2024 WASSCE SUPER MOCK ECONOMICS 2
ECONOMICS
PAPER 2 2 hours
[80 marks]
Answer four questions in all. One question only from Section A and any three questions from Section B.
You are reminded of the importance of clarity of expression and orderly presentation of relevant
materials. All questions carry equal marks.
SECTION A
Answer one question only from this section
1. (a) What is utility? [2 marks]
Table 1 below shows the utility schedule of an individual as he consumes bottles of coca cola drink. Study
the table and answer the questions that follow.
Table 1
Coca Cola Consumed Total Utility Marginal Utility
(bottles) (TU) (MU)
1 20 20
2 W 12
3 40 X
4 45 5
5 48 Y
6 Z 0
7 44 -4
(b) Calculate the values of W, X, Y and Z. [8 marks]
(c) What economic law is illustrated by the marginal utility column? Explain your answer. [3 marks]
(d) At what level of consumption does the consumer maximize satisfaction? Why? [2 marks]
(e) Suppose the price of a bottle of coca cola is ¢3.00, how many bottles will the consumer consume
to be in equilibrium? Explain your answer. [3 marks]
(f) At what level does the consumer experience disutility? Why? [2 marks]
1
2
2. Table 2 below shows a combined information on the terms of trade and balance of trade of a hypothetical
country in the Global South in 2020 and 2021. Use the information to answer the questions that follow.
Table 2
Price index of Exports of Price index of Imports of
YEAR
exports goods ($m) imports goods ($m)
2020 104 356.0 95 304.4
2021 105 255.8 94 231.0
(a) Calculate the terms of trade for:
(i) 2020 [3 marks]
(ii) 2021 [2 marks]
(b) From your answers in 1(a)(i) and 1(a)(ii), has the terms of trade improved or worsened between
2020 and 2021? Explain your answer. [3 marks]
(c) Calculate the balance of trade for:
(i) 2020 [3 marks]
(ii) 2021 [2 marks]
(d) From your answers in 1(c)(i) and 1(c)(ii), has the balance of trade improved or worsened
between 2020 and 2021? Explain your answer. [3 marks]
(e) Distinguish between terms trade and balance of trade. [4 marks]
SECTION B
Answer three questions only from this section
3. (a) Differentiate between:
(i) labour force and supply of labour. [4 marks]
(ii) occupational mobility of labour and geographical mobility of labour. [4 marks]
(b) Highlight any four reasons that affect the mobility of labour. [12 marks]
3
4. (a) Define demand. [2 marks]
(b) With the aid of well labelled diagrams, explain the effect of:
(i) an increase in the price of meat on the quantity demanded of fish; [7 marks]
(ii) a decrease in the price of torchlight on the quantity demanded of batteries. [7 marks]
(c) State any four factors that can positively influence the demand for a commodity. [4 marks]
5. (a) Define unemployment. [2 marks]
(b) Discuss any three types of unemployment that exists in your country. [9 marks]
(c) Explain how each of the types of unemployment identified in (b) can be mitigated. [9 marks]
6. (a) What is disposable income? [2 marks]
(b) Explain the following national income concepts:
(i) Gross Domestic Product (GDP); [3 marks]
(ii) Gross National Product (GNP). [3 marks]
(c) Highlight any four usefulness of national income estimates. [12 marks]
7. (a) Differentiate between demand for money and supply of money. [4 marks]
(b) Highlight the four functions of money. [4 marks]
(c) Explain any four qualities of a good monetary medium. [12 marks]
8. (a) Define foreign trade. [2 marks]
(b) Explain the following terms:
(i) quota; [3 marks]
(ii) embargo. [3 marks]
(c) Outline four measures for correcting balance of payments deficit. [12 marks]
END OF PAPER
