Cameroon gce A level Economics 2017 Paper 2

SECTION A

1. (a) Distinguish between Microeconomics and Macroeconomics.                             (5 marks)

(b)           Why is Economics considered as a science?                                                                                            (15 marks)

2. (a) Why would sellers generally offer a greater quantity in the market the higher the price?                             (12 marks)

(b)           Is there any exception to this generalization?                                                                                            (8 marks)

3. Should a firm in perfect competition cease production if it fails to cover its costs? (20 marks)
4. (a) Why is interest paid for the use of someone else’s capital?                             (4 marks)

(b)           Why do many interest rates, exist in Cameroon?                                                                                   (16 marks)

SECTION B

5.(a) Differentiate between injections and leakages in the various types of economies.                                                                                                                                                                                                                                                                                            (10 marks)

(b)           With the use of a diagram, show how they can be used to determine equilibrium national income in a -closed but governed-economy    (10 marks)

6.(a) How do commercial banks create credit?                                                                                                                                                                                                                                                                                                                                                                                                                                           (6 marks)

(b)         In what ways can the Bank of Central African States (BEAC) control this credit creation? (14 marks)

7.”The Phillips curve is not relevant to the realities of the economy of Cameroon.” Discuss. (20 marks)

8.

(a)What is meant by terms of trade?                           (8 marks)

(b)           Discuss the factors which could improve upon the terms of trade of a country.