2023 o level Econs South west mock paper 1

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Subject Code	0525
Subject Title	O Level Economics
Session	March 2023 Paper 1

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Cameroon GCE O Level Economics Paper 1 Solution - March 2023

8. There are many advantages that cheques have as a means of payment. Which of these is one of them?

A. Banks prefer cheques to money

B. Cheques are a legal tender

C. There is reduced risk of carrying money

D. Cheques are generally acceptable

9. A customer deposits 15,000,000 CFA in a commercial bank. Given a cash ratio of 10%, what is the maximum loan this bank can create?

A. 1,000,000 CFA

B. 1,500,000 CFA

C. 15,000,000 CFA

D. 1,500 CFA

10. Which of the following instruments can enable the government to borrow internally?

A. Cash Ratio

B. Open market operation

C. Funding

D. Moral suasion

11. Crude oil exploited by SONARA in Limbe is an example of:

A. Land

B. Labor

C. Capital

D. Entrepreneur

22. The form of trade whereby a consumer obtains a good upon payment of first installment, and pays the rest later usually in installments is called:

A. Trade credit

B. Hire-purchase

C. Spot market

D. Future market

23. A parent who has six children in different colleges gave the following pocket allowances to them at the start of the school year: 12,000 CFA, 11,000 CFA, 8,000 CFA, 9,000 CFA, 16,000 CFA and 10,000 CFA. What is the arithmetic mean of the allowances?

A. 8,000 CFA

B. 10,500 CFA

C. 11,000 CFA

D. 9,000 CFA

24. What does the following formula measure in economics?

Index of export prices × 100 / Index of import prices

A. Balance of trade

B. Balance of payments surplus

C. Terms of trade

D. Balance of payments deficit

25. What does the expression "Limited Liability" mean in economics?

A. The debts of the company must be paid even with resources outside the shareholdings of members

B. The shareholders of the company are liable to its debts only up to the share contributions invested

C. The debts of the company can only be paid from the paid-up capital subscribed by shareholders and debentures

D. The shareholders are not liable to the debts of the company at all

26. If the government fixes a maximum price of 10 francs per loaf of bread, what is the money value of the excess demand?

A. 1,200 CFAF

B. 1,600 CFAF

C. 400 CFAF

D. 600 CFAF

27. Which of the following is a limitation to industrialization in Cameroon?

A. Lack of raw material

B. Political stability

C. High taxes

D. Low rate of interest

28. Which method of measuring national income involves summing up the total value added at each stage of production?

A. Income method

B. Output method

C. Expenditure method

D. Value added method

29. What name is given to an organization of persons with a common initiative for the main purpose of pulling their financial resources for the mutual benefit of its members?

A. A Customs Union

B. A Partnership

C. A Credit Union

D. A Joint Stock Company

30. Which of the following factors will influence economic growth in Cameroon?

A. High mobility of labour

B. High standard of living

C. Education and training

D. Improved life expectancy

31. Which of the following organizations is the successor of the General Agreement on Tariff and Trade?

A. World Trade Organization (WTO)

B. International Trade Organization (ITO)

C. United Nations Conference on Trade and Development (UNCTAD)

D. European Union (EU)

31. Which of the following organizations is the successor of the General Agreement on Tariffs and Trade?

A. GATT

B. I.B.R.D

C. I.M.F

D. W.T.O.

32. Assuming that the current rate between the CFA Franc and the U.S. Dollar is $1 = 500 CFAF, how much would a Cameroonian importer require to buy a car in the United States of America costing $5,000?

A. 500,000 CFAF

B. 2,500,000 CFAF

C. 2 500 000 CFAF

D. 500 0000 CFAF

33. A tax system capable of attaining its objectives fulfills the quality of:

A. Efficiency

B. Economy

C. Equity

D. Impartiality

34. Services rendered by subsidiary firms such as SOCABOL and SOCAVER to the brewery industry in Cameroon are called?

A. Distribution services

B. Marketing services

C. Technical services

D. Ancillary services

35. When large plantations like C.D.C. assist individual farmers with necessary capital and technology to encourage them to increase their production of cash crops, they become:

A. Subsistence agriculture

B. Plantation agriculture

C. Smallholder scheme

D. Peasant agriculture

36. The cross elasticity of demand for goods X and Y is -2. This implies that the two goods are:

A. Substitute

B. Compliments

C. Competitive

D. Unrelated

37. When the government spends more than she receives from taxes, it is called:

A. Surplus budget

B. Deficit budget

C. Balanced budget

D. Budget disequilibrium

38. A decrease in the incentive to invest by businessmen in an economy will likely result to:

A. Economic growth

B. Economic development

C. Economic progress

D. Economic decline

39. Which of the following should be done to reduce unemployment in Cameroon?

A. Granting subsidies to home producers

B. Increasing income taxes

C. Increasing the minimum wage

D. Increasing the rate of interest

40. Proximity to the source of market is a good location factor for:

A. Footloose industries

B. Weight gain industries

C. Weight loss industries

D. Input oriented industries

41. When average product is falling, the country is said to be at:

A. Under population

B. Optimum population

C. Over population

D. Declining population

42. An individual who allows his name to be used in a partnership without making any financial contribution is called?

A. Active partner

B. Dormant partner

C. Limited partner

D. Nominal partner

43. Consumer sovereignty is a feature of:

A. Transitional economic system

B. Planned economic system

C. Mixed economic system

D. Capitalist economic system

44. A market structure with many buyers and sellers selling homogenous products is called?

A. Monopoly

B. Perfect competition

C. Oligopoly

D. Monopolistic competition

45. At output level 250 units, the total fixed cost of a firm is 7500 CFAF and the total cost is 10,000 CFAF. What is the total variable cost of the firm?

A. 17,500 CFAF

B. 2,500 CFAF

C. 1000 CFAF

D. 7,500 CFAF

46. Which of the following can assist the government in achieving equitable distribution of income in the economy?

A. Progressive taxes

B. Regressive taxes

C. Proportionate taxes

D. Expenditure taxes

47. What does the letter B on the diagram below represent?

Producer → B → Retailer

A. Wholesaler

B. Consumer

C. Manufacturer

D. Supplier

48. The population size of a country is determined by:

A. Birth rate, death rate, and net migration

B. Birth rate, death rate minus net migration

C. Birth rate, death rate, and natural increase

D. Birth rate, death rate, and dependency ratio

49. Given that the population of country X is 5,000,000 people, 800,000 births, and 200,000 deaths per year, what is the natural growth rate?

A. 14%

B. 20%

C. 12%

D. 5%

50. Which of the following is an example of an indirect tax?

A. Capital gain tax

B. Corporate tax

C. Value added tax

D. Payroll tax

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