WAEC GCE Economics Practice Questions and Answers 2025

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Introduction

Many candidates searching for WAEC GCE Economics Practice Questions and Answers 2025 want reliable study materials to help them revise effectively. Economics is one of the key subjects in WAEC GCE, and success requires a clear understanding of concepts like demand and supply, production, money, market structures, and international trade.

WAEC GCE Economics Practice Questions and Answers 2025This article provides you with practice questions and answers for WAEC GCE Economics 2025 carefully explained to guide your preparation.

See Also;WAEC GCE Commerce Practice Questions and Answers 2025 (Private Candidates)

 Disclaimer

The WAEC GCE Economics Practice Questions and Answers 2025 shared here are for educational purposes and self-study only. They are not leaked exam questions. The aim is to help students practice with likely exam patterns, understand core topics, and prepare with confidence. Candidates are advised to study hard and avoid examination malpractice.

WAEC GCE Economics Practice Questions and Answers 2025

Section A: Theory Questions

Question 1

Define demand and explain any three factors that affect it.

Answer:
Demand is the quantity of a commodity that consumers are willing and able to buy at a given price and time.

Factors affecting demand:

  1. Price of the commodity: A higher price reduces demand, while a lower price increases it.

  2. Income of consumers: An increase in income usually raises demand for normal goods.

  3. Price of related goods: Substitutes and complements affect demand. For example, if the price of tea increases, the demand for coffee may rise.

Question 2

Explain the difference between fixed cost and variable cost with examples.

Answer:

  • Fixed cost: Costs that do not change with the level of output. Example: rent, salaries.

  • Variable cost: Costs that change directly with the level of output. Example: raw materials, wages of casual workers.

Question 3

Describe four functions of money.

Answer:

  1. Medium of exchange: Money facilitates trade by eliminating barter problems.

  2. Measure of value: Goods and services are priced in terms of money.

  3. Store of value: Wealth can be stored in the form of money.

  4. Standard of deferred payment: Money allows debts to be settled in the future.

Question 4

Explain any three types of unemployment.

Answer:

  1. Frictional unemployment: Occurs when people are temporarily between jobs.

  2. Seasonal unemployment: Happens when demand for labor is seasonal (e.g., farming during off-season).

  3. Structural unemployment: Caused by changes in the economy where certain skills become outdated.

Question 5

State and explain three advantages of international trade.

Answer:

  1. Access to wider variety of goods: Countries import what they cannot produce efficiently.

  2. Efficient resource use: Each country specializes in goods where it has comparative advantage.

  3. Revenue for government: International trade generates income through tariffs and taxes.

Section B: Objective Practice Questions

Choose the correct answer from the options A–D.

  1. The central problem of economics is:
    A. Inflation
    B. Scarcity
    C. Employment
    D. Production
    Answer: B. Scarcity

  2. The market where only one seller exists is called:
    A. Monopoly
    B. Oligopoly
    C. Perfect competition
    D. Duopoly
    Answer: A. Monopoly

  3. A persistent rise in the general price level is called:
    A. Inflation
    B. Recession
    C. Deflation
    D. Depression
    Answer: A. Inflation

  4. Balance of trade is the difference between:
    A. Imports and exports of visible goods
    B. Exports and imports of services
    C. Government revenue and expenditure
    D. Savings and investment
    Answer: A. Imports and exports of visible goods

  5. Which of the following is an example of direct tax?
    A. Customs duty
    B. Value Added Tax (VAT)
    C. Income tax
    D. Excise duty
    Answer: C. Income tax

Tips to Pass WAEC GCE Economics 2025

  • Revise past questions and note common topics.

  • Draw diagrams (demand & supply curves, cost curves, etc.) where needed.

  • Define terms clearly before giving explanations.

  • Practice both objective and theory questions.

  • Manage your time properly during the exam.

Conclusion

The WAEC GCE Economics Practice Questions and Answers 2025 provided here will help candidates prepare effectively, understand core topics, and build exam confidence. Remember, success comes through hard work, not shortcuts — study diligently, practice daily, and approach the exam with integrity

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