WAEC 2026 Economics Likely Questions Share this to 5 groups and 10 classmates so we can post more likely questions for free. Instruction: Choose the correct answer from A to D. Do not check the answer key until you finish. Economics is best described as the study of how human beings . A. make money only B. satisfy unlimited wants with limited resources C. produce goods without labour D. control government activities The basic economic problem is caused by . A. taxation B. scarcity C. inflation D. banking Opportunity cost means the . A. money spent on all goods B. best alternative forgone C. total cost of production D. cost of imported goods A scale of preference is a list of wants arranged in order of . A. price B. importance C. size D. scarcity The reward for labour as a factor of production is . A. rent B. interest C. wage D. profit The factor of production that combines other factors is . A. land B. labour C. capital D. entrepreneur Land as a factor of production includes . A. only farm land B. natural resources C. machines only D. money in the bank Division of labour leads to . A. lower skill B. specialization C. unemployment only D. poor production Demand means the quantity of a commodity a consumer is willing and able to buy at a given . A. time and price B. market and shop C. place and country D. producer and seller The law of demand states that, all things being equal, the higher the price, the . A. higher the quantity demanded B. lower the quantity demanded C. higher the supply only D. lower the supply only A demand curve normally slopes . A. upward from left to right B. downward from left to right C. vertically D. horizontally Supply is the quantity of a commodity that sellers are willing and able to offer for sale at a given . A. price and time B. population and income C. tax and subsidy D. bank and market The law of supply states that, all things being equal, the higher the price, the . A. lower the quantity supplied B. higher the quantity supplied C. lower the demand D. lower the income The price at which quantity demanded equals quantity supplied is called . A. market price B. equilibrium price C. cost price D. retail price A situation where demand is greater than supply is called . A. surplus B. shortage C. equilibrium D. inflation The type of market where there is only one seller is called . A. monopoly B. perfect competition C. oligopoly D. duopoly A market situation where there are few sellers is called . A. monopoly B. oligopoly C. monopsony D. perfect competition Utility means the . A. cost of producing goods B. satisfaction derived from consuming a good C. profit made by a seller D. price paid by a buyer https://whatsapp.com/channel/0029VaCkP2wDjiOUlqtkYr2n The law of diminishing marginal utility states that as more units of a commodity are consumed, marginal utility will . A. rise continuously B. remain the same C. fall after a point D. become price Fixed cost is a cost that . A. changes with output B. does not change with output in the short run C. is paid only by consumers D. is the same as profit Total cost is equal to . A. fixed cost minus variable cost B. fixed cost plus variable cost C. revenue minus profit D. price plus demand National income is the total . A. population of a country B. money in banks only C. value of goods and services produced by a country in a year D. tax collected by government only Per capita income is obtained by dividing national income by . A. total exports B. total imports C. total population D. total tax Money is anything generally accepted as a . A. means of exchange B. means of production C. factor of labour D. natural resource The bank that controls the activities of commercial banks is the . A. mortgage bank B. central bank C. merchant bank D. development bank Inflation means a general rise in . A. population B. production C. prices of goods and services D. employment https://whatsapp.com/channel/0029VaCkP2wDjiOUlqtkYr2n A tax imposed on imported goods is called . A. income tax B. company tax C. import duty D. sales tax International trade is trade between . A. people in the same village B. two or more countries C. wholesalers and retailers only D. producers and consumers only Balance of trade is the difference between . A. visible exports and visible imports B. income and expenditure C. tax and subsidy D. demand and supply The exchange rate is the . A. rate at which goods are exchanged for goods B. price of one country’s currency in terms of another currency C. amount of tax paid by traders D. price of goods in the market

Another one Alex — let's solve it. 1. Economics is best described as the study of how human beings ___. B. satisfy unlimited wants with limited resources Explanation: Economics fundamentally deals with the problem of scarcity, where human wants are unlimited but resources are limited, forcing choices. 2. The basic economic problem is caused by ___. B. scarcity Explanation: Scarcity is the fundamental economic problem that arises because society has insufficient resources to satisfy all human wants and needs. 3. Opportunity cost means the ___. B. best alternative forgone Explanation: Opportunity cost is the value of the next best alternative that must be given up when a choice is made. 4. A scale of preference is a list of wants arranged in order of ___. B. importance Explanation: Individuals and societies use a scale of preference to rank their wants from most important to least important, guiding their choices. 5. The reward for labour as a factor of production is ___. C. wage Explanation: Labour earns wages for its contribution to production. Rent is for land, interest for capital, and profit for entrepreneurship. 6. The factor of production that combines other factors is ___. D. entrepreneur Explanation: An entrepreneur organizes and combines land, labour, and capital to produce goods and services, taking on risks. 7. Land as a factor of production includes ___. B. natural resources Explanation: In economics, land refers to all natural resources, including not just agricultural land but also minerals, forests, water, and air. 8. Division of labour leads to ___. B. specialization Explanation: Division of labour allows workers to specialize in specific tasks, increasing efficiency and productivity. 9. Demand means the quantity of a commodity a consumer is willing and able to buy at a given ___. A. time and price Explanation: Demand is defined as the quantity of a good or service that consumers are willing and able to purchase at a specific price and time. 10. The law of demand states that, all things being equal, the higher the price, the ___. B. lower the quantity demanded Explanation: The law of demand states that there is an inverse relationship between price and quantity demanded; as price increases, quantity demanded decreases. 11. A demand curve normally slopes ___. B. downward from left to right Explanation: Due to the inverse relationship between price and quantity demanded, the demand curve slopes downward from left to right. 12. Supply is the quantity of a commodity that sellers are willing and able to offer for sale at a given ___. A. price and time Explanation: Supply is the quantity of a good or service that producers are willing and able to offer for sale at a specific price and time. 13. The law of supply states that, all things being equal, the higher the price, the ___. B. higher the quantity supplied Explanation: The law of supply states that there is a direct relationship between price and quantity supplied; as price increases, quantity supplied increases. 14. The price at which quantity demanded equals quantity supplied is called ___. B. equilibrium price Explanation: The equilibrium price is the market price where the quantity of goods supplied is equal to the quantity of goods demanded. 15. A situation where demand is greater than supply is called ___. B. shortage Explanation: When demand exceeds supply at a given price, there is a shortage in the market. 16. The type of market where there is only one seller is called ___. A. monopoly Explanation: A monopoly is a market structure characterized by a single seller of a unique product with no close substitutes. 17. A market situation where there are few sellers is called ___. B. oligopoly Explanation: An oligopoly is a market structure dominated by a small number of large sellers. 18. Utility means the ___. B. satisfaction derived from consuming a good Explanation: Utility refers to the satisfaction, pleasure, or benefit that a consumer obtains from consuming a good or service. 19. The law of diminishing marginal utility states that as more units of a commodity are consumed, marginal utility will ___. C. fall after a point Explanation: The law of diminishing marginal utility states that as a consumer consumes more units of a good, the additional satisfaction (marginal utility) derived from each successive unit tends to decrease. 20. Fixed cost is a cost that ___. B. does not change with output in the short run Explanation: A fixed cost is an expense that does not vary with the level of output in the short run, such as rent or insurance. 21. Total cost is equal to ___. B. fixed cost plus variable cost Explanation: Total cost is the sum of fixed costs (costs that don't change with output) and variable costs (costs that change with output). 22. National income is the total ___. C. value of goods and services produced by a country in a year Explanation: National income is a measure of the total value of all final goods and services produced within a country's borders in a specific period, usually a year. 23. Per capita income is obtained by dividing national income by ___. C. total population Explanation: Per capita income is calculated by dividing the total national income by the total population of a country, giving an average income per person. 24. Money is anything generally accepted as a ___. A. means of exchange Explanation: The primary function of money is to serve as a medium of exchange, facilitating transactions without the need for barter. 25. The bank that controls the activities of commercial banks is the ___. B. central bank Explanation: A central bank is the primary monetary authority of a country, responsible for regulating commercial banks and implementing monetary policy. 26. Inflation means a general rise in ___. C. prices of goods and services Explanation: Inflation is defined as a sustained increase in the general price level of goods and services in an economy over a period of time. 27. A tax imposed on imported goods is called ___. C. import duty Explanation: An import duty (or tariff) is a tax levied on goods imported into a country. 28. International trade is trade between ___. B. two or more countries Explanation: International trade involves the exchange of goods and services across national borders. 29. Balance of trade is the difference between ___. A. visible exports and visible imports Explanation: The balance of trade specifically measures the difference between a country's visible exports (goods) and visible imports (goods). 30. The exchange rate is the ___. B. price of one country’s currency in terms of another currency Explanation: The exchange rate is the rate at which one currency can be exchanged for another. Drop the next question 📸