Cameroon GCE advanced level June 2026 economics 2

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SECTION A

Question 1

• (a) How can efficiency of labour be improved in an economy? (10 marks)

• (b) In what ways can the government improve on geographical mobility of labour? (10 marks)

Question 2

• (a) Why might the prices of agricultural products fluctuate? (10 marks)

• (b) Explain the problems faced in implementing the buffer stock scheme in price stabilization. (10 marks)

Question 3

• (a) What difficulties might a firm experience in practising price discrimination? (10 marks)

• (b) Give the advantages of price discrimination. (10 marks)

Question 4

• (a) Why are trade unions desired in modern industries? (10 marks)

• (b) Under what circumstances might a trade union secure increased earnings for its members? (10 marks)

SECTION B

Question 5

• (a) When will an increase in national income indicate an improvement in the standard of living for a country? (12 marks)

• (b) How can the problem of double counting be eliminated when measuring national income? (8 marks)

Question 6

• (a) With the aid of a diagram(s), distinguish between active and idle balances. (12 marks)

• (b) When will the demand for active balances be expected to fall in an economy? (8 marks)

Question 7

• (a) With the use of a numerical example, explain how value added tax is calculated. (12 marks)

• (b) What is the importance of value added tax to the economy of Cameroon? (8 marks)

Question 8

• (a) Distinguish between devaluation and depreciation of a currency. (8 marks)

• (b) What are the advantages of floating exchange rates? (12 marks)