Advanced level 2025 North West regional mock Economics 2

Advanced level 2025 North West regional mock Economics 2

Advanced level 2025 North West regional mock Economics 2

SECTION A
1. a) Why is the concept of optimum population considered to be dynamic? (10marks)
b) Outline the procedure necessary for partnership form of business to become a public
limited company. (10 marks)
2. a) With the aid of diagram(s), show how the effect of an increase demand for a good on its
price likely depends on the time period. (12 marks)
b) What factors may increase the price elasticity of supply of a good? (8 marks)
3. a) Justify why perfectly competitive markets are desirable. (10 marks)
b) Distinguish between oligopoly and monopolistic competition. (10 marks)
4. a) With a diagrammatic illustration, explain how quasi rent is different from economic rent?
(10 marks)
b) Identify and explain the factors that will likely increase the demand for labour. (10 marks)
SECTION B
5. a) With the aid of a diagram, explain equilibrium national income in a three-sector governed
economy. What are the factors that may cause it to change? (12 marks)
b) Examine the factors that will likely increase the level of household savings in Cameroon.
(8 marks)
6. a) Show how inflation may result in an arbitrary redistribution of income and wealth in an
economy. (8 marks)
b) Suggest the measures that BEAC may likely use to restrict the ability of commercial banks
to create credit. (12 marks)
7. a) Explain what you understand by national debt. Why does the government borrow? (10 marks)
b) With the use of examples, explain how automatic stabilizers function in a boom situation.
(10 marks)
8. a) For what reasons may a government seek to eliminate a large surplus on the current
account of the balance of payments? (10 marks)
b) Suggest the demerits of import restrictions for a country like Cameroon. (10 marks)