Economics Mock 2020

WASSCE style · Study mode

Economics Mock 2020

Question 1 of 50

Per capita income is

A. national income divided by population B. national income times population C. total exports D. government income

Question 2 of 50

When government spending exceeds revenue, there is a

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

Question 3 of 50

The national budget in Ghana is presented to Parliament by the

A. Minister for Finance B. President only C. Chief Justice D. Speaker

Question 4 of 50

The body that collects taxes in Ghana is the

A. Ghana Revenue Authority B. Bank of Ghana C. Ghana Statistical Service D. Controller and Accountant-General

Question 5 of 50

A wholesaler buys goods in

A. large quantities from producers B. single units from retailers C. small quantities from consumers D. government only

Question 6 of 50

A disadvantage of industrialisation is

A. pollution of the environment B. more jobs C. more exports D. improved technology

Question 7 of 50

Economics is often defined as the study of how society

A. prints money B. allocates scarce resources to satisfy unlimited wants C. governs itself D. worships

Question 8 of 50

The entrepreneur is rewarded with

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

Question 9 of 50

Inflation caused by rising production costs is

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

Question 10 of 50

A fall in the value of the cedi against the dollar makes Ghana's imports

A. more expensive B. cheaper C. free D. unchanged

Question 11 of 50

The Consumer Price Index measures changes in

A. the prices of a basket of goods and services B. the population C. exports only D. interest rates

Question 12 of 50

A canon of taxation which says taxes should be cheap to collect is

A. economy B. equity C. certainty D. convenience

Question 13 of 50

Comparative advantage means a country should specialise in goods it can produce at

A. a lower opportunity cost B. a higher cost C. any cost D. zero cost

Question 14 of 50

Import substitution industrialisation aims to

A. produce locally goods that were previously imported B. import more goods C. stop all trade D. export raw materials only

Question 15 of 50

The One District One Factory (1D1F) policy aims to

A. promote industrialisation across Ghana B. close factories C. import all goods D. reduce employment

Question 16 of 50

Demand for salt is likely to be

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

Question 17 of 50

If PED is 0.4, a 10% price rise reduces quantity demanded by

A. 4% B. 10% C. 40% D. 0.4%

Question 18 of 50

Eliminating the middleman means

A. producers sell directly to retailers or consumers B. banning trade C. closing shops D. raising prices

Question 19 of 50

A rent control is an example of a

A. maximum price B. minimum price C. tax D. subsidy

Question 20 of 50

A minimum wage is an example of a

A. price floor B. price ceiling C. tax D. tariff

Question 21 of 50

Economies of scale are

A. cost advantages from large-scale production B. losses from growth C. taxes on firms D. price controls

Question 22 of 50

Locating a factory near its raw materials is important when the raw materials are

A. bulky or heavy B. light C. cheap D. imported

Question 23 of 50

A merger of firms at the same stage of production is

A. horizontal integration B. vertical integration C. conglomerate D. franchise

Question 24 of 50

Infant industries need protection because they

A. cannot yet compete with established foreign firms B. are too large C. make huge profits D. have no workers

Question 25 of 50

A point inside the production possibility curve indicates

A. an unattainable output B. full employment C. unemployment or inefficient use of resources D. economic growth

Question 26 of 50

An outward shift of the PPC represents

A. unemployment B. a recession C. inflation D. economic growth

Question 27 of 50

If a 20% rise in price causes a 10% fall in quantity demanded, demand is

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

Question 28 of 50

Which factor would shift the demand curve for rice to the right?

A. a rise in the price of rice B. a fall in the price of rice C. an increase in consumers' incomes D. a fall in population

Question 29 of 50

Derived demand means that the demand for a factor depends on

A. its own price only B. the demand for the goods it produces C. government policy only D. the weather

Question 30 of 50

Fixed cost GH¢500 and variable cost GH¢300 at an output of 100 units. Average total cost is

A. GH¢800 B. GH¢5 C. GH¢3 D. GH¢8

Question 31 of 50

Diseconomies of scale occur when

A. average cost falls B. average cost rises as the firm grows too large C. output falls D. the firm closes

Question 32 of 50

Which is an internal economy of scale?

A. a skilled local labour pool B. improved roads in the area C. bulk buying of raw materials D. nearby research institutes

Question 33 of 50

A monopolist maximises profit where

A. P = MC B. MR = MC C. AR = AC D. TR is maximum

Question 34 of 50

Product differentiation is a feature of

A. pure monopoly only B. perfect competition C. monopolistic competition D. barter

Question 35 of 50

A cartel is

A. a trade union B. a single firm C. a government agency D. a group of firms that agree to fix prices or output

Question 36 of 50

Cost-push inflation is caused by

A. falling wages B. excess demand C. rising production costs D. falling import prices

Question 37 of 50

Real GDP is nominal GDP adjusted for

A. price changes B. population C. depreciation D. taxes

Question 38 of 50

If consumption is C = 50 + 0.75Y, the MPS is

A. 0.25 B. 0.75 C. 50 D. 1.33

Question 39 of 50

Bank of Ghana raising the policy rate is intended to

A. reduce inflation B. increase borrowing C. raise money supply D. weaken the cedi

Question 40 of 50

If the CPI rises from 200 to 220, the inflation rate is

A. 10% B. 20% C. 22% D. 2%

Question 41 of 50

A tax that takes a higher percentage from higher incomes is

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

Question 42 of 50

A budget deficit is financed partly by

A. borrowing B. reducing debt C. saving surplus D. lowering imports

Question 43 of 50

A tariff is

A. a tax on imports B. a subsidy to exporters C. a quota D. an exchange rate

Question 44 of 50

Dumping is

A. selling abroad below cost B. importing waste C. restricting imports D. raising tariffs

Question 45 of 50

With a reserve ratio of 10%, a deposit of GH¢1,000 can create total deposits of

A. GH¢9,000 B. GH¢1,100 C. GH¢10,000 D. GH¢100

Question 46 of 50

An open market sale of securities by the central bank will

A. increase bank reserves B. increase money supply C. reduce interest rates D. reduce money supply

Question 47 of 50

An increase in investment of GH¢100m with MPC 0.75 raises income by

A. GH¢400m B. GH¢100m C. GH¢133m D. GH¢75m

Question 48 of 50

The terms of trade improve when

A. export prices rise relative to import prices B. import prices rise C. export volume falls D. the currency depreciates

Question 49 of 50

Devaluation is most likely to improve the balance of payments if demand for exports is

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

Question 50 of 50

Comparative advantage exists when a country produces a good at a lower

A. opportunity cost B. money price C. absolute cost D. wage

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