Cameroon GCE advanced level June 2025 economics 3

Here are the extracted questions from the provided image, maintaining the original format:

1. Carefully read the excerpt below and answer the questions that follow:

   The people and institutions that combine together to convert resources into finished products and distribute them to users collectively form the economic system or the economy.

   ….a modern economy is a complex system. While no two economies are exactly the same, it is possible to identify three types of economic systems or economies.

   Each type of economic system is characterised by the role played by its government in taking decisions and influencing the operation of the economy.

   Source: Success in Economies; Chris Nuttall, Derek Lobley; 4th Edition Page 21.

   a) Which economic term best describes the underlined phrase in the excerpt? (2 marks)

   b) Apart from the traditional economy, identify two other economic systems. (2 marks)

   c) What type of economic system exists in Cameroon? Give one reason. (4 marks)

   d) (i) State two advantages of the economic system identified in (c) above. (4 marks)

   (ii) Distinguish an economy from an economic system. (4 marks)

   e) State two roles played by the government in the economy of Cameroon. (4 marks)

2. Study the following information about the market for rice produced by a non-governmental organisation (NGO) and answer the questions that follow.

   | Price FCFA | Quantity demanded (000s kg) per week | Quantity supplied (000s kg) per week |

   | :——— | :———————————– | :———————————– |

   | 900 | 300 | 620 |

   | 800 | 350 | 600 |

   | 700 | 440 | 570 |

   | 600 | 450 | 530 |

   | 500 | 490 | 490 |

   | 400 | 530 | 450 |

   | 300 | 570 | 410 |

   a) What is the equilibrium or market price and why? (3 marks)

   b) If the government imposes a minimum price of 600 FCFA per kg of rice,

   (i) How many kilograms of rice will she have to buy to make sure that this policy works? (2 marks)

   (ii) Calculate the total cost of the quantity implied in (b) (i) above to the government. (3 marks)

   c) List four negative consequences of the minimum price legislation. (4 marks)

   d) State four factors that could lead to an increase in the demand for rice. (4 marks)

   e) Enumerate four factors that will make the supply of rice more elastic. (4 marks)