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

 

Calculate

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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