Sample of Economics Questions and Answers For 2024 Wassce Candidates

Sample of Economics Questions And Answers For 2024 Wassce Candidates:

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The 2024 West African Examination (WASSCE) is scheduled to begin in August 2024. Candidates who will be writing the examination are advised to start preparation as early as possible.

This will help them to cover all the subjects, and topics and have ample time for revision. As part of the preparation for the examination, there comes the need to solve more questions.

In the previous updates, we have given out some of the WASSCE past questions, trial questions, and likely examination questions to help you in your further studies towards the coming waec senior high school examination.

This article has compiled some samples of economic Questions and Answers For 2024 Wassce Candidates. You are advised to try your hands on these questions before looking at the answers.

Table of Contents

Question One

(a) Explain the factors that can cause an increase in demand for a commodity.

Answer:

Expectation of future increase in price
Increase in the population of buyers
An increase in the income of the consumer
An increase in the price of substitute
Fall in the price of a complement

(b) What do you understand by a change in demand?

Answer:

Change in demand occurs when at the same price, more or less of a commodity is demanded than before. It results in a shift of the demand curve either to the left or right. A shift to the right represents an increase in demand while a shift to the left represents a decrease in demand. It is illustrated below

Changes in taste and fashion
Expectation of future changes in the price of the commodity
Change in population of buyers
A change in income of consumers
Seasonal Changes

(d) Explain why the demand curve for normal goods slopes downwards from left to right?

Answer

A demand curve for a normal good slopes downwards from left to right because it illustrates the law of demand which states that, ” other things being equal, the higher the price of a commodity, the smaller the quantity demanded and the lower the price the higher the quantity demand”. This shows that there is an inverse relationship between the quantity demanded of a commodity and its price.

To explain why this is so we shall use the income effect and substitution effect theory.

If the price of a commodity falls, the real incomes (purchasing power) of consumers increase and so they buy more of it with their given nominal incomes. other things being equal. This is called, the income effect of a fall in price.
Also, a fall in the price of a given commodity makes it cheaper relative to its substitutes, and so some consumers divert demand from the substitutes to the given commodity. This is called the substitution effect of a fall in price.
On the other hand, if the price of the commodity increases, the consumers can buy less of it because their real income falls. this is called the effect of rise in price.
Also, an increase in the price of a commodity makes it more expensive relative to its substitutes and so given commodity to the substitutes and the demand for the given commodity falls. this is called the substitution effect of a rise in price.
In the diagram below, P0 and Q0 are the original prices and quantity demanded respectively. When the price increases to P1 quantity demanded falls to Q1 and when the price falls to P2, quantity demanded rises to Q2.

Question Two

The following diagram represents a supply of and demand for unskilled labour with a legally enforced minimum wage rate.

(a) Identify the minimum wage rate and explain it

(b) How many units of labour would be supplied at the minimum rate?

(i) Units of labour already employed

(ii) total employment

(d) What is the maximum black market wage rate?

(e) How many units of labour could be employed at the black market wage rate?

Answers:

(a) The minimum wage rate is GHS 2,600. It is the minimum wage because it is set above the equilibrium wage rate (GHC 2000).

(b) 150 thousands unit of labour

(ii) At the minimum wage rate, total demand for labour falls to 70thousand, and a total supply of labour increases to 150 thousand. This creates unemployment of 80 thousand (150thousand – 70 thousand)

(d) 1000 is the minimum black market rate.

(e) 150 thousand units of labour

Question Three (3)

Explain the causes of unemployment in your country.

Answer

(a) High rate of population growth: population of Ghana tends to grow faster than the rate of expansion in industries. This results in a high rate of unemployment.

(b) Low demand for goods and services: Due to the high poverty rate the aggregate demand for goods and services in Ghana is relatively low. This does not encourage companies to expand to employ more people, thereby, causing unemployment in the country.

(c) Government wage policy: Sometimes, the government is pressurized by labour unions to institute minimum wage rates which are so high that many private employers find it difficult to pay. This compels them to lay off some workers, thereby, contributing to unemployment in the country.

(d) Lack of retraining facilities: The facilities and programmes to retain people to fill relevant job openings are lacking in Ghana and so workers who are redundant in one department are laid off instead of retraining them to fit into other departments. This contributes to frictional unemployment in the country.

(e) Changes in the weather cause seasonal unemployment: Occupations like farming and construction are seasonal in nature. During off-seasons, laborers in those occupations are laid and they contribute to the unemployment in the country.

Sample of Economics Questions and Answers For 2024 Wassce Candidates

Question One

Answer:

Answer:

Answer

Question Two

Answers:

Question Three (3)

Answer

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