Cameroon GCE ordinary level June 2025 Economics 2
Cameroon GCE ordinary level June 2025 Economics 2
Define the following terms:
| Integration of firms, External economies of scale, Efficiency of labour, Indirect production. |
(ii) (iii) (i) (iv) |
1. (a)
(2 marks)
(2 marks)
(2 marks)
(2 marks)
The following are examples of internal and external economies of scale;
Marketing economies,
Organised market,
Financial economies,
Ancillary services,
Risk bearing economies,
State and explain THREE (3) advantages of horizontal integration.
(b)
(6 marks)
(6 marks)
| (a) | Define the following |
| • (i) (ii) (iii) |
Exports, Exchange rate, Currency appreciation, Terms of trade. |
(2 marks)
(2 marks)
(2 marks)
(iv) (2 marks)
(b) The following are examples of tangible and intangible items of the current account:
– Dividends
– Interest
– Cotton
– Cocoa
Attempt a classification of the above into visible and invisible items.
(c) State and explain FOUR (4) reasons for trade restriction.
– Timber
– Insurance
– Aviation
– Banana
3. (a) Define the following :
(i) Budget surplus,
I
| (ii) | Debt servicing, |
| (iii) Tax base, | |
| (iv) | Regressive tax. |
| Distinguish between the following concepts: | (b) |
| (i) | Tax impact and tax incidence, |
(ii) Dead weight debt and reproductive debt.
State and explain TWO (2) effects of taxation to the economy.
4. (a) Given the economy of your Country, what will be the nature of price elasticity of demand
the following goods?
Electricity,
Biscuit,
Pipe born water,
Salt.
in relation to
(i) (2 marks) .
(b) State the corresponding words to the following:
Price set below the equilibrium price.
Price set above the equilibrium price.
A condition in which quantity demanded is equal to quantity supplied.
(i) (2 marks)
(2 marks)
(2 marks)
(ii)
(iii)
(c) State and explain THREE (3) uses of price elasticity of demand to the producer (businessman). (6 marks)
5. (a) Define the following;
(i) Privatisation;
% *
(ii) Limited liability,
Deed of partnership,
Prospectus,
(b) “ALPHA and OMEGA” is a company created to produce animal feed, The capital raised through the sale
of securities is as follows:
100 5% preference shares at 1OOOfrs each,
50 10% debentures at 5000frs each,
200 ordinary shares at 2000frs each,
(i) Calculate the total capital raised through the sale of the above mentioned securities.
Explain THREE (3) differences between debentures and shares.
r
(iii)
(iv)
(6 marks)
(ii) (6 marks)
Define the following;
Mode,
(ii) Scarcity,
(Hi) Utility,
(iv) Consumer sovereignty,
(b) (1) State and explain THREE (3) advantages of a market economy
(ii) State and explain THREE (3) Characteristics of a public good.
6. (a)
(i) (2 marks)
