2025 CBT WAEC GCE ECONOMICS QUESTIONS
2025 CBT WAEC GCE ECONOMICS QUESTIONS BELOW
2025 CBT WAEC GCE ECONOMICS ANSWERS BELOW
*WAEC-GCE-ECONOMIC*
(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.
*WAEC-GCE-ECONOMICS*
(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) Wholesalers: Wholesalers buy goods in large quantities from manufacturers and sell them in smaller quantities to retailers. They help in breaking bulk, providing storage, financing retailers through credit facilities, and making goods available across different regions.
(ii) Retailers: Retailers sell goods in small quantities directly to final consumers. They provide information to consumers, offer after-sales services, display goods attractively, make products easily accessible, and also give feedback from consumers to producers.
(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.
(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.
*WAEC-GCE-ECONOMICS*
(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.
*WAEC-GCE-ECONOMIC*
(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.
*WAEC-GCE-ECONOMICS*
(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.
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