and long term investments are borrowed or lent.
(b) (i) Shares: These are financial instruments utilized in the capital market for long term investments. A share is the portion of a limited liability company owned by an investor.
(ii) Bonds: This is a long term financial security used to source for funds. Bonds may be issued by firms, financial institutions or governments. Bonds issued by the government are generally regarded as very safe.
(iii) Treasury certificates: These are government financial securities that mature after a year. They are issued by the government through the central bank to either borrow or lend money in the capital market.
2023 WAEC GCE Economics Answer
(1ai)
Fixed cost $
Processing machine 2000
Manager's salary 1500
Factory rent. 1200
Electricity Bill 800
Total 5,500
(1aii)
Variable cost of the firm:
$
Wages to causallabour 2500
Fuel 600
Raw materials 1400
Total 4500
(1aiii)
Average cost (AC) = Total cost/Unit produced
TC = TFC+TVC
= $5500 + $4500
= $10,000
AC = $10,000/3000
AC = $3.33
(1b)
Total profit for the period formular
Profit = Total Revenue - Total cost
Total Revenue = Price×quantuty
=$6.00×3000
=$18,000
Profit = $18,000 - $10,000
=$8,000
(1c)
Tax paid by the firm
3/6
Formula:
Tax paid = Tax rate × taxable profit
= 10/100 × $8000/1
=$800
(1d)
Fixed cost is defined as the cost incurred by a firm which does not change or vary with the level of activity. Examples are salary, rent, electricity.
Whereas variable cost are the cost incurred by a firm which vary or change with the level of activity. Examples are fuel, cost of raw materials, wages of
Workers.
(6a)
Unemployment can be defined as an economic situation in which able body men and women who are willing and able to work can not secure any job in
the country.
(6b)
(i) Technological employment: This is caused as a result of company changes its technical ways of production which result in laying off of worker who
cannot cope with the new method of production.
(ii) Cyclical Unemployment: This is caused as a result I down-swing in trade cycle ie a fall in a demand for a country's product.
(6c)
(i) Industrialization: Government should many industries that can employ many worker.
(ii) Population control - Population should be controlled to obtain optimum level, so as to match the human population with available resources.
(iii) Proper Development plan: This should be put in places to cater for people who are unemployed.
(iv) Re-designing Educational system : The educational system should be redesigned to graduate people that are able to create employment.
(4a)
Trade by barter can be defined as the exchange of goods for goods and services for services.
(4b)
(i) Problem of double coincidence: This is a situation whereby a producer looks for another producer who has what he wants and want what he has.
(ii) Problem of storage: This problem occur because most of goods produced are perishable.
(4c)
(i)Commodity Money: Is a commodity that is generally acceptable as a medium of exchange. Such a commodity has a money value as well as an
intrinsic value of its own.
(ii) Token money: This is a form of money with a face value which is greater than the value of the metal content.
(iii) Bank deposits: The bank deposit is the process whereby an individual deposits his money in the bank and then uses cheques as a means of
payment.
(3a)
Primary production involves the extractive industry where the occupation of people is directed to the process of extracting raw materials from the soil
or area
(3bi)
Primary production: Mining and Fishing
(3bii)
Secondary production: Manufacturing industries and Construction industries
(3biii)
Tertiary production: Financial institutions, schools
(3c)
(i) Revenue: The primary industries like timber industry, cocoa industry, fishing industry, mining industry etc pay monies to the government in the form
of taxes or levies. These monies are called revenues and they are used for developmental projects in the country.
(ii) Foreign exchange: Most of the the primary industries in such as timber industry, cocoa industry, mining industry etc., do not process or add value
to their raw materials. Their raw materials are exported to other countries and this earns the country foreign exchange.
(iii) Employment: The primary industries together employ over 65% of the working population in a country. These various industries serve as
employment and help people to earn income to improve their lives.
Majority of the people at the rural areas are farmers and fishermen.
(iv) Raw materials: Some of the industries process or add value to the raw materials from the primary industries.
For example, cocoa beans obtained from the Cocoa industries are processed by some companies such as Cocoa Processing Company into chocolates etc.
WAEC
The West African Examinations Council (WAEC) is a legally established examination board responsible for conducting and determining the required examinations in the English-speaking West African countries. Its primary goal is to administer examinations and award certificates that are internationally recognized and comparable to those of other examining bodies worldwide.
Since its establishment in 1952, WAEC has played a significant role in the education systems of Anglophone countries in West Africa, including Ghana, Nigeria, Sierra Leone, Liberia, and the Gambia. The council has coordinated numerous examinations and issued certificates, contributing to the advancement of education in the region.
Additionally, WAEC has established an endowment fund to support education through lectures and assistance for financially disadvantaged individuals. Over the years, WAEC has become one of the largest and most respected examination bodies in West Africa, attracting millions of candidates annually.
Moreover, the council collaborates with both local and international examination bodies to coordinate examinations effectively. According to Dr. Adeyegbe, the former Head of National Office of WAEC Nigeria in 2004, the council boasts a well-trained and highly motivated staff and conducts examinations that align with the educational goals of member countries.
WAEC GCE Economics Questions and Answers 2023: FAQs
The West African Examinations Council (WAEC) is a legally established examination board responsible for conducting and determining the required examinations in English-speaking West African countries. Its primary objective is to administer examinations and award certificates that are recognized internationally.
The WAEC GCE Economics Exam is an examination conducted by the West African Examinations Council (WAEC) for students taking the General Certificate of Education (GCE) in Economics. It assesses students' knowledge and understanding of economic concepts, principles, and theories.
The WAEC GCE Economics Exam is open to students in West Africa who are pursuing the General Certificate of Education. It is typically taken by students who have completed their secondary education.
The WAEC GCE Economics Exam usually consists of two sections: multiple-choice questions and essay-type questions.
The WAEC GCE Economics Exam covers a wide range of topics, including microeconomics, macroeconomics, economic systems, market structures, inflation, monetary and fiscal policies, international trade, and economic development.