WAEC GCE 2025 ECONOMICS ANSWER



WAEC GCE ECONOMIC OBJ

NOTE:
Pls kindly trace it from your system. The options are being reshuffled. You might see number 1 as any number, so trace and be fast. You might also see option A as option C, B or D. Just use the answers in words and and trace properly. Kindly Trace it carefully to avoid errors!!!!

1: (D) a reduction in the contribution of agriculture to the national income.

2: (C) buying in bulk from the producers.

3: (D) subtracting depreciation allowance from Gross National Income (GNI).

4: (C) is parallel to the x-axis

5: (B) everyone in the society cannot have all the quantities they want.

6: (D) quota

7: (D) decreases

8: (D) there is a rise in birth rate and fall in death rate.

9: (C) gold

10: (C) subsidize the production of goods.

11; (C) gross domestic product at factor cost

12; (C) shift to the right

13; (C) internal economies of scale

14; (C) the number of producers of a commodity.

15; (D) Fixed cost is spread over more units of output

16; (B) a limited partner

17; (B) establishment of agro-processing industries.

18; (B) increasing workers' productivity.

19; (A) High intrinsic value

20; (B) enjoy the benefits of international trade.


21: (D) the rigorous procedures involved in its formation.

22: (D) a leftward shift of its demand curve.

23: (C) remain unchanged

24: (A) undertake effective planning.

25: (A) Acting as lender of last resort

26: (B) an increase in company profit tax.

27: (C) embark on massive infrastructural development.

28: (D) complementary supply.

29: (D) composite demand

30: (D) industrialization.


31: (c) is not a true representation of all the data.

32: (c) rate at which the Central Bank discounts commercial banks' bills of exchange.

33: (a) short run

34: (c) of instability in politics and policies of governments.

35: (b) derived demand.

36: (C) inferior.

37: (D) fixed inputs exceed variable inputs.

38: (a) technological utilization is low.

39: (c) beverages manufactured by local firms.

40: (a) supply of labour for the job.


41: (d) Prices are regulated

42: (D) finance their budget deficit

43: (a) personal income tax.

44: (a) buyers and sellers must be in close communication.

45: (C) Soft beverage

46: (B) Reduction in bank's lending to the producer

47: (c) articles of association

48: (C) value in monetary terms of final output less inputs used.

49: (C) cyclical unemployment

50: (b) communal system of land ownership.


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(1)


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(2)



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(3a)
A capitalist economic system is one where private individuals or entities own and control property and the means of production, and where market forces like supply and demand determine prices and resource allocation.

(3b)
(i)Economic Freedom and Choice: Capitalism emphasizes freedom for individuals to choose what to consume, produce, and invest in. This consumer choice and economic freedom are often seen as advantages over a state-controlled, centrally planned socialist economy.
(ii)Economic Growth and Efficiency: The system encourages competition and self-interest, which can lead to greater innovation, efficiency, and overall economic growth. The drive for profit and market competition incentivizes businesses to be more productive and responsive to consumer demand.
(iii)Limited Government Intervention: Capitalism typically involves a limited role for the government, primarily to protect private property rights and ensure an orderly market environment. This can lead to lower taxes and fewer bureaucratic hurdles compared to some socialist systems where the government has a much larger, more controlling role.

(3c)
(i)Addressing Inequality: Pure capitalism can lead to significant wealth concentration and inequality. A mixed economy uses government policies, such as progressive taxation and social welfare programs (e.g., unemployment benefits, public healthcare), to redistribute wealth and provide a social safety net, addressing some of the negative impacts of inequality.
(ii)Providing Public Goods and Regulation: Capitalism, left unregulated, can result in market failures and a lack of public goods (like infrastructure or environmental protection). A mixed economy allows for government intervention and regulation to provide these essential services, protect consumers and the environment, and stabilize the economy.

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(4a)
Hoarding is the practice of accumulating and storing large quantities of goods, often to create artificial scarcity and drive up prices, while rationing is a government-imposed policy of controlling the distribution and limiting the amount of goods each person can purchase, typically during times of shortage.

(4b)
(i)Wholesaler:
(i)Buys goods in large quantities directly from manufacturers or producers.
(ii)Breaks down bulk purchases into smaller, manageable quantities for retailers.
(iii)Provides storage facilities (warehousing) for goods until they are needed by retailers.
(iv)Offers transportation services to deliver goods to various retailers.
(v)Provides market information to manufacturers about demand, prices, and competition.

(ii)Retailer:
(i)Sells goods in small quantities directly to the final consumer.
(ii)Provides a wide variety of goods from different manufacturers in one place.
(iii)Offers after-sales services such as delivery, installation, and repairs.
(iv)Provides credit facilities to regular customers.
(v)Helps in promoting new products through displays and personal selling.

(4c)
(i)Inadequate Infrastructure
Poor infrastructure, such as bad road networks, limited access to ports, and unreliable power supply, significantly hinders the efficient movement and storage of goods. This can lead to frequent transportation delays, increased wear and tear on vehicles, and an inability to access remote areas, ultimately slowing down the entire supply chain process.
(ii)High Transportation Costs
Transportation expenses often account for a large portion of a product's final price. Inefficient routes, a lack of fuel-efficient vehicles, and rising fuel prices contribute to these high costs. These expenses make goods less affordable for consumers and reduce profit margins for businesses, especially for small-scale producers with limited access to cost-effective logistics.
(iii)Inefficient Inventory Management
Balancing inventory levels is a critical challenge. Inaccurate demand forecasting can lead to either overstocking (which increases storage costs) or understocking (which results in product shortages and lost sales). Without proper systems, human error in tracking stock levels can create discrepancies and operational disruptions, making it difficult to meet customer demand reliably.
(iv)Lack of Supply Chain Visibility
Many distribution systems lack real-time visibility and information sharing among all stakeholders, from suppliers to customers. This makes it difficult to track shipments, anticipate potential disruptions (like vehicle breakdowns or port congestion), and manage the flow of goods effectively. The absence of a clear, end-to-end view of the supply chain leads to communication breakdowns, misaligned expectations, and an inability to respond quickly to problems.

(4c)
(i)Inadequate Infrastructure
Poor infrastructure, such as bad road networks, limited access to ports, and unreliable power supply, significantly hinders the efficient movement and storage of goods. This can lead to frequent transportation delays, increased wear and tear on vehicles, and an inability to access remote areas, ultimately slowing down the entire supply chain process.
(ii)High Transportation Costs
Transportation expenses often account for a large portion of a product's final price. Inefficient routes, a lack of fuel-efficient vehicles, and rising fuel prices contribute to these high costs. These expenses make goods less affordable for consumers and reduce profit margins for businesses, especially for small-scale producers with limited access to cost-effective logistics.
(iii)Inefficient Inventory Management
Balancing inventory levels is a critical challenge. Inaccurate demand forecasting can lead to either overstocking (which increases storage costs) or understocking (which results in product shortages and lost sales). Without proper systems, human error in tracking stock levels can create discrepancies and operational disruptions, making it difficult to meet customer demand reliably.
(iv)Lack of Supply Chain Visibility
Many distribution systems lack real-time visibility and information sharing among all stakeholders, from suppliers to customers. This makes it difficult to track shipments, anticipate potential disruptions (like vehicle breakdowns or port congestion), and manage the flow of goods effectively. The absence of a clear, end-to-end view of the supply chain leads to communication breakdowns, misaligned expectations, and an inability to respond quickly to problems.

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(5a)
(i) Food crop farming involves the cultivation of crops mainly for direct human consumption, while cash crop farming involves growing crops primarily for sale and export to generate income.
(ii) Food crops such as maize, yam, cassava and vegetables are produced mainly to feed the local population, while cash crops like cocoa, rubber, cotton and oil palm are produced mainly for industrial use and foreign exchange.
(iii) Food crop farming is usually practiced on small to medium-size farms, while cash crop farming is often practiced on large-scale commercial farms.
(iv) Food crop farming generally requires less capital and technology, while cash crop farming typically requires higher capital investment, machinery and modern inputs.


(5b)
(i) Use of modern machines such as tractors and harvesters.
(ii) Large expanse of land is cultivated.
(iii) High capital investment is required.
(iv) Production is carried out on a commercial scale.

(5c)
(i) Supply of farm inputs and machinery: The industrial sector manufactures fertilizers, pesticides, tractors, ploughs, irrigation equipment and other implements that enhance farm productivity.

(ii) Development of storage and preservation technologies: Industries produce silos, cold rooms, refrigerators, drying machines and packaging materials that help preserve agricultural products and stabilize food supply.

(iii) Creation of markets for agricultural products: Agro-based industries increase demand for raw materials such as cocoa, cotton, cassava, milk and oil seeds, thus encouraging farmers to increase production.

(iv) Employment generation for rural communities: The industrial sector creates jobs in processing plants, transport, marketing and equipment maintenance, raising rural income and supporting agricultural expansion.

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(6a)
(i) Low per capita income: Underdeveloped countries have very low income levels, meaning the average citizen earns little and struggles to meet basic needs. This results in widespread poverty, poor living standards and limited savings for investment.

(ii) High population growth rate: These countries often have high birth rates combined with declining death rates. The rapid population growth places pressure on existing social services, food supply, housing, education and employment, making development slower.

(iii) Heavy dependence on agriculture: A large proportion of the population is engaged in subsistence agriculture using crude tools and outdated methods. This dependence on primary production makes the economy vulnerable to climate shocks and global price fluctuations.

(iv) Poor industrial and technological development: Underdeveloped countries typically have weak industrial sectors, limited technological innovation and low productivity. Industries are few, small in scale and often rely on imported machinery, which slows economic transformation.


(6b)
(i) Taxation: The government can raise revenue through direct taxes (income tax, company tax) and indirect taxes (VAT, customs duties) to fund development projects.

(ii) Foreign loans and grants: Countries can obtain financial assistance from international bodies such as the World Bank, IMF, donor agencies and friendly nations to support development programmes.

(iii) Public borrowing: The government may raise funds internally by issuing treasury bills, bonds or borrowing from local banks and non-bank financial institutions.

(iv) Savings from export earnings: Revenue generated from exporting goods such as oil, cocoa, minerals or manufactured products can be used to finance national development plans.

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(7a)
An economic union is a type of trade bloc that is composed of a customs union and a common market.

(7b)
(i)Primary Function: The World Bank focuses on long-term economic development and poverty reduction, primarily by funding specific infrastructure projects and providing technical assistance. The IMF, conversely, focuses on short-term macroeconomic stability, primarily by providing loans to countries experiencing balance of payments difficulties or financial crises.
(ii)Target Recipients: The World Bank lends primarily to developing countries for development projects. The IMF provides financial assistance to any member country facing a balance of payments crisis, regardless of their development status.
(iii)Funding Sources: The World Bank is funded through member country contributions, the issuance of bonds in capital markets, and its own investment returns. The IMF is primarily funded by quotas (contributions) paid by its member countries.

(7c)
(i)Providing financial assistance: The IMF offers loans to member countries facing balance of payments problems, which helps them stabilize their economies and restore sustainable economic growth.
(ii)Facilitating international trade: By promoting exchange rate stability and providing a forum for monetary cooperation, the IMF helps to create a stable global financial system that is conducive to the expansion of international trade.
(iii)Offering policy advice and technical assistance: The IMF provides expert advice and capacity building support to help countries design and implement sound economic policies, which can improve economic management and foster long-term development.
(iv)Monitoring the global economy: The IMF monitors the economic and financial policies of its member countries and the global economic outlook, identifying potential risks and recommending preventative measures to avoid financial crises.

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(8a)
Solid mineral resources are naturally occurring inorganic substances found in the earth’s crust in solid form, such as gold, limestone, coal, tin, iron ore and gypsum, which have economic value and can be mined for industrial and commercial use.


(8b)
(i) Source of revenue and foreign exchange: Minerals exported to other countries generate income for the government through taxes, royalties and export earnings, helping to fund national development.

(ii) Industrial development: Mineral resources provide raw materials for industries such as cement (limestone), steel (iron ore), energy (coal), and electronics (tin), thereby promoting industrial growth.

(iii) Employment opportunities: Mining activities create jobs for geologists, engineers, miners, transporters and other workers, reducing unemployment and improving household income.


(8c)
(i) Provision of incentives to local industries: Government can offer tax holidays, reduced import duties on equipment, and financial grants to companies that invest in mineral processing plants.

(ii) Development of infrastructure: Building reliable electricity supply, good roads, water systems and transport networks reduces production costs, making local processing more attractive to investors.

(iii) Establishment of favourable policies and regulations: Government can create laws that restrict the export of unprocessed minerals, while promoting value addition by supporting research, training, and local technology development.