cameroon gce A level June 2023 Economics 2

cameroon gce A level June 2023 Economics 2

cameroon gce A level June 2023 Economics 2

SECTION A
(a) What arc the economic concepts illustrated by the production possibilities curve?
(b) Distinguish between the inductive and deductive methodologies used in economics.
(14 marks)
(6 marks)
1 .
Using the income and substitution effects, explain the shape of a normal demand curve. (10 marks)
Bring out the likely factors that will lead to an increase in the supply of a good.
2. (a)
(b) (10 marks)
3. Why will private sector firms produce at the output where marginal cost (MC)
equals marginal revenue (MR) ?
Apart from profit maximization, what are the other objectives of private sector firms?
(a)
(12 marks)
(b) (8 marks)
4. (a) For what reasons might two workers in a cement company in Cameroon earn different wages ?
(12 marks)
(b) Why do some employers discriminate against female labour? (8 marks)
SECTION B
(8 marks)
(12 marks)
(a) Describe the components of total final expenditure in an economy.
(b) Explain the determinants of private sector investment.
5.
With the aid of a diagram or diagrams, distinguish between active and idle balances.
When will the demand for active money balances be expected to fall in an economy?
(12 mark)
(8 marks)
6. (a)
(b)
Identify the various sources of government revenue in Cameroon . (8 marks)
Discuss the economic consequences of increasing income taxes on
(i) consumption.
(ii) the distribution of income.
(iii) the general price level .
7. (a)
(b)
(4*3 =12 marks)
(a) Explain the current account component of the balance of payments.
(b) What measures can be adopted by the government to solve a balance of payments surplus
in the short run?
8. (10 marks)
(10 marks)