Economics Mock 2023

WASSCE style · Study mode

Economics Mock 2023

Question 1 of 50

A single seller of a product with no close substitutes is a

A. wholesaler B. monopolist C. retailer D. consumer

Question 2 of 50

VAT is an example of

A. a subsidy B. a direct tax C. an indirect tax D. a grant

Question 3 of 50

When government spending is greater than its revenue, there is a

A. budget deficit B. budget surplus C. balanced budget D. trade surplus

Question 4 of 50

In Ghana, the annual budget is presented to Parliament by the

A. Minister for Finance B. Chief Justice C. Governor of the Bank of Ghana D. Speaker of Parliament

Question 5 of 50

A tax placed on imported goods is a

A. tariff B. subsidy C. quota D. VAT refund

Question 6 of 50

A common channel of distribution for consumer goods is

A. manufacturer → wholesaler → retailer → consumer B. consumer → retailer → manufacturer C. retailer → manufacturer → wholesaler D. wholesaler → consumer → manufacturer

Question 7 of 50

A function of the wholesaler is to

A. break bulk B. set government prices C. print money D. collect income tax

Question 8 of 50

A group of firms producing the same or similar products is

A. an industry B. a firm C. a market price D. a cooperative only

Question 9 of 50

Ghana's One District, One Factory policy is aimed mainly at

A. industrialisation and job creation across districts B. reducing exports C. closing farms D. importing more goods

Question 10 of 50

Economics is best defined as the study of

A. banking only B. how to make money quickly C. government only D. how people use scarce resources to satisfy their wants

Question 11 of 50

Goods that are free in supply and have no price, such as air, are

A. capital goods B. economic goods C. free goods D. inferior goods

Question 12 of 50

The father of modern economics, author of The Wealth of Nations, is

A. Alfred Marshall B. Karl Marx C. J. M. Keynes D. Adam Smith

Question 13 of 50

A scale of preference is

A. a price list B. a list of wants arranged in order of importance C. a tax table D. a bank statement

Question 14 of 50

Which is a capital good?

A. a shirt for personal use B. a loaf of bread C. a tractor D. a cinema ticket

Question 15 of 50

Goods demanded together, such as bread and butter, have

A. derived demand B. competitive demand C. joint (complementary) demand D. composite demand

Question 16 of 50

Cost savings a firm gets from growing larger are

A. opportunity costs B. diseconomies of scale C. fixed costs D. economies of scale

Question 17 of 50

Total product rises from 40 to 50 when a fifth worker is employed. The marginal product of the fifth worker is

A. 50 B. 10 C. 9 D. 40

Question 18 of 50

Which is a variable cost?

A. insurance premium B. rent C. raw materials D. loan interest

Question 19 of 50

Production that turns raw materials into finished goods is

A. direct services B. primary production C. tertiary production D. secondary production

Question 20 of 50

In monopolistic competition, firms compete mainly through

A. a single seller B. identical products C. government control D. product differentiation and branding

Question 21 of 50

Gross Domestic Product (GDP) is the total value of

A. imports only B. all money in the banks C. final goods and services produced within a country in a year D. government spending only

Question 22 of 50

A depreciation of the cedi against the dollar makes Ghana's imports

A. cheaper in cedis B. more expensive in cedis C. unaffected D. free

Question 23 of 50

A tax that takes a higher percentage from people with higher incomes is

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

Question 24 of 50

A country should specialise in goods it can produce at a lower opportunity cost than others. This is the principle of

A. comparative advantage B. absolute poverty C. diminishing returns D. price control

Question 25 of 50

The difference between the value of a country's visible exports and visible imports is the

A. balance of trade B. balance of payments C. national debt D. GDP

Question 26 of 50

Demand for necessities such as salt is usually

A. price inelastic B. perfectly elastic C. highly elastic D. zero

Question 27 of 50

The supply of fresh tomatoes is usually inelastic in the short run because

A. they take time to grow and cannot be stored long B. they are luxuries C. they are imported D. farmers dislike them

Question 28 of 50

Microeconomics studies

A. only foreign trade B. the whole economy C. only government D. individual units such as households and firms

Question 29 of 50

Which factor will shift the demand curve for rice to the left?

A. a rise in population B. a rise in income C. a fall in the price of a substitute such as yam D. an advertising campaign for rice

Question 30 of 50

If demand is perfectly inelastic, the demand curve is

A. horizontal B. vertical C. downward sloping D. U-shaped

Question 31 of 50

The demand for labour is a

A. Giffen demand B. joint supply C. composite supply D. derived demand

Question 32 of 50

An increase in supply, with demand unchanged, leads to

A. a higher price and a smaller quantity B. a lower price and a larger quantity C. no change D. a higher price and a larger quantity

Question 33 of 50

The law of diminishing returns operates in the

A. very long run B. long run only C. short run D. market period only

Question 34 of 50

In perfect competition, the firm's demand curve is

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

Question 35 of 50

Charging different prices to different buyers for the same product is

A. price control B. price discrimination C. dumping D. price skimming

Question 36 of 50

Positive economics deals with

A. religious ideas B. value judgements C. testable statements about what is D. opinions only

Question 37 of 50

External economies of scale arise from

A. a firm buying in bulk B. growth of the whole industry in an area C. specialised managers in a firm D. technical efficiency of one firm

Question 38 of 50

The demand for money for day-to-day purchases is the

A. precautionary motive B. speculative motive C. transactions motive D. investment motive

Question 39 of 50

Open market purchase of securities by the central bank

A. has no effect B. reduces money supply C. raises reserve requirements D. increases money supply

Question 40 of 50

An import quota restricts trade by

A. subsidising exports B. taxing imports C. limiting the quantity of imports D. banning exports

Question 41 of 50

Economics is described as a social science because it

A. is only about money B. uses laboratory experiments only C. studies rocks D. studies human behaviour in using scarce resources

Question 42 of 50

A good has PED of −0.3. A 20% price rise changes total revenue by about

A. −12.8% B. −6% C. +20% D. +12.8%

Question 43 of 50

If the supply curve is perfectly elastic, an increase in demand will

A. raise price only B. raise quantity but not price C. lower price D. have no effect

Question 44 of 50

A subsidy to producers of a good with inelastic demand mainly benefits

A. the government B. producers only C. consumers through lower prices D. importers

Question 45 of 50

A monopolist faces demand P = 100 − 2Q. Total revenue at Q = 20 is

A. 600 B. 2,000 C. 1,200 D. 60

Question 46 of 50

In monopolistic competition, the long-run equilibrium has

A. perfectly elastic demand B. supernormal profit forever C. zero output D. excess capacity and normal profit

Question 47 of 50

If consumption C = 50 + 0.75Y and investment I = 100, equilibrium income is

A. 200 B. 600 C. 400 D. 150

Question 48 of 50

A country exports goods worth $5bn and imports $7bn, with net services of +$1bn. Its current account (ignoring transfers) is

A. +$1bn B. −$1bn C. −$2bn D. +$3bn

Question 49 of 50

Laffer curve analysis suggests that very high tax rates may

A. end inflation B. always raise revenue C. have no effect D. reduce total tax revenue

Question 50 of 50

The demographic transition model's second stage features

A. low birth and death rates B. high birth rates and falling death rates C. rising death rates D. falling birth rates only

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