Cameroon GCE O/L June 2003 Economics paper 2

G.C.E O/L ECONOMICS 2003 PAPER 2

1 (a) Explain giving example in each case the following types of integration of firms

(i) Vertical integration

(ii) Horizontal integration

b (i) State three advantages that firms derive from vertical integration

(ii) State the advantages that firms derive from horizontal integration

2 (a) Explain the following aspects of international trade

(i) Balance of trade (BOT)

(ii) Balance of payment (BOP)

b) The increase importation of used cars and trucks from Europe has several economic effects on the Cameroon economy. State and briefly explain four positive effects.

3    A) (i)  What is a direct tax. Give one example

(ii) What is an indirect tax. Give one example

b) State and explain three probable economic effect of each of the following

(i) an increase in income tax

(ii) a 3% reduction in V.A.T

4    A) Define inflation

(b) Briefly distinguish between Cost push inflation and demand pull inflation

(i) During a period of inflation

(ii) Who are likely to gain and why?

(iii) Who are likely to lose and why?

5 A) Explain the following concepts

(i)  An optimum population

(ii) Overpopulation

b) State and explain three very important reasons why a country should carry out head count of its population