Ordinary level 2025 CASPA mock Economics 2

Posted on May 29, 2025 by T- frank

Ordinary level 2025 CASPA mock Economics 2

1. a) Define the following concepts as used in economics

i)
ii)
iii)
iv)

Division of labour
Efficiency of labour
Economies of scale
Cost of production (4 x 2marks = 8marks)

b) Explain four (4) functions of an entrepreneur as a factor of production (8marks)
c) Identify the types of economic systems represented by the statements below;
i) An economic system where the fundamental economic problems are solved by the forces of demand and
supply
ii) An economy where trade by barter is the ideal form of exchange
iii) An economic system where the state checks and control the production of goods by private individuals
iv) An economic system where the decisions of what, where, how and for whom to produce is taken by a
central planning authority (4 x 1mark = 4marks)
_______________________________________________________________________________________
2. a) State and explain five (5) differences between commercial banks and central bank (10 marks)
b) State and explain three (3) functions of BEAC (6marks)
c) Explain two (2) functions of a legal tender like FCFA (4 marks)
_______________________________________________________________________________________
3. a) State and explain four (4) uses of national income figures (8marks)
b) State and explain the three (3) methods used in measuring national income (6marks)
c) Briefly explain the following
i) Trade cycle
ii) Economic growth
iii) Gross national product (3 x 2 marks = 6marks)
5. a) List four (4) first aid measures used by the government to solve a balance of payment deficit (4marks)
b) State and explain four (4) distinctions between domestic trade and foreign trade (8 marks)
c) Differentiate between the following
i) Balance of trade and balance of payment
ii) Currency appreciation and revaluation of currency (2 x 4marks = 8marks)