WAEC Economics 2022 past questions

Checked by the Skolra question team · Last updated 23 October 2026

Ten questions from the 2022 WAEC Economics paper, with answers and explanations. We hold 57 questions from this paper, and the Skolra app has all of them.

WAEC Economics 2022 questions and answers

1. 1.

   Which of the following measures can lead to an increase in exports?

   1. A
      Devaluation of the domestic currency, making exports cheaper for foreign buyers
      Correct
   2. B
      Imposing high tariffs on imports to protect domestic industries from foreign competition
   3. C
      Raising domestic interest rates to attract foreign capital and strengthen the currency
   4. D
      Appreciation of the exchange rate to increase the purchasing power of domestic exporters
   Show answerHide answer

   Answer: A

   Currency devaluation reduces the external value of the domestic currency relative to foreign currencies. This means:

   • Domestic goods become cheaper in foreign currency terms → foreign buyers purchase more → exports rise.
   • Imports become more expensive in local currency → import substitution may occur.

   Other export-boosting measures include export subsidies, improving product quality, and reducing production costs.

2. 2.

   An argument for the use of commercial policy rests on the need to

   1. A
      Reduce the standard of living of domestic consumers by making all imports permanently more expensive
   2. B
      Protect infant industries that are not yet competitive enough to survive free international competition
      Correct
   3. C
      Increase the bargaining power of foreign exporters in accessing the domestic market
   4. D
      Eliminate domestic production entirely and rely on international trade for all goods and services
   Show answerHide answer

   Answer: B

   Commercial policy refers to government measures that regulate international trade — including tariffs, quotas, export subsidies, and exchange controls.

   Arguments for commercial policy (protectionism):

   • Infant industry argument: New domestic industries need temporary protection to develop scale and efficiency before competing globally.
   • Strategic industries: Some sectors (defence, food security) must be maintained domestically for national security.
   • Employment protection: Prevents job losses from cheap foreign competition.
   • Correcting balance of payments deficits: Reduces import spending.
   • Revenue generation: Tariffs raise government revenue.
3. 3.

   The use of mass advertising media enable a firm to enjoy

   1. A
      diminishing returns to scale
   2. B
      external economies of scale
   3. C
      internal economies of scale
      Correct
   4. D
      diseconomies of scale
   Show answerHide answer

   Answer: C

   Internal economies of scale are cost advantages that arise from within a firm as it grows. Commercial (marketing) economies are a classic type: a large firm can spread the high fixed cost of mass advertising across a greater volume of output, reducing the advertising cost per unit sold.

4. 4.

   A major characteristic of natural resources is that they

   1. A
      Are created entirely through the application of advanced capital and modern technology
   2. B
      Can be reproduced in unlimited quantities through sustained human effort and capital investment
   3. C
      Are available in equal amounts in every country, ensuring fair access to all nations
   4. D
      Are unevenly distributed across different regions and countries of the world
      Correct
   Show answerHide answer

   Answer: D

   Natural resources (also called land in economics) are gifts of nature — they include minerals, forests, rivers, fertile soil, and oil deposits. Their key characteristics include:

   • Uneven distribution: Some countries are richly endowed (e.g. Nigeria with oil; South Africa with minerals) while others have very little. This creates comparative advantages in trade.
   • Fixed supply: They cannot be manufactured or significantly reproduced by human effort.
   • Free gift of nature: Their original cost of creation is zero, though extraction costs exist.
   • Exhaustibility: Non-renewable resources (oil, coal) deplete with use.
5. 5.

   A benefit that is present in all forms of economic integration is that

   1. A
      All member states adopt a single currency, eliminating exchange rate risk entirely
   2. B
      All tariffs on trade with non-member countries are completely removed
   3. C
      Fiscal and monetary policies are fully unified and controlled by a single supranational authority
   4. D
      Trade barriers among member countries are reduced or eliminated, expanding the market for member goods
      Correct
   Show answerHide answer

   Answer: D

   Economic integration ranges from a Preferential Trade Area (lowest form) through a Free Trade Area, Customs Union, Common Market, up to a full Economic Union. What is common to all these forms is the reduction or removal of trade barriers — particularly tariffs and quotas — among participating member states.

   Benefits exclusive to higher forms only:

   • A common currency exists only in a monetary union (e.g. the Eurozone) — not in a simple free trade area.
   • A common external tariff exists only from a customs union upward.
   • Full unification of fiscal policy is limited to an economic/political union.
6. 6.

   (a) Explain the following types of taxes:
   specific tax
   value-added tax

   (b)(i) With the aid of diagrams, describe the effects of an indirect tax on a commodity when demand is:
   perfectly inelastic
   (ii) With the aid of diagrams, describe the effects of an indirect tax on a commodity when demand is:
   perfectly elastic

   1. A
      A progressive tax that increases in proportion to the consumer's income level
   2. B
      A fixed amount of tax charged only at the final stage of production on the total selling price
   3. C
      A tax levied at each stage of production on the value added at that stage, ultimately paid by the final consumer
      Correct
   4. D
      A tax charged solely on the producer's profit margin without affecting the consumer price
   Show answerHide answer

   Answer: C

   This question tests knowledge of two indirect taxes:

   Specific tax: A fixed monetary amount per unit of a commodity, regardless of its price (e.g. ₦50 per litre of fuel). The tax shifts the supply curve upward by the fixed tax amount.

7. 7.

   Which of the following factors is not a cause of change in demand? Changes in

   1. A
      the price of substitute goods
   2. B
      the price of the commodity itself
      Correct
   3. C
      consumer tastes and preferences
   4. D
      consumer income
   Show answerHide answer

   Answer: B

   In demand analysis, a change in demand refers to a shift of the entire demand curve, caused by factors other than the commodity's own price. Changes in income, tastes, and the prices of substitutes or complements all shift the demand curve.

   A change in the price of the commodity itself causes a movement along the existing demand curve — an extension or contraction of quantity demanded — not a change (shift) in demand.

8. 8.

   Development planning focuses mainly on

   1. A
      Day-to-day regulation of prices and quantities in competitive domestic markets
   2. B
      Long-term allocation of resources to achieve specific economic growth and development targets
      Correct
   3. C
      Short-term management of the money supply to control current inflationary pressures
   4. D
      Eliminating all forms of income tax to stimulate immediate private sector activity
   Show answerHide answer

   Answer: B

   Development planning is the deliberate government effort to direct the allocation of resources in an economy toward defined growth and welfare objectives over a medium to long-term period.

   It focuses on:

   • Setting production targets and growth rates (e.g. Nigeria's various National Development Plans).
   • Prioritising investment in infrastructure, education, health, and agriculture.
   • Reducing poverty and inequality through targeted programmes.
   • Mobilising domestic savings and attracting foreign capital for investment.
9. 9.

   Foreign investment and long term securities in the balance of payment accounts are recorded as

   1. A
      Current account entries under trade in services
   2. B
      Official reserves account entries managed by the central bank
   3. C
      Capital account (financial account) entries
      Correct
   4. D
      Current account entries under trade in goods
   Show answerHide answer

   Answer: C

   The Balance of Payments (BoP) has three main accounts:

   1. Current Account: Records trade in goods (visible trade), trade in services (invisible trade), income flows (salaries, dividends), and current transfers.
   2. Capital and Financial Account: Records flows of financial assets — including foreign direct investment (FDI), portfolio investment (shares, long-term bonds/securities), and loans. This is where foreign investment and long-term securities are recorded.
   3. Official Reserves Account: Changes in the central bank's holdings of foreign currencies and gold.
10. 10.

    (a) Distinguish between a:
    mortgage bank and a merchant bank
    commercial bank and a development bank
    (b) Explain any four functions of commercial banks

    1. A
       Both commercial and development banks offer identical financial services and are distinguished only by their ownership structure
    2. B
       Commercial banks accept short-term deposits and grant short-term loans, while development banks provide long-term finance for capital and infrastructure projects
       Correct
    3. C
       Commercial banks focus exclusively on long-term development loans while development banks accept short-term deposits from the public
    4. D
       Development banks are privately owned and profit-driven while commercial banks are government-owned and non-profit
    Show answerHide answer

    Answer: B

    Commercial banks vs Development banks:

    • Commercial banks accept deposits from the public, grant short-term loans, operate the payments system, and are profit-oriented (e.g. Access Bank, GTBank).
    • Development banks provide long-term finance for capital-intensive and developmental projects; they do not accept public deposits in the same way (e.g. Bank of Industry, African Development Bank).

The questions come from past JAMB, WAEC and NECO papers. We use software to help write the answer options and explanations, and every answer is checked twice before it goes on the site. How we check

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Practise all 57 questions we hold from the 2022 paper, on a timed CBT screen

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