2026 WAEC
WEDNESDAY 17tH June 2026
ECONOMICS
Exam Pluto
PIN: 3222
Click here to refresh for new updates
ECONOMICS QUESTIONS AND ANSWERS POSTED BELOW
1-10- BBBCC CBBAD
11-20- CCBCC CCBAD
21-30- BBBDC CCACD
31-40- DBADB ACCBB
41-50- DCADA DBBAB
Ticked on question paper below
41-50 image at the bottom part
Completed Enjoy
(1a)
(i) Point of saturation (MU = 0): Qx = 6 units
(ii) MU declining but positive (MU between 8 and 0): Qx = 1 to 5 units
(iii) TU decreasing (when MU is negative): Qx = 7 units and beyond
(iv) TU at maximum (when MU = 0): Qx = 6 units
(1b)
(i)Law of Diminishing Marginal Utility
(ii)Law of Consumer Equilibrium
(1ci)
Consuming 1 unit of X: MU = 8 > Price ($4) → Consumer should increase consumption since they're getting more utility than they're paying. They are NOT in equilibrium yet.
(1cii)
Consuming 4 units of X: MU = 4 = Price ($4) → Consumer is at equilibrium. They should maintain this level of consumption as MU equals the price paid.
Question 2
*2026 WAEC ECONOMICS ANSWERS*
(3a)
(i)Helps rank wants from most to least urgent
(ii)Guides rational decision-making with limited income
(iii)Helps avoid wasteful spending
(iv)Ensures maximum satisfaction from scarce resources
(3b)
(i)Scarcity; helps producer allocate limited resources efficiently
(ii)Supply & Demand; helps determine optimal production levels and pricing
(iii)Opportunity cost; helps make better investment decisions
(iv)Elasticity; helps set prices to maximize revenue
(v)Production costs; helps minimize costs and maximize profit
(vi)Market structures; helps understand competition and positioning
(vii)Marginal analysis; helps decide how much extra to produce
(viii)Consumer behavior; helps tailor products to meet demand.
(3c)
(i)Fall in cost of production; lower input costs allow more supply
(ii)Improvement in technology; increases productivity and output
(iii)Favorable government policies ; subsidies reduce costs, boosting supply
(iv)Increase in number of producers; more firms enter the market
*WAEC ECONOMICS THEORY*
*NUMBER 4 VERSION 2*
(4ai)
Consumer goods and Producer goods
-Consumer Goods: Products bought by individuals for direct consumption to satisfy personal wants.
Example: Bread, clothes, television sets.
-Producer Goods: Goods used by businesses to produce other goods and services rather than for final consumption.
Example: Industrial machinery, raw cotton, delivery trucks.
(4aii)
Primary production and Tertiary production
-Primary Production: The extraction of raw materials directly from nature.
Example: Mining, farming, fishing.
-Tertiary Production: The provision of commercial, professional, or personal services to distribute goods and assist consumers.
Example: Banking, teaching, transportation.
(4b)
(i)Fixed capital: Durable capital assets that are used repeatedly in production over a long period and do not change form easily.
Example: Factory buildings, heavy machinery.
(ii) Working capital: Short-term assets used in daily business operations to cover running expenses and turn around quickly.
Example: Cash in hand, raw materials.
(iii) Social capital: Assets provided by the society or government that facilitate economic activities but are not owned by a single private entity.
Example: Public roads, electricity grids, public schools.
Number 4 version 1
*WAEC 2026 - ECONOMICS*
Version 3
(4ai)
(PICK ANY ONE)
Consumer goods are goods and services purchased by individuals and households for direct use in satisfying their wants. They are final goods which are not meant for further production but are consumed directly by the users to obtain satisfaction. Examples of consumer goods include bread, clothes, shoes and television sets. In the other hand, Producer goods are goods used in the production of other goods and services. They are not purchased for direct consumption but are acquired by producers to aid and facilitate the production process. Examples of producer goods include machines, tractors, factory equipment and tools.
OR
Consumer goods are final goods acquired by consumers for personal use and immediate satisfaction of their needs and wants. Such goods are used directly by the consumers and are not intended to assist in the production of other goods and services. Examples include bread, clothes, shoes and television sets. Meanwhile, Producer goods are capital goods purchased by firms and producers for the purpose of producing other goods and services. These goods help to increase productivity and efficiency in production rather than providing direct satisfaction to consumers. Examples include machines, tractors, factory equipment and tools.
(4aii)
(PICK ANY ONE)
Primary production refers to economic activities that involve the extraction, cultivation or exploitation of natural resources directly from the environment. It is the first stage of production and provides raw materials for other sectors of the economy. Examples include farming, fishing, forestry and mining.
In the other hand, Tertiary production refers to economic activities concerned with the provision of services rather than the production of tangible goods. These services facilitate production, distribution and consumption and contribute significantly to economic development. Examples include banking, transportation, insurance and communication.
OR
Primary production is the process through which man obtains raw materials directly from nature for further production and consumption. It involves activities that make use of land and natural resources to produce goods needed by industries and consumers. Examples include farming, fishing, forestry and mining.
Tertiary production involves the rendering of services to individuals, firms and governments to support economic activities and improve efficiency in the economy. It does not involve the production of physical goods but focuses on providing essential services. Examples include banking, transportation, insurance and communication.
(4bi)
(PICK ANY ONE)
Fixed capital refers to durable assets that are used repeatedly in the production process over a long period of time. These assets are not completely used up in one production cycle and continue to assist production for many years. Examples include factory buildings, machinery, vehicles and generators.
OR
Fixed capital is the portion of capital invested in long-lasting assets that help in the production of goods and services. Such assets remain in the business for a long period and are used continuously without being consumed immediately. Examples include factory buildings, machinery, vehicles and generators.
(4bii)
(PICK ANY ONE)
Working capital refers to the capital used for the day-to-day running of a business. It consists of assets that are regularly used up and replaced during the production process to ensure the smooth operation of the business. Examples include cash, raw materials, fuel and stock of goods.
OR
Working capital is the capital available for meeting the short-term operational needs of a business enterprise. It comprises resources that are constantly consumed and replenished in the course of production and distribution. Examples include cash, raw materials, fuel and stock of goods.
(4biii)
(PICK ANY ONE)
Social capital refers to the basic infrastructure and public facilities provided by the government or society to support production and improve the welfare of the people. These facilities create an enabling environment for economic activities and national development. Examples include roads, electricity supply, water supply, schools and hospitals.
OR
Social capital consists of social overhead facilities and amenities provided for the benefit of the entire society. These facilities assist production, promote economic growth and improve the standard of living of the people. Examples include roads, electricity supply, water supply, schools and hospitals.
NUMBER 5
*WAEC ECONOMICS*
*NUMBER SIX*
(6a)
Industrialization is the process by which a country develops its industries through the establishment and expansion of manufacturing and other industrial activities, leading to increased production of goods and services.
(6b)
Location of industry refers to the siting or establishment of a particular industry in a specific place based on factors such as availability of raw materials, labour, market, power supply, and transportation. WHILE Localization of industry refers to the concentration of many firms producing the same or similar products in a particular area or region, resulting in the growth of an industrial cluster.
(6ci)
A sawmill should be located near a forest or timber-producing area.
=Reason=
(i) To ensure easy access to logs and timber.
(ii) To reduce the cost of transporting bulky raw materials.
(iii) To minimize wastage and damage during transportation.
(iv) To ensure continuous supply of raw materials for production.
(6cii)
A ceramic tile producing factory should be located near deposits of clay and other ceramic raw materials.
=Reasons=
(i) Clay is the major raw material used in tile production.
(ii) Transportation cost of heavy raw materials is reduced.
(iii) Constant supply of raw materials is guaranteed.
(iv) Production costs are lowered, increasing profitability.
(6ciii)
An egg-producing poultry farm should be located close to a large urban market.
=Reasons=
(i) Eggs are highly perishable and require quick distribution.
(ii) Transportation costs to consumers are reduced.
(iii) A large market ensures steady demand and sales.
(iv) Fresh eggs can reach consumers promptly, reducing spoilage.
*WAEC ECONOMICS*
*NUMBER SEVEN*
(7a)
Economic growth refers to the increase in the value of goods and services produced in an economy, usually measured by GDP. In Country X, GDP increased from $50 billion to over $100 billion, showing that economic growth occurred.
*WHILE*
Economic development, on the other hand, involves improvements in the welfare and quality of life of the people through better income, education, healthcare, and employment opportunities. Although Country X experienced economic growth, economic development was limited because poverty remained high, unemployment was high, and living standards did not improve significantly.
(7b)
Economic growth can improve the standard of living by increasing national income, creating employment opportunities, and providing more resources for social services such as education and healthcare.
However, in Country X, despite the growth in GDP, the standard of living remained low because per capita income was only $1,850, poverty affected 37% of the population, and unemployment stood at 23%. This suggests that the benefits of economic growth were not widely distributed among the citizens. As a result, many people did not experience significant improvements in their living conditions despite the country's economic growth.
(7c)
(PICK ANY FOUR)
(i) Inadequate funding: The government may not have provided enough money to finance the projects and programmes contained in the economic plan.
(ii) Corruption and embezzlement: Funds meant for implementing the plan may have been diverted for personal use by public officials.
(iii) Poor planning: The objectives and strategies of the plan may not have been properly designed, making implementation difficult.
(iv) Lack of skilled manpower: There may have been an insufficient number of qualified personnel to execute and manage the projects effectively.
(v) Political instability: Changes in government or political conflicts may have disrupted the continuity of the economic plan.
(vi) Poor infrastructure: Inadequate electricity, roads, water supply, and communication facilities may have hindered the successful execution of projects.
(vii) Weak monitoring and supervision: Lack of proper oversight may have led to delays, inefficiency, and abandonment of projects.
(viii) Rapid population growth: The increase in population may have outpaced the benefits of the economic plan, making it difficult to improve the welfare of citizens.
*WAEC ECONOMICS*
*NUMBER EIGHT*
(8ai)
Import quotas are quantitative restrictions imposed by the government on the amount or value of specific goods that may be imported into a country within a given period. Under this system, only a fixed quantity of a commodity is allowed into the country. The main purpose of import quotas is to protect domestic industries from excessive foreign competition, conserve foreign exchange, and encourage the consumption of locally produced goods.
(8aii)
An embargo is a government policy that completely prohibits the importation or exportation of certain goods or all goods to and from a particular country. It is usually imposed for political, economic, security, or health reasons. An embargo may be used as a means of exerting pressure on another country or protecting national interests.
(8aiii)
Import licences are official documents or permits issued by the government that authorize individuals, firms, or organizations to import specified goods into a country. Before certain goods can be imported, the importer must obtain approval from the relevant government authority. Import licensing helps the government regulate imports, control the use of foreign exchange, and prevent the entry of prohibited or harmful goods.
(8aiv)
Foreign exchange control refers to the measures and regulations introduced by the government or central bank to supervise and regulate the purchase, sale, and use of foreign currencies. Under this system, individuals and businesses may require official approval before obtaining foreign exchange for international transactions. The objective is to conserve scarce foreign exchange resources, maintain stability in the exchange rate, and ensure that foreign currencies are used for essential economic activities.
(8b)
(PICK ANY FOUR)
(i) Provision of export subsidies to exporters.
(ii) Granting tax reliefs and incentives to exporting firms.
(iii) Improvement of transportation and communication facilities.
(iv) Provision of adequate credit and loans to exporters.
(v) Establishment of export promotion agencies.
(vi) Improvement in the quality and standard of export products.
(vii) Participation in international trade fairs and exhibitions.
(viii) Reduction of bureaucratic procedures involved in exportation.
