Economics Mock 2026

WASSCE style · Study mode

Economics Mock 2026

Question 1 of 50

The basic economic problem arises because of

A. unlimited resources B. scarcity of resources C. government policy D. high prices

Question 2 of 50

Opportunity cost is best defined as

A. the money cost of a good B. the alternative forgone C. the cost of production D. the price of a substitute

Question 3 of 50

When the price of a normal good falls, other things being equal, quantity demanded will

A. fall B. rise C. remain constant D. become zero

Question 4 of 50

A persistent general rise in the price level is known as

A. deflation B. inflation C. devaluation D. recession

Question 5 of 50

The central bank of Ghana is the

A. Ghana Commercial Bank B. Bank of Ghana C. National Investment Bank D. Agricultural Development Bank

Question 6 of 50

Economics is best described as the study of

A. how to make money B. how scarce resources are allocated to satisfy unlimited wants C. government only D. banking and finance only

Question 7 of 50

Which of the following is an example of a free good?

A. water from a tap B. air C. bread D. electricity

Question 8 of 50

The reward for land as a factor of production is

A. wages B. interest C. rent D. profit

Question 9 of 50

The factor of production that bears risk and organises the others is the

A. labour B. capital C. entrepreneur D. land

Question 10 of 50

Goods that are used together, such as cars and petrol, are called

A. substitutes B. complements C. inferior goods D. Giffen goods

Question 11 of 50

Which of the following is a factor of production?

A. money B. land C. profit D. interest

Question 12 of 50

A production possibility curve shows

A. the prices of goods B. the combinations of two goods that can be produced with given resources C. the demand for a good D. the profit of a firm

Question 13 of 50

A change in demand (a shift of the demand curve) can be caused by a change in

A. the price of the good itself B. consumers' income C. the quantity supplied D. the cost of production

Question 14 of 50

If the price of tea rises and the demand for coffee increases, tea and coffee are

A. complements B. substitutes C. inferior goods D. normal goods

Question 15 of 50

Demand for a good is price inelastic when

A. a small price change causes a large change in quantity demanded B. the good has many close substitutes C. quantity demanded changes by a smaller percentage than price D. elasticity is greater than 1

Question 16 of 50

The price of a good rises from GH₵ 10 to GH₵ 12 and quantity demanded falls from 100 to 80 units. Find the price elasticity of demand.

A. 0.5 B. 1 C. 1.5 D. 2

Question 17 of 50

A maximum price fixed by the government below the equilibrium price leads to

A. a surplus B. a shortage C. no change D. falling demand

Question 18 of 50

The law of diminishing returns states that as more units of a variable factor are added to a fixed factor, the

A. total product always falls B. fixed cost rises C. average cost always rises D. marginal product eventually falls

Question 19 of 50

To reduce inflation, the central bank is most likely to

A. lower interest rates B. reduce reserve requirements C. print more money D. raise the policy rate

Question 20 of 50

The theory that countries should specialise in goods they can produce at a lower opportunity cost is the theory of

A. absolute advantage B. diminishing returns C. demand D. comparative advantage

Question 21 of 50

Devaluation of a country's currency makes its exports

A. more expensive abroad B. illegal C. unchanged in price D. cheaper abroad

Question 22 of 50

The optimum population is the population size at which

A. the death rate is zero B. the birth rate is highest C. output per head is highest D. everyone is a farmer

Question 23 of 50

A consumer gets the most satisfaction from a budget when

A. total utility is zero B. all money is spent on one good C. the marginal utility per cedi is equal for all goods D. the cheapest goods are bought

Question 24 of 50

Demand is Qd = 100 − 2P and supply is Qs = 20 + 2P. What is the equilibrium price?

A. 40 B. 20 C. 60 D. 10

Question 25 of 50

A firm maximises profit where

A. price is highest B. total cost is lowest C. marginal revenue equals marginal cost D. average cost is zero

Question 26 of 50

The Consumer Price Index rises from 110 to 120. What is the rate of inflation?

A. 120% B. 10% C. 12% D. about 9.1%

Question 27 of 50

The price of a good rises from GH¢10 to GH¢12, and quantity demanded falls from 100 to 80. What is the price elasticity of demand?

A. −1 (unitary) B. −0.5 C. −2 D. 0

Question 28 of 50

An inferior good has an income elasticity of demand that is

A. negative B. positive C. zero D. infinite

Question 29 of 50

Two goods with a positive cross elasticity of demand are

A. substitutes B. complements C. unrelated D. inferior goods

Question 30 of 50

A legal minimum wage set above the market wage is an example of

A. a price floor B. a price ceiling C. a subsidy D. a tariff

Question 31 of 50

A Giffen good is one whose demand

A. is perfectly elastic B. never changes C. falls when income falls D. rises when its price rises

Question 32 of 50

When total revenue rises as price falls, demand is

A. unitary B. inelastic C. elastic D. perfectly inelastic

Question 33 of 50

A monopolist can control either the price or the

A. consumers' income B. demand curve C. quantity sold D. cost of rivals

Question 34 of 50

A kinked demand curve is associated with

A. monopoly B. perfect competition C. oligopoly D. barter

Question 35 of 50

The terms of trade compare a country's

A. export prices with its import prices B. exports with GDP C. taxes with spending D. population with output

Question 36 of 50

The price of a good rises from GH¢10 to GH¢12 and quantity demanded falls from 100 to 80 units. The price elasticity of demand is

A. 0.2 B. 0.5 C. 2.0 D. 1.0 (unitary)

Question 37 of 50

If demand is price inelastic, a rise in price will

A. reduce total revenue B. increase total revenue C. leave revenue unchanged D. make revenue zero

Question 38 of 50

A rise in the price of tea leads to a rise in demand for coffee. The cross elasticity is

A. infinite B. negative, showing complements C. zero D. positive, showing substitutes

Question 39 of 50

Income rises by 10% and demand for a good falls by 5%. The good is

A. normal B. inferior C. luxury D. Giffen only

Question 40 of 50

In the short run, average fixed cost

A. is constant B. rises as output rises C. falls continuously as output rises D. is U-shaped

Question 41 of 50

The marginal cost curve cuts the average cost curve at

A. no point B. its maximum C. the origin D. the minimum point of average cost

Question 42 of 50

In the long run, firms in perfect competition earn

A. supernormal profit B. only normal profit C. losses D. no revenue

Question 43 of 50

A tax on a good with perfectly inelastic demand is borne

A. equally by both B. entirely by producers C. entirely by consumers D. by the government

Question 44 of 50

A Giffen good is one for which

A. demand is perfectly elastic B. demand falls with income C. quantity demanded rises when price rises D. supply is fixed

Question 45 of 50

The point where average product equals marginal product is where

A. total product is zero B. average product is at its maximum C. marginal product is negative D. average product is minimum

Question 46 of 50

A natural monopoly arises when

A. the government bans trade B. there are many sellers C. economies of scale make one firm most efficient D. demand is zero

Question 47 of 50

A monopolist practises price discrimination successfully only if

A. there is perfect information B. goods are identical everywhere C. resale is easy D. markets can be separated and elasticities differ

Question 48 of 50

GDP at market prices minus indirect taxes plus subsidies gives GDP at

A. constant prices B. factor cost C. current prices D. net value

Question 49 of 50

If the cash reserve ratio is 10% and a bank receives a deposit of GH¢1,000, the maximum credit creation by the banking system is

A. GH¢900 B. GH¢1,000 C. GH¢10,000 D. GH¢100

Question 50 of 50

The marginal propensity to consume is 0.8. The investment multiplier is

A. 1.25 B. 0.2 C. 8 D. 5

Questions written by OtisamLMS in the style of the WASSCE. They are not WAEC past questions.