G.C.E O/L ECONOMICS 2005 PAPER 2
1 (a) Write examples, distinguish between
(b) State and explain four reasons for migration
2 Explain with examples the following economic terms:
(a) Internal economies of scale
(b) External economies of scale
(c) Why do small firms survive in an industry with large firms in spite of the advantages of large scale of production? Explain only four reasons.
3 (a) Assume that a storm destroyed the Cameroon Development Corporation (CDC) tea plantations in Cameroon. Using demand and supply diagrams. Explain the effect of this on:
(i) The price of tea
(ii) The price of coffee.
(b) Explain any five factors that may determine the supply of a commodity
4 The central Bank of a country has many determine the supply of a commodity which to control credit in an economy state any five such instruments and explain how each is used.
5 (a) Define
(i) Balance of Trade
(ii) Balance of payments
(b) Name and describe any two accounts of the Balance of Payments.