cameroon gce O level June 2023 Economics 2

cameroon gce O level June 2023 Economics 2

cameroon gce O level June 2023 Economics 2

Identify the following internal economies of scale;
(i) Large firms find it easier to borrow from financial houses because they have valuable assets for use as collateral.
(ii) The ability for large firms to hire experts’ sales men and expert buyers to reduce sales cost or huge discounts respectively.
(iii) When large firms produce varieties such that a fall in the price of one can be made good by an increase in the demand for other.
(iv) The ability of large firms to make better use of large equipment, specialization, full use of machines and
better use of capital assets without use of smaller models. 1+1+1+1(4 marks)
(b) State and explain Four (4) external economies of scale. (8 marks)
(c) State and explain Four (4) reasons why firms grow in size. (8 marks)

2. (a) Briefly explain the following;.
(i) Visible trade.
(ii) Invisible trade.
(iii) Current account.
(iv) Capital account. 2+2+2+2= (8 marks)

(b) State and explain Four (04) advantages of international trade to a country like Cameroon.
(c) Explain Two (02) methods that the Cameroon government will use to restrict international trade. (8 marks)
(4 marks)

3. (a) Distinguish between the following;
(1) Direct and Indirect taxes.
(ii) Progressive and Regressive tax system.
(b) State and explain Three (03) advantages of direct taxes.
(c) Explain Three (3) sources of government revenue other than taxation.’ 4+4= (8 marks) (6 marks) (6 marks)

4. (a) Briefly define the following;
(i) Joint demand.
(ii) Competitive demand.
(iii) Joint supply.
(iv) Competitive supply.
(b) State and explain Four (04) factors influencing the elasticity of demand for a commodity.
(c) Explain Two (02) determinants of price elasticity of supply. 2+2+2+2=(8 marks) • (8 marks) (4 marks)

5. “LIFELESS LTD” is a company producing and selling funeral materials and it is owned by NGEME’S Family
To raise additional capital in 20XX, the company decide to sell the following securities to members. 200 preference shares at 5000 FRS per share,
400 ordinary shares at 10000 FRS per share, and
100 debentures at 1000 FRS each.
(a) How much capital will the company raise through the sale of all these securities? (8 marks)
(b) Explain Two (2) weaknesses of this kind of business structure. (4 marks)