To extract these questions into a WordPress-friendly format, I have organized them using clear headings, bolded question stems, and bulleted lists for the options. This layout is designed to be easily “copy-pasted” into a classic or block editor.

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Economics Practice Assessment: Paper 1

Below is a collection of multiple-choice questions covering microeconomics and macroeconomics principles, specifically tailored for regional examination standards.

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Section A: Microeconomics

1. A Giffen good is a good for which:

• [A] Demand increases as income falls

• [B] Demand falls as income increases

• [C] Quantity Demanded increases as price increases

• [D] Quantity Demanded remains constant as price increases

2. A footloose industry will tend to locate:

• [A] Close to major market

• [B] Near a major source of raw material

• [C] Anywhere it desires

• [D] In areas of improved transport

3. Question 3 is based on Fig 1 showing output and pricing of a given firm. The total abnormal profits earned by this firm are:

• [A] 5,000 FCFA

• [B] 3,000,000 FCFA

• [C] 750,000 FCFA

• [D] 2,250,000 FCFA

4. Given that the firm’s Price is 200,000 FCFA, its Average cost is 205,000 FCFA, if its total variable cost is 3,600,000 FCFA and it produces an output of 20 units. This firm should:

• [A] Continue production in the short run

• [B] Continue production in the long run

• [C] Shut down in the short run

• [D] Wind-up production in the short run

5. A firm in perfect competition maximizes profit by producing at an output level where:

• [A] AR = MR

• [B] MR > MC

• [C] AR = MC

• [D] MR = MC

6. The significance of freedom of entry & exit as a feature of perfect competition is that:

• [A] It enables firms to make normal profits in the long run

• [B] It reduces market supply in the long run

• [C] It enables firms to make abnormal profits in the long run

• [D] It enables firms to make a loss in the long run

7. Which of the following would cause the demand curve for iPhones to shift to the left?

• [A] A decrease in the price of iPhones

• [B] A successful advert of iPhones

• [C] A decrease in the price of iPhone substitutes

• [D] A decrease in consumer’s taste on iPhone substitutes

8. Given that: $Qd = 400 – 80P$ and $Qs = 120P – 200$ where Qd is the quantity demanded, Qs is the quantity supplied and P is the market price. If the government fixes a price at 2 FCFA; Determine the amount of shortage in this market.

• [A] 240

• [B] 40

• [C] 160

• [D] 200

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Section B: Macroeconomics & National Income

9. The total money value of output produced by the resources of a country irrespective of their location is known as?

• [A] National Income

• [B] Gross National Product

• [C] Gross Domestic Product

• [D] Total Domestic Product

10. The following information relates to the data of an imaginary economy where figures are in Million FCFA:

• Total Final Expenditure at market price: 22

• Gross Domestic Product at market price: 20

• Subsidies: 01

• Gross Domestic Product at factor cost: 08

• Gross National Product at factor cost: 18

What is the value of expenditure taxes?

• [A] 15 million FCFA

• [B] -13 million FCFA

• [C] 13 million FCFA

• [D] -15 million FCFA

11. An increase in National income will indicate an increase in welfare when there is:

• [A] An increase in price level

• [B] An increase in negative externalities

• [C] An increase in production of more capital goods than consumer goods

• [D] An increase in the control of negative externalities

12. In an Open (4 sector) economy with government activities, Consumption is composed of:

• [A] Imports and Export

• [B] Domestic Consumption and Export

• [C] Domestic Consumption and Import

• [D] Consumption of both Consumer and Capital goods

13. Which of the following is not an objective of Government’s monetary policy?

• [A] To achieve full employment

• [B] To achieve faster Economic Growth

• [C] Ensuring price stability

• [D] Ensuring income disparity between the rich and the poor

14. A commercial bank has a cash reserve ratio of 20% and if this bank realizes a maximum deposit of 10 million FCFA, the initial deposit of this bank is?

• [A] 200 million FCFA

• [B] 2 million FCFA

• [C] 500,000 FCFA

• [D] 12 million FCFA

15. The principle of Comparative cost advantage suggests that:

• [A] A country should concentrate resources in the good she has a lower domestic opportunity cost

• [B] A country should specialize in the output she has a higher domestic opportunity cost

• [C] A country should produce both goods if she can produce more than its trading partner

• [D] Should not specialize but trade with its trading partner

16. Which of the following is the most common form of money in a developing economy like Cameroon?

• [A] Cheque

• [B] Notes and coin

• [C] Bank draft

• [D] Debit cards

17. Fig 2 shows the change in a country’s production possibility curve from AB to CD. What would explain the change?

• [A] Consumers choose to consume more food and less drink

• [B] The government taxed food and subsidized drink

• [C] The government taxed drinks and subsidized food

• [D] Productivity rose in food production and fell in drink production

18. To control inflation in Cameroon, BEAC is most likely to:

• [A] Reduce the bank rate

• [B] Buy government securities in the open market

• [C] Increase the cash reserve ratio

• [D] Implement and expansionary monetary policy

19. Weight losing industries tend to locate:

• [A] Close to the source of raw material

• [B] Close to major markets