cameroon gce A level June 2024 Economics 2

cameroon gce A level June 2024 Economics 2

cameroon gce A level June 2024 Economics 2

Economics 2
0725
GENERAL CERTIFICATE OF EDUCATION BOARD
General Certificate of Education Examination

JUNE 2024 ADVANCED LEVEL
Subject Title ECONOMICS
Subject Code No. 0725
Paper No. 2
t
Duration: Three Hours
Answer FIVE questions, choosing AT LEAST TWO from each section. All questions carry
equal marks.
You are reminded of the necessity for good English and orderly presentation in your answers

SECTION A
With the use of examples, differentiate between positive and normative statements.
Why do economists disagree?
(a) (8 marks)
(b) (12 marks)
Show how a firm in monopolistic competition will determine its price and output
in the short run and long run.
Give the characteristics of monopolistic competition.
(a)
(12 marks)
(b) (8 marks)
With the aid of separate diagrams, distinguish between an extension in demand
and an increase in demand .
What are the causes of an increase in demand for a product?
J. (a)
(12 marks)
(b) (8 marks)
Explain the advantages and disadvantages of government intervention in the location of industries.
(12 marks)
(8 marks)
4. (a)
(b) What are the disadvantages that sole proprietors face in Cameroon?
SECTION B
(5 marks)
(b) Does a rise in real national income per head provide the only suitable indicator of improvement in
living standards?
5. (a) How is nominal national income different from real national income ?
(15 marks)
(a) Describe the structure of the balance sheet of a typical commercial bank .
(b) What explains the composition of the assets of the balance sheet?
(12 marks)
(8 marks)
6.
(a) Define terms of trade and show when it can be favourable and unfavourable.
(b) What are the disadvantages of tariffs as a means of trade restriction?
(12 marks)
(8 marks)
7.
(10 marks)
(10 marks)
How can direct taxes be used to reduce income inequality in a country?
What are the disadvantages of Value Added Tax (VAT) to an economy ?

(a) How is nominal national income different from real national income ?
(15 marks)
(a) Describe the structure of the balance sheet of a typical commercial bank .
(b) What explains the composition of the assets of the balance sheet?
(12 marks)
(8 marks)

• Paper 1

• Paper 3