Cameroon GCE O/L June 2014 Economics paper 2

G.C.E O/L ECONOMICS 2014 PAPER 2

1. (a)Distinguish between location and localization of industries. (4 marks)

(b)  State and explain with relevant examples five (5) factors that will influence the location of industries in Cameroon (10 marks)
(c) Explain three (3) disadvantages of localization of industries. (6 marks)

2. The National Income of some countries are as follows;

Using the statistics above;

a. Calculate the per capital income of each country. (8 marks)

b. Which country is enjoying the highest standard of living and why? (2 marks)

c. Explain any five (5) factors that will determine the size of the national income of a country. (10 marks)

3. (a) State and explain three (3) main objectives of a commercial bank. (8 marks)

(b)Explain four (4) measures which the government of Cameroon will use to control the supply of money in the economy. (12 marks)

4. Study the following supply and demand schedules for a commodity for a free market.
Price per Kg (in CFA Francs)

a. Determine the free market price. (2 marks)

b. If the government fixed a minimum price of 500CFA Francs per Kg; (4 marks)

i. How much will this cost the government? (6 marks)

ii. Explain three (3) economic effects of a maximum price legislation.

c. Explain four (4) factors that will influence elasticity of supply of this commodity. (8 marks)

5. (a) What do you understand Balance of Payments? (4 marks)

(b) Explain any four (4) options opened to a country with a balance of payment deficit.   (8 marks)
(c) Explain four (4) that will encourage the development of trade amongst countries. (8 marks)

6. (a) Indicate the differences between a partnership and a public joint stock company from the view point of;

i. Liability

ii. Membership

iii. Control

iv. Finance   (10 marks)

v. Creation
(b) State and explain five (5) ways by which the productivity of labour can be improved.(10 marks)

7. (a) What do you understand by the terms;

i. Fiscal policy (3 marks)

ii. Monetary policy  (3 marks)
(b) State and explain four (4) that may promote economic growth in an economy. (8 marks)
(c)  Explain three (3) benefits of economic growth.    (6 marks)

8. (a)Distinguish between full employment and unemployment. (6 marks)

(b)  Define and give examples of;

i. Technological unemployment

ii. Seasonal unemployment

iii. Frictional unemployment   (8 marks)

iv. Cyclical unemployment
(c) State and explain three (3) measures which the government can use to solve the problem of unemployment in Cameroon.  (6 marks)