WAEC 2021 Economic Questions and Answer for 2021/2022 (Essay and Objectives). The West Africa Examinations Council (WAEC) is an examination body in Nigeria that conducts the Senior Secondary Certificate Examination and the General Certificate in Education in May/June and November/December respectively.
The questions below are the WAEC past questions and answers that will help you in your 2021 WAEC Economics Questions.
WAEC 2021 Economics Questions for Objectives and Essay 2021
(ii) Secondary sector ==> Shoe production + Fish processing + Baking
% of secondary sector = (30+19+19)/170 × 100%
(iii) Tertiary (%) = 100% – (40+25)%
Ratio = 16.1/30 = 161:300
% Warehousing = 12.2/170 × 100%
(i) Mixed economy
(ii) Government and individuals can feature in the three sectors
Product retailing is the process when the dealing are based on tangible goods and usually a relationship with the buyer develops overtime when the buyer visits the product retailer frequently over a period of time.
(i) Breaking of bulk: The Wholesaler serves as a bulk breaker to the manufacturer to enable the retailer buy the goods. By buying the goods from the manufacturer and selling in a smaller unit to the retailers, the Wholesaler is helping the to make sure that the goods goes through the channels of distribution.
(ii) Financing: In the absence of Wholesaler the manufacturer might face financial challenges in his business because he won’t be able to get back the capital invested in the production of the goods.
(iii) Information dissemination: Since the Wholesaler is more closer to the retailers and the consumers, he knows what they want and the complaints that has been made on the goods of the manufacturer.
(i) Packaging problems: The packaging of goods is not standardized. This may result in damage or loss in transit.
(ii) Inadequate transport facilities: The poor transport system also affects commodity distribution and marketing in the country. The roads are so bad that commodities sustain great damage due to accidents.
(iii) Long chain of distribution: There are too many middlemen. The numerous links along the chain of distribution make the price of commodities to increase considerably.
Price elasticity of demand may be defined as the degree of responsiveness of the quantity demanded of a commodity to change in the price of a commodity. In order words, it is the degree of responsiveness of quantity demanded to a small change in the price of the commodity.
(i) On elastic demand, Demand is said to be elastic if small change in price leads to a greater change in the quantity of goods demanded. While On inelastic demand, demand is said to be in elastic if a larger change in price leads to a small or slight change in the quantity of goods demanded.
(ii) On elastic demand , elasticity is greater than one or unitary , i.e E ==>1<infinity. While on inelastic demand , elasticity is less than one but greater than zero, i.e E ==>0<1
(i) Domestic trade involves the exchange of goods within the borders of a country While External trade involves the exchange of goods and services across national frontiers.
(ii) In domestic trade ,a common language is used While Extern trade requires knowledge of new languages and interpretation.
(iii) Buyers and sellers in domestic trade use the same type of currency While In external trade, buyers and sellers use different currencies.
(iv) In domestic trade , the legal system are the same While in external trade, there are differences in legal systems and culture
Term of trade is the rate at which country’s exports exchange for it’s import. It is expressed as a relationship between the prices a country receives for it’s exports and the price it pay for import WHILE Balance of trade is the total value of goods sold and bought by a country during a given period , usually a year. When visible exports equal visible imports in monetary terms ,we have balance of trade.
(Pick Any Four)
(i) Low level of agricultural production: This makes Nigeria dependent on food imports and exported inputs for her agro-allied industries.
(ii) Low level of technological development: Low level of technological development makes the country’s a greater importer of advance technology
(iii) inadequacies in export promotion strategies: Export promotion strategies to encourage more earnings for the country are grossly inadequate
(iv) Excessive government expenditure: This attitude encourage the government to engage in massive importation of all kinds of goods into the country
(v)poor social and economic infrastructure: Poor social and economic infrastructure contribute greatly to low capacity utilization in the industries section eg bad roads, irregular supply of electricity, water and poor telecommunication
(vi)Existence of import-dependent industries: These industries reduce the country’s earnings a they demand for the scarce foreign exchange to enable them to procure machines and raw materials from abroad.
The questions below are the WAEC 2021 Economics Practice Questions. Go through them and be ready to score high in your WAEC 2021 Economics Examination.
1. Developments outside a given firm which reduce the firm’s costs are called
A. internal economics
B. external economics
C. external diseconomies
D. optimum effects
ANSWER: B (external economics)
2. If at 10K per kg, 1000kg of yam were purchased, the resultant point elasticity of demand is
ANSWER: C (1)
3. A situation in which all inputs are doubled and output also doubles is known as
A. constant proportions
B. increasing returns to scale
C. constant returns
D. constant returns to scale.
ANSWER: D (constant returns to scale)
WAEC Economic Essay (theory)
1. The table below represents a traveler’s consumption of bottles of Coca-Cola. Study it carefully and answer the questions that follow:-
No. of Bottles
(a) Determine the missing figures D, E, F, G and H.
(b) Draw the demand curve for the traveler’s consumption of Coca-Coca.
(c) Explain the law of diminishing marginal utility as the basis for the slope of the traveler’s demand curve.
2. (a) Distinguish between economic activities and an economic system.
(b) Explain the following terms:
3. (a) With the aid of a diagram, explain a minimum price.
(b) State any five measures by which a minimum price for an agricultural produce can be made effective.
4. (a) Describe the output method of measuring the gross domestic product of a country.
(b) How is the net national product at factor cost obtained from gross domestic product?
(c) State two problems associated with the output method.
WAEC Economics Essay and Objective 2021 (EXPO)
The above questions are not exactly 2021 WAEC Economics questions and answers but likely WAEC Economics repeated questions and answers.
These questions are for practice. The 2021 WAEC Economics expo will be posted on this page 30 minutes before the WAEC Economics examination starts. Keep checking and refreshing this page for the answers.
Be patient while waiting in case the answers come late
(i) Increasing returns ( level 0 to 2)
(ii) Decreasing reruns ( level 3 to level 6)
(iii) Negative returns (level 6)
The law of diminishing returns states that F increasing quantities of one factor are combined with fixed supply of other’s in production, a point is reached from which each extra variable factor added yields loss and less addition to the total output
(ii) The total product at any given level of labor input is equal to the sum of all the marginal product up to that level
– The MP is zero at the point where TP is maximum
Capital expenditure is primarily expenditure on the creation of fixed assets and on the acquisition of land, buildings and intangible assets. While Recurrent expenditure refers mainly to expenditure on operations, wages and salaries, purchases of goods and services, and current grants and subsidies.
Monetary policy refers to government activities that are directed toward influencing the quantity of money and credit in an economy. While Fiscal policy involves the use of government spending and revenue raising (taxation) to impact a number of aspects of the economy
(i) General Administrative Purposes The administrative machinery of a country may collapse if there is
no money to maintain it; tax therefore forms one of the sources of
(ii) Defense Purposes
Taxation contributes part of the money used in maintaining a country’s armed forces.
(iii) The Maintenance of Law and Order For internal peace and stability of a country to be guaranteed, laws
must be made and executed, which require money.
(iv) Redistribution of Incomes To achieve this, income tax is made to be progressive in nature.
(i) Commercial farming is mainly practiced in developed countries whereas subsistence farming in less developed or developing countries.
(ii) Commercial farming is cultivated for profits whereas subsistence farming is for the consumption of the farmer and his/her family.
(iii) Commercial farms are very large while that of the subsistence farming are quite small.
(iv) Commercial farming is not dependent much on man power or animal power whereas subsistence farming is dependent.
(v) In commercial farming, there are proper irrigation facilities whereas subsistence farming is generally dependent upon the monsoon.
(i) It is usually grown in a piece of land where the land is quite small in the area.
(ii) This type of farming is usually done for the food crop where the farming is done just to satisfy the requirement of the farmers family and not for the purpose of selling it into the market.
(iii) The machineries which are used for the farming process usually primitive.
(iv) Primitive form of irrigation or little irrigation is done for this type of farming.
(i) It serves as source of revenue for the government
(ii) It creates job opportunities for people in the area.
(i) It causes loss of valuable lands
(ii) It causes environmental pollution and pose health hazards
Consumer goods are products bought for consumption by the average consumer. Alternatively called final goods, consumer goods are the end result of production and manufacturing and are what a consumer will see stocked on the store shelf.
fixed capital is conventionally defined as the stock of tangible, durable fixed assets owned or used by resident enterprises for more than one year.
(iii) vehicles and equipment
Social capital it basically comprises the value of social relationships and networks that complement the economic capital for economic growth of an organization
(i)when someone opens a door for someone
(ii)returns a lost item to a stranger
(iii)gives someone directions or loans
Circulating capital is money being used for core operations of a company.
(ii)inventory in process
(i)The level of the real interest rate and the level of per capita GDP.
(ii)The proportion of labor remuneration in national income and Fiscal policy.
(iii)The distribution of income and high effect of taxation.
Money is an economic unit that functions as a generally recognized medium of exchange for transactional purposes in an economy. … Money can be: market-determined, officially issued legal tender or fiat moneys, money substitutes and fiduciary media, and electronic cryptocurrencies.
value of money, then, is the quantity of goods in general that will be exchanged for one unit of money. The value of money is its purchasing power, i.e., the quantity of goods and services it can purchase.
demand for money is the desired holding of financial assets in the form of money. In othet words that is, cash or bank deposits rather than investments.
(i)The price of the good or service.
(ii)The income of buyers.
(iii)The prices of related goods or services—either complementary and purchased along with a particular item, or substitutes and bought instead of a product.
(iv)The tastes or preferences of consumers will drive demand.
WAEC 2021 Economics OBJ Answer
Tips on How to Pass WAEC Economics Questions
The following tips will help you to pass the upcoming WAEC Economics examination.
Have a Target and Work Towards Actualizing it
You have decided to pass WAEC Economics 2021 and I am sure of that. Now, the next thing you should do is set targets.
You have told yourself, “I will score A in WAEC Economics 2021”, that’s not all. You need to plan on how to make it happen. Create a timetable and master plan to achieve your goals.
Get the Recommended Textbook on Economics for 2021 NECO Examination
Normally, Neco recommends books for the examination. Apart from WAEC Literature where certain novels are compulsory, you are free to use any good Economics textbook to prepare for NECO 2020 exam.
Some textbooks are more difficult to understand. If you have any topic you are finding difficult to understand, then get a textbook that will simplify the topics and make life better for you.
Do not Skip Economics Examples and Exercise you Will Come Across While Reading:
Many candidates are fond of skipping exercises and even examples while studying textbooks. In fact, we like notebooks so much that we could ask, “can I read my notebook and pass WAEC Economics 2021?” Don’t be scared of attempting exercises in Economics. Face the challenges.
If you have any questions about the WAEC 2021 Economics Questions and Answers, kindly drop your question in the comment box.