Advanced level 2023 south west regional mock Economics 1
Advanced level 2023 south west regional mock Economics 1
The difference by which aggregate demand
falls short of the aggregate level required to
maintain full employment in the economy of
Cameroon is called:
A. Inflationary gap
B. Deflationary gap
C. Income gap
D. Employment gap.
7. When an economist states that a firm will
hire workers up to the point at which the
extra yield or revenue obtained through the
last worker employed equals the wage rate
he receives, he is referring to:
A, The marginal productivity theory
B, The average productivity theory
C, The wages fund theory
^8.^^The J^equation T^ubsjstencettjeor “of exchange^maintains ^vages^that ^^the ^
general price level varies directly with the
total volume of money in circulation and the
velocity of its circulation, and inversely with
the total volume of transactions. Which of
the following equations explains the above
propositions?
A. M=PT/T
B. V=PT/M
C. P=MV/T
D.T=PV/V.
. Given the age structure of a hypothetical
country as follows:
Number of people below 16 years
Number of people above 64 years
Number between 16 and 64 years 28 million
9. What is the dependency ratio of this country?
A. 1: 4
B. 2: 3
C. 1:2
D. 40 %
l. A slock exchange speculator who purchases
stocks and shares in anticipation of a price
rise to later sell them at a profit is called:
A. Speculator
B. A bear
i
C. A bull
D. A stock buyer.
2. The idea that higher tax rates wilt eventually
lead to a decline in tax revenue is explained
by the:
A. Lorenz curve
B. Phillips curve
C. Laffer curve
D. Supply curve.
3, What is the value of the G D P at factor cost
from table 1 below? (Tigs, in Million FCFA1.
S/N Description Amount
1. Consumer expenditure
at market prices
Public
12,000
2. authorities 3,200
current expenditure
3. Gross Domestic
Investment in . fixed
capital and stocks
Exports of Goods and
Services
–
Imports of goods and
3,500
i
4. 3,500
5. 3,600
services
Net property income
from abroad ‘
Taxes on expenditure
Subsidies
Capital consumption
6. 1,000
7. 2,800 8 million i
8. 300 6 million
9. 1,500
A. 16,100 million francs
B. 16
,200 million francs
C. 14
,800 million francs
D. 14
,700 million francs.
4. In an open economy with government sector,
the equilibrium income is attained when it
satisfies one of the equations below:
A. I+G+T=S+X-M
B. I=S
C. I+G-S+T
D. I+G+X=S+T+M.
5. An economy in equilibrium has the following
consumption function: C =200 million francs +
0.6 Y, and Investment is 800 million francs. If
investment spending increases to 1,200 million *
francs, what would be the new equilibrium level
of national income?
A. 2
,500 million francs
B. 3
,500 million francs
C. 3,000 million francs
D.1,000 million francs.
t
10. A 2 % rise in the price of good X leads to a
5% increase in the demand for good Y ,
Goods X and Y are therefore:
A. Complementary goods
B. Substitute goods
C. Unrelated goods
—
D
^_P u b l i c goods,
11. In what way does a monopolistically competitive
firm resemble a perfectly competitive firm?
A. They produce heterogeneous products
B. Both firms are likely to earn zero
economic profit in the longC. They restrict the entry of new firms into
the industry
D. They both produce differentiated
products.
