AWE SENIOR HIGH/TECHNICAL SCHOOL

END OF SECOND SEMESTER EXAMINATION JANUARY, 2022

ECONOMICS
FORM TWO – GEN ARTS A, B, C1, C2, BUS & VISUAL ARTS 2A, 2B TIME: 2HR: 20MINS

ANSWER ALL QUESTIONS

(40mrks)
1. “Economics is a science which studies human behavior as a relationship between ends and scarce means
which have alternative uses. The „Ends‟ refers to a. Resources b. wants c. choice d. output
2. Scarcity in economics refers to a. a period of production b. hoarding of goods c. monopolization of
existing supply of resources d. resources being limited.
3. Choice is needed because resources a. are available b. can be found everywhere c. are constant d.
are scarce
4. Another name for opportunity cost is a. money cost b. social cost c. real cost d. relative cost

5. An arrangement of wants in order of priority is a a. table of wants b. scale of preferences c.

utility curve d. budget line

6. A man buys a new car and is unable to pay his children‟s school fees. This is an example of
a. fixed cost b. total cost c. marginal cost d. opportunity cost

7. All the following are major areas of study in Economics except a. production b. consumption c.
distribution d. competition

8. The branch of Economics that focuses on individual behavior is known as a. macroeconomics b.

positive economics c. microeconomics d. normative economics

9. A basic economic problem of any society is a. high level of illiteracy b. irregular power supply c.
population growth d. resource allocation

10. Economics is regarded as a science because a. its issues can be easily verified by reference to facts
b. it adopts scientific method in making its analysis c. its issues are relevant for national development
d. its subject matter studies human behavior

11. Production ends with a. consumption b. transportation c. specialization d. distribution

12. The sale of second-hand spare parts is an example of a. an industrial activity b. a primary economic
activity c. a secondary economic activity d. a tertiary economic activity

13. Most people in Ghana are employed in the a. agricultural sector b. primary sector c. secondary
sector d. tertiary sector

14. The main aim of production is to a. satisfy the wants of consumers b. make profit c. turn out high
quality goods d. earn foreign exchange

15. Which of the following is classified under primary activity a. manufacturing b. insurance c.
fashion designing d. fishing

16. The reward for the use of land as a factor of production is a. profit b. rent c. wage d. interest

17. The most frequently occurring value in given data is the a. mode b. mean c. median d. range

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18. The sum of a set of scores divided by the number of items in the set is the a. range b. median c.
mode d. mean

19. The principal function of an entrepreneur is to a. manage the economy b. market the product of the
company c. bears the risk of investment d. distribute profit to shareholders

20. Which of the following items is not an example of circulating capital a. raw materials b. money
c. fuel d. machinery

21. A medical doctor working at a government hospital will be classified as a. an entrepreneur b. a

natural resource c. labour d. capital

22. In economics, all the following constitute land except a. the weather b. water bodies c. chemical
fertilizer d. mineral deposits

23. In which of these economic systems is the consumer referred to as “The King” a. planned economy b.
mixed economy c. free market economy d. socialist economy

24. In a free market system, which of the following is important in determining what is produced a.
desires b. wants c. needs d. income

25. The basic force governing the allocation of resources in a market economy is a. money supply b.
social needs c. consumer demand d. factor prices

26. Profit is a major feature of a a. socialist economy b. market economy c. command economy d.
traditional economy

27. An institutional arrangement established to solve economics problems is known as an a. economic

system b. economic development c. economic sanction d. economic growth

28. The three major agents of an economic system are the a. consumer, workers and producers b.
schools, hospitals and government c. individual, firms and government

29. In sole proprietorship decisions are made by the a. government b. owner c. shareholders
conference d. management

30. Which of the following is not a source of finance for the sole proprietor a. sale of share b.
ploughing of back profit c. trade credit d. loans from friends

31. A normal demand curve a. is concave to the point of origin b. is convex to the point of
origin c. slopes downward from left to right d. is parallel to x- axis

32. A demand schedule is a. a table containing the price of goods b. a table showing the consumers
demand in order of importance c. the quantity of goods the consumer is prepared to buy

33. One of the things held constant in stating the law of demand is the a. prices of other commodities b.
price of the commodity c. quantity demanded of the commodity d. cost of production

34. Butter and Margarine are examples of a. necessity good b. substitute goods c. complementary
good d. normal goods

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35. When consumers increase their consumption of a good as their income rise, the good is said to be
a. a normal good b. an inferior good c. a giffen good d. a necessity

36. Under what condition will people buy more of a commodity as its price rises. When the commodity is
a. a luxury b. superior c. normal d. ostentations
37. The law of demand states that all other things being equal a income and demand are directly related b.
price and quantity demanded relate inversely c. taste and demand are inversely related d. price and
demanded are directly related

38. The difference between demand and wants is in the a. desire for the commodity b. significance of the
commodity c. ability to pay for the commodity d. economic value of the commodity
39. The relationship between price and quantity demanded is a. direct b. linear c. inverse d. diverse

40. The graph of the function 5q= 20 – P is a a. demand graph b. supply graph c. cost graph d.
revenue graph

SECTION B
DATA
(20 marks)
ANSWER ONLY ONE QUESTION FROM THIS SECTION. SHOW WORKINGS

1. The table below shows the age distribution of the population of Awesco in 2009. Use the
information in the table to answer the questions that follows:
Age (years) 0 – 17 18 – 40 41 – 60 61 & above
Population 750 400 250 150
a. What was the total population of Awesco in 2019? 4marks
b. What was the ratio of children under 17 year to people who are over 60years? 4mark
c. What was the dependency ratio? 4marks
d. What percentage of the population constitutes the labor force? 4marks
e. Is the population growing or declining? Give a reason 4marks

2. T he table below is the market demand for the consumption of gari for Awe Senior High
School students. Complete the table
Px Qty dd A Qty dd B Qty dd C Mkt dd
10 2 4 X 12
8 Y 6 8 18
6 6 Z 10 24
4 8 10 12 T
2 10 S 14 36

a. Compute for the value of X, Y, S, Z, and T. 10marks

b. Using the price and the market demand, draw a demand curve. (use of graph is not essential)
4marks

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 c. What is the minimum market demand for the consumption of gari in Awe Senior High
School? 2marks
d. What would be the total market demand for gari at the various prices 4marks

SECTION C
ESSAY
(40mks)
ANSWER ONLY TWO QUESTIONS FROM THIS SECTION. EACH QUESTION CARRY
EQUAL MARKS
3. a. Describe each of the following sectors of the economy:
i. Primary sector 4marks
ii. Secondary sector 4marks
iii. Tertiary sector 4marks
b. Using a table, classify the following activities under the three sectors.
i. Teaching vi. Hunting
ii. Farming vii. Fishing
iii. Medical practice viii. Plastic making
iv. Entertainment ix. Road construction
v. Banking x. Canning 8marks

4. a. Define economics 4marks

b. Explain any four reasons why the study of economics is important 10marks
c. Why is scarcity a fundamental problem in Economics? 6marks
5. a. a. Explain the term Demand for a commodity 8marks
b. Differentiate between wants and effective demand 6marks
c. State the law of demand 6marks

6. a. What is production 6marks

b. Mention the factors of production 8marks
c. Mention three (3) types of capital 6marks

7. a. Define mobility of labour 6marks

b. Mention and explain the types of mobility of labour 8marks
c. Give two characteristic of land 6marks

SUBJECT TEACHERS: PWAZAGA PAUL, ABAVANA AUGUSTINE, NAA-IM JUSTINE

Good Luck!!!!!!