Economics Mock 2025

WASSCE style · Study mode

Economics Mock 2025

Question 1 of 50

Equilibrium price is the price at which

A. demand is greater than supply B. quantity demanded equals quantity supplied C. supply is greater than demand D. the government fixes the price

Question 2 of 50

Which of the following is a fixed cost?

A. rent of a factory B. raw materials C. wages of casual workers D. fuel for machines

Question 3 of 50

A firm's total cost is GH₵ 500 when it produces 50 units. Its average cost is

A. GH₵ 5 B. GH₵ 450 C. GH₵ 50 D. GH₵ 10

Question 4 of 50

Division of labour means

A. dividing workers into groups for sports B. reducing the number of workers C. paying workers equally D. breaking production into tasks done by different workers

Question 5 of 50

A market with only one seller of a product with no close substitutes is

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

Question 6 of 50

Which of the following is a function of money?

A. a medium of exchange B. a source of rent C. a factor of production D. a type of tax

Question 7 of 50

A major problem of the barter system is

A. the double coincidence of wants B. too much money C. inflation D. high interest rates

Question 8 of 50

A budget deficit occurs when government

A. revenue exceeds expenditure B. stops collecting taxes C. revenue equals expenditure D. expenditure exceeds revenue

Question 9 of 50

A tax on imported goods is called

A. excise duty B. income tax C. tariff (import duty) D. VAT only

Question 10 of 50

An inferior good is one whose demand

A. falls as income rises B. rises as income rises C. never changes D. rises as its price rises

Question 11 of 50

Economies of scale lead to

A. lower average cost as output rises B. higher average cost as output rises C. higher fixed cost D. lower total revenue

Question 12 of 50

In perfect competition, firms are

A. price makers B. few in number C. price takers D. selling differentiated products

Question 13 of 50

A market dominated by a few large firms is

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

Question 14 of 50

National income can be measured by the

A. income, output and expenditure methods B. demand and supply methods C. tax method only D. import method

Question 15 of 50

The lender of last resort in Ghana is the

A. GCB Bank B. Ministry of Finance C. Bank of Ghana D. Ghana Stock Exchange

Question 16 of 50

Inflation caused by rising costs of production is called

A. demand-pull inflation B. hyperinflation C. cost-push inflation D. deflation

Question 17 of 50

A tax whose rate increases as income increases is

A. regressive B. proportional C. progressive D. indirect

Question 18 of 50

The balance of trade is the difference between

A. visible exports and visible imports B. total savings and investment C. taxes and spending D. invisible imports and capital flows

Question 19 of 50

A consumer is in equilibrium with two goods when

A. total utility is zero B. MUx = MUy C. Px = Py D. MUx/Px = MUy/Py

Question 20 of 50

In the short run, a firm should shut down if price is below

A. average variable cost B. average fixed cost C. marginal revenue D. total revenue

Question 21 of 50

In perfect competition, the demand curve facing a firm is

A. perfectly elastic (horizontal) B. downward sloping C. vertical D. upward sloping

Question 22 of 50

The terms of trade compare

A. the prices of exports to the prices of imports B. export volume to population C. imports to GDP D. tax to spending

Question 23 of 50

Cross elasticity of demand between substitutes is

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

Question 24 of 50

Composite demand occurs when a good

A. is free B. is demanded with another good C. is a luxury D. has several different uses

Question 25 of 50

Income elasticity of demand for luxury goods is

A. zero B. negative C. greater than 1 D. less than 0

Question 26 of 50

The Bank of Ghana can reduce money supply by

A. printing money B. lowering interest rates C. selling government securities (open market operations) D. reducing reserve requirements

Question 27 of 50

The quantity theory of money is expressed as

A. P = MC B. MV = PT C. Y = C + I D. E = mc²

Question 28 of 50

The paradox of value (water–diamond paradox) is explained by

A. supply only B. total cost C. marginal utility D. taxation

Question 29 of 50

Normal profit is

A. the minimum profit needed to keep a firm in the industry B. excess profit C. zero revenue D. a loss

Question 30 of 50

A monopsony is a market with

A. a single buyer B. a single seller C. two sellers D. many buyers and sellers

Question 31 of 50

Total product rises from 40 to 52 when labour increases from 4 to 5 workers. The marginal product of the 5th worker is

A. 8 B. 10.4 C. 52 D. 12

Question 32 of 50

TFC = 200; TVC at 10 units = 300. AVC at 10 units is

A. 500 B. 50 C. 20 D. 30

Question 33 of 50

A population of 30 million growing at 2% a year will be about how large after 1 year?

A. 30.2 million B. 32 million C. 30.6 million D. 36 million

Question 34 of 50

Demand for a good is Qd = 80 − 4P. At P = 5, quantity demanded is

A. 100 B. 75 C. 20 D. 60

Question 35 of 50

Supply is Qs = −10 + 5P. At P = 6, quantity supplied is

A. 30 B. 20 C. 40 D. −4

Question 36 of 50

Stagflation describes

A. falling prices B. high inflation with high unemployment and slow growth C. rapid growth D. full employment

Question 37 of 50

An increase in the bank rate by the central bank is likely to

A. raise inflation B. increase money supply C. reduce borrowing and spending D. reduce savings

Question 38 of 50

A tax of 15% on all incomes is

A. regressive B. progressive C. proportional D. indirect

Question 39 of 50

The incidence of a tax refers to

A. the tax office B. the tax rate C. the date of payment D. who finally bears the burden

Question 40 of 50

The Malthusian theory states that population grows

A. at the same rate as food B. arithmetically while food grows geometrically C. geometrically while food supply grows arithmetically D. only in rich countries

Question 41 of 50

A dependency ratio is calculated as

A. GDP divided by population B. workers divided by population C. births divided by deaths D. dependants divided by the working population

Question 42 of 50

The Human Development Index combines

A. GDP only B. life expectancy, education and income C. population and land area D. exports and imports

Question 43 of 50

Consumer surplus is the difference between

A. supply and demand B. price and cost C. income and spending D. what a consumer is willing to pay and what they actually pay

Question 44 of 50

The production function Q = f(L, K) shows

A. demand and supply B. cost and price C. the relationship between inputs and output D. profit and tax

Question 45 of 50

Country A produces 10 cloth or 5 rice per worker; country B 6 cloth or 4 rice. Country A has a comparative advantage in

A. neither B. rice C. both D. cloth

Question 46 of 50

A J-curve effect describes how a devaluation

A. always improves it immediately B. first worsens then improves the trade balance C. has no effect D. raises imports permanently

Question 47 of 50

A current account deficit can be financed by

A. reducing exports B. a capital account surplus C. printing more tariffs D. increasing imports

Question 48 of 50

A consumer buys goods X and Y priced GH¢2 and GH¢4. At equilibrium, if MUx = 10, then MUy must be

A. 5 B. 10 C. 20 D. 40

Question 49 of 50

Returns to scale refer to changes in output when

A. one input changes B. all inputs are increased in the same proportion C. prices change D. technology is fixed

Question 50 of 50

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

A. 60 B. 40 C. 30 D. 20

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