Economics 2
0525
GENERAL CERTIFICATE OF EDUCATION BOARD
General Certificate of Education Examination
June 2024 ORDINARY LEVEL| Subject Title ..... .... ......... ..... ....... .... .... | Economics |
|---|---|
| Subject Code No. | 0525 |
| Paper No. | 2 |
Duration: Two Hours
You are required to answer ANY FIVE questions. ONLY THE FIRST FIVE QUESTIONS ANSWERED WILL BE MARKED
All questions carry equal marks
You are remnded of the necessity for good english and orderly presentation in your answers
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1. (a) Define the following:
(i) Immigration.
(ii) Population census.
(iii) Death rate.
(iv) Rural exodus. (2+2+2+2=8 marks)
(b) State and explain Four (04) effects of rural urban migration to the urban centres. (8 marks)
(c) Distinguish between a growing population and an ageing population. (4 marks)
2. (a) Define the following:
(i) A Plant.
(ii) A Firm.
(iii) Vertical integration.
(iv) Conglomerate. (2+2+2+2 = 8 marks)
(b) (i) State and explain Three (03) examples of external economies of scale. (6 marks)
(ii) Explain Three (03) importance of small firms to the economy of Cameroon. (6 marks)
3. (a) Study the table below which shows the demand and supply schedule for fish in a cold store and answer the questions that follow:
| Price (Fcfa) | Quantity Demanded (kg) | Quantity Supplied (kg) |
|---|---|---|
| 100 | 10000 | 200 |
| 200 | 8000 | 500 |
| 400 | 4000 | 1500 |
| 500 | 2000 | 2000 |
| 600 | 1000 | 4000 |
| 700 | 750 | 6000 |
(b) (i) What is the equilibrium price and why? (1+1=2 marks)
(ii) Calculate the Price Elasticity of demand as price rises from 400frs to 600frs. (4 marks)
(c) If the government fixes the price of fish at 600frs per kg:
(i) What name will you give to such a price? (2 marks)
(ii) How many kgs will the government have to buy in order to enforce this price? (2 marks)
(iii) Suppose the government instead imposed a price of 200frs per kg. List four effects of such a price? (4 marks)
(d) State and explain any three factors that will influence the demand for a commodity. (6 marks)
4. (a) Explain any Four (04) qualities of good money. (8 marks)
(b) (i) State and explain Three (03) ways by which commercial banks create credit. (6 marks)
(ii) State and explain Three (03) limitations of the ability of commercial banks to create credit. (6 marks)
5. (a) Distinguish between:
(i) Devaluation and revaluation. (4 marks)
(ii) Absolute advantage and comparative cost advantage. (4 marks)
(b) What do you understand by the following?
(i) Terms of Trade.
(ii) Balance of Trade.
(iii) Balance of Payment. (2+2+2 = 6 marks)
(c) State and explain three arguments for trade restrictions. (6 marks)
6. (a) Explain four determinants of the size of the national income. (8 marks)
(b) Explain three problems encountered when measuring national income. (6 marks)
(c) Briefly explain the following:
(i) Consumption.
(ii) Investment.
(iii) Gross Domestic Product. (2+2+2 = 6 marks)
7. (a) (i) State and explain three causes of economic growth. (6 marks)
(ii) Explain three limitations of economic growth. (6 marks)
(b) Explain three disadvantages of economic growth. (6 marks)
(c) List two characteristics of underdevelopment. (2 marks)
8. (a) Distinguish between the following:
(i) Dead weight and reproductive debt. (4 marks)
(ii) Budget surplus and budget deficit. (4 marks)
(iii) Tax impact and tax incidence. (4 marks)
(b) State and explain four reasons why the government collects taxes. (8 marks)
