Advanced level 2024 CASPA mock Economics 1
Advanced level 2024 CASPA mock Economics 1
1. An economic law is:
A. Based on an act of parliament
B. The result of successful government policy
C. A statement of general tendency which seems to apply in the
real world.
D. A theoretical tool of economics with no relevance in the real
world.
2) Which of the following is a normative statement?
A) Students allowances should be increased and school fees
should be reduced
B) Unemployment rate in Cameroon stands at 5%
C) Motivations increase a worker’s efficiency.
D) Prices of some petroleum products were recently increased by
15% in Cameroon
3) A firm can produce a number of possible combinations of two
goods. It can either produce 200 of good X and 300 of good Y,
or 250X and 275Y. What is the opportunity cost of producing
extra 50 units of good X?
A) 25Y
B) 50Y
C) 100Y
D) The extra wages paid to the workers.
4) Which of the following characteristics of a capitalist economy
is implied in the statement, “production decisions are based on
the preferences of consumers”?
A. Freedom of choice
B. Consumer sovereignty
C. Self-interest
D. Over reliance on price mechanism
5) Footloose industry occurs when:
A. Labour is geographical immobile
B. Firms fail to exploit economies of scale
C. Industry gains no cost advantage from any one site.
D. The initial reasons for location have disappeared.
6) Which of the following mergers between two firms is an
example of vertical integration?
A) A car manufacturer and a car rental firm
B) A bank and a super market
C) A tin mine and a coal mine
D) A restaurant and a bakery
