Advanced level 2025 South West mock Economics 2

SECTION A

1. a). With the aid of diagrams, distinguish between the short run average cost curve and long run average cost curve. (10 marks)

b). Examine the economic effects of labor immobility on an economy. (10 marks)

2. a). With the aid of diagrams, briefly explain the following:

   i. Convergent cobweb (6marks)

   ii. Divergent Cobweb (6marks)

b). For what reasons should government intervene in the agricultural sector? (8 marks)

3. a). What are the similarities between monopolistic competition and oligopoly market? (10 marks)

b). How can the government regulate monopoly activities in an economy? (10 marks)

4. a). With the aid of diagrams explain the various ways through which trade unions can increase the wages of their members. (12 marks)

b). What are the negative effects of trade union activities on an economy? (8 marks)

SECTION B

5. a) Distinguish between a change in consumption anda change in the propensity to consume. (4+10 marks)

b). How can private sector investment be encouraged in Cameroon? (6 marks)

6. a). What are the causes of demand-pull inflation? (8 marks)

b). How can the government control cost-push inflation? (12 marks)

7. a). When is a tax system said to be a good one? (12 marks)

b). What are the various components of government expenditure? (8 marks)

8. a). Why should the government seek to correct a long-term balance of paymentsdeficit? (8marks)

b). Discuss the measures that can be adopted to correct a persistent deficit on the BOP.(12 marks)