Ordinary level 2026 West regional mock Economics guide

Here is the extracted data from the provided marking guide, organized by paper and section.

PAPER 1: Answer Key

PAPER 2

1. (a) Definitions

• i) Working capital: capital that changes its form in the process of production e.g. raw materials (3mks)

• ii) Human Capital: refers to the skills and knowledge possessed by a worker e.g. Skills of a teacher, Doctor, Footballer etc. (3mks)

• iii) Fixed Cost: cost that does not change as output changes e.g. a factory building (3mks)

• iv) Variable cost: cost that changes with a change in output (3mks)

(b) i) Limitations of division of labour include:

• Limited market

• Nature of product

• Technical impossibility

• Limited capital

• Number of workers

• Government policy

  (2mks each for any 3 points; Stating 1mk, exp 1mk)

ii) Reasons for growth of firms:

• The need to achieve monopoly power

• The need to spread risks

• The need to gain a greater market share

• The need to enjoy economies of scale

• The desire to secure the source of raw materials

• To increase profit

• The need to become popular

  (1mk each for any 4 points = 4marks)

2. (a) Population Calculations

• i) Birth Rate (BR):

  $$\text{BR} = \frac{\text{Number of births}}{\text{Total population}} \times \frac{1000}{1} = \frac{1,000,000}{24,000,000} \times \frac{1000}{1} = \mathbf{41.67\%_o}$$

  (Formula 1mk, Working 1mk, Answer 1mk)

• ii) Natural Growth Rate (NGR):

  $$\text{NGR} = \frac{(\text{Number of births} – \text{Number of deaths})}{\text{Total population}} \times \frac{100}{1} = \frac{(1,000,000 – 600,000)}{24,000,000} \times 100 = \mathbf{1.67\%}$$

  (Formula 1mk, Working 1mk, Answer 1mk)

• iii) Population Growth Rate (PGR):

  $$\text{PGR} = \frac{(B – D) + (I – E)}{\text{Total Population}} \times 100 = \frac{400,000 + (400,000 – 600,000)}{24,000,000} \times 100 = \mathbf{0.83\%}$$

  (Formula 1mk, Working 1mk, Answer 1mk)

(b) Differences

• i) Growing vs. Declining Population: A growing population is one in which the proportion of young persons is higher than that of aged persons, while a declining population has an increasing proportion of old age in the total population. (With conjunction 4mks; Without 2mks)

• ii) Over vs. Optimum Population: Over population occurs when the labour force exceeds existing resources such that output per head falls; optimum population is the size that yields maximum output per head when combined with existing resources and technology. (With conjunction 4mks; Without 2mks)

iii) Problems in conducting a population census:

• Inadequate personnel / Limited information / High cost involved / Inaccessibility / Customs and beliefs / Delay in results / Illiteracy / Political influence.

  (1mk each for any 3 pts = 3 marks)

3. (a)

• i) 250 FCFA because quantity demanded equals quantity supplied. (1+2mks)

• ii) Price Elasticity of Supply (PES):

  $$\text{PES} = \frac{\% \text{change in quantity supplied}}{\% \text{change in price}} = \frac{400-250}{300-250} \times \frac{250}{250} = \frac{150}{50} \times \frac{250}{250} = \mathbf{3}$$

  (Formula 1mk, Working 1mk, Answer 1mk)

• iii) Minimum price or floor price. (2 marks)

(b) Factors that affect demand positively:

• Increase in consumers’ income / Increase in taste and fashion / Successful advertisement / Increase in number of consumers / Increase in government subsidies / Climatic conditions.

  (2mks x 3pts = 6mks)

(c) Sources of monopoly:

• Natural monopoly / Restrictive practices / Act of parliament / Technical barriers.