WASSCE Economics · Paper 1 style

Factors of production

One sample question with the full working. 7 more in the app, with instant feedback and repair sessions for the traps below.

The reward for capital as a factor of production is

Awages
Bprofit
Crent
Dinterest

Show the answer and working

Answer: D

Capital earns interest.

Trap A Mismatches factors of production and rewards: Land → rent; labour → wages; capital → interest; entrepreneur → profit.

Trap B Picks a closely related concept: Learn related terms as contrasting pairs with one-line definitions, and identify which one the stem describes.

Trap C Uses the everyday meaning of a term: Economic terms have precise definitions. Recall the textbook definition before matching.

Traps in Factors of production

Mismatches factors of production and rewards
Land → rent; labour → wages; capital → interest; entrepreneur → profit.
Picks a closely related concept
Learn related terms as contrasting pairs with one-line definitions, and identify which one the stem describes.
Uses the everyday meaning of a term
Economic terms have precise definitions. Recall the textbook definition before matching.
Applies the rule for the opposite case
Before answering, name the case in the stem (inelastic? price floor ABOVE equilibrium? point INSIDE the PPC?) and recall the rule for that case only.
Confuses tax systems
Look at the AVERAGE rate: rises with income = progressive; falls = regressive; constant = proportional.
Division of labour misconceptions
Advantages: skill, speed, use of machinery. Disadvantages: monotony, loss of craftsmanship, interdependence. Limited by the size of the market.
Misunderstands types and measurement of unemployment
Unemployment rate = unemployed/labour force × 100 (labour force = employed + unemployed). Frictional: between jobs. Structural: mismatch of skills/industries. Cyclical: lack of aggregate demand. Seasonal: varies with seasons.

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