April 23, 2024

GSTS WASSCE Economics Mock Questions

GSTS WASSCE economics mock questions

GSTS WASSCE economics mock questions

Ghana Secondary Technical School, GSTS, WASSCE Economics Mock Questions

Ghana Secondary Technical School WASSCE economics mock questions. GSTS is one of the top schools in the country. Candidates who answered GSTS WASSCE economics mock questions also passed the West African Secondary Schools Certificate Examination very well.


Paper 2. Written

Section A

Answer one question only from this section: GSTS WASSCE economics mock questions

1. The trade figures for a West African country in a given year are given below.

Study the table and use the information to answer the questions that follow

Items Amounts ($m)
Export of cocoa 200
Export of crude oil 950
Import of motor vehicles 250
Import of plant and machinery 450
Shipping services on exports 220
Shipping services on imports 180
Insurance paid on exports 45
Insurance paid on imports 60
Expenditure on foreign tours 140
Expenditure by foreign tourists 80
Grants to other countries 70
Grants received 300
Loans from abroad 550
Foreign private investment 200
Investment abroad 350



a. Balance of trade

b. Invisible trade

c. Current account balance

d. Capital account balance

f. Balance of payment


2. Use the table below to answer the following questions

Machines Workers Marginal Product
2 1 4
2 2 6
2 3 9
2 4 15
2 5 11
2 6 5
2 7 -1


a. Compute the total product for all levels of employment

b. Compute the average product for all levels of employment

c. At what level of employment does diminishing returns set in


Section B.

Answer three questions only from this section: GSTS WASSCE economics mock questions

3. a. State the law of diminishing returns

b. Explain each of the following as applicable to a variable factor

i. Increasing returns

ii. Decreasing returns

iii. Negative returns


4. a. Distinguish between geographical mobility of labour and occupational mobility of labour

b. Explain four factors that hinder mobility of labour


5. Account for the low productivity of farmers in your country


6. a. What is economic growth

b. Explain four sources of economic growth


7. a. What is inflation

b. How can the central bank control inflation in an economy


8. a. What is international trade

b. Explain four benefits of international trade to your country


Paper 1. Objectives

GSTS WASSCE economics mock questions

1. A joint stock company is owned by the

a. managing director b. board of directors c. government d. shareholders


2. Separation of ownership and control is possible in

a. partnership b. sole proprietorship c. public limited liability company d. co-operative societies


3. the reward which accrues to the investor is

a. shares, dividend c. wages d. commission


4. the distribution of goods and services is essentially the function of

a. banks and firms b. manufacturers and consumers c. wholesalers and retailers d. consumers and banks


5. the middleman provides a link between the

a. entrepreneur and labor b. producers and consumers

c. producers and exporters and exporters d. consumers and banks


GSTS WASSCE economics mock questions

6. Internal distribution of goods in Ghana is problematic because of

a. the frequency of advertisement b. price elasticity of the good

c. Too many middlemen d. the price mechanism


7. Which of the following is not essential for an effective distribution system in Ghana

a. Good transportation network b. good storage system c. skilled marketing personnel d. too many middlemen


8. In economics effective demand is the

a. goods producers offer to consumers in the market b. goods that are displayed to consumers

c. quantity of goods consumers want to buy d. willingness and ability to purchase goods at certain prices


9. The law of demand states that, all other things being equal,

a. income and demand are directly related b. taste and demand are inversely related

c. price and quantity demanded related inversely d. price and quantity demanded are directly related


10. One of the things held constant in stating the law of demand is the

a. price of commodity b. prices of other commodities c. quantity demanded of the commodity d. cost of production


GSTS WASSCE economics mock questions

11. The demand curve for a commodity is generally drawn on the assumption that

a. Technical knowledge remains constant b. prices of factors production do not fluctuate widely

c. taste, income and other prices remain constant d. the commodity has few substitutes


12. If price increase and the quantity sold decreases, then the relationship is

a. direct b. inverse c. close d. diverse


13. The downward slope of the demand curve for a product is the result of

a. increasing marginal utility b. diminishing marginal utility

c. increasing marginal cost d. diminishing marginal productivity


14. Consumers adjustment to relative price changes are termed

a. income effect b. wealth effect c. substitution effect d. demonstration effect


15. Given the demand function Qd = 35 – 8P, what is the quantity demanded when the price is Ghc3

a. 27 b. 12 c. 11. d. 9


GSTS WASSCE economics mock questions

16. The fall in the price of a good causes the poor to buy less of such good. this is

a. a refutation of the law of demand b. a confirmation of consumer behaviour

c. an exception to the law of demand d. the basic law of consumer behaviour


17. If a fall in the price of a commodity leads to a decrease in quantity demanded, that commodity

a. has many substitutes b. has many complements c. is a giffen good d. is a normal good


18. If a rise in the price of a good leads to a decrease in quantity demanded, then the good

a. has close substitutes b. is very expensive c. is very inferior d. is normal


19. the demand for labour is normally considered as a

a. derived demand b. competitive demand c. composite demand d. complementary demand


20. as the price of good X rises, more of good Y is bought. This illustrates

a. competitive demand b. joint demand c. derived demand d. composite demand


GSTS WASSCE economics mock questions

21. The demand for car and fuel is a. competitive b. derived c. composite d. joint


22. Goods for which demand is directly related to income are called

a. substitute goods b. complementary goods c. inferior goods d. normal goods


23. if kenkey is an inferior good, then

a. more of it will be bought as income rises b. only the poor will consume it

c. more of it will be bought as price falls d. less of it will be bought as income rises


24. change in quantity demanded implies a

a. shift in demand curve to the right b. shift in demand curve to the lelf

c. movement along the same demand curve d. a fall in price and quantity demanded


25. If the demand and supply functions of a fir are given by, Qd = 200 – 0.25P and Qs = 80 + 0.15P, where Qd is quantity demanded and Qs is quantity supplied

a. determine the

i. market equilibrium price ii. market equilibrium quantity

b. calculate the quantity demanded and supplied when the price is

i. $400.00 ii. $500.00 iii. $600.00


GSTS WASSCE economics mock questions

26. Government controlled price to protect consumers is fixed

a. above the equilibrium b. at the equilibrium c. below the equilibrium d. outside the equilibrium


27. If the cross price elasticity between two goods is positive, the two goods can be said to be

a. substitutes, b. complements c. normal goods d. inferior goods


28. Use the table on demand supply schedules of a commodity below to answer questions

Quantity supplied 140 160 180 200 200 240
Price $ 40 60 55 60 70 75
Quantity demanded 240 200 180 150 130 100

The equilibrium price is a. 50 b. 55 c. 60 d. 70


29. When the unit price is $75

a. quantity supplied equal quantity demanded b. excess demand is 100 units

c. excess supply is 140 units d. quantity supplied is less than quantity demanded


30. If the market price is $70, market forces will cause it to

a. fall back to the equilibrium b. remain constant c. rise to the equilibrium d. fluctuate indefinitely


GSTS WASSCE economics mock questions

31. Which of the following cost declines continuously as output increases

a. total cost b. average cost c. average fixed cost d. average variable cost


32. If a rise in the price of a good leads to a decrease in quantity  demanded, then the good

a. has close substitutes b. is very expensive c. is very inferior d. is normal


33. The condition for a perfect market will be violated if

a. the product sold has ready substitutes b. the product of the industry can be branded

c. there are too many buyers and sellers d. the exit or entry of sellers cannot affect the price


34. Under perfect competition, a firm that attempts to increase price above equilibrium would

a. increase profit b. the product of the industry can be branded

c. there are too many buyers and sellers d. the exit or entry of sellers cannot affect the prices


35. the period of time that does not permit an increase in supply of a firms output is the

a. seasonal period b. short run c. long run d. market period


GSTS WASSCE economics mock questions

36. A production function shows the relationship between

a. inputs and outputs b. output and prices c. inputs and prices d. outputs and profits


37. In economics, cost is considered in terms of

a. opportunity costs b. implicit cost c. marginal costs d. variable costs


38. The cost of raw materials is part of a firms

a. variable costs b. average fixed costs c. average costs d. marginal costs


39. All the following are features of a perfect market except

a. a large number of sellers and buyers in the market

b. homogeneity of product sold in the market

c. free entry into and exit from the market

d. free entry into but no free exit from the market


40. The components of a three sector economy are

a. banks, schools and hospitals b. workers, producers and marketers

c. household, firms and governments d. producers, retailers and wholesaler


GSTS WASSCE economics mock questions

41. Money is a legal tender when it is a. durable b. divisible c. issued by the state d. supported by traditions


42. Inflation is likely to go up when government

a. increases import tariffs b. reduces its spending c. increases income tax d. freezes wages and salaries


43. Which of the following is a money market institution

a. commercial bank b. the stock exchange c. insurance companies d. building society


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