WAEC 2026 Economics Questions and Answers – May/June OBJ & Essay
Preparing for the WAEC 2026 Economics Questions and Answers – May/June examination requires a solid understanding of key economic principles, past questions, and exam patterns. This guide provides well-structured objective and essay questions with accurate answers to help candidates revise effectively and boost their chances of success.
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WAEC 2026 Economics Questions and Answers – May/June Objective Questions (OBJ)
1. Economics is best defined as the study of
A. money
B. production
C. scarcity and choice
D. wealth
Answer: C
2. Which of the following is a factor of production?
A. Demand
B. Labour
C. Market
D. Price
Answer: B
3. Opportunity cost refers to
A. total cost
B. fixed cost
C. next best alternative forgone
D. marginal cost
Answer: C
4. A market structure with many buyers and sellers is
A. Monopoly
B. Oligopoly
C. Perfect competition
D. Duopoly
Answer: C
5. Demand curve is usually
A. Vertical
B. Horizontal
C. Downward sloping
D. Upward sloping
Answer: C
6. Supply is defined as
A. willingness to buy
B. ability to pay
C. willingness and ability to sell
D. stock of goods
Answer: C
7. Inflation means
A. fall in prices
B. rise in general price level
C. stability in prices
D. fall in income
Answer: B
8. The central bank controls
A. trade
B. agriculture
C. monetary policy
D. population
Answer: C
9. A budget surplus occurs when
A. expenditure exceeds revenue
B. revenue equals expenditure
C. revenue exceeds expenditure
D. deficit increases
Answer: C
10. Elastic demand means
A. no change in demand
B. high responsiveness to price change
C. fixed demand
D. low responsiveness
Answer: B
11. Capital as a factor of production includes
A. money only
B. tools and machinery
C. labour
D. land
Answer: B
12. GDP stands for
A. Gross Domestic Product
B. General Domestic Price
C. Gross Development Plan
D. Government Development Policy
Answer: A
13. A monopolist is a
A. price taker
B. price maker
C. consumer
D. retailer
Answer: B
14. The law of diminishing returns applies in
A. short run
B. long run
C. all periods
D. demand
Answer: A
15. Which is not a function of money?
A. Medium of exchange
B. Store of value
C. Unit of account
D. Means of production
Answer: D
16. Indirect taxes are
A. paid directly
B. borne by producer only
C. shifted to consumers
D. not compulsory
Answer: C
17. Population growth affects
A. demand only
B. supply only
C. both demand and supply
D. none
Answer: C
18. Public sector is controlled by
A. individuals
B. government
C. firms
D. banks
Answer: B
19. Balance of trade refers to
A. imports only
B. exports only
C. difference between exports and imports
D. total trade
Answer: C
20. Economic development involves
A. increase in population
B. increase in income and welfare
C. decrease in output
D. inflation
Answer: B
WAEC 2026 Economics Questions and Answers – May/June OBJ & Essay Questions and Answers
1. Define Economics and explain its basic problems.
Answer:
Economics is the study of how individuals and societies allocate scarce resources to satisfy unlimited wants.
Basic problems include:
- What to produce
- How to produce
- For whom to produce
2. Explain the law of demand.
Answer:
The law of demand states that quantity demanded decreases as price increases, ceteris paribus. Reasons include substitution effect and income effect.
3. Discuss factors affecting supply.
Answer:
- Cost of production
- Technology
- Government policy
- Number of producers
- Natural conditions
4. Explain types of market structures.
Answer:
- Perfect competition
- Monopoly
- Oligopoly
- Monopolistic competition
5. Define inflation and its causes.
Answer:
Inflation is a persistent rise in general price levels. Causes include:
- Excess money supply
- High demand
- Cost of production increase
6. Explain functions of money.
Answer:
- Medium of exchange
- Store of value
- Unit of account
- Standard of deferred payment
7. Differentiate between economic growth and development.
Answer:
Growth refers to increase in output, while development includes improvement in living standards.
8. Explain the role of central bank.
Answer:
- Controls money supply
- Issues currency
- Banker to government
- Regulates banks
9. Discuss unemployment and its types.
Answer:
- Structural
- Frictional
- Cyclical
- Seasonal
10. Explain opportunity cost with example.
Answer:
It is the value of the next best alternative forgone. Example: choosing school over work.
11. Explain price elasticity of demand.
Answer:
Measures responsiveness of demand to price changes.
12. Discuss taxation and its types.
Answer:
- Direct tax
- Indirect tax
13. Explain production and its factors.
Answer:
Production is creation of goods/services using land, labour, capital, and entrepreneur.
14. Define market and its functions.
Answer:
A market is where buyers and sellers interact. Functions include price determination and exchange.
15. Explain balance of payments.
Answer:
Record of all financial transactions between a country and others.
16. Discuss agriculture in economic development.
Answer:
- Provides food
- Employment
- Raw materials
17. Explain national income.
Answer:
Total value of goods and services produced in a country in a year.
18. Discuss privatization.
Answer:
Transfer of ownership from government to private sector.
19. Explain division of labour.
Answer:
Breaking production into smaller tasks for efficiency.
20. Discuss advantages of international trade.
Answer:
- Specialization
- Increased output
- Foreign exchange earnings
