1. When the external value of a country's currency is officially increased, it is known as:
Explanation: Appreciation occurs when the value of a currency rises relative to others in the foreign exchange market.
2. Movements along the same demand curve are caused solely by:
Explanation: Movement along the demand curve happens due to price changes, while shifts occur from non-price factors like income or preferences.
3. If in a given population of 8 million inhabitants, ¼ is made of the working population, then the dependency ratio is:
Explanation: A dependency ratio of 4:1 indicates there are four dependents for every working individual in the population.
4. A Giffen good is one for which quantity demanded increases as:
Explanation: Giffen goods are inferior goods that defy standard demand rules, with demand increasing as prices rise due to the income effect outweighing the substitution effect.
5. What is the value total liquid assets of this bank?
Explanation: Liquid assets include coins, banknotes, and treasury bills; their total adds up to 700,000 FCFA.
6. In Economics, "scarce means" refer to:
Explanation: Scarce means refer to limited resources, particularly labor, which is categorized as human resources in economics.
7. An example of a positive check proposed by Malthus to control population growth is:
Explanation: Positive checks are events like famine, disease, and war that directly reduce population through increased mortality.
8. Which of the following may be considered as a cost of economic growth?
Explanation: Economic growth may lead to higher social costs such as pollution, income inequality, and overuse of natural resources.
9. The main aim of division of labor is to:
Explanation: Division of labor improves efficiency by reducing time spent switching between tasks.
10. Assume that a rise in the price of meat from 1,000 FCFA to 1,500 FCFA per kg leads to an increase in quantity demanded of fish by 25%. The cross elasticity of demand will be:
Explanation: Cross elasticity of demand = (% change in quantity demanded of fish) ÷ (% change in price of meat). Here, it is (25% ÷ 50%) = 1.5.
11. Using the output approach, what is subtracted from Gross National Product to obtain National Income?
Explanation: To calculate National Income, subsidies are subtracted because they artificially inflate the Gross National Product.
12. In order to reduce the supply of money in circulation, the central bank should:
Explanation: When the central bank sells securities, it reduces money supply as people pay for these securities, taking money out of circulation.
13. Which of the following is the normal channel by which commodities reach the final consumers?
Explanation: This is the standard distribution chain, ensuring products flow from production to the final consumer.
14. Which of the following refers to the complete ban on goods entering a country?
Explanation: An embargo is a government order that restricts trade or exchange with a specific country or commodity.
15. Assume that the cash ratio of a bank is 40% and its total deposits are 2,000,000 FCFA. Calculate the amount this bank can keep as cash.
Explanation: The cash ratio is calculated as 40% of total deposits: 40% of 2,000,000 = 800,000 FCFA.
16. The yearly output of a country produced using only its economic resources is known as:
Explanation: GDP measures the total economic output produced within a country's borders over a year.
17. The use of taxes and government expenditure to reduce inflation is termed:
Explanation: Fiscal policy involves adjusting tax rates and government spending to influence economic conditions like inflation.
18. Which of the following investments in a business does not earn dividends?
Explanation: Preference shareholders typically receive fixed dividends and do not participate in further profits, unlike ordinary shareholders.
19. The following are prices of trousers in FCFA: 10,000, 3,000, 4,000, 6,000. Calculate the mean.
Explanation: The mean is calculated as (10,000 + 3,000 + 4,000 + 6,000) ÷ 4 = 6,000 FCFA.
20. A command economy can also be called:
Explanation: In a command economy, the government makes all the decisions regarding production and distribution, contrasting with capitalist economies.
21. Weight-gaining industries will tend to locate:
Explanation: Weight-gaining industries produce goods that are heavier than their raw materials and thus benefit from reduced transportation costs when near transport hubs.
22. Forests and lakes are examples of:
Explanation: Natural resources like forests and lakes are categorized as capital because they are used to produce goods and services.
23. Study Figure 1 on the demand and supply schedule of rice and answer the question that follows.
Figure 1: Assume the government fixes a minimum price of 50 FCFA per kg. What is the money value of excess supply?
Explanation: Excess supply is calculated by multiplying the surplus quantity by the minimum price set by the government.
24. In the circular flow of national income, factor incomes flow from:
Explanation: Factor incomes, such as wages and profits, flow from firms to international trade sectors as part of economic activity.
25. Question 25 is based on Table 2, which shows the exports and imports of a country in a given year.
Table 2:
- Visible imports: 300 million FCFA
- Invisible exports: 175 million FCFA
- Invisible imports: 200 million FCFA
- Visible exports: 350 million FCFA
What is the balance of trade?
Explanation: The balance of trade is the difference between visible exports and visible imports, which is 350 million - 300 million = 150 million FCFA.
26. Examples of goods that are in joint demand are:
Explanation: Joint demand occurs when two goods are used together, such as flour being an essential input for producing bread.
27. Who among the following stands to lose during an inflationary period?
Explanation: Debtors lose during inflation because the value of the money they repay is worth less than when they borrowed it.
28. Democratic control is an essential characteristic of:
Explanation: Public corporations are managed and controlled by democratic processes to ensure they serve the public interest.
29. A car in Japan costs 3,750 Euros. The exchange rate between the Euro and FCFA is 1 Euro = 550 FCFA. How much will a customer in Cameroon need to purchase the car?
Explanation: The cost is calculated by multiplying 3,750 Euros by the exchange rate of 550 FCFA per Euro (3,750 × 550 = 3,200,750 FCFA).
30. When an indirect tax is imposed on a good with inelastic demand, a greater burden of the tax falls on the:
Explanation: For goods with inelastic demand, consumers bear a larger portion of the tax burden because their demand does not decrease significantly with higher prices.
31. The supply of labour may likely be reduced by an increase in:
Explanation: If the working week increases, individuals may reduce the supply of labor due to the greater time commitment required.
32. Consider the following examples of taxes:
Company tax = 4 million FCFA, value-added tax = 2 million FCFA, CRTV tax = 10 million FCFA and personal income tax = 8 million FCFA. Calculate the value of indirect taxes.
Explanation: Indirect taxes include VAT and CRTV tax, which total 2 million FCFA (2 million + 10 million = 2 million).
33. The main aim of government's policy of planned location of industry is to:
Explanation: The policy of planned location of industry aims to reduce transportation costs, improve access to raw materials, and promote efficiency.
34. The road linking Bamenda and Yaoundé is an example of a:
Explanation: A free good is one that is available in abundance and is not subject to the forces of demand and supply, such as roads or public infrastructure.
35. What is the form of agriculture involved with the practice of mono-cropping over a large piece of land?
Explanation: Plantation agriculture involves mono-cropping over large areas of land, typically focusing on a single cash crop.
36. A firm raises revenue internally through:
Explanation: Retained profits are a source of internal funding as they come from the firm's earnings rather than external borrowing.
37. Which of the following can cause a complete shift of the supply curve to the right?
Explanation: Higher disposable income can increase production and demand, shifting the supply curve to the right.
38. If the national income of a country is estimated at 851,400 million FCFA and its population is 9 million people, the per capita income is:
Explanation: Per capita income is calculated as national income divided by population.
39. A characteristic of developed countries is low:
Explanation: Developed countries are characterized by high standards of living, low dependency ratios, and high life expectancy.
40. A public limited company (PLC) is considered as a separate legal entity because:
Explanation: A PLC is treated as a legal entity distinct from its shareholders and management, allowing it to engage in legal actions independently.
41. A tax that takes an increasing proportion of income as income decreases is called:
Explanation: A progressive tax is structured so that taxpayers pay a higher percentage of their income as their income rises.
42. Use Table 3 and answer the question that follows.
| Output (kg) | 0 | 1 | 2 | 3 |
|---|---|---|---|---|
| Total Costs (FCFA) | 400 | 600 | 1000 | 1300 |
Calculate the variable costs when output is 2 kg.
Explanation: Variable costs are calculated by subtracting fixed costs from total costs. In this case, fixed costs are 400 FCFA.
43. A market structure in which there is a single seller and single buyer of a good is:
Explanation: A bilateral monopoly exists when there is one seller and one buyer in a market.
44. A temporal balance of payments deficit can be solved by:
Explanation: A balance of payments deficit can be mitigated by enhancing local investments to boost domestic production and exports.
45. Which of the following groups of countries are members of the CEMAC economic organisation?
Explanation: The Central African Economic and Monetary Community (CEMAC) includes member states within Central Africa.
46. The grouping of population into males and females is known as:
Explanation: Sex distribution refers to the demographic division of a population based on gender.
47. When the numerical value of price elasticity of demand is 0.2, demand is said to be:
Explanation: A price elasticity of demand less than 1 indicates that demand is inelastic, meaning quantity demanded changes only slightly with price changes.
48. This question is based on Figure 2 below, which shows changes in the shape of the long-run average costs of production (LAC).
From the shape of the curve at output X, it can be concluded that the firm is experiencing:
Explanation: At output X, the long-run average cost curve slopes downward, indicating economies of scale.
49. Cyclical unemployment can be remedied by an increase in:
Explanation: Cyclical unemployment occurs due to reduced demand for goods and services, which can be addressed by stimulating aggregate demand.
50. Public roads and street lights are examples of:
Explanation: Public roads and street lights benefit society as a whole and are considered examples of social wealth.
