Ordinary level 2026 West regional mock Economics 2

Here is the extracted data from the examination paper.

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Question 1

(a) Define with examples the following terms as used in Economics:

• i) Working capital (3 marks)

• ii) Human Capital (3 marks)

• iii) Fixed Cost (3 marks)

• iv) Variable cost (3 marks)

(b)

• i) Explain any three limitations of division of labour (6 marks)

• ii) State any four (04) reasons for growth of firms (4 marks)

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Question 2

(a) A country has the following figures for its population:

Item	Figure
Total population	24 million people
Number of births	1 million babies
Number of deaths	600,000 people
Number of immigrants	400,000 people
Number of emigrants	600,000 people

Calculate:

• i) The Birth Rate of the country (3 marks)

• ii) The natural growth rate (3 marks)

• iii) The population growth rate (3 marks)

(b) Distinguish between the following:

• i) Growing population and declining population (4 marks)

• ii) Over population and optimum population (4 marks)

• iii) List three (03) Problems encountered in conducting a population Census (3 marks)

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Question 3

Study the table below that show the demand and supply situation of Ice cream per week:

Price per cake (FCFA)	Quantity demanded	Quantity supplied
350	100	500
300	150	400
250	250	250
200	400	150
150	600	50

(a)

• i) What is the market price and why? (3 marks)

• ii) Calculate the price elasticity of supply when the price increases from 250 FCFA to 300 FCFA (3 marks)

• iii) If the government establish the price of Ice cream at 300 FCFA, what name is given to such a price legislation? (2 marks)

(b) State and explain three factors that will cause an increase in the demand for ice cream (6 marks)

(c) State and explain three sources of monopoly in an economy (6 marks)

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Question 4

(a) Explain three (03) reasons why people prefer to hold money in liquid (6 marks)

(b) State three ways through which commercial banks create credit (3 marks)

(c) Given That CCA bank received an initial Deposit of 100,000 FCFA and the cash ratio is 10% Calculate:

• i) How much can this bank create with this deposit? (3 marks)

• ii) How much additional credit is created by the bank? (2 marks)

(d) Explain three tools of monetary policy (6 marks)

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Question 5

Study the table below and answer the questions that follows:

Income earned (FCFA)	Tax paid (FCFA)	Tax rate (%)
150,000	1,000
100,000	1,000
50,000	1,000

(a)

• i) Complete the table by calculating the tax rate (6 marks)

• ii) Identify and define the tax system represented on the table above (4 marks)

• iii) Differentiate between incidence of a tax and tax impact (4 marks)