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Economics Practice Assessment: Paper 2

This section contains structured essay questions and theoretical analysis.

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SECTION A

1. * (a) Why do economists disagree? (10mks)

• (b) Identify and explain the characteristics of public goods. (10mks)

2.

• (a) Distinguish between a decrease in demand and a decrease in quantity demanded. (10mks)

• (b) Discuss the factors that may lead to a fall in the demand for computers in Cameroon. (10mks)

3.

• (a) What are the sources of monopoly power? (10mks)

• (b) How can oligopolistic firms increase their market share? (10mks)

4.

• (a) Distinguish between:

  • (i) Profit and interest. (4mks)

  • (ii) Idle and active balances. (4mks)

• (b) What are the factors that influence the transactionary demand for money? (12mks)

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SECTION B

5.

• (a) Why are economists interested in studying the national income of a country? (10mks)

• (b) Describe the problems involved in measuring national income. (10mks)

6.

• (a) Explain the various ways that the central bank can use to restrict lending by commercial banks in Cameroon. (10mks)

• (b) What are the problems faced by commercial banks in Cameroon? (10mks)

7.

• Distinguish between the reproductive and the deadweight debt; what are the sources of government revenue? (20mks)

8.

• (a) Under what conditions will a devaluation succeed in proving a balance of payments deficit? (10mks)

• (b) Why will a devaluation first worsen a balance of payments deficit before improving it? (10mks)

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END!