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SHS Economics · Year 2

Tools in Economic Analysis practice questions

Statistical, mathematical and graphical tools used to analyse and present economic data at an advanced level.

16 questions in this topic: 3 recall, 4 applying skills and concepts, 7 strategic thinking and 2 extended thinking. Every one carries a written explanation.

Sample questions

3 of 16 questions in this topic. Sign up to answer them and see the explanations.

  1. Question 1Strategic thinking

    In the demand function Qd = 500 − 20P, what does the slope value "−20" indicate?

    • aFor every GH¢1 increase in price, quantity demanded falls by 20 units
    • bThe price of rice will always be GH¢20
    • c500 units of rice are demanded regardless of price
    • d20 more units of rice are supplied for every price increase
  2. Question 2Extended thinking

    In the supply function Qs = a + bP, why is the sign of "b" typically positive, unlike in the demand function?

    • aBecause as price rises, the quantity suppliers are willing to sell also rises, unlike demand which falls as price rises
    • bBecause supply functions never depend on price at all
    • cBecause b always represents a fixed tax rate in supply functions
    • dBecause supply and demand always move in exactly the same direction
  3. Question 3Skills & concepts

    The production function Q = f(L, K) shows that total output depends mainly on

    • alabour (L) and capital (K), the inputs combined to produce goods
    • bonly the price charged for the final good
    • conly the level of consumer demand for the good
    • dthe exchange rate between two currencies

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